The warning from the International Monetary Fund’s World Economic Outlook released yesterday was loud and clear: “Growth would stall in 2013 with the full materialization of the (fiscal) cliff…” Many large regions, including the entire world, saw growth forecasts cut by the IMF. But the world economists warned America’s economic problems are home grown.
They predict the U.S. will continue its tepid growth rate of near 2% if the fiscal cliff is averted. On the flip side, if we go over the cliff, the IMF predicts the automatic spending cuts and tax hikes due to set in at year-end would take more than 4% out of the GDP rate for 2013, tipping us back into recession.
Washington may not be reacting, but Peter Schiff, President & CEO of Euro Pacific Capital and author of “The Real Crash” is. He’s been beating the drum on America’s fiscal crisis, but it’s not necessarily the year-end cliff that could lead us into the next disaster.
You can see the full “Breakout” interview below:
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