Money manager Peter Schiff claims the real U.S. Gross Domestic Product (GDP) is closer to “$13 trillion” than the official government number of “$16.6 trillion.”
That is a discrepancy of $3.6 trillion! Schiff explains, “The government keeps telling us the economy is getting bigger, but millions of Americans are leaving the workforce. We’ve got record numbers of people on food stamps . . . and part-time jobs are replacing full-time jobs. How is that consistent with a growing economy? It’s not.” Schiff goes on to say, “It just makes perfect sense to me the economy is shrinking, yet the government is using phony numbers to try to convince us a shrinking economy is growing.” So, how does a shrinking economy pay off an enormous growing debt? Schiff contends, “So, when interest rates go up because the world realizes we have too much debt relative to the size of our economy, consumers can’t spend anymore, and now the economy collapses in size and the debt balloons . . .