America has turned into a consumption economy, according to veteran stockbroker Peter Schiff, who points out that economies can’t run on consumption because then they become bubble economies.

According to Schiff, a vibrant healthy economy needs production, because you cannot consume what is not first produced.

Since our economy is so weak and we’re unable to produce the things that we’re consuming, America relies on strong international economies that are able to produce what we consume.

How long will the rest of the world subsidize America’s standard of living? How long will other countries prop up a dysfunctional, weakening US economy by supplying it with goods it cannot produce for itself? And then the dollar crashes and that’s the end of this game.

Because to the extent that we can only spend our dollars on the things that we produce ourselves, that’s where it hits the fan, because we’re not producing things. And then price increases are going to explode in a much more visible manner.

Prices are going up all over and we want to pretend that, well, this is a one-time thing. It’s transitory. It’s because of supply shocks or shortages. No. It’s a surplus of money. That is the problem. And we’re creating even more.

Money printing and shopping are driving the US economy and Americans are sitting at home getting stimulus checks and spending the money but they’re not producing anything.

Americans are buying stuff that they didn’t produce. There’s no productivity related to this money printing. And so, we’re going to see a surge in prices.

RT. com / ABC Flash Point Economy News 2021.

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08-05-21 12:34

Turned into? The USA has been a consumption economy for years. The economy was good in the past, so no one noticed how it derailed. With the frenzied $US printing, the US regime is desperately looking for places to start some chaos and wars. Remember… Corporate USA survives on war to prop up $US.

Reply to  The_Self_Chosenites
08-05-21 12:36

Casino economy?

08-05-21 12:37

The USA has been printing money not backed up by nothing for decades. And dollar hasn’t crashed yet simply because of its numbers having penetrated in to the market so deep ( all economies), that admitting that it has no value will hurt everyone. Like we said before it’s a virtual picker game with dollars being chips at the table and no bank behind it to cash them out when game is over. So everyone keeps playing as they don’t want to loose the chip pile supposed value of which there’s really none. So all dollar holding economies continue to… Read more »