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Dollars in federal spending cuts beginning to take effect in a Fox News poll.
Reveals 57% of voters say the only way.
To control the deficit through automatic spending cuts very little trust and congress.
Getting it done on its own Peter Schiff is the CEO of -- Pacific capital joins us from Stamford Connecticut today.
We've taken that Peter that that people look at this and say.
Well I don't know maybe it's not perfect but -- only way we're gonna cut spending.
Yeah out well I think so far I mean -- problem -- these cuts are large enough you know cutting government spending is good for the economy it's good for the dollar.
But these cuts are trivial maybe it's symbolic but it's not enough to really make a difference and unfortunately.
I think he's trivial cuts are gonna be more than offset.
By other increases in government spending that are gonna take place throughout the year that are gonna dwarf these you know miss -- clots that are part of this request.
You mentioned the dollar don't talk to about that in a moment but just to look at the stock market just a second before we do that.
He mentions a second ago mister morning is wrapping up his show how close we are now to this all time high and the stock market 20141000.
Eighty wants -- less than a hundred points 14160 -- the all time high.
What to make of this kind of collective stock market you on it all the budget talk and DC.
What any of that.
Well personally don't you just beat the stock market for inflation where we're -- -- near record high especially if you -- a real barometer not the CPI but look.
I think the market is it is missing the boat.
Missing -- point rather just like they did in 2007.
The last time we were this high you know when we were right you know around the corner was a financial crisis.
I think stock market investors are really oblivious to the problems they think they've been solved they think -- the Fed has an exit strategy that's credible it doesn't.
I think we're still headed for a worst economic crisis.
-- than the one that that we had -- 07.
But you don't think the real damage is not going to be in the stock market always going to be in the bond market okay we department -- -- but that's obviously and you're known for strong language that's pretty strong language saying we're headed for -- worse.
Crisis it's worse than what we went through a seven -- what do you mean by that what would look like.
Well I think I think we're gonna have a dollar crisis -- of the dollar's strengthening right now against some of the other Fiat currencies for I think you're gonna have a collapse in the dollar I think you're gonna have a huge spike in interest rates and I think our whole economy which is building on the foundation of cheap money and you'll gonna topple when you pull the rug out from under an enemy by the day but when having -- But that you know we could be talking about you can become -- for years and and eventually sell yeah Peter you're right or is it something that tape.
Well in minutes at this point your view yet it could be years I don't think it's gonna be decades and I don't think Obama is gonna finishes his second term without the bottom dropping out so I think -- crisis is evident that doesn't mean it's gonna happen tomorrow but I think it's building and I think I'm more confident.
Of this call that I was about the call I've made regarding housing bubble in the financial crisis and I think this should be even more obvious what's amazing to me.
Is the same people that missed the last price crisis right are oblivious to this one they've learned nothing from their past mistakes they just keep on repeating that route before the end of a second Obama term that's the prediction Peter Schiff.