“Donald Trump should already be disappointing a lot of people who thought we were going to get change, we were going to make America great again,” Investment Watch quoted Schiff as saying.
“We didn’t repeal Obamacare, that’s here to stay. Major tax reform is dead. We’re dropping bombs,” IW quoted Schiff as telling Future Money Trends.
“I mean it’s the same old same old right? Big government… bigger deficits… more cheap money… keep the air in the bubble. We’re headed for a major major crisis,” Schiff said.
Schiff also investors to keep an eye on the U.S. dollar, which Trump himself last week said was too strong.
“The dollar is living on borrowed time, literally. And so we just don’t know. It’s like a bomb with a fuse, but we just don’t really know how long the fuse is,” Schiff said.
“The dollar, I think is in a major bubble. I think it is in the process of topping out. I think once it completes this top it’s going down. And I think it’s going to take out the lows from 2008,” Schiff said.
“I think it’s going to go down for the count. Because the last time, what saved the dollar was the financial crisis, and that crisis resulted in everybody buying the dollar. But I think the next crisis is not going to be the same crisis that we had in ’08,” Schiff said.
“I think the dollar is going to be the crisis. I don’t think it’s going to be a bread and butter financial crisis. This is going to be a currency crisis. So it’s going to be the US government," Schiff predicted.
"It’s not going to be the mortgage markets that’s blowing up. It’s going to be the Treasury bond market that’s blowing up. It’s going to be the Federal Reserve that’s blowing up. And this is going to be a major major negative for the dollar, not a positive,” Schiff said.
Even Trump's former economic adviser cautions the president about his apparent recent policy reversal on the greenback.
Stephen Moore, one of Donald Trump's economic advisers during the campaign, said he was not concerned about most of the president’s latest policy flip-flops, but disagrees that the U.S. currency is too powerful.
“Advocating a weaker dollar is I don’t think good policy or good politics,” Moore told The Washington Post. “A strong dollar is a strong president, and a weak dollar is a weak president,” the Newsmax Finance Insider said.
Trump earlier this week said he won’t brand China a currency manipulator, retreating from core campaign promise, though he argued that a strong dollar is hampering the ability of American firms to compete.
“I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting — that will hurt ultimately,” he told the Wall Street Journal. “It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency.”
However, other respected economic gurus are much more optimistic and urge wary investors to keep faith in Trump.
David Horowitz, author of the best-selling book "Big Agenda: President Trump's Plan to Save America," told Newsmax TV that the market rally since Republican Donald Trump won the election has more room for gains as the president pushes his pro-business agenda.
“There's more upside. Starting from when he was president-elect he started this stock market boom,” he told the “The Income Generation Show.”
“There will be corrections. There are going to be setbacks along the way like the healthcare which they hurried too fast. If you're looking over the long term of this administration, I think the stock market is going to love Trump.”
Another of the most respected economic gurus of modern times also urges patience with the president.
Former Ronald Reagan adviser Larry Kudlow is urging any impatience investors to just give President Donald Trump to fully enact his strategies to reform healthcare, spark economic growth and redesign the tax system.
After all, Trump has been in office a relatively short time and has inherited a mountain of problems from the past two decades.
“He's trying to fix a lot of problems that have gone unfixed in the last 20 years,” Kudlow explained to CNBC.
- Source, News Max