Investment Banker Says 2012 May Have Been Economic ‘High Point’ of Obama’s Presidency

By Patrick Burke | February 4, 2013 | 11:20 AM EST

Investment banker Peter Schiff said whoever succeeds Obama as president will inherit a worse economy than Obama did in 2009. (AP Photo)

( - Peter Schiff, president of the investment firm Euro Pacific Capital, says the year just past “might be the high point of the Obama term” in terms of U.S. economic performance.

“Think about this. We’ve had a tax increase on everybody here in 2013, so Americans are going to be paying higher taxes,” Schiff said during a Jan. 31 appearance on “Russia Today,” the English-language news channel. “I think we’re going to have larger, not smaller, budget deficits, so I think 2012 might be the high point of the Obama term.”

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“Obama often talked about the lousy economy he inherited from Bush,” Schiff said. “Well now he’s dealing with the lousy economy he inherited from himself, and I think whoever succeeds Obama, the next president is going to actually inherit a worse economy than he did in his first term.”

At the beginning of January, Congress passed a deal to avert the so called “fiscal cliff” by raising taxes on all individuals earning $400,000 or more (and families earning $450,000 or more). The deal also allowed the payroll tax cut to expire, thereby raising taxes on 77.1 percent of U.S. households. And President Obama continues to insist on raising additional “revenue,” including closing tax “loopholes.”

During fiscal year 2012, which ran through October, the U.S. government racked up a budget deficit of $1.089 trillion.

And looking ahead, Obamacare, which takes full effect in 2014, is expected to push health insurance costs higher.

Schiff told “Russia Today,”I think the Obama recession is going to be much worse than the Obama recovery. And the Obama recovery has been the weakest recovery ever. You can imagine how bad the recession is going to be.”