Schiff: 'We're Going To Have A Major Economic Crisis,' 'Going To Take' One To Address Debt

Dan Joseph
By Dan Joseph | February 13, 2013 | 2:09 PM EST

Talk radio host and deficit hawk superstar, Peter Schiff, couldn't disagree more with Pres. Obama's claim in last night's State of the Union address that the sequester is dangerous and must be avoided.

In fact, Schiff, the CEO and Chief Global Strategist of Euro Pacific Capital, thinks the sequester is absolutely necessary and that its current cuts are too small.

In an exclusive interview with MRCTV via Skype, Schiff said that deep cuts to government spending may hurt the economy in the short-run, but they're needed because government spending is the problem, not the solution:

"The best thing we can have is the sequester. The only problem with the sequester is that it's too small. We need even bigger cuts in government spending, and it will actually help the economy in the long run because government spending is a detriment - it's an impediment - to economic growth."

Schiff even went so far as to say that a "major economic crisis" isn't just inevitable, it's also necessary:

"We're going to have a major economic crisis if we don't address this. In fact, it's already going to take a major crisis to address it, because the problem is so bad."

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