Peter Schiff: U.S. Debt Bubble Will Pop

Monday, January 26, 2009 11:57 AM

By: Michael Kling

Peter Schiff, the investor who called the subprime crisis well in advance, now says that the U.S. government debt bubble will pop.

Schiff, author and CEO of Euro Capital Pacific, says President Barack Obama wants foreigners to sacrifice and to keep financing mountains of U.S. government debt to bail us out of this mess.

A global economic contraction, however, will end that game, Schiff warns in The Wall Street Journal.

Obama calls for Americans to sacrifice. His idea of sacrifice, however, is lower taxes, more corporate bailouts, and checks mailed to the masses, Schiff says.

In reality, foreigners, especially the Chinese, Japanese, and Saudis, are being called on to sacrifice by funding America’s trillion-dollar deficits.

“That’s a trillion dollars each year for the foreseeable future on top of the trillions of dollars those countries have already financed,â€