President Obama says he is mulling a range of candidates to succeed Ben Bernanke as chairman of the Federal Reserve, but whether his pick ends up being current vice chair Janet Yellen, Larry Summers or someone entirely unexpected, at least one outspoken central bank critic is sure that person won't lead our economy in the right direction.
"Of all the choices, Yellen is probably the worst of the bunch," says Peter Schiff, CEO of Euro Pacific Capital and author of The Real Crash, in the attached video. "I think the U.S. economy is in trouble regardless of who President Obama chooses because it's going to be more of the same policies that have brought the country to the brink of economic ruin."
And just who would Schiff like to see in the next Fed chief?
Short of being named himself to dismantle what he sees as the "excess speculation on Wall Street and the excess consumption on Main Street," Schiff believes "what the economy needs is higher interest rates and sound money." In addition he thinks the Fed needs to force the government to dramatically reduce its borrowing and its spending, and "the only way to do that is through higher interest rates."
While surveys of economists have consistently shown Yellen, the dovish vice chairman of the Fed, to be the front-runner, Schiff says she or any of the White House picks won't be up for the job.
"We're not going to get any of that so long as we have a Fed chairman that is complicit in what the government is doing to subsidize big government and excess to avoid the pain of doing the right thing," he says. "That's why the economy is suffering and why it's going to suffer so much more in the future."
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- President Obama
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