Peter Schiff Says Biden, Powell Lied: How SVB's Government-Sponsored Rescue Plan Can Hurt Taxpayers

Noted economist and gold bull Peter Schiff took potshots at President Joe Biden and Fed President Jerome Powell in the wake of the developments surrounding the tainted Silicon Valley Bank owned by SVB Financial Group SVB.

What Happened: Biden has said the government “bank bailout” won’t cost taxpayers any money and it’s a lie, Schiff said.

“While it’s true that no one’s taxes will be raised to pay for it, the #Fed will print lots of money to cover the cost. That’s #inflation and everyone will pay higher prices as a result,” he said.

According to @POTUS the government bank #bailout won't cost taxpayers any money. That's a lie. While it's true that no one's taxes will be raised to pay for it, the #Fed will print lots of money to cover the cost. That's #inflation and everyone will pay higher prices as a result.

— Peter Schiff (@PeterSchiff) March 13, 2023

See Also: Bill Ackman Says Government Response To SVB Collapse Not Bailout: 'People Who Screwed Up Will Bear The Consequences'

Turning the heat on Powell, Schiff said the Fed knows the economy is so fragile that the failure of SVB would cause a financial crisis. “So it abandoned its #inflation fight and backstopped the banks instead,” he said.

“That proves #Powell was lying about both the strength of the U.S. economy and his resolve to fight inflation.

The #Fed knows the #economy is so fragile that the failure of #SVB would cause a financial crisis. So it abandoned its #inflation fight and backstopped the banks instead. That proves #Powell was lying about both the strength of the U.S. economy and his resolve to fight inflation.

— Peter Schiff (@PeterSchiff) March 13, 2023

Photo: Courtesy of Wikimedia Commons