Peter David Schiff, CEO and chief global strategist of Euro Pacific Capital Inc. believed that US economy is approaching to a massive recession. He thinks that the cut of interest rates by Federal Reserve last month was a big mistake.

“They never should have taken rates to zero in 2008 and held them there for 7 years,” said Peter Schiff. “Zero interest rates and quantitative easing have created problems in our economy that will take generations to fix. However, the healing will never get underway if the Fed goes right back to zero.”

He believes that it’s impossible to build a viable economy on the back of artificially low interest rates which pushes up asset prices, creates bubbles and malinvestments that hurt the economy. A sustainable successful economy can only improve on the foundation of market-set interest rates. He continued “the Fed is not causing the recession; they are just unable to delay it any longer.”