Corrective Forces Building

But if I can't swim after 40 days
And my mind is crushed
By the crashing waves
Lift me up so high
That I cannot fall
Lift me up
--Jars of Clay

Whether Peter Schiff's prediction comes to pass remains to be seen, of course. But his premise is intuitive.

The U.S. is about to finish the financial crisis and Great Recession that began in 2008. The Fed merely succeeded in interrupting the market's cure for 10 years while allowing the underlying disease to get much worse. As a result, the relapse will be far more severe!

— Peter Schiff (@PeterSchiff) November 20, 2018

Market forces destined to relieve the distortions caused by years of intervention have been further restrained over the past decade. Further restraint has increased the potential energy of those corrective forces accumulating behind the dam.

When the dam ultimately does break, far more destruction will be wrought when that potential energy turns kinetic.