(Kitco News) - Donald Trump is unlikely to win the next election if a recession were to hit by 2020, said Peter Schiff, CEO of Euro Pacific Capital.
"I think that Trump is likely to lose the next election because I think the U.S. economy can easily be in recession," Schiff told Kitco News.
Schiff said that in the last presidential election, Trump was able to expose the shortcomings of the American economy and leverage on the frustrations of many voters. This time around, the political environment may not sway in Trump's favor.
Everybody thought we had a good economy under Obama. The media kept talking about it, Wall St. kept talking about it, but I knew the recovery was phony, and so did Trump, and Trump was able to play into that by basically levelling with the American public that the data that they were being given from the government was a fraud, that we were living in a bubble created by cheap money, and the recovery was an illusion created by statisticians,
However, now the problem that voters had hoped Trump would fix have only been exacerbated, Schiff said.
"But now, Trump is the system. He didn't drain the swamp, he is now the leader of the swamp. The swamp is now deeper and murkier as a result of Trump," he said.
Schiff added that it is likely a candidate from the far left would gain popularity at the next election.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.