The chief economist for the World Bank, Kaushik Basu, says an interest rate hike by the Federal Reserve will cause “panic and turmoil” in emerging markets.

“The world economy is looking so troubled that if the U.S. goes in for a very quick move in the middle of this I feel it is going to affect countries quite badly,” he told the Financial Times.

The remarks by Basu follow a similar warning by Christine Lagarde, the head of the International Monetary Fund.

Financial expert Peter Schiff told Fox Business from the floor of the U.S. Stock Exchange the banksters will not raise the interest because it will implode the bubble economy that has passed for an economic recovery.

“I was saying they weren’t going to raise rates. Not because they shouldn’t, but because they can’t, because they will prick this bubble economy that they worked so hard to inflate,” Schiff said.

The economy has never been good. We’ve really been in a recession, I think, for the entirety of the recovery. I think the policies that the Federal Reserve has used to prop up the stock market and the real estate market have hurt the real economy. That’s why things are actually getting worse. But on Wall Street, yeah, things look good. But if the Fed takes away those monetary supports, we’re going to be in a bear market. We’re going to be in a deeper recession. We’re going to resume the financial crisis that was interrupted by this monetary policy.

The problem is that when the Fed was breathing life, or breathing air, into the financial markets, it was sucking it out of the real economy. That’s why we haven’t had a recovery. But everybody who thinks that the Federal Reserve policy succeeded, there’s no success here. There’s no success until you raise interest rates and shrink your balance sheet. And the Fed can’t do that. That’s why rates have been at zero for seven years. Why didn’t they raise them two or three years ago?

The only option open to the Fed at this point is to continue printing money — i,.e., quantitative easing — and inflate the stock market and continue the masquerade that there is actually a recovery when there is not.

“QE4 is coming, and you want to get out of U.S. assets, take advantage of the face that other people have no idea what the U.S. economy is really going to do, what the Fed’s going to do, and by foreign assets when they’re on sale. You can buy foreign stocks, you can buy commodities, and yes, you can buy gold,” Schiff advised.

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