Gold – the final bubble, page-4153

"At times P Schiff is correct that the system did not wipe the bad debts clean and start all over through bankruptcy protection or just a complete natural collapse"

Peter Schiff is just echoing and old idea advanced by Chumpeter and some others including Karl Marx, that of creative destruction.

Creative destruction (German: schöpferische Zerstörung), sometimes known as Schumpeter's gale, is a term in economics which since the 1950s has become most readily identified with the Austrian American economist Joseph Schumpeter[1] who derived it from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle.
According to Schumpeter, creative destruction describes the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one".[2] In Marxist economic theory the concept refers more broadly to the linked processes of the accumulation and annihilation of wealth under capitalism.[3][4][5]


Crowd at New York's American Union Bank during a bank run early in the Great Depression. Marx argued that the devaluation of wealth during capitalism's periodic financial crises was an inevitable outcome of the processes of wealth creation.

https://en.wikipedia.org/wiki/Creative_destruction

Needless to say that such point of view is highly contested, notable by keynesian economists.

https://en.wikipedia.org/wiki/Keynesian_economics

Quote from Keynes:

• If farming were to be organised like the stock market, a farmer would sell his farm in the morning when it was raining, only to buy it back in the afternoon when the sun came out.