The Fed Is Stuck in a Box (Video)

Peter Schiff appeared on Fox Business last Friday alongside some other analysts. While the panel agreed with Peter that the Federal Reserve needs to raise interest rates, they don’t think that Janet Yellen actually will. However, they disagreed with Peter’s long-term investment strategy for gold, and preferred to ignore the possibility of a bubble in the equities markets to make a short-term profit on stocks.

Follow along with a transcription of Peter’s responses:

“The Fed has been in a box for a long time. The jobs report isn’t putting it in that box. You see, if the Fed were actually to raise rates, all the jobs would disappear, because the recovery is only here as long as the Fed is propping it up. You know, we got four economic reports that came out today [Friday]. The jobs number was only one. All the other three were bad. The trade deficit, factory orders, and consumer credit all came out much worse than expected. In fact, most of the economic data that’s been coming out has been bad…

“They can’t raise rates. They should have raised them a long time ago. The problem is, this is a bubble. And if they raise rates, they’re going to prick it. It’s not a genuine recovery…

“First of all, gold hasn’t plummeted this year. Gold is about where it begun the year; it’s basically unchanged. You might think it has dropped a lot based on all the negative press, but it really hasn’t gone anywhere. It went down the prior year…

“What’s really propping us up is all the money printing that’s going on in Japan and all the money they think they’re going to print in Europe. That’s what is propping up the dollar…”

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