Peter Schiff recently appeared on CNBC’s “Future’s Now” program to discuss what the Federal Reserve will likely do during a Donald Trump presidency. Peter said he sees a rate hike in December as too little too late given the ineffectual level of interest the economy has seen over the last several years, and because of the accelerated rate of inflation that’s taking place.
Jim Rickards,the chief global strategist at West Shore Group, appeared on Bloomberg Markets to discuss the next financial crisis. Rickards said he sees next US downturn approaching a tipping point soon. However, the Federal Reserve’s response to restoring financial solvency will be much different because there’s no place left to go with monetary policy.
“The next time, they’re not going to print the money because they’re tapped out,” he states. “They’re going to lock down the system.” In a move Rickards refers to at the “bail in, lock down” plan, large sections of the financial sector will be deactivated to avoid bank runs and complete collapse. Rickards describes some of the more likely scenarios:
“Money market funds will suspend redemptions, bank ATMs can be reprogrammed to give you $300 per day for gas and groceries; they can selectively shut down the banks. We saw it in Greece. We saw it in Cyprus; we’re seeing it today in India. The banks are closing. They’re out of cash.”
In his 200th podcast, Peter Schiff explains the ineffectual outcomes of Richmond Federal Reserve President Jeffrey Lacker’s call for “preemptive” interest rate action. Lacker said he believes the Fed should anticipate a rise in inflation levels by getting ahead of the curve. The suggestion only makes sense to those who can’t see the artificially inflated bubble economy the Fed has been creating for years.
Whether the Fed raises rates in December or not, it won’t solve our economic woes. Only a recession will bring the cure. Tough love, not economic coddling, is what’s needed, but current monetary policy continues to pump the economy full of temporary pain meds instead of helping us through the withdrawals.
In his latest podcast, Peter runs down the real threats of prosecuting and over-regulating financial institutions like Wells Fargo. Last week, Wells Fargo CEO John Stumpf was lambasted by members of the House Financial Services Committee over the unauthorized accounts scandal. Members called for Strumpf’s resignation and a breakup of the company.
Aside from the heated exchanges echoing the congressional chambers, the hypocrisy of the situation left a foul odor on the proceedings. For congress members to fault an executive for facilitating theft of customer deposits takes a lot of chutzpah. Peter explains:
In his latest episode, Peter Schiff reacts to the first presidential debate and Donald Trump’s missed opportunities to put Hillary Clinton on the defensive about paid maternity leave, government mandates, profit sharing, and the Federal Reserve.
One of Trump’s biggest opportunities was going after independent voters by expanding the argument that Clinton’s policies were “just more of Obama” and included criticism of George W. Bush. “You’re looking for the undecideds,” Peter states. “You’re looking for the independents, and they will appreciate someone who’s critical of both parties.” Certainly, a cross-party strategy would have emphasized Trump’s “outside” position, a major theme of his campaign.
In the end, Trump failed to call Clinton out on her erroneous assumptions about the economy (i.e. Bush’s tax cuts caused the 2008 Financial Crisis). Trump had ample opportunity to show Clinton’s lack of business experience and idealistic detachment from economic realities.
In an epic meeting of economic intellects, Peter Schiff and Roy Sebag talk about Goldmoney’s recent acquisition of SchiffGold and the coming revolution in value transactions. Peter and Roy also discuss the special properties of gold that make it the best standard for backing currency, Goldmoney’s potential to change the way we buy, sell and save, and how crypto currencies and the internet are making banking systems irrelevant.
Janet Yellen and company are still claiming to make so-called “data dependent” decisions, yet new bad economic data is calling into question their true motives. In his latest podcast, Peter Schiff explains why the Fed is bluffing when it comes to raising interest rates. He also dispels myths about the benefits of a rate hike to the financial markets and why you should avoid them.
In his most recent Gold Videocast, Peter Schiff takes on San Francisco Federal Reserve President John Williams’ new monetary prescription for the ailing US Economy. Williams sees the current trend of slow economic growth as a “new normal”. His plan calls for raising the target inflation rate beyond its current 2% value. But how does Williams want to raise inflation? With a simple sleight of hand trick that no longer uses real GDP growth (i.e. adjusted for inflation), but uses nominal GDP growth.
Essentially, Williams wants to use a less accurate (and conveniently higher) number as the standard for measuring the economy’s “real” growth. It’s the policy equivalent of removing the gold standard. Once again, the government substitutes something real for something fake. The Fed can now add fantasy numbers to their magician’s box, which they use to hide the real recession we’re in.
Billionaire and founder of Icahn Enterprises, Carl Icahn, recently appeared on Bloomberg to discuss his support for Donald Trump and a future move to start his own super PAC. During the discussion he had with Erik Schatzker, the wealthy activist made a case for the coming demise of the US economy and collapse of the dollar due to over-regulation of the markets and lack of capital spending.
On his latest podcast, Peter Schiff takes New York Federal Reserve President, William Dudley, to task for his off-the-cuff remarks about a September rate hike. Peter also looks at the fine print of San Francisco Federal Reserve President John Williams’s new “era” monetary policy proposal, which is only a panacea if you want higher inflation, lower interest rates, and more quantitative easing.