The world loves dollars. Whenever there is a problem, people flock to the dollar as a safe haven. But the US has problems of its own. In a podcast, Peter Schiff said America’s problems will eventually catch up to the dollar and at that point, the greenback will crash.
The Federal Reserve is between a rock and a hard place, and it’s going to have to make a hard choice – inflation or economic implosion. Peter Schiff talked about it on his podcast.
As Peter Schiff put it in a recent podcast, the inflation insanity continues.
We got the September Consumer Price Index (CPI) data and it once again came in hotter than expected. Month-on-month, CPI was up 0.4%. That was double the 0.2% expectation. On an annual basis, the CPI was 8.2%.
It’s easy to look back over the post-pandemic era and say the Federal Reserve stayed too loose for too long in the face of rising CPI. For months, the central bank ignored the inflation problem, claiming it was transitory. But as Peter Schiff pointed out in a podcast, the loose money problem isn’t anything new. It’s been going on for decades.
Federal Reserve Chairman Jerome Powell knew fighting inflation would cause big problems in a bubble economy loaded up with debt. He put it off as long as he could, calling inflation “transitory.” But once inflation became a huge problem, the central bank had no choice but to get into the fight and start tightening monetary policy. The problem is, the Fed’s plan won’t work. And one reason it won’t work is the massive national debt.
Last week, the Bank of England suddenly pivoted. It gave up its inflation fight to rescue its pension funds and bond market. What exactly happened? And what does it tell us about the Federal Reserve’s inflation fight? Peter Schiff explained it all on his podcast.
Last week the Fed raised interest rates another 75 basis points and continued to insist it was fully committed to doing whatever it takes to bring inflation back down to 2%. In his podcast, Peter argued that Powell still thinks he can pull off the impossible.
He can’t.
Inflation continues to surprise to the upside. Meanwhile, the economy continues to surprise to the downside. But the markets continue to believe that the Federal Reserve can slay the inflation monster while still guiding the economy to a so-called “soft landing.” FedEx announced some news last week that undercuts this narrative. In his podcast, Peter Schiff talked about why the landing is going to be hard. And when the economy crashes, the Fed inflation fight will be over.
The CPI data for August came in hotter than expected, sparking the biggest market crash since the 2020 COVID lockdowns. The price of gold also dropped on the news in anticipation of the Federal Reserve taking interest rates higher. Peter Schiff talked about the inflation news on his podcast and said investors need to get gold now before the entry point rises a lot higher. Because at some point the markets are going to figure the Fed can’t bend this inflation curve.
The European Central Bank (ECB) raised interest rates another 75 basis points last week. In his podcast, Peter Schiff explained how the ECB inflation fight could create big problems for the Federal Reserve and the US dollar.
