Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Peter Schiff: People Are Still Too Focused on the Pin and Not the Bubble

  by    0   3

There seems to be some optimism in the markets that the end of the coronavirus shutdown is getting closer. There is also this persistent myth that the economy will just fire back up at the snap of a finger. Peter Schiff recently appeared on RT Boom Bust along with Christy Ai to talk about the markets and the pandemic. He said people are still far too focused on the pin and not the bubble that it popped.

The US stock market has had some strong rally days recently with this growing optimism that we could be nearing the coronavirus peak. So, has the stock market found its bottom? Peter doesn’t think so.

Too many people are focused on the pin and are ignoring the bubble that the pin pricked. You know, before the COVID-19 shutdown, the economy was long overdue for a severe recession, and the US stock market was long overdue for a bear market. So, I think the COVID virus simply accelerated the onset of both. … So I would not get excited about this rally. I think we still have a long way to go on the downside. And the economy, I think, is going to be even worse.”

Christy agreed with Peter saying this is not the real bounce and we still have a long way drop. She pointed out that earnings still have a long way to fall and there is a massive unemployment tail from the pandemic.

Peter was asked about the response to the government stimulus package signed by President Trump.

As you would expect, a lot of people are trying to line up for whatever free money the government is handing out. But it’s not free. There’s going to be a heavy price to be paid in terms of the loss of purchasing power of the US dollar as prices respond to all the new money being created.”

Peter said the programs are also doing far more harm than good.

What they are doing is exacerbating the downturn and they are going to push the recovery off even further into the future because the government is basically encouraging businesses that should be downsizing and kind of adjusting their cost structure to the new reality — instead, the government is encouraging them to hold on to employees that they would be better off letting go and freeing up to do something else. Instead, they are going to keep some employees entrenched in companies that are probably going to end up failing because they refuse to lay off people. And so instead, they are going to have to lay off even more people later. And I think a lot of these loans are never going to be repaid because even the people that don’t fire their workers, a lot of these businesses are going to go out of business because they didn’t fire their workers and then everybody’s going to be out of a job. And the government is not going to get any money back because the loans have no security and there’s no personal guarantee.”

Christy reiterated that the tail of the coronavirus is very long and will be very long-lasting. It won’t be a V-shaped recovery as many seem to expect. We have both a severe supply shock that is morphing into a demand shock.

On the day of the show, both gold and stocks were in the midst of strong rallies. Peter was asked why gold was up when it seemed to be a “risk-on” day.

I think the risk is inflation. The only thing that’s propping up the stock market is the Fed and other central banks printing money, which is creating inflation. So, you don’t have earnings going for the stock market. All you have is all the cheap money that’s being created. And inflation is much better for gold than it is for the stock market. And so, that’s why both stocks and gold are going up. But I think eventually, gold is going to be going up much more than the stock market and I think gold is going to be going up even as the stock market rolls over and goes down. So, I think in terms of gold, stock prices are going to continue to fall. In fact, they’re going to fall precipitously regardless of what happens to nominal stock prices because of the massive inflation being unleashed by the Fed and other central banks.”

Download SchiffGold's Gold vs GLD EFT's Guide Today

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

The Great Inflation Debate (Video)

Is inflation “transitory,” the result of a quickly recovering post-pandemic economy as Jerome Powell insists? Or is it a long-term phenomenon resulting from loose monetary policy that’s not about to abate anytime soon? Peter Schiff recently participated in the “great inflation debate” on RT’s Cross Talk with Peter Lavelle, along with American Institute for Economic […]

READ MORE →

Peter Schiff and Tucker Carlson Talk About Skyrocketing Prices and the Inflation Tax

Inflation is running hot right now. The May CPI data came in hotter than expected, a trend we’ve seen every month this year. But the Federal Reserve and the mainstream financial media continue to insist inflation “transitory.” Peter Schiff recently appeared with Tucker Carlson on Fox News to talk about skyrocketing prices.

READ MORE →

Peter Schiff and Ben Shapiro: The Government Is Wrecking the Economy

In many ways, it appears the economy is beginning to recover from the shocks of the coronavirus pandemic. GDP growth is way up. The stock market is soaring.  A lot of people are optimistic. But during an appearance on the Ben Shapiro Show, Peter Schiff said this isn’t a real recovery, and he explains how […]

READ MORE →

Peter Schiff: The Surplus of Printed Dollars Is Driving Price Inflation

The Consumer Price Index came in much hotter than expected last week. The mainstream chalks rising prices to supply chain and production issues caused by the pandemic. But in a recent interview on NTD News, Peter Schiff says there’s more to it than that. Prices are rising because a surplus of printed dollars is bidding […]

READ MORE →

Peter Schiff and Tucker Carlson: The Financial Crisis Will Be Worse Than the Pandemic

Consumer Price Index (CPI) data for April came in much hotter than expected. Year-on-year, inflation is up 4.2%. The big number even prompted Federal Reserve Vice Chairman Richard Clarida to say, “We were surprised by higher than expected inflation data.” Peter Schiff appeared on Tucker Carlson’s show to talk about the consequences of more printed money […]

READ MORE →

Comments are closed.

Call Now