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

Peter Schiff: The Fed Is the Biggest Enemy of Legitimate Economic Growth

  by    0   1

Last week, the Federal Reserve held its September FOMC meeting. Peter Schiff appeared on the Claman Countdown after the meeting ended, along with Natalie Securities Global Fixed Income Chief Andy Brenner. During the interview, they discussed inflation, the impact of Fed policy, the bubble economy and they even touched on modern monetary theory. Peter said ultimately the Fed isn’t helping. In fact, it’s the biggest enemy of economic growth.

Peter said eventually the Fed will have to let interest rates rise unless it wants the dollar to become worthless. He said one of the most amusing comments Federal Reserve Chair Jerome Powell made during his post-meeting news conference was saying the Fed had to fight low inflation because it could lead to interest rates being too low.

But he wants low interest rates. They’re already at zero. The Fed’s goal is low interest rates. So, how can the Fed say low inflation is a problem if the only problem that we get from low inflation is low interest rates when he thinks that’s the solution to every problem?”

Brenner pointed out that the Fed wasn’t as dovish as the markets wanted it to be. Nevertheless, people continue to pour into equities. This raises the question of bubbles. Peter said of course there are bubbles and the Fed knows it.

The Fed knows there’s a bubble because any time the air starts coming out of it, it’s there to blow more into it. I mean all of its policies are deliberately designed to maintain that bubble. And the irony, Liz, is that everything the Fed is doing to inflate asset bubbles is actually deflating real economic growth on Main Street. The Fed is the biggest enemy of legitimate economic growth because it’s so fixated on maintaining these asset bubbles that it now denies exist.”

Brenner said the economy doesn’t need a stimulus plan, but it does need an infrastructure plan. He also said it won’t really matter who wins the presidential election, “because the Fed is going to be there.”

Peter said the Fed doesn’t need to be there — that’s the problem.

We don’t need more infrastructure spending either. We can’t afford that. We’re broke. We don’t want the government creating money and spending it. We want the government to stop spending so that they can free up those resources back to the private sector where they’re needed. Everything the government is doing, all these government spending programs, are making the economy weaker, not stronger.”

Brenner responded, “I guess Peter’s not a believer of the modern monetary theory.”

No. Nothing modern about that and it’s not even theoretical because it deosn’t work.”

But Peter said it is working for him —  “Because I own gold!”

WhyBuyGoldNowBanner.070815.590

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

What Would a Biden Win Mean for the Economy?

Peter Schiff appeared on Kitco News with David Lin to talk about the investment implications of the upcoming US elections. Peter said he doesn’t feel good about the election and that he thinks Biden will likely win. He said the Democrats may even gain control of the Senate. So, what would a Biden win mean […]

READ MORE →

Peter Schiff: Stimulus Doesn’t Help the Underlying Economy

Peter Schiff appeared on RT Boom Bust along with Michele Schneider of MarketGauge to talk about market reaction to the stimulus stalemate, the impact of the upcoming election, and the prospects of the dollar. The interview was recorded before President Trump tweeted the rug out from under the hope of a stimulus deal and cut […]

READ MORE →

Peter Schiff vs. a Marxist

Peter Schiff recently appeared on RT’s Crosstalk and ended up in a debate with a Marxist. The focus of the discussion was a “K-shaped” recovery where some people benefit economically, but we’re left with many permanently mired in an economic underclass. Peter said you can talk about a K, L, U or V-shaped recovery, but […]

READ MORE →

Peter Schiff: The Price of Everything Is Going Up

As the Federal Reserve meeting wrapped up last week, Peter Schiff appeared on RT Boom Bust. The interview covered a number of topics, including gold, oil prices, the Fed and the Snowflake IPO. The discussion started with the rising prices of gold and silver. Peter said central bank policy is creating a very bullish environment […]

READ MORE →

Peter Schiff: If You Understand What Gold Is, You Should Always Have Some

Peter Schiff recently appeared on RT Boom Bust with Ben Swann to talk about safe-haven assets in the age of COVID-19. Peter made the case for gold, saying if you understand its role as money, you know you should always have some. He also debated Swann on the long-term value of bitcoin.

READ MORE →

Comments are closed.

Call Now