Contact us
CALL US NOW 1-888-GOLD-160

Peter Schiff: The Worst of Both Worlds — Inflation and Recession

  by    0   2

The CPI cooled in July. The White House and others in the mainstream continue to insist there is no recession. Is everything looking up?

Peter Schiff was on Fox Business with Liz Claman, Kenny Polcari (Slatestone Wealth Peak Market Strategist), and Teddy Weisberg (Seaport Securities) to discuss the Fed’s attempt to fight the inflation it caused. Peter said we haven’t seen peak inflation, and on top of that, the recession will get worse.

Liz opened the discussion by asking: is inflation in the rearview mirror? Is the coast clear for equity investors? Peter said, “not at all.”

Consumers got a reprieve for a month. High prices didn’t get any higher. I mean, they didn’t drop. But how many times last year did all the experts come out and proclaim that we had just seen peak inflation, only to see new peaks a month or two later? And I think the same thing is going to happen this time. I don’t think 9.1% that we got last month is the peak. I think we’re going to take that out. It may take a few months to do it, but we will do it.”

The other panelists generally agreed. Weisberg said any good news on the inflation front is “catnip for the markets” and he thinks the optimism is premature.

Liz asked Peter if he was willing to give the Fed any credit for hiking rates and tightening monetary policy after the “ridiculously low emergency levels.” Peter said, “absolutely not!”

I’m not going to give credit to the Federal Reserve for trying to put out a fire that it lit. And by the way, they’re not even putting enough water on it to put it out. The Fed should have raised interest rates a lot more than it already has. And it should be raising them a lot more. It’s gone much too slow. And not because the economy can handle it. It can’t. We’re already in a recession. They just want to ignore that. The recession is going to get worse if the Fed continues to raise interest rates. But it shouldn’t stop just because it’s going to put the economy into a depression or create a financial crisis. It has to do that. The only way to fight inflation is to remove all the inflation from the economy that the Fed put in there. So, they have to shrink their balance sheet. They have to let interest rates go way up. They have to force the government to slash government spending. But unfortunately, none of that is going to happen. This recession is going to get much worse, and Powell is going to pivot in defeat. He’s going to focus his attention on trying to stimulate the economy and let inflation run out of control.”

Peter said given the situation, gold is underpriced, along with mining stocks.

People believe the Fed is going to be victorious in its fight over inflation, and if it isn’t, they believe recession will do the job for the Fed. But it won’t. Inflation is going to get a lot worse as a result of this inflation getting worse. So, we’re going to have the worst of both worlds. We’re going to have very high inflation — higher than we have now. And an even deeper recession than the one we’re in now. And I think in that environment, gold is really going to shine, and I think investors will end up doing very well if they pick up some of these gold mining stocks that are really at bargain basement levels.”

Why Buy Gold Free Report

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

Schiff vs. Hanke: Who’s to Blame for Inflation?

Last week, Peter debated Steve Hanke, professor of economics at Johns Hopkins University, on inflation, the debt crisis, and the future of the dollar. David Lin hosted the debate on The David Lin Report and provided moderation for the event. While Peter and Hanke have their disagreements, both ultimately agree that the United States is in rough fiscal and monetary shape, and terrible monetary […]


Schiff on Reinvent Money: Euro on Shaky Ground

Paul Buitink, host of the Reinvent Money show, recently interviewed Peter on debt in Europe, possible futures for various currencies, and government monitoring of crypto and gold.


New Schiff Interview: America Needs to Go Cold Turkey on Debt

Peter recently appeared on the Bald Guy Money show for a conversation on gold’s role in American and global politics, the influence of the BRICS coalition on metals markets, and, as always these days, the disastrous monetary policy coming out of the Fed. 


Schiff on Business Matters: Consumers Are in Big Trouble

On Friday, Don Ma interviewed Peter on NTD’s Business Matters. Their conversation focuses on declining consumer sentiment. With GDP and unemployment figures also signaling a recession, a worsening consumer outlook bodes poorly for the economy.


New Schiff Interview: All Inflation Has One Source

On Wednesday, Peter appeared on This Week in Mining with Jay Martin. Jay and Peter discuss the state of the economy, the government’s assault on sound money, and why the mining sector constitutes a good investment.


Comments are closed.

Call Now