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

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

Peter Schiff: Bank Bailouts Will Devalue the Dollar

Peter Schiff appeared on NTD News to talk about the bank bailout and the March Federal Reserve meeting. During the conversation, Peter explained that everybody is going to pay for these bailouts because they will ultimately devalue the dollar as inflation skyrockets.

READ MORE →

Peter Schiff: This Is a Sequel to 2008 and Like All Sequels It Will Be Worse Than the Original

Peter Schiff appeared on Real America with Dan Ball to talk about the bank bailout, the unfolding financial crisis, the Fed and inflation. He said this is a sequel to 2008 and like all sequels, it’s going to be worse.

READ MORE →

Peter Schiff: More Bailouts Are Coming Down the Pike

The dust continues to settle after the failure of Silicon Valley Bank and Signature Bank, and the ensuing government bailout. Many people in the mainstream seem to think the crisis has passed. But a closer look at the condition of the banking system reveals these two banks were just the tip of the iceberg. Peter […]

READ MORE →

Peter Schiff: Investors Will Bid Up Gold When They Realize Inflation Is Winning

Peter appeared on Fox Business Claman Countdown to talk about the recent bank failures and the ensuing government bailouts. During the interview, they discussed how to invest in the current environment. Peter said that right now, gold is undervalued, but investors will bid up the price much higher when they come to terms with the […]

READ MORE →

Peter Schiff: Americans Will Pay for These Bank Bailouts

Peter Schiff appeared on the Capitol Report on NTD News to talk about the bank bailouts and the possible ramifications. He said that no matter what President Joe Biden and others tell you, Americans are going to pay for this. The interview started with a clip of Treasury Secretary Janet Yellen assuring Congress that the […]

READ MORE →

Comments are closed.

Call Now