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

Peter Schiff With Tucker Carlson: Inflation Is a Painful Tax

  by    0   1

We’re told inflation isn’t a problem. But a quick trip out to the grocery store or to fill up your car with gas tells you otherwise. Prices are going up. Peter Schiff recently appeared on Tucker Carlson’s show to talk about inflation. He said the price of everything is going up and the value of everything is going down.

It’s clear that prices are rising. Peter said it’s going to get even worse.

You have to remember that inflation really is nothing more than a tax. Now, when the government spends money, they need to get money. The public has to pay for it. Normally, the government would raise taxes, and then the taxpayers send money to the government, the government spends it.  But we just passed a $1.9 trillion stimulus bill. Nobody’s taxes got raised. But we don’t get all this government for free.”

So, how is the government paying for this massive stimulus spending?

The Federal Reserve prints the money and then the government spends it into circulation. But when that happens, the value of all the money that’s already out there goes down and now the price of everything that you want to buy goes up. And that added price is basically the inflation tax.”

The Federal Reserve is printing money at an unprecedented rate. We’ve had 11 straight months of historically high money creation. The money supply expanded at a record rate yet again in February.

Tucker pointed out that this seems intentional – that the government is trying to pay for all of the spending  – making it less costly by devaluing the dollar. Peter agreed.

Well certainly, as you have inflation, you reduce the real value of the debt.”

But Peter said the government has no plan to pay off the debt. And the real problem is the amount of money they are going to have to spend just to finance all their current commitments.

This is a massive amount of money printing. It’s unprecedented inflation because it’s the money supply that is being inflated. And as a result, everything costs more, because we’re not producing more. It’s actually the opposite. Americans are at home. They’re not producing goods and services. Yet, we’re creating more money to buy the goods and services that fewer people are producing. More money, fewer goods. Prices are just going to keep going up and it’s not going to stop.”

Tucker pointed out that this looks pretty crazy from an outsider’s perspective. Peter said he doesn’t know how it looks to an outsider.

But I think to everybody that lives in the United States, it’s not going to look pretty. And the real problem is the Fed. The Fed pretends that it’s transitory. But when they have to admit that it’s not transitory the inflation rate will be far too high for the Fed to do anything about it. Because if the Fed actually raises rates to fight inflation, they’ll create a much bigger financial crisis than 2008 and the US government will be forced into insolvency.”

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: We’re on Autopilot Down the Road Toward Inflation

During his recent 60 Minutes interview, Federal Reserve Chairman Jerome Powell reiterated that he thinks any spike in price inflation will be transitory. As he put it during the interview, we may see “temporarily higher prices but not persistent inflation.” Peter Schiff appeared on RT Boom Bust to talk about Powell’s view on rising prices. […]

READ MORE →

Peter Schiff: This Is the Worst We’ve Ever Done on Trade

What is the ballooning trade deficit telling us about the US economy? Peter Schiff recently appeared on NTD News to talk about it. He said the US has never been worse on trade and it is a sign that we don’t have a recovering economy. In fact, we have a phony economy in danger of […]

READ MORE →

Peter Schiff: The Fed Will Wave the White Flag at Inflation

Peter Schiff recently appeared on RT Boom Bust to talk about inflation, the Fed and gold. He said a lot of people still think the Fed will soon tighten monetary policy to deal with rising inflation pressure. But they’re wrong. Ultimately, the Fed is going to surrender to inflation without a fight. When the markets […]

READ MORE →

Peter Schiff: The Only Thing the Economy Has Going for It Is the Fed

Last week, Peter Schiff appeared on NTD News to talk about the Federal Reserve’s increasing dovishness. He said despite all of the assurances from Jerome Powell that the central bank’s monetary policy isn’t stoking inflation, the economy and the dollar are both at risk for collapse. The Fed is the only thing standing in the […]

READ MORE →

What’s the Problem With Stimulus Checks, Trade Deficits and the Minimum Wage?

So, what’s wrong with stimulus, money printing, trade deficits, and the minimum wage? Peter Schiff appeared on Meet Kevin to tackle these questions and more.

READ MORE →

Comments are closed.

Call Now