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

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

  by    0   6

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 up prices.

It’s not that a slowdown in production is irrelevant.

I was talking about this early on in the pandemic. A lot of people weren’t going to work, and so they weren’t on the job helping to make things. So sure, the supply chains got backlogged. But of course, you always have a supply problem, or a shortage of supply, when you have a surplus of money.”

Peter said that is the primary culprit behind the rapidly rising prices.

All the money that’s being printed is being used to bid up products. You have a lot of people who have a lot of money to spend, but they didn’t earn any of it. They didn’t go to a job where they helped produce goods and supply services. They just stayed at home and received a government check. So, the government can print money, but it can’t create products for the money to buy. So, that’s the problem. Not so much a shortage of goods but a surplus of dollars.”

Peter also pointed out that the CPI understates the true level of price inflation in the economy.

And I think that’s deliberate. I think it’s by design. The government doesn’t want to report honest numbers on inflation. It has a vested interest in pretending inflation is less than it really is, and so I don’t believe these CPI numbers. But even if you accept them on face value, prices have risen by 4% during the first four months of the year. So, if you annualized that, that’s a 6% rise in consumer prices.”

And if you look at the monthly numbers, there is a clear trend. Every month is higher than the month before.

  • January – 0.3%
  • February – 0.4%
  • March – 0.6%
  • April – 0.8%

The 0.8% increase in April was the biggest jump in the CPI since 1981.

If you extrapolate the monthly trend to the end of the year, you’re looking at a 20% year-over-year rise in consumer prices in the United States. That’s 10 times the Fed’s official 2% target.”

So, what can the average American do?

Peter said, “stock up!”

Go out and buy everything you’re going to need. But buy it now. Things that are non-perishable, items that you’re going to need around the house, whether it’s toiletries, cleansers, food, things like that, just buy it now. Because, number one, a lot of this stuff might not even be available in the future because other people have hoarded it before you got a chance to buy. But there could also be price controls in the future, which will really result in shortages. But why wait to buy something in a year where it may cost 10, 20, 30 percent more — why not just buy it now? What’s the point in sitting on the cash? It’s just going to depreciate in value. You might as well turn it into something that you can actually use.”

The anchor asked Peter if he really thought we could see price controls in the US. Peter pointed out that we saw price controls in the 1970s.

Why wouldn’t we have it again? You know, government never learns from its mistakes. And it was a mistake for Richard Nixon to introduce price controls in the 70s, and it would be a mistake for Joe Biden to introduce them now. But that doesn’t mean they won’t make the mistake. Governments have a habit of repeating their mistakes.”

The anchor pointed out that enhanced unemployment benefits seem to be discouraging people from working. Will there be any kind of resolution to all this?

No. We’re just going to have much higher prices in the foreseeable future — and the immediate present. But yes, those very generous unemployment benefits are highly inflationary, because number one, the government has to print the money to fund the benefits. But number two, those benefits are directly resulting in fewer people going to work. And so those people are not helping to produce goods or provide services. But they’re spending a lot of money. So, you have fewer goods and services to buy, but more consumers trying to buy them with more money. And so that pushes prices way up.”

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 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 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 →

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 With Tucker Carlson: Inflation Is a Painful Tax

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 […]

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 →

Comments are closed.

Call Now