The US Is Already in a Recession; Get Ready for Some Crazy Monetary Policy (Video)
Jim Grant appeared on CNBC’s Closing Bell and unhesitatingly said he thinks the US economy has already gone into recession:
I think we are in one…I think there’s a defensible case to be made that a recession began late last year.”
Grant echoed what Peter Schiff has been saying. In his Gold Videocast last week, Peter also said he thinks the recession started last year:
I believe eventually the government will acknowledge that this greater recession began in the fourth quarter of 2015, the very quarter that the Fed chose to raise interest rates.”
The Daily Bell hosts didn’t seem convinced by Grant’s assertion, pointing to Atlanta Federal Reserve instant analysis predicting growth in the first quarter of 2016. But Grant quickly reminded everybody that analysts generally don’t recognize the beginning of a recession until long after it’s started.
You don’t know until after the scorekeepers tally it 18 months later, in which case it’s rather academic.”
The Closing Bell hosts also tried to defend the economy by bringing up “jobs growth.” Grant had a quick response for that assertion too:
Let’s not forget employment is a lagging indicator.”
In early January, Grant joined Peter in predicting the Fed would have to backtrack on its December rate hike.
It seems to me that the Fed is more likely to go to zero than to go to one-half of one percent from here. I think the Fed felt that through a combination of institutional self-regard and as it read the data, it felt it had to move. It had been saying for so long it would, [therefore] it had to, [and] it did. That doesn’t mean it was right to do so in the Fed’s own scheme of things. I think the Fed will regret the move it did in December.”
In yesterday’s CNBC interview, Grant took things a step further, saying central banks may well go beyond negative rates and quantitative easing into even crazier monetary policy like “direct monetary funding.”
Radical monetary policy begets more radical monetary policy. I think that’s what the markets are afraid of.”
Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!
Related Posts
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.
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.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 […]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 […]
Peter Schiff recently appeared on Brighteon.com with Mike Adams to talk about the failure of SVB and Signature Bank, the bailouts and the potential ramifications. During the interview, Peter explained the difference between SchiffGold and a lot of the other gold companies out there.
Leave a Reply