Peter Schiff Podcast: It’s Not Bad News until the Fed Says It’s Bad

Friday of last week brought in much weaker numbers than the Fed expected from the non-farm payroll report. That was the big bet Janet Yellen’s crew was going all-in for, but the jobs report wasn’t the only important figure hitting reverse, and definitely wasn’t the most important look at the overall health of the economy.

As Peter Schiff points out in his latest podcast, this “specter” of a jobs number that the Fed is promoting should not be nearly as influential as productivity numbers or the PMI manufacturing index, both of which were down yet again. All of these contributed to gains in gold and silver going into Labor Day weekend, and they are continuing to rise as concern for a September rate hike has all but disappeared.

Peter stated it clearly in this week’s podcast: “You know things are getting bad when the Fed has the general public believing what they say about hiking rates, and they still don’t do it. The moment they start telling the truth, that they can’t raise rates because the recession is out of control, is when this country can finally face reality and start recovering.”

Highlights from the podcast

“The PMI manufacturing index was worse than expected, as well as construction spending, which was supposed to rise 6 cents. It was flat – in fact, construction spending has been very weak, especially if you look at it on a year-over-year basis. Whenever you’d see this big drop in construction spending in the past, it always signaled recession.”

“The Fed just wants to keep pretending that they’re getting ready to raise rates, and for some reason everybody keeps believing that that’s exactly what they’re going to do.”

“You know if the if the Fed was confident in this recovery, they would have raised rates years ago. The fact that they didn’t do it, the fact that they’ve only raised them once in the last couple of years is proof that the Fed knows how screwed up the economy is. Because otherwise, why would rates still be this low?”

“It doesn’t matter that they [the Fed] keep talking about their intention to raise rates. That’s just to distract us from the idea that they can’t hide because they have to keep talking as if they could raise rates – because the one thing they can’t do is actually raise rates.”

“I think by [December] they may be able to acknowledge some of the problems, stop talking about rate hikes and start talking about rate cuts. Start talking about stimulus, because I think we’re going to get a lot more bad economic news between now and December.”

“Nobody has ever taken this big a dose of monetary heroine in history, and we have plenty of examples of what happens when the Fed does this to us. We have the housing bubble and the financial crisis that followed – this is so much worse, magnitudes greater than what Greenspan did.”

“When the Federal Reserve tries to help the economy, it’s the equivalent of throwing a drowning man an anchor because all their help simply undermines the economy even further.”

Get Peter Schiff’s latest gold market analysis – 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!