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

Peter Schiff Talks Trade War and Politics

  by    0   1

The trade war between the US and China escalated again this week. The US slapped an additional $200 billion in tariffs on Chinese goods. The tax starts at 10% and will increase to 25% by the end of the year. China retaliated by announcing another $60 billion in tariffs on US goods.

As Peter Schiff noted in his most recent podcast, people still think the US will win this trade war. 

They still believe there is some type of method to the madness in that all of these tariffs are simply a down payment on a future where all the tariffs are gone … In order to get to free trade, we have to make trade less free first.”

Peter said it’s a lot like politicians claiming that deficits are a down payment toward surpluses. According to this reasoning, larger deficits now will grow the economy and lead to surpluses down the road. Peter called this “BS.” The promised surpluses never happen. If the politicians really wanted surpluses, they would just cut spending. Likewise…

If Donald Trump really wanted freer trade, he would just start cutting our own barriers to free trade, removing our own tariffs, opening up our own markets to more foreign competition and challenging the rest of the world to emulate the United States and take down their barriers as well.”

Even if the rest of the world didn’t follow suit, Americans would still benefit from more freedom of choice, more competition and lower prices.

As Mike Maharrey has said a number of times on the SchiffGold Friday Gold Wrap podcast, whenever you hear the word tariff, you should think “tax.” Peter said it’s ironic that everybody is all excited about the benefits of the Trump tax cuts and completely unconcerned about the tax hikes in the form of tariffs – taxes that will disproportionately fall on the backs of the poor and middle class.

In fact, most of the mainstream seems pretty blasé about that whole trade war. Even with the announcement of more tariffs, stock markets went up Tuesday. So, everybody is fine with the new US tariffs and with the Chinese retaliation … nobody seems to be worried.

And as Peter noted, not only are they unconcerned about the trade war, they also aren’t worried about rising interest rates. The yield on the 10-year Treasury is back about 3%. Not only that, we’re just below a key resistance level for yields and just above a key support level for bond prices. The only thing that could stop a continued rise in interest rates is a stock market selloff.

Trump claims the US is winning the trade war because the US stock markets are up and Chinese markets are down. But there is certainly no guarantee this trend will continue as the trade war escalates.

If you look at what’s happening with interest rates — again, interest rates are going to keep going up until they matter. See, right now, the stock market doesn’t care. OK. So rates are going to keep rising until the market does care. It’s the only thing I can think of that is going to stop this upward move in race is going to be a big downward move in the stock market, which is pretty much ensured because otherwise, rates are going to keep going up.”

Of course, rising interest rates create a problem in and of itself in an economy drowning in debt.

Peter went on to talk some politics, specifically the furor surrounding the confirmation of Brett Cavanaugh to the Supreme Court. Listen to the entire podcast to get Peter’s take on the allegations against the SCOTUS nominee and what it means politically going forward.

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
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

West Virginia Legislature Approves Measure to Repeal Sales Tax on Gold and Silver Bullion

The West Virginia legislature has approved a bill that would take an important first step towards treating gold and silver like money instead of a commodity by repealing sales and use taxes on bullion. Related

READ MORE →

Consumer Debt Breaks Yet Another Record in January

Total consumer debt broke another record in January, according to the latest report by the Federal Reserve. Borrowing increased by $17.05 billion in the first month of 2019. The increase pushed overall consumer borrowing to a new $4.03 trillion record. That compares with $3.84 trillion in January 2018. That represents a 5.1% annual increase. Related

READ MORE →

China Increases Official Gold Reserves for Third Straight Month as Anti-Dollar Push Continues

the country of china shown on a globeChina added to its official gold reserves for the third straight month in February as the country continues efforts to minimize its exposure to the US dollar. The People’s Bank of China added 10 tons of gold to its horde last month. It has accumulated an additional 32 tons of the yellow metal since the […]

READ MORE →

Powell Pause for the Masses: Fed Chair Talks to 60 Minutes

Federal Reserve Chairman Jerome Powell took his dovish message to the masses during a recent 60 Minutes interview. Powell continued to talk about “patience” and reiterated that the Fed “does not feel any hurry” to push rates any higher. He also said the interest rate is “roughly neutral” at this point, calling the current 2.25-2.5% […]

READ MORE →

Modern Monetary Theory and the Green New Deal: A Match Made in Hell?

How will America pay for Alexandria Ocasio-Cortez’s Green New Deal? After all, as Peter Schiff said a few weeks ago, you can’t print wealth. But there is a growing number of people who seem to believe you actually can – at least indirectly. And they have an economic theory they claim backs them up. It’s […]

READ MORE →

Comments are closed.

Call Now