Trapped in a Loop of Central Banking Policy and Bad Decisions (Video)

In a recent episode of the Santilli Exchange, Pete Santilli talked with Hoover Institution Fellow Tim Kane about the June jobs report and the overall state of the US economy.

Despite all of the giddiness about the recent jump in the number of jobs created, Kane said this jobs report wasn’t as positive as advertised:

The thing that really shocked me was if we compare this year to last year, 850,000 people are not in the labor force. You have unemployed, you have employed, and you have people who are not in the labor force. That’s gone up. It’s not a good report.”

Kane went on to discuss the overall performance of the US economy in light of recent Hoover Institution research showing that the recovery after each subsequent recession is getting weaker and weaker. He pointed out that we should be in boom right now. But as Peter Schiff has put it, we are actually in a “phony recovery.”

In fact, if you look at the recovery quarters over the last five recessions, the trend is down. The current average growth rate stands around 2.1%. During the last recovery, it was 2.8. In the one before that it was 3.8. During the recovery prior to that, the growth rate was 4.5%:

This is not a healthy trend. We’re seeing a great deceleration, even during the boom times.”

Keep abreast of the latest news and its impact on the gold market. Subscribe to Peter Schiff’s Gold Videocast

Kane primarily placed the blame on a regulatory and tax structures that hinder investment and growth, and make it difficult to start and build businesses:

We all agree that entrepreneurs matter, and yet there are more and more regulations that entrepreneurs have to fight through, so I think the policy forward and the path forward is pretty easy.”

But Santilli dug down to an even more fundamental problem: the contagion of central banking:

We are trapped in a loop of central banking policy and potential bad decisions from Kuroda, from Abe, from Mario Draghi that are very difficult to extricate ourselves from.”

In truth, we won’t likely extricate ourselves from the web of central bank intervention. During a CNBC interview last month, Peter Schiff predicted that Fed would ultimately sacrifice the dollar on the altar of the stock market and usher in the next major economic crisis – a currency crisis that will dwarf the Great Recession:

I think that the government, the federal reserve, their main goal is to make sure that the stock market doesn’t collapse again, to make sure that the real estate market doesn’t collapse again. And they may succeed, but only by sacrificing the dollar. And so we’re going into a currency crisis and this crisis is going to be much bigger than a financial crisis. The impact it’s going to have on the average American, on his standard of living, on his way of life, is going to be much more profound.”

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!