Over the past two weeks, Peter Schiff released a podcast and a Schiff Report video. He also appeared on CNBC, the Daily Ledger, Fox Business, X22, Newsmax, Yahoo! Finance, Stefan Molyneux’s podcast , and CCTV America.
Since the beginning of the new year, Peter has focused on the horrible start on Wall Street and the likelihood of an economic downturn in 2016. In several appearances, he continued to argue that the Federal Reserve won’t be able to maintain its interest rate increase, and will ultimately drop the rate back to zero and launch another round of quantitative easing. Peter also offered his views on the State of the Union Address.
Follow these links to jump to the video or article you’d like to see:
1. CNBC Admits Peter Schiff Was Right, Jan. 14
2. CNBC: Blame Market Volatility on the Fed, Not Commodities, Jan. 14
3. Yahoo! Finance: What Will the Fed Blame the Coming Recession On?, Jan. 14
4. Stefan Molyneux’s podcast: The State of the Union: A Big Joke on the American People, Jan. 13
5. Schiff Radio podcast: Obama Delivers the Most Clueless State of the Union Address Ever, Jan. 13
6. The Daily Ledger: Yellen Could Pave the Way for Hillary with More Easy Money, Jan. 11
7. Fox Business: Bull vs. Bear; When Will the Stock Market Capitulate?, Jan. 11
8. Schiff Report: Deja Vu All Over Again: Stocks Plunge; Gold Surges; Markets Ignore Reality, Jan. 9
9. X22 Report: Next Crisis Will Be Much Harder on All Americans, Jan. 5
10. Peter Schiff Says Wild Ride on Wall Street Will Continue Until Fed Admits the Truth, Jan. 5
11. CCTV: Peter Schiff: Puerto Rico Bailout Immoral; Bankruptcy a Better Solution, Jan. 4
Peter Schiff spoke with CNBC World last night. Just like Futures Now and Yahoo! Finance, the anchor questioned whether or not the Fed is really to blame for market volatility. He thought commodity volatility – particularly oil – played a big role. Peter disabused him of this theory and explained why he expects the Fed to launch QE4 in 2016.
Why are commodities falling in price? It’s because of the Fed… Everybody believes that the Fed is going to be raising interest rates. That is strengthening the dollar, and it is the strength of the dollar that is undermining commodities, because commodities are priced in dollars. If the dollar goes up, commodities become more expensive for everybody who has to pay in a currency other than the dollar. This is the source of all this instability and volatility.”
Last month, Peter Schiff told CNBC the US stock market would fall dramatically if the Federal Reserve hiked rates. That is exactly what has happened in the new year, and when CNBC spoke with Peter yesterday they admitted his prediction had been right. However, they were still skeptical of Peter’s forecast of the economy sliding back into a recession. Notice how Peter’s favorite rival, Scott Nations, kept his mouth shut through the entire interview. Peter noted: “The expression on his face is priceless. I did not even know he was there.” Review their rivalry here.
The markets are going to drop until the Fed changes the game. When is the Fed going to take away the rate hikes? When are they going to cut? When are they going to launch QE4? That’s the only thing that’s going to put a floor beneath the market, because the economy is going into recession.”
This article was submitted by Addison Quale, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
Check out this article on an absolutely mind-boggling phenomenon taking place in Switzerland. Apparently Local Cantons (what states are apparently called over there) are actually telling taxpayers not to send the money they owe in to the government – at least not right away. They’re saying just hold on to the cash until the deadline.
What could possibly be a good reason for Leviathan to not want its food/funding ASAP? Well, when you live in a land of negative interest rates, things get a bit tipsy turvy. I guess it’s a bit like bizarro-world from that episode of Seinfeld – where up is down and bad is good.
Peter Schiff spoke with Yahoo! Finance yesterday. The anchor was skeptical of Peter’s forecast of the United States sliding into a recession in the first quarter of 2016. She pointed to the low unemployment rate as the sole reason for optimism. Peter explained why employment is a lagging indicator, and reminded her of Fed Officer Bullard’s history of hinting at the Federal Reserve’s real agenda:
Today, Bullard tried to throw the market a lifeline by trying to insinuate that maybe the four rate hikes the Fed has already telegraphed are coming for this year – well, maybe they might come a little bit slower… The last time that Bullard really saved the market was back in October of 2014 when he hinted at QE4. This time, I think, the Fed is going to have to more than just hint at it…”
Peter Schiff appeared on Stefan Molyneux’s podcast Wednesday and dissected the State of the Union address. Peter summed it up this way:
He opened with a joke, he closed with a joke. The entire State of the Union address was one big joke. Unfortunately, the joke is on the American people.”
Peter Schiff believes the Federal Reserve’s December interest rate hike was actually the end of the Fed’s tightening cycle that began with the first talk of tapering quantitative easing (QE) several years ago. Economic data will continue to be weak, and the US will likely be in an official recession in 2016 if it isn’t already. The Fed will be forced to restart QE and lower interest rates again, maybe even into negative territory. When that happens, investors who have been selling gold on expectations of economic health will have to reverse their bets and begin buying as gold rallies.
China’s largest bank is buying the lease on a huge gold vault in London, another sign of gold’s continuing shift from West to East.
As the Telegraph put it, acquisition of the 1,500 ton vault will enlarge ICBC Standard Bank’s footprint in the city’s bullion market:
The Chinese and South African lender is aiming to fill the gap left by Western banks, which are retreating from commodities to cut costs and reduce regulatory burden.”
In episode 130 of his Podcast, Peter Schiff discussed the State of the Union address, calling Obama’s speech the most clueless ever.
Peter breaks down all of the economic fallacies the president invoked during the SOTU, honing in on the fact that the president seems oblivious to the fact that we are about to head over an economic cliff. Instead he’s claiming victory over the Great Recession and acting like economy is great:
I think it will probably go down in history as the most clueless State of the Union Address ever, because all he talked about was how great the economy was, how we created all these jobs. He even had the chutzpah to take credit for reducing the budget deficit.”
