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

Peter Schiff: It’s the Same Economy; Nothing Has Changed

  by    0   0

April’s jobs report came out better than expected. According to the Labor Department, the economy added 263,000 jobs last month. That came in well above the expectation of 180,000 jobs. The unemployment rate dropped to 3.6%, the lowest level since December 1969.

But in his most recent podcast, Peter Schiff said the job headlines actually mask the real story.

Of course, Donald Trump tweeted about how great the job numbers were. Peter tweeted out a little reminder in response.

But I though the official unemployment rate is a fraud, scam, hoax, etc. You said so many times yourself when campaigned against Obama’s phony economy. Do you no longer care about discouraged workers who have left the labor force, or those involuntarily working part-time?”

Many people are pointing to the jobs numbers as proof of a strong economy. But as Peter pointed out, there have been plenty of strong jobs reports over the last several years. In fact, there were many months during the Obama years when we saw more than 200k new jobs added to the economy. So, while Trump is pointed to these numbers as proof that he’s fixed the economy…

It’s the same economy. Nothing has actually changed.”

Peter pointed out some numbers hidden within the jobs report that weren’t so encouraging. Average hourly earnings were only up 0.2. This is a non-inflation adjusted number. The average workweek ticked down from 34.5 hours to 34.4 hours.

And consider the labor force participation number. When Trump took office, it stood at 62.9. It is now 62.8.

There has not been an increase. Despite all the talk about all of these workers coming off the sidelines that are now in the game — all these workers who are taking advantage of the opportunities in a booming economy — none of it’s true. The labor force participation rate has not moved up at all since Donald Trump has become president.”

Peter also looked at the type of jobs that are being created. Trump promised a manufacturing renaissance. But the economy only added 4,000 manufacturing jobs out of the 280,000 jobs created last month.

This is another myth — that we have this vibrant manufacturing sector, that this protectionism is working, that the tariffs are working. They’re not working. Manufacturing has not been revived. It is simply a matter of PR.”

There was also a loss of 12,000 retail jobs. It was the third consecutive month of job losses in the retail sector. Peter said it is a more ominous sign. It is not only bad for employment in that sector; it is also going to be a problem for commercial real estate.

This is going to be part of the coming real estate collapse that’s going to be particularly hard felt in the commercial sector.”

Peter talked about some of the other economic data that came out Friday that got lost in the jobs headlines.

The US continues to run tremendous trade deficits. The ISM manufacturing index also came in lower. It was projected to be rise from last month to 57.3, but it instead fell to 55.5. That’s the lowest number in about 2 years.  April auto sales were down 6.1%. It was the biggest month-on-month drop in eight years. Luxury home prices saw their biggest declines since 2010.

These jobs numbers are much more of a lagging indicator. Most of the forward-looking indicators are showing economic weakness.”

Peter also talked about the stock markets’ reaction to the job numbers and the impact of the Federal Reserve.

Get Peter Schiff’s most important Gold headlines once per week – 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!


Related Posts

Peter Schiff: Inflation Bloodbath on the Way

This time Peter tackles Jerome Powell’s speech from Wednesday, in which he announced that the Fed is holding the federal funds rate between 5.25 and 5.5%. He also briefly discusses Bitcoin’s pullback and the media’s lies about Donald Trump. 

READ MORE →

Peter Schiff: The Inflation Genie is Out of the Bottle

In this episode, Peter reacts to a hotter-than-expected CPI report, big trades in Bitcoin, and the federal bill that would ban the popular social media app TikTok. He also notes silver’s historically low price, which is nearly 50% of its 2011 high.

READ MORE →

Peter Schiff: Biden Ignores Fiscal Time Bomb

On Sunday, Peter recapped a stellar week for gold. He also provided an analysis of President Biden’s State of the Union Address and criticized Fed Chair Jerome Powell’s perspective on the economy. 

READ MORE →

Peter Schiff: Price Controls Are Coming

This week, Peter reacts to politicians’ sophomoric views on inflation and explains the recent surge in the price of gold. He also comments on the first day of Jerome Powell’s congressional testimony. Be sure to watch Peter’s special extra episode from earlier this week if you missed it. 

READ MORE →

Gold Hits New All-Time Record High

Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]

READ MORE →

Comments are closed.

Call Now