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

Peter Schiff: Powell Was Out There to Lie to the American Public on 60 Minutes

  by    0   0

What is the biggest problem in the US economy? As Peter Schiff put it in a recent podcast, “The big, fat, ugly bubble is deflating and the air is coming out.”

And that is precisely why Peter thinks Jerome Powell recently appeared on 60 Minutes.

This is part of a confidence road show – a dog and pony show.”

Over the last few months, 60 Minutes has not only featured Powell. The show also hosted two former Fed chairs – Janet Yellen and Ben Bernanke. Peter said this is all designed to reassure the nation that there’s nothing to worry about.

Even though that they’ve indicated they’re going to be ‘patient’ now and they’re not going to keep raising interest rates, and even though they’ve indicated they’re not likely to shrink their balance sheet on autopilot like they once said but they’re likely going to finish the process this year, that even though they’re doing that, there is nothing to worry about. The US economy is in great shape. It’s going to grow close to 3% for all of 2019, even though the first quarter looks like it’s going to come in sub-1 percent  … the Fed is out there reassuring everybody that there’s nothing to worry about.”

Interestingly, when asked about the increase in the auto-loan delinquency rate, Powell brushed it off and said it just goes to show the widespread prosperity hasn’t reached everybody. Peter said that comment was a bit ironic.

If the prosperity was widespread, well, then it would be reaching just about everybody, right? Isn’t that what widespread means? Like, it’s spread wide over the country. Everybody is enjoying this prosperity. I mean, the reason that we have the problems that we do when it comes to people paying their auto loans or their student loans or even credit card debt is because there is no widespread prosperity. There is some prosperity, but it’s very narrow. It isn’t widely spread out. It’s concentrated among people who own a lot of assets, people who benefited from quantitative easing and artificially low interest rates, people who have stock portfolios or other investments that benefited from the Fed’s monetary policy. But ordinary Americans who are just working for wages and have been living paycheck to paycheck, they’ve seen their standard of living go down. The cost of living has been going up than their nominal pay increases. And so, they are going deeper and deeper into the hole.”

Powell was asked point-blank what problems he sees in the US economy and other than the auto loan delinquency, he didn’t see anything. Everything is great. There is nothing that concerns him in the domestic economy. Not the record amount of debt. Not the record budget deficits. Not the skyrocketing trade deficits.

There are so many things that he should worry about, yet Powell isn’t worried about any of them. Nothing. Obviously, he can’t be this clueless. He’s just there to paint a rosy picture to try to engender confidence that all is well. Because the Fed has to come up with an excuse as to why it stopped its normalization of interest rates.”

So, what’s the excuse?

Weakness in the overseas economies. Everything that worries Powell is something that is happening abroad. Nothing worries him that’s happening in the US, which simply can’t be true unless he’s completely incompetent.

He’s out there to lie to the American public on 60 Minutes, which obviously is a show a lot more people watch than CNBC …  He’s trying to reach a broader audience by going on 60 minutes and telling everybody that there’s nothing to worry about – everything is great.”

Here’s the truth –

They don’t want to admit the real problem is in America. We can’t raise rates because we can’t afford it – because we have too much debt thanks to the Federal Reserve because they kept interest rates so low for so long, we borrowed so much money that it’s impossible to normalize interest rates because we have an abnormal amount of debt. The reason they have to stop shrinking their balance sheet is because they can’t do it because the budget deficits are exploding and they can’t add to the problem by shrinking its balance sheet. And what Powell hasn’t said is that by the way, what we’re going to have to do is go back to quantitative easing because the deficits are so big and air is coming out of this bubble we’re going to have to buy even more bonds, the balance sheet is going to get a lot bigger. In fact, we’re going to have to cut interest rates back to zero. They haven’t let that cat out of the bag yet.”

Download SchiffGold's Gold vs GLD EFT's Guide Today

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: The Art of the Fake Trade Deal

Donald Trump and Chinese Vice Premier Liu signed the Phase 1 trade deal on Wednesday. The mainstream was generally bullish on the news, but there was some underlying concern because the deal did not bring substantive tariff relief. Peter Schiff broke down the deal in his latest podcast, saying that despite all the hype, the […]

READ MORE →

Peter Schiff: War Is Off But Risk Is On

In his latest podcast, Peter talks about sudden silencing of the war drums, the risk that remains in the markets, the stealth bull market in gold, the risk of a socialist president, rampant economic illiteracy, inflation and more. As Peter put it – what a difference 48 hours makes.

READ MORE →

Peter Schiff: Gold Climbs Wall of Worry

Gold surged above the $1,550 mark in the wake of a US airstrike that killed a prominent Iranian general and has hit levels not seen since 2010. Monday morning, gold was trading above $1,575. As Peter Schiff put it in his podcast Friday, the yellow metal is climbing a “wall of worry.”

READ MORE →

Peter Schiff: The Most Reckless Combination of Monetary and Fiscal Policy in History

On Friday, all the major stock markets finished the week at weekly highs in record territory. Positive data on personal income and spending helped push stocks higher to close out the week. Everybody keeps cheering the “strong economy,” but during his podcast Friday, Peter Schiff said the in truth, the US economy is the biggest […]

READ MORE →

Peter Schiff: This Is Not a Real Deal

We have a trade deal! Or do we? We still don’t have all of the details of the so-called phase 1 deal. From what we know, it appears to be rather limited in scope. The US offered to suspend some tariffs on Chinese goods and cut others up to 50% in exchange for Beijing buying […]

READ MORE →

Comments are closed.

Call Now