Peter Schiff recently appeared on InfoWars with Alex Jones and took on the notion that Pres. Trump is in the process of fixing the economy. In fact, Peter pushed back hard against Alex, saying we are on the verge of a crash and Trump is going to get the blame.
I agree with you. The economy is going to blow up. But it’s going to blow up like a bomb. It’s not a good thing. It’s a bad thing. Unfortunately, that’s what Trump has inherited from Obama. But it’s not even really just Obama. It’s the Federal Reserve. It’s the monetary policy that has been passed like a baton from Clinton, to Bush, to Obama, and now to Trump.
Peter predicted the collapse will happen under Trump’s watch. Peter has said in the past that Trump is not helping himself by taking credit for the soaring stock market. And when things go south, he’s going to get the blame.
He owns the stock market bubble. He and the Republicans own the economy now thanks to the tax cuts. They’re not going to make any difference, but they are going to give the Democrats a reason to blame it all on Trump and the Republicans.”
We’ve written extensively about the stock market bubble blown up by artificially low interest rates and Federal Reserve quantitative easing. But stocks aren’t the only asset bubble out there. In fact, 2017 may go down as the year of the bubbles. And the new housing bubble is one that seems to be floating under the radar.
Financial manager James Stack has noticed it. He predicted the housing crash in 2005, and he told Bloomberg the housing market is flashing red again.
It is 2005 all over again in terms of the valuation extreme, the psychological excess and the denial. People don’t believe housing is in a bubble and don’t want to hear talk about prices being a little bit bubblish.”
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
Last Friday, all three major stock markets hit new record highs ignoring the storm clouds on the horizon. In his latest podcast, Peter Schiff said this reminds him of 1987.
The stock market is rising despite the fact that there are very, very negative factors that are building, that are hiding in plain sight, that everybody is ignoring.”
When it comes to the economy, most people aren’t worried about anything when there is everything to worry about.
The World Gold Council has released a report highlighting four market trends that will impact gold in the coming year. Although the WGC tends to embrace a pretty mainstream economic point of view, there is some good food for thought in the report, and some reason to be bullish on gold in 2018.
The WGC notes that gold performed remarkably well in 2017. Investors continued to add gold to their portfolios. It pointed to inflows of $8.2 billion worth of gold into gold-backed exchange- traded funds as one example of strong gold demand. In fact, gold outperformed many asset classes in 2018, despite a rising interest rate environment and surging stock markets.
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
The stock market has continued its upward trajectory through the first two weeks of the new year. In fact, the market has only seen one down day since Jan. 1. Peter Schiff appeared on The Street and opened things up with a bang, calling investors “Oblivious.”
Peter reiterated a message he’s been preaching on his own podcast for weeks – despite what you see in the markets, the US economy is heading for a major crash. We’re partying like it’s 2006 – oblivious to what’s lurking right around the corner.
Peter also talked about China’s decision to cut back or end the purchase of US Treasuries, the Federal Reserve, Trump’s economy and Bitcoin during the interview.
As the GOP tax plan wound its way through Congress, we argued that it is not going to create the kind of economic benefits promised without some reduction in the size and scope of government. We don’t just need tax relief, we need government relief. But there don’t appear to be any serious efforts to cut spending or to reduce the size of the federal government on the horizon. In fact, it looks like D.C. is hurtling in the exact opposite direction. With tax reform in the rearview mirror, Pres. Trump has set his eyes on a federal plan to “fix” America’s infrastructure.
This is a Keynesian boondoggle of epic proportions. And as Ryan McMaken shows in the following article originally published at the Mises Wire, it isn’t even necessary. We don’t need a federal solution to the infrastructure problem. Not for practical purposes. And not to “stimulate” the economy. In fact, the borrowing and money printing that will be necessary to finance whatever plan the politicians in D.C. come up with will compound the country’s economic woes.
The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.
Last month, we reported on a Bank of America survey that indicated the mainstream has started to acknowledge that the stock market is a big, fat, ugly bubble.
The latest fund-manager survey by Bank of America Merrill Lynch found that a record 48% of investors say the US stock market is overvalued. Meanwhile, 16% of investors say they are taking on above-normal risk. BoA chief investment strategist Michael Hartnett called this “an indicator of irrational exuberance.”
Now, even the government has taken notice, acknowledging asset prices are floating in dangerous bubble territory.
