The Federal Reserve has held interest rates artificially low for decades. Even after pushing rates to zero in the wake of the 2008 financial crisis, “normalization” only managed to raise rates to 2.5% — hardly “normal.” The central bank began cutting rates in 2019, even before the coronavirus pandemic.
But what difference does it make? Why do artificially low interest rates matter? Peter Schiff explains in this clip from his podcast.
Gold has been rangebound of late, bouncing between $1,750 and $1,800 an ounce for several months. Given the inflationary environment, one would expect gold to be soaring. So, what’s going on with the yellow metal? And when will the price of gold go up? Peter Schiff tackled this question during a recent Q&A session on YouTube.
Trade deficits used to be an important market mover. In fact, many blame the 1987 stock market crash on a much worse than expected trade deficit. That led to weak dollar and bond markets that bled over into the stock market. But today, traders mostly ignore the trade deficit. In fact, the US trade deficit set another record in September and the markets didn’t blink. Peter Schiff talked about it in his podcast.
Is inflation transitory, as Federal Reserve Jerome Powell has claimed for months? Or are we on the verge of hyperinflation, as Twitter CEO Jack Dorsey recently warned? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks inflation, digs into the data, and concludes that it’s pretty clear we’re in an inflationary spiral.
The “transitory inflation” narrative has completely broken down. And now Twitter and Square CEO Jack Dorsey has warned us.
Hyperinflation is coming.
The Dow Jones and the S&P 500 hit new all-time records on Tuesday (Oct. 26). In his podcast, Peter Schiff focused on a few speculative stocks that have had meteoric rises (and in some cases crashes) over the last few days. He said this is evidence of the speculative fervor in this massive bubble.
The federal budget deficit for fiscal 2021 came in at $2.77 trillion. It was the second-largest deficit in US history, just behind last year’s $3.13 trillion shortfall. Despite falling shy of the deficit record, Uncle Sam spent even more money in 2021 than it did during the depths of the 2020 coronavirus recession.
In this episode of the Friday Gold Wrap podcast, host Mike Maharrey answers listener questions. Some of the topics covered include bitcoin, fractional reserve banking, the silver/gold ratio, gold as a safe haven, precious metals in a crisis, and more.
The inflation that we were emphatically told would be transitory and unmoored continues to persist and entrench. As the troubles gather momentum Washington is doing its best to ignore the problem or actively make it worse.
As governments shut down the economy in response to COVID-19 and the Federal Reserve put money printing into hyperdrive, we warned that it was a recipe for stagflation. Today, it looks like stagnation is here.
Stagflation is an economic environment with rapidly rising prices, a weak labor market, and low GDP growth. It’s looking more and more like we have all three elements.
