To hear Federal Reserve officials, politicians and mainstream financial media pundits tell it – there is no inflation. In fact, the consumer price index remains “stubbornly low” according to those who view rising prices as an economic good. But inflation defined correctly is rampant. In fact, it is at all-time record levels.
Strictly speaking, inflation is an increasing money supply, and by that measure, it hs set records for five straight months.
As the Federal Reserve meeting wrapped up last week, Peter Schiff appeared on RT Boom Bust. The interview covered a number of topics, including gold, oil prices, the Fed and the Snowflake IPO.
The discussion started with the rising prices of gold and silver. Peter said central bank policy is creating a very bullish environment for precious metals prices to continue to rise. Unfortunately, a lot of other prices will rise as well.
Last week, the Federal Reserve held its September FOMC meeting. Peter Schiff appeared on the Claman Countdown after the meeting ended, along with Natalie Securities Global Fixed Income Chief Andy Brenner. During the interview, they discussed inflation, the impact of Fed policy, the bubble economy and they even touched on modern monetary theory. Peter said ultimately the Fed isn’t helping. In fact, it’s the biggest enemy of economic growth.
If you go to McDonald’s, you expect to get a hamburger. If you go to KFC, you expect to get chicken. And if you go to the Federal Reserve, you expect to get easy money.
The Fed delivered exactly what you would expect at this month’s Federal Open Market Committee meeting that wrapped up Wednesday.
Wildfires are raging out of control in western states doing millions of dollars in damage and disrupting countless lives. In a recent podcast, Peter Schiff said the Federal Reserve has set an even fiercer wildfire – inflation. And we are in danger of it burning out of control through the entire US economy.
Last month, the Federal Reserve moved its inflation goalposts. Is it setting us up for a return to the inflation of the 1970s?
During a speech at Jackson Hole, Federal Reserve Chairman Jerome Powell announced new policy guidance for how it addresses price inflation. In the past, the central bank has targeted a 2% inflation rate as measured by CPI. Now it will shift to “average inflation targeting.” In practice, the Fed will allow the CPI to run “moderately” over 2% “for some time” to balance out periods where it runs under that level. In effect, the central bank now has an excuse to let inflation run hot.
Last month, the Federal Reserve moved the goalposts when it changed its inflation targeting policy. In the past, the central bank has targeted a 2% inflation rate as measured by CPI. Now it will shift to “average inflation targeting.” In effect, the Fed will allow the CPI to run “moderately” over 2% “for some time” to balance out periods where it runs under that level.
We have argued that this isn’t some kind of technical policy shift due to new economic insights. It’s a necessary move because the Fed can’t stop printing money and price inflation is an inevitable side-effect.
Peter Schiff recently appeared on RT Boom Bust with Ben Swann to talk about safe-haven assets in the age of COVID-19. Peter made the case for gold, saying if you understand its role as money, you know you should always have some. He also debated Swann on the long-term value of bitcoin.
After rising early in the week on the Fed’s promise of more inflation, gold and silver dipped a bit late in the week with some positive economic data bolstering hopes of a quick economic recovery. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey reiterates that what’s going on isn’t fundamentally about the coronavirus. He takes a deep dive into the Fed’s new inflation policy and makes the case that this was all in play long before the pandemic.
Last week, the Federal Reserve announced a change in the way it will target inflation going forward. In other words, the central bank moved the inflation goalposts. In effect, the new policy will allow the Fed to let inflation run hotter.
As Peter Schiff explained in his podcast, the move was expected and necessary.