Peter Schiff appeared on the Capitol Report on NTD News to talk about the bank bailouts and the possible ramifications. He said that no matter what President Joe Biden and others tell you, Americans are going to pay for this.
The interview started with a clip of Treasury Secretary Janet Yellen assuring Congress that the banking system is safe. So, should we feel confident in our banking system?
Friday gold wrap host Mike Maharrey has been saying something is going to break in the economy for months due to the Federal Reserve’s monetary tightening to fight price inflation. Last Friday, something broke when Silicon Valley Bank collapsed followed quickly by the demise of Signature Bank. It was the first crack in the dam. The Fed rushed in to plug the leak, but was it enough? In this episode of the podcast, Mike talks about the response to these bank failures and the possible ramifications.
The annual rise in the Consumer Price Index (CPI) for February came in at 6%. This was down from the 6.4% annual increase charted in January. The eighth straight monthly decline in CPI seems to have restored faith that the Federal Reserve is winning the inflation fight. But everybody should probably stop and remember that the target is 2%.
Six percent is a lot bigger than 2%.
On June 14, 2022, Peter Schiff appeared on Ingraham Angle, and he said, “Thanks to the Federal Reserve, everybody has so much debt that we can’t afford to pay an interest rate high enough to fight inflation. But it is going to be high enough to cause a massive recession and another financial crisis that’s worse than the one we had in 2008.”
On March 13, 2023, Peter was on Ingraham Angle again, this time to talk about the beginning of that financial crisis.
The CPI came in at 0.37% for the month of February. While this was in line with expectations, it is still a 4.5% annualized increase in prices.
And falling energy prices made the CPI look cooler than it actually was.
February has historically been a big budget deficit month, but the Biden administration still managed to overachieve and run the second-largest February deficit ever. The only time the US government has run a February deficit bigger than the $262.4 billion shortfall last month was in February 2021 in the midst of the COVID stimulus.
This raises an important question: between a budding financial crisis and a US government spending problem, how is the Federal Reserve ever going to get price inflation back to its mythical 2% target?
As we start to sort through the fallout of the failure of Silicon Valley Bank and Signature Bank and the government’s reaction to it, the next question is: what’s next?
Government officials and mainstream pundits insist everything is fine now. They say quick government action averted a crisis. But in his podcast, Peter Schiff said this is really just the beginning of the next financial crisis.
In the wake of two bank failures, the Federal Reserve and the US Treasury announced a bank bailout program.
Last week, Silicon Valley Bank was shuttered by federal authorities after the bank suffered significant losses selling bonds in order to raise capital. When that news hit, depositors rushed to pull funds from the bank, making it functionally insolvent. Then over the weekend, federal authorities shut down Signature Bank.
There has been a lot of talk about central bank digital currencies (CBDCs) lately. Supporters tell you they will provide a safe, secure, convenient alternative to cash. But in this episode of the Friday Gold Wrap, host Mike Maharrey digs deeper and explains that CBDCs are actually about more government control. He also talks about how Jerome Powell talked and tanked the markets this week.
During testimony on Capitol Hill, Federal Reserve Chairman Jerome Powell said the central bank may have to raise interest rates higher than previously expected to bring down price inflation.
Despite the speed of Fed hiking and the enormous amount of debt in the US economy, most people in the mainstream seem convinced the central bank can keep hiking rates without breaking the economy.
Economist Thorsten Polleit disagrees.
