During a recent podcast, Peter Schiff talked about how the Bank of Japan lied about inflation being too low in order to justify its reckless monetary policy and keep interest rates artificially low in order to prop up the country’s massive debt. In a subsequent podcast, Peter talked about similar lies coming out of the European Central Bank.
Is the US about to go the way of Japan?
The Japanese yen tanked after the Bank of Japan vowed to buy an unlimited number of Japanese government bonds in order to hold the 10-year yield under its 0.25% target.
We’ve seen a number of inversions in the Treasury bond yield curve over the last couple of weeks. This is a recession warning signal.
In his podcast, Peter Schiff said the markets are right about the looming recession. But they’re not getting the whole picture.
Earlier this month, the Federal Reserve launched its first salvo against inflation, raising interest rates by a quarter-percent. It was a pretty weak shot given 7.9% CPI, but Jerome Powell and other Fed presidents ratcheted up the tough rhetoric last week. Powell raised the possibility of 50 basis-point rate hikes at future meetings and San Francisco Fed President Mary Daly, “With the labor market so strong, inflation, inflation, inflation is top of everyone’s mind.”
The Fed threw a pretty weak first punch at inflation with a quarter-point interest rate hike last week. But Fed Chair Jerome Powell followed up with some tough talk this week. The question is what will he do when the economy punches him in the face? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about Powell’s attempt to bully inflation and if it might backfire.
Suddenly, Fed chair Jerome Powell is a tough guy.
Is he though?
Earlier this week, Powell delivered what Reuters called “his most muscular speech to date” on the battle against inflation.
Peter Schiff recently appeared on Kitco News with David Lin to talk about inflation and the Fed’s attempt to get it under control. Peter said there is no getting inflation under control. It’s already worse than anybody thinks. And it’s only going to get higher.
No doubt, money supply growth is decelerating but is still far from contractionary.
According to the seasonally adjusted data, M2 expanded by $83billion in February. January was revised down from $245 billion to $176 billion.
Despite rising interest rates and more hawkish talk from Federal Reserve Chairman Jerome Powell, the stock markets keep pushing upward. Everybody seems to think the Fed has things under control and everything will be just fine. In his podcast, Peter explained why this “everything is great” attitude will have to come to an end.
The Consumer Price Index hit a 40-year-high of 7.9% in February. Of course, it’s even worse than that. The official government numbers are rigged to understate rising prices.
But inflation doesn’t just hit us with rising prices. In some cases, we pay more, but we get less. This is known as shrinkflation.
