The Federal Reserve and the US government create inflation and then blame everybody else.
President Joe Biden recently finger-pointed at “greedy corporations,” saying they need to “lower prices” now that inflation come down. Whether he is really that ignorant or just lying, Biden’s comments serve a purpose. As Ron Paul put it, they gaslight the American public into thinking price inflation is rooted in the actions of private individuals and not the fiat money system.
Peter Schiff recently appeared on Real America with Dan Ball to talk about the state of the US economy. He described it as a disaster and said Bidenomics consists of putting lipstick on a pig.
After the Federal Reserve effectively surrendered to inflation at its December meeting, projecting three rate cuts next year, New York Fed President John Williams tried to walk the surrender back. In his podcast, Peter Schiff analyzed Williams’ more hawkish comments and compared them to Powell’s dovish stance after the FOMC meeting.
Williams said, “We aren’t really talking about rate cuts right now,” and that it’s premature to expect rates to fall in the opening months of 2024.
Two weeks ago, Federal Reserve Chairman Jerome Powell said it would be “premature” to conclude that monetary policy is sufficiently restrictive. This week, the Fed indicated rate cuts are on tap for next year. What a difference two weeks makes! In this episode of the Friday Gold Wrap, host Mike Maharrey breaks down this week’s Fed meeting and the status of the inflation fight.
The Federal Reserve just surrendered to inflation.
Fed officials won’t call it a surrender. They’re claiming victory. But surrender is the effect of the policy trajectory laid out by the Federal Open Market Committee (FOMC) at its December meeting.
Inflation is dead!
At least that’s what you would think if you listen to government officials and talking heads in the financial media.
So, how is this victory over inflation working out for the average person?
Not so great.
Why do virtually all the mainstream pundits think the Federal Reserve has won the inflation fight?
Maybe it’s just wishful thinking. They want the Fed to win so it can go back to what it does best – creating more inflation with artificially low interest rates and quantitative easing.
Regardless, most of the mainstream punditry hyped the November CPI report as more positive news on the inflation front. The CNBC headline reflected the consensus – inflation “slowed” last month.
Except it really didn’t.
In a recent interview with Forbes, economic commentator and historian Jim Grant warned that we haven’t fully felt the inevitable fallout from the “free money era.”
I think that the consequences of more or less 10 years of proverbially free money are going to play out in the credit markets.”
Most mainstream pundits characterized the November jobs report as a “Goldilocks” report. Job growth was strong enough to support the “soft landing” narrative but not so strong it might scare the Fed into raising interest rates again.
President Joe Biden used the report to boast about his economic achievements. But according to Peter Schiff, Biden doesn’t have anything to boast about. He talked about it during a recent interview on the Capitol Report on NTD News.
It’s not a good idea to argue about things you don’t know anything about. Most people realize this — until it comes to economics. A lot of people argue economics from a position of ignorance. President Biden is one of those people. In this episode of the Friday Gold Wrap, host Mike Maharrey dissects a couple of comments Biden made last week and teaches some economics along the way. He also talks about the significance of gold’s record-breaking week.
