The headline numbers from December’s CPI report give the impression that price inflation is continuing to cool. Markets are giddy at the prospect. But in this episode of the Friday Gold Wrap podcast, host Mike Maharrey argues that “cooling” price inflation is most likely transitory and the markets still don’t really understand the Fed’s position. He also gives an overview of gold’s performance in 2022.
Based on the headline numbers, price inflation cooled again in December, boosting market optimism that the Federal Reserve will continue to ease off the pedal on its monetary tightening. But this could be setting the stage for more price inflation down the road.
And a deeper look at the data reveals that a lot of inflationary pressure remains despite the optimistic headlines.
Last year was a tough one for investors. In fact, it was the worst year for Wall Street since 2008. The Dow was down about 8.8%. The S&P 500 fell by 19.4%, dropping more than 20% from its high. The Nasdaq took the worst hit, tumbling by 33.1%. Meanwhile, the bond market tanked, bitcoin collapsed, and the air started coming out of the real estate bubble.
Peter Schiff recently did an interview with the Epoch Times. He predicted more pain in 2023, primarily driven by inflation and the Federal Reserve.
During the pandemic, we got trillions of dollars in stimulus. The Federal Reserve alone pumped nearly $5 trillion into the economy. People gobbled up those stimulus checks, but there is no such thing as a free lunch. Now we’re paying for those stimmy checks with rampant inflation that is morphing into stagflation.
As Peter Schiff has said, “Every dollar that the government spends must be paid for by the public, one way or another.”
Jerome Powell still insists the Federal Reserve can beat inflation while bringing the economy to a “soft landing.” But there are underlying issues in the economy that make it extraordinarily doubtful that the economy can avoid a major downturn – despite Powell’s claims to the contrary.
One of the biggest problems facing the Fed is the amount of debt in the global economy.
The Federal Reserve is trying to win a war against price inflation without tipping the economy into a recession. In this episode of the Friday Gold Wrap, host Mike Maharrey highlights two more reasons this is a game the Fed can’t win. He also does a quick overview of the gold market in 2022 as we head toward the end of the year.
Since 2008, we have been in an era of unprecedented money printing and interest rate suppression. Now the cost of all of that easy money is coming due.
Are the people who are predicting a big economic crash right? Or are they just crying wolf? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey explains why it’s hard to predict the exact timing of a crash even if you’re certain it’s on the horizon. He also talks about a couple of news items this week that caused the price of gold to yo-yo.
The Federal Reserve would like you to think that it is scientifically guiding the economy with carefully calculated monetary policy.
The truth is the Fed is making things up as it goes along.
Peter Schiff recently appeared on the Jay Martin Show. During the interview, he explains how the private sector can ultimately lead the world back to a gold standard.
