Everybody realizes the US economy is in a bad spot. But most people still seem to believe it will bounce right back once we deal with the coronavirus.
They’re all high on Federal Reserve fairy dust.
Earnings reports started coming in last week. It was a mixed bag, with some companies showing the negative impacts of the coronavirus-induced government shutdowns, but other companies coming in more upbeat. Peter Schiff appeared on RT Boom Bust to talk about it. He said the only thing the stock markets have going for them right now is the Federal Reserve. But one sector will truly benefit – gold.
There seems to be growing optimism that we’re nearing the end of the coronavirus lockdown. Stocks have rallied despite dismal economic numbers. But Peter Schiff says there are some important questions nobody is asking, especially when it comes to the insane Federal Reserve monetary policy.
A lot of people in the mainstream still insist this isn’t a financial crisis like we saw in 2008. They say this is just a self-inflicted shutdown of the economy. Since we decided to shut it down, we can decide to start it back up again. Peter Schiff begs to differ. In his podcast, he explains that this is absolutely a financial crisis and it’s going to be worse than 2008.
Former Federal Reserve Chair Janet Yellen is making the media circuit and pontificating about the evolving economic crisis. As Peter recalled on his podcast, it wasn’t long ago that Yellen was saying she didn’t think we would ever see another financial crisis “in our lifetime?”
Yet, here it is, just a few years later, and we already have another financial crisis.”
As the coronavirus lockdown drags on and governments at every level enact more and more draconian measures, nobody seems to have an answer for what I believe is a most crucial question.
What’s the exit strategy?
As the coronavirus economic lockdown drags on, there seems to be a lot of delusional thinking out there. Many people seem to believe that at some point, President Trump will snap his fingers and the economy will roar back to life. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey looks at the numbers and makes the case that this is actually the early stages of an unprecedented economic meltdown. Everything is not going to be fine. He also takes on the myth of the non-essential worker.
We just wrapped up the worst first quarter in the history of the US stock market. Think about that in context. Even during the dark days of the Great Depression, there has never been a worse start to a year for the US stock market than 2020.
Nevertheless, there are still a lot of people out there who think this is going to be a short bear market. As Peter Schiff put it in his podcast, that’s because they’re still fixated on the pin.
The Federal Reserve is injecting trillions of dollars of monetary stimulus into the financial system to ‘help’ the economy through the coronavirus pandemic. This is the same kind of ‘help’ the central bank offered in 2008. But as Peter Schiff explains in his latest podcast, this kind of ‘help’ is actually hurting. In fact, the ‘help’ we got in 2008 set us up for the crisis we’re entering today.
The evil Empire has the ultimate weapon – the printing press. This diabolical machine is capable of bringing death to the dollar and destroying the entire economy. Watch the drama unfold as Peter Schiff and his rag-tag band of Austrian School economists fights the evil empire and tries to save the Republic from the Keynesian menace.