Jerome Powell will speak today at the Jackson Hole economic summit. Everybody is on pins and needles in anticipation of the Fed chairman’s speech. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey discusses the Fed’s messaging and then moves past the talk to discuss the “here and now” reality. He also spends some time talking more fundamentally about gold as part of an investment strategy.
In a speech at the Cambridge House Vancouver Resource Investment Conference back on Jan. 19, 2020, Peter Schiff said it was “game over” for the Federal Reserve. It’s interesting to look back at his remarks in context with what’s going on over at the central bank today. If it was game over then, where are we now?
The money supply growth rate surged to an all-time high in April as the Federal Reserve created cash at an unprecedented rate through quantitative easing and other money-creating monetary policies.
According to Ryan McMaken at the Mises Institute, the only time the Fed has come close to this level of money creation was in the 1970s – the era of stagflation.
The Federal Reserve is creating a massive amount of money out of thin air and injecting it into the economy. Pretty much everybody believes this is the only choice given the economic emergency we face. But we’re told once the emergency is over, the Fed will take the excesses away. In his podcast, Peter Schiff explains why this will never happen. Once the drug addict is hooked, you can’t just take the drug away.
The Federal Reserve launched QE infinity this week. The Fed has committed to buy an “unlimited” amount of US Treasuries and mortgage-backed securities. But that’s not all. The central bank also announced it will buy some corporate bonds for the first time ever.
In effect, this is money-printing on a massive scale. And of course, pumping trillions of dollars into the economy will have ramifications. We may well be on the path to hyperinflation.
March 23 was Peter Schiff’s birthday. It was also the day the Federal Reserve announced QE Infinity. So, Peter spent over three hours hosting a live videocast talking about the latest Fed moves, the potential impact on the economy and answering questions from viewers.
Peter said he was hoping to combat the rampant economic ignorance that is pretty much everywhere.
