An audacious communications campaign from Democrats in Washington is currently underway that is attempting to convince the public that:
In yet another sign the economy is tanking, private-sector business activity contracted for the second straight month in August.
The S&P Global flash composite purchasing managers index (PMI) dropped to 45 this month from a reading of 47.3 in July. A print below 50 indicates a contraction in economic activity.
The four-week win streak in stocks came to an end last week with all of the major indexes down significantly on Friday. As Peter explained in his podcast, it appears the markets are coming to terms with the fact the Powell Pivot may not come as quickly as anticipated. That means interest rates may go higher as the inflation fight continues. But Peter says the markets still don’t get the big picture. The Fed can’t win this inflation fight without wrecking the bubble economy.
It was a relatively slow news week in the financial realm. For once, the Fed didn’t do anything particularly noteworthy. So, Friday Gold Wrap Host Mike Maharrey took advantage of the lull. Along with covering some economic data and media spin, he hit on a couple of subjects he hasn’t been able to get to in recent weeks, including the fatal flaw in Keynesian economics and the prospect of manipulation in the gold and silver markets.
The CPI cooled in July. The White House and others in the mainstream continue to insist there is no recession. Is everything looking up?
Peter Schiff was on Fox Business with Liz Claman, Kenny Polcari (Slatestone Wealth Peak Market Strategist), and Teddy Weisberg (Seaport Securities) to discuss the Fed’s attempt to fight the inflation it caused. Peter said we haven’t seen peak inflation, and on top of that, the recession will get worse.
The Consumer Price Index data for July cooled even more than expected. The question is how will the Federal Reserve play this? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey breaks down the CPI data, talks about the Fed reaction, and speculates about the Fed’s next move and its impact on the economy.
As expected, the Consumer Price index cooled a bit thanks to falling gasoline prices. The question is will this give the Federal Reserve the excuse it needs bow out of the inflation fight?
The Consumer Price Index for July was up 8.5% year-on-year. That was down from June’s 9.1% print and slightly below the 8.7% expectation. Of course, an 8.5% increase in prices over the course of a year is still extremely hot.
Despite White House and media spin downplaying a recession, a lot of people aren’t buying. Fifty-seven percent of small business owners say a recession has already begun. Peter Schiff talked with Laura Ingraham about government spending, taxation, inflation, household debt and the recession. He said the recession is already worse than people think.
Jobs are on everybody’s mind as the July employment report comes out. Will the labor market show more cracks? Or will it give the pundits more room to spin the idea that we’re not really in a recession? In this episode of the Friday Gold Wrap, host Mike Maharrey talks about the labor market and breaks the July jobs data news as it comes out. He also talks about the “health” of the American consumer and gold’s flirtation with $1,800 an ounce.
After the second straight negative GDP print in Q2, the markets began anticipating that the Federal Reserve would pivot away from its monetary tightening. But a few choice words from some Fed members this week caused thoughts of a pivot to pivot. As Peter Schiff put it in his podcast, it appears to be damn the recession! Full ahead with rate hikes. The question is how long can the Fed keep this up?
