Peter Schiff recently appeared on Fox Digital and poured a bucket of cold water on those who believe the Federal Reserve is winning the inflation fight. In fact, the Fed isn’t making any progress at all.
President Biden has announced he will run for a second term in 2024. Peter Schiff recently appeared on the Ingraham Angle on Fox News to talk about what will happen if we keep going down the Biden road. In a nutshell, Peter said we can’t afford to let Biden “finish the job.”
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.”
Economist Nouriel Roubini says Federal Reserve is going to “wimp out” on the inflation fight and that will lead to a dollar crash.
Roubini is the Professor Emeritus at the Stern School of Business, New York University. He recently appeared on Bloomberg Markets and Finance to talk about threats to the global economy.
Roubini predicted the housing bubble would pop in an IMF position paper in 2006. When asked if we were there again, he emphatically said, “Yes.”
There are a number of signals that the US economy is getting weaker even as inflation gets stronger.
In other words, we are hurtling toward stagflation.
Most people seem to think that tighter monetary policy will bring on a recession, but they believe that it will solve the inflation problem. In his podcast, Peter Schiff explained why they’ve got it half right. We are heading toward a recession, but it’s not going to solve the inflation problem. In reality, we’re heading for stagflation.
On Tuesday, the Atlanta Fed cut its GDP estimate for the first quarter of 2022 to zero.
Just a few days ago, the estimate was for 0.6% growth. That was down from 1.3% just a few days before that.
This is not an encouraging trend.
The Federal Reserve held its first FOMC meeting of 2022. The central bank didn’t do anything, but the tone coming out of the meeting was widely perceived as even more “hawkish.” Everybody is convinced the Fed really means it now. The inflation fight is on. Is it though? Host Mike Maharrey talks about the messaging and perceptions coming out of this meeting and calls it a big flim-flam.
Peter Schiff was a guest on the Wharton Business Daily podcast produced by the Wharton School of Business at the University of Pennsylvania. Peter talked about inflation and how it will impact the US economy moving forward. He said ultimately, we’re heading toward stagflation.