Contact us
CALL US NOW 1-888-GOLD-160

Peter Schiff: Jerome Powell Doesn’t Believe in Basic Economics

  by    0   0

Last month, Federal Reserve Chairman Jerome Powell testified before Congress. In his answer to one question, it sure did sound like he doesn’t believe in the basic economic principle of supply and demand. Peter Schiff talks about it in this clip from one of his podcasts.

During questioning, a congressman asked Powell about currency debasement with all of the Fed money printing. Powell insisted that not happening.

He said once upon a time in ancient history, expanding the money supply did have an impact on the value of the dollar. But he said that’s not the case anymore.

He said there’s no longer a relationship between the quantity of money and the value of money. Meaning, we can print as much money as we want and the money itself is not going to lose value.”

Peter called this “ridiculous.”

So, according to Powell, the law of supply and demand no longer applies. We can supply as many dollars as we want and the price of the dollar is not going to fall. I mean, that is absurd in its face.”

The Fed has expanded the money supply at a record pace. And prices are going up. Anybody who has gone to the gas station or the grocery store knows this. We also see it in the rapid increase of commodity prices.

Meanwhile, the dollar has been going down.

Now, has the dollar crashed yet? No. Not yet.”

Peter said he did agree with Powell to an extent. The US government and the Fed have managed to get away with printing a lot of money in recent years without creating an even bigger increase in prices or an even bigger drop in the dollar.


Because of the incorrect perception of the dollar as a safe haven because the dollar is the world’s reserve currency. And so, we’ve been given a lot of slack and you have a lot of people around the world who have loaded up on dollars. And because the Fed was successful in conning all these dollar holders that the short-term zero percent interest rates and the bloated balance sheet were temporary — that the Fed was going to normalize interest rates and shrink its balance sheet. And that is what enabled the Fed to keep on printing money without the value of that money collapsing because our creditors were willing to hold on to that money because they were anticipating this rate normalization, which was going to be bullish for the dollar.”

But at some point, they’re going to realize this isn’t going to happen. Then they will dump the dollar.

And that is exactly what the technical picture is showing you right now. We are very, very close to the dollar basically going over the edge of a cliff.”

Nevertheless, the Fed controls the printing press, and Powell and Company seem to believe that they can run off as many dollars as they want and it will never result in inflation. Peter called this sheer nonsense.

They are creating the inflation. The only thing that’s happened is we’ve been spared the consequences. But they haven’t been eliminated. They’ve just been delayed. But because they were delayed, they’ve been exacerbated. And so the Fed sowed the wind and now we’re going to reap the whirlwind.”

Not even the chairman of the Federal Reserve can suspend basic laws of supply and demand. The bottom line is economics always wins in the end — whether people want to believe it or not.

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Peter Schiff: Gold is the Canary in the Economic Coal Mine

This weekend, Todd Sachs interviewed Peter on the state of the economy. They discuss the parallels between now and the 2007-2008 housing crisis, the role of economic sentiment in voters’ opinions, and why foreign central banks are losing faith in the dollar.


Gold Hits New All-Time Record High

Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]


New Peter Schiff Video: Inflation Rises, Bitcoin ETFs, and the Final Gold Shakeout

Peter released a brief video addressing the looming resurgence of inflation. Ironically, on the back of disappointing inflation numbers, gold witnessed a dip below $2000 on Tuesday due to higher-than-expected CPI data.


Peter Schiff: A Buying Opportunity as Gold Pulls Back from Record High (Video)

Gold surged to a new record high of $2135 early Sunday morning before pulling back sharply Monday. In this video, Peter Schiff explains why this is a buying opportunity. After setting the record, gold quickly sold off and consolidated, dropping over $100 back to around $2,020. Some people see the quick selloff as a bearish […]


Marc Faber: Inflation Is Here to Stay

During a recent interview at the 2023 Precious Metals Summit Zurich event, Doom, Boom & Gloom Report publisher Marc Faber says now is the time to buy gold, silver and platinum because inflation is here to stay.


Comments are closed.

Call Now