Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Peter Schiff: Stagflation Is Coming (Video)

  by    0   0

Peter Schiff recently appeared on RT Boom Bust, along with Investor’s Advantage Corporation founder John Grace, to talk about the recent jobs report. Peter summed things up with a dire warning. Stagflation is coming and it’s going to be worse than 2008.

The number of jobs in the September report created came in below expectations, but the unemployment rate dipped to “the lowest level since 1969.” Wages were up 0.3%.

Grace opened things up asserting that wage growth is not keeping up with the pace of inflation. He said that in order to keep pace with rising prices over the last decade, an American household would have needed to increase earnings from an average $57,000 annually in 2007 to $67,000. But average 2017 average earnings only came in at around $61,400.

Host Bart Chilton then brought up the fact that Trump economic advisor Larry Kudlow recently claimed wage growth was actually better than the official government numbers. He asked Peter if we need to take another look at how we calculate wage growth.

Well, first of all, a lot of things need to be recalculated. I think the way the government measures inflation, I think it does a bad job of capturing the true increase in the cost of living. So, I think real wages have fallen a lot further than the official statistics would reveal.”

Peter also took issue with the notion that unemployment is at the lowest level since 1969.

You know, as Donald Trump used to correctly point out when he was a candidate for president that the numbers are not real because we no longer measure the unemployment rate the way we measured it back then. If we did and we counted all the people who are working part-time who want to work full time and all the people who are discouraged and not just the people who are discouraged for one year like we get in the U6, but all the long-term discouraged unemployed, the real unemployment rate is well above 10% right now. So, we’re not even close to where we were in 1969. But also, you have to remember, by 1970 the unemployment rate had soared back above 6%. So, things can change very quickly.”

Peter went on to note the rising interest rates and the rapidly increasing levels of American consumer debt.

They have mortgages. They have car loans, student loans, credit card debt. All that is going to be eating a bigger chunk of their income. Gas prices are rising. Oil prices have almost doubled this year. They’re going to keep rising, especially when the dollar starts to fall. And these Trump tariffs are just going to add more to the rising cost of living. So no, I think real wages are falling and pretty soon employment is going to be falling too.”

Peter said ultimately, we are heading toward a recession.

This is going to be stagflation, so it’s going to be much worse than what we had in 2008 and 2009.”

Peter was also asked about what sections of the jobs market have done poorly. He said the economy has mostly created a lot of low-paying service-sector and part-time jobs.

All these jobs are a function of the bubble and when the bubble pops, the jobs go away. It’s all been a function of artificially low interest rates. We built an economy on a foundation of cheap money. That cheap money is getting a lot less cheap. Soon it’s going to be expensive and that whole house of cards is going to come tumbling down.”


Get Peter Schiff’s most important Gold headlines once per 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: This Is Going to End Very Poorly

On Nov. 18, Peter Schiff appeared on RT Boom Bust to talk stock markets, trade war and Federal Reserve policy. He said that right now the Fed is doing a good job stimulating the bubbles, but ultimately, it’s going to end very poorly. On the trade war front, there seems to be a lot of […]

READ MORE →

Peter Schiff: It’s the Fed’s Fault!

Jerome Powell lectured Congress about the national debt last week, calling it unsustainable. The Federal Reserve chairman is concerned. He admitted that with interest rates already close to zero, the central bank has very little room to cut rates in the event of an economic downturn. Peter Schiff appeared on the Claman Countdown, along with […]

READ MORE →

Peter Schiff: The US Is Losing the Trade War

There’s been a lot of optimism about the phase 1 trade deal over the last couple of weeks. Stocks have surged on the news of a possible deal. Meanwhile, gold and silver have dipped. Peter Schiff appeared on RT Boom Bust and said the optimism is misplaced. The US is losing the trade war to […]

READ MORE →

Peter Schiff: Investors Are in for a Painful Awakening

Last Tuesday, the S&P 500 made a record high as markets anticipated another Fed rate cut. Some analysts say the big risk is that we’re seeing a boost in asset prices but no real uptick in the actual economy. Peter Schiff appeared on RT Boom Bust to talk about it. He said investors buying onto […]

READ MORE →

Ron Paul: Foreign Central Banks Going for Gold

Foreign central banks have been stocking up on gold for months. According to the World Gold Council, a dozen central banks have increased their gold reserves by at least 1 ton through the first eight months of 2019. This continues a trend we saw through 2018. In total, the world’s central banks accumulated 651.5 tons […]

READ MORE →

Comments are closed.

Call Now