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

Peter Schiff: The US Is Losing the Trade War

  by    0   1

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 China.

I’ve said from the beginning that there will be no substantive trade deal reached with China. In fact, we’re not even talking about a real trade deal anymore. We’re just talking about phase one. And phase one is basically nothing. And I think what the Chinese basically want, to agree to nothing, is for all the tariffs to roll back so we return to the status quo that existed before the trade war began.”

Meanwhile, Walgreens may get scooped up in the biggest private equity leveraged buyout in history. Peter said there have been a lot of private equity deals in “the era of cheap money.”

You know, even though interest rates have moved up a bit — what, we have one and a half percent Fed funds — we have an inflation rate well in excess of 2% per year, even the way government measures it. So, with all of this cheap money around, there’s a lot of deals that are being done. But if the Fed were to allow interest rates to rise to a normal level, a lot of these deals would not be done, and I think the economy would be restructuring in a much healthier way. Instead, we’re continuing to inflate a bubble and we’re propping up companies that would be better off going through a bankruptcy.”

Peter said that if the deal is financed by going deeply into debt it will likely be problematic when the Federal Reserve loses control of interest rates and rates ultimately rise in the midst of a severe recession.

Peter also talked about the prices of gold and silver.

The real driver behind the rise in the price of gold is central banks, not only the Federal Reserve, but central banks around the world.”

He said there was some profit-taking last week based on false optimism about a trade deal that isn’t going to happen. Peter reiterated that any deal won’t fundamentally change the dynamics between the US and China.

Interest rates also rose some last week, particularly on the long end of the curve. That also put selling pressure on precious metals.

But ultimately, I think the reason that interest rates are rising is because inflation pressures are rising in the economy and because there’s not enough demand for all the bonds being sold. All of this is very bullish for gold, and so rather than simply selling bonds, people should be buying gold, because they need to get out of the dollar. In fact, they need to get out of fiat currencies in general and seek a real safe haven and that’s gold.”

As far as the trade deal goes, Peter said he’s certain that Trump will make lemonade out of whatever lemons we end up with.

He’ll talk about it as if it’s a victory, just like he talked about the USMCA, which was simply NAFTA with a worse name. So, he’ll claim this was a great deal even if absolutely nothing is accomplished.”

Gold IRA Rollover to 401k

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: 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: 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 →

Why Is Gold So Expensive? (Video)

Gold is the “shining embodiment of wealth.”  It is not only used to add “extra bling” to our lives; it is also an important component in expensive high-tech electronics and medical devices. Even more fundamentally, gold is money. But why is gold so expensive — even more valuable than other rarer metals? A video put […]

READ MORE →

Comments are closed.

Call Now