Monday, March 20, 2017

Why did the Fed hike the rates last week


The real reason Fed raised rates is even though their own GDP estimates have collapsed is because they care about investor confidence. Because the only people watching the Fed press conference are the investors. She knows it will boost investor confidence. What would have happened if she didnt raise rates ?The average consumer does not even know who Janet Yellen or the Fed is. 

If anything, you’ve had a collapse in [economic] growth estimates since the last time the Fed met. Yet that collapse in GDP forecast has not done anything to alter the Fed’s path because they’ve ignored all of the data, and they raised interest rates yet again. 


People are tapped out. People are not spending money because the economy is weak. Prices are rising, but their incomes are not. Department store sales are collapsing.


Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009

Sunday, March 12, 2017

Janet Yellen is partly to blame for Donald Trumps election victory

In fact it's been these low rates that are actually one of the reasons the economy has been so weak. This benefits the financial markets, it benefits the stock market, it keeps it propped up at artificially high levels, but it undermines the real economy. That's why so many Americans are hurting and why so many voted for Donald Trump.



What's appropriate and what the Fed is going to do are two totally different things. The Fed is going to raise interest rates as slowly as they can possibly get away with, and at some point they're going to have to come up with an excuse why they're going to stop raising rates, and why they're going to cut rates again and why they're going to go back to QE.

All of this is inevitable. But even if the Fed does nudge interest rates up a little bit more before they reverse course, it's not going to matter.

Inflation is headed up, not just on the consumer level but…inflation rising faster than any rate hikes we might get from the Fed. So real rates are going to be falling even if the Fed raises nominal rates.

Monday, February 20, 2017

USA has conned the world with loans


Collapsing asset values are needed. It should have happened in 2001... 2008. Quantitative easing is just blowing more air into the bubble. 

The world has been conned into believing the US will pay back loans. The US will have to go through a massive recession to right the economic ship. The US will have to start saving, and the middle class is on the hook for that.


Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009

Tuesday, February 14, 2017

Donald Trump will be blamed for the upcoming crisis


Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009

Monday, January 30, 2017

USA debt bomb to explode in our face

I think the [Federal Reserve] is going to try to inflate its way out of this problem, but it's going to inflate its way into a bigger one. You don't help the economy by spending money. To the extent that we need to repair our infrastructure, that's a cost that we have to bear. 

The fact that it creates jobs, that's not a good thing because we're diverting resources that we might otherwise have been able to use more productively to make necessary repairs to our infrastructure.

Monday, January 9, 2017

Bitcoin is not going to work as a long term store of value


Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009

Tuesday, December 20, 2016

Inflation will rise faster than interest rates



Key points
-Doubts on Fed's credibility and ability to raise rates in 2017
-Fed is less optimistic on economy now than it was a year ago
-Fed has no confidence in the economy, that is why they raised the interest rates so little.
-Gold will rise with higher inflation
-Markets were wrong about Gold last year 2015
-Trump cannot fix all the problems because they are unfixable, the economy is messed up.


Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009

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