Monday, May 6, 2013

The Fed Is Creating an Economic Illusion: Peter Schiff

For the better part of six years the FOMC has been doing its best to give away money. On an institutional, level money is essentially free. The notion driving this Federal Reserve largesse was the idea that free money would get spent, thus stimulating the economy. There should be inflation right now. Instead the economy is listless, almost sedated.

If market participants seem on edge it's only because everything they once believed to be true is either being shown to be utterly false or the delay between cause and effect is so long that the theory is pointless.

Peter Schiff is an investment broker, author and CEO of Euro Pacific Capital Inc. Schiff is known for his bearish views on the US economy and US dollar, and his bullish views on commodities, foreign stocks and foreign currencies