Fed Going to Need Bigger Rate Cut –Peter Schiff
By Greg Hunter’s USAWatchdog.com
The stock market sold off nearly 800 points (Tuesday) on a day when the Federal Reserve gave the biggest interest rate cut since the 2008 financial crisis. It was a surprise .5% cut to a key rate that should have boosted stocks. Instead, the market tanked–hard. Economist and money manager Peter Schiff says, like in the movie “Jaws,” when they see the monster Great White shark they have been hunting, a freaked out crew member says, “We need a bigger boat.” Schiff says, like in Jaws, “The Fed needs a bigger rate cut,” to fight a monster economic problem.
Schiff says, “The Fed is not cutting rates because of the coronavirus.” Schiff explains, “What the Fed is worried about are two things. One is the stock market. The stock market is falling. . . . The market is going down, and the Fed is worried about the reverse wealth effect of deflating this bubble. It’s not cutting rates to stop the coronavirus. It is cutting rates to stop the stock market from falling. It wants to blow air back into the bubble. . . . The other thing they are worried about is the debt. Because of all the rate cuts and all the cheap money policies of the past, we are so massively loaded up with debt now in the federal government, state and local governments, consumers and corporations. We have so much debt that if we have another recession, we have another financial crisis because people can’t pay their bills. They can’t service the debt. The Fed is trying to get out in front of that by cutting rates to ease the burden of servicing debt. So, really, what the Fed is worried about is deflation of their own bubble.”
Schiff predicts, “I think we are at the beginning of the end of this fiat based monetary system that the world has been on since 1971. . . . I think what’s going to happen in this crisis is the dollar is going to lose its special privilege. I think gold is going to be remonetized, and I think central banks are going to start backing their paper with real money, and that is gold, again. America is going to have to do the same thing.”
So, how high could the price of gold be per ounce–thousands of dollars? Schiff says, “Well, no question. The only question is how many thousands of dollars per ounce? It’s a moving target because all gold is doing is measuring the purchasing power of fiat currency, and we are talking about dollars. There is no floor for how much purchasing power the dollar could lose. So, there is no ceiling on how high the price of gold can get. . . . If the dollar loses 90% of its purchasing power, then gold price has to increase 10 fold to reflect that.”
On silver, Schiff says, “At some point, silver is going to shine again as a monetary metal alongside of gold. At some point, silver is going to catch up and surpass gold, not in price, but the ratio. So, we are going to see a bigger move in silver than gold (on a percentage basis).”
On the stock market, Schiff says, “Everybody is a long term investor until they need the money. This is a giant Ponzi or pyramid scheme. . . . The only way people can retire from their stock portfolio is to sell shares. . . . Or if everybody is stuck in the same emergency . . . who are you going to sell your shares to? . . . I think this is the most overvalued stock market in history. It’s not the coronavirus. The market was going to go down anyway. . . . It’s not the size of the pin, but the size of the bubble. This is a massive bubble. It finally found a pin.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with economist and money manager Peter Schiff of Euro Pacific Capital and Schiff Gold.
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
Jay Powell is a genius.
Stan,
Is that why he got an 800 point drop after cutting rates .5%???
Greg
What if the fed goes under one cent on the dollar. Will savings go to 99 cents on the dollar?
The real story is in Idlib. Erdogan is backed into a corner. Desperate people do desperate things.
Russia, Turkey, Iran, Syria, USA, and Israel approaching the major conflict. MSM not covering the story. The great deception is here. The middle east is about to ignite in flames.
Coronavirus, economics, and election are not the story.
Repent and believe on the Lord Jesus Christ. Pray for the latter rains and that you are ready for the return of Jesus Christ of Nazareth. Lion of the Tribe of Judah. Son of Man. Son of God. Messiah. Foretold by the prophets Isaiah, Zechariah, and many others. Captain of the Host. Captain of Salvation. The Alpha and the Omega. True and Faithful Witness.
Jehovah-Shalom.
eddiemd, you got that right!
“Russia, Turkey, Iran, Syria, USA, and Israel approaching the major conflict.”
It’s coming soon.
eddiemd, Amen.
Are you serious?
Should have raised rates 25 bp…! not cut. Have to weak the children at some point..
…wean the children at some point…
Sorry Greg, I cheated again and watched on Youtube. Excellent interview. Peter’s dad, Irwin, was a great patriot and helped me tremendously. Most people have never heard of him but I will always remember him for his brilliant insight.
Keep it up!!!
Lo Iyrah!!!
Shalom,
CC
Good Talk Greg, Peter Schiff always explains everything so well.
Thanks Greg, great interview … an unwavering message for the last 15+ years … you know the truth when you hear it … even when every attempt is being made by the deep state and their communication branch called the msm. The inevitable has been delayed an unfathomable period … and that may continue longer than we would believe, but the countdown is getting closer every day.
Mr. Hunter,
I enjoyed that!
However, I think Mr. Schiff — while acknowledging the possibility — tends to downplay the upside purchasing-power potential of PMs if a large number of investors and speculators try to shift out of other assets and into PMs. The result will be far more than mere preservation of wealth in terms of purchasing power.
Stan … it is extremely rare for the Fed to implement a monetary change prior to a FOMC meeting … their unanimous decision was stated to have been made “to use all available tools to battle the slowdown being caused by the Corona Virus” … now how is the Fed going to screw this virus if all they have in their tool kit is a hammer? … so the Dow declined 3% today … and gold gained 2.76%.
Stan … I know you and others say investing in the stock and bond market is preferable to investing in gold “because gold does not pay a dividend” … well look at the following chart that shows the annual total return on a portfolio mix of S&P 500, Treasury bonds and T-bills (now only 0.70% ) … https://www.hussmanfunds.com/wp-content/uploads/comment/ob200301a.png … and then consider that gold just gave us gold-bugs … a 3% gain in one day!!!
Word of caution … also glean from the above chart that we are now very close to 1929 rate levels (that eventually spiked up to over 10%) … and notice how rates spiked up to 15% during the Volcker years … if the Fed does it again during the coming inflationary depression … you don’t want to be carrying large debts on your books … or at least hold some gold that will explode upward in price to cover such debts!!
paul… I like to read Jon Hussman’s commentaries. He would be an interesting guest to have here on USA Watchdog.
JC … Many say a Fed policy response (like raising interest rates) would be incredibly problematic due to the massive amount of debt the US and its citizens have accumulated … but as inflation rises (due to compromised supply lines, the Fed’s aggressive money printing actions, etc., etc.) inflation (or hyper-inflation) will become a serious problem … the currently rising gold price indicates as much … eventually the Fed will “be forced” to do the opposite of what they’ve been doing … they will need to raise interest rates and reduce the debt assets on their books … so the easy money policies we have grown accustomed to … will eventually lead to rising interest rates in the future to quell inflation (just as Volcker needed to do) … but “now is not the time to worry about getting out of gold” the way Stan is … “the time to worry” will be when interest rates are approaching 10% to 15% percent … not now … as interest rates are being pushed downward toward zero!!
It’s not only me … but Martin Armstrong believes that interest rates will eventually rise … but he see’s a “two tiered interest rate schedule established” … one for the US Government and another “higher one” for business and consumers!!
Paul: Stocks are soaring today and Gold is dropping nicely. Ned I say more?
Stan,
What happened Tuesday Stan??? This is not investing with true price discovery. It is interventions and central bank manipulations. It’s a cartoon.
Greg
Yes, it’s going to be up and down and all around to keep us all confused.
Take a deep breath Stan…..oh my goodness…
Gold up at $1670 and DOW down 1000 points today.
Are you still there Stan…..????
Someone call 911….!!!
Stan … In addition to record low liquidity and short interest there has been a surge in cross-asset correlations (a far more accurate measurement of rising market risk than the manipulated VIX) … but not every cross-asset correlation is surging … gold’s correlation to stocks has become less negative … which means … that as stocks plunge … gold will soon be the best performing asset in the world … need I say more?? … https://www.zerohedge.com/markets/crash-alarm-flashing-red-cross-asset-correlation-soars
Means the markets are unsure of themselves. Plenty to come our way as always lately.
Plenty will come our way … as people like Stan blurt out the claim that the fear of Coronavirus is overblown … that it is not any more serious then the common flu … but the World Health Organization (WHO) recently announced that the mortality rate from the Corona Virus is 3.4% globally … now compare that with the Spanish Flu of 1918 (which killed over 60 million people and had a mortality rate of just 2.4%) … Yeah, Stan can claim he is right … that the Corona Virus is not “as deadly” as the common flu or the Spanish Fl …*** It Is More Deadly*** !!!
And on the money end … as Schiff says: “We Need A Bigger Boat”!! … https://www.zerohedge.com/markets/term-repo-record-oversubscribed-market-liquidity-craters
Actually the mortality rate of the Coronavirus is much lower than 3.4%. Why is that? Because most people who have it, have no or very little symptoms and because of that they have not been diagnosed as having it yet and some may never be diagnosed. The more people who are confirmed to have it, the lower the mortality rate will be. Chris Martenson a day ago said that in the U.S there are probably 100 times more people that have the Coronavirus but do not know it and have not been diagnosed (confirmed) which means the mortality rate in the U.S. is not really the current 5.1% (down from about 8% a day ago) but more like 0.25%. As time goes by and more people get confirmed as having it then the mortality rate will drop substantially from where it is right now. Also most of the current global 3.4% rate is because of China, Italy and Iran. The vast majority of other countries currently have a 0.0% mortality rate.
https://covid19info.live/
Kevin:
Your point is valid.
BUT, you seem to be ignoring the long incubation period and the time from first appearance of symptoms until final resolution, i.e., recovery or death.
In other words, it is not valid to compare total deaths AS OF TODAY with total confirmed cases as of today. Instead we should compare total deaths as of today with the number who contracted the disease some 3 to 4 weeks ago. When you are dealing with exponential doubling every 3 days or so that leads to miscalculation on the order of 2 to the 10th power, i.e., by a factor of about 1024 on the low side! Put another way, things could be 1000 times worse than indicated the “naive” comparison indicates.
Sorry everyone, I misstated that somewhat. The comparison could be made between those who contracted the disease 3 or weeks ago with those who died today.
Another valid comparison would be with the total who had contracted the disease as of 3 or weeks ago and the total who have died as of today . . . VERY ROUGHLY. What is NOT valid is to compare the total number who have died as of today with the total number who have contracted the disease as of today.
William,
I am not ignoring anything. I understand what you are saying in that we have to wait and see if these people who are confirmed to have it end up dying from it. All I am trying to point out is that the Coronavirus is not as bad (deadly) as the Spanish flu at this time and probably will not be. Many killed because of the Spanish flu were young healthy people. The Coronavirus does not. It kills mostly the same people more likely to be killed by influenza and pneumonia. Also more than 80% of the people who have Coronavirus only have mild symptoms. Most people who had the Spanish flu did not just have mild symptoms. However that could change later on with the Coronavirus if there is a second and third wave like what happened with the Spanish flu.
Kevin,
I think I poorly stated my point: It wasn’t simply that we have to wait to see how many infected people eventually die. It’s that we have exponential growth in both infections and deaths. However, the curve for infections leads the curve for deaths by several weeks or a month. If that factor is not adjusted for while the pandemic is in progress, the computed case mortality statistic will be greatly biased to the downside.
A month or so after the outbreak is over, that bias will tend to disappear.
I have had an account with Peter Schiff and EuroPacific since 2007. It has never made money. After 13 years I am still underwater. Over the last four years I have paid an average of 7.9 percent of ending yearly balance every year in commissions. They made money. I did not. I believe Peter is right about the vulnerability of the US Dollar. But I have lost ground as measured in dollars, or ounces, or bottles of good Irish Whiskey. Listen to Peter, but don’t invest with him.
I can see why. EuroPacific’s mutual funds, which consist of International stock and bond funds and a gold fund, are all underperformers.
TN
It reads as if P. Schiff draws pay for time n not results. Akin to most money mgrs., they profit most during bull mkts, and profit least in bears. I, too, lost money in silver though I did make smaller gains initially. TIMING is crucial, as is remembering to take profits. Over time, we learn to be better investors, and hopefully learn about our fears and what part we play in our own demise (with enough time remaining to turn it around). Good luck
Next Economic Downturn May Last Forever And A Day – Bruce Wild
Time after time, the creative folks that make up the Financial-Political Complex have been able to pull rabbits out of their hats and manipulates asset prices ever higher. This has extended the illusion that all is well. Today, they are faced with a new challenge, the coronavirus, it has battered markets as it spreads across the globe. This monster has halted travel, put hundreds of millions of people into weeks of lock-down quarantines, disrupted supply chains, and respects no borders.
The economic impact of this event cannot be simply brushed aside or denied. Because it strikes at the very heart of the economy it cannot be easily fixed by lowering interest rates. It attacks both supply and demand as well as production and productivity.
http://brucewilds.blogspot.com/2020/03/next-economic-downturn-may-last-forever.html
Hi Greg
Brilliant interview with Peter Schiff at his most eloquent.
Thanks
Thank you Greg for your excellent timing with Pete’s interview! Peter is one of the good guys. He does his father proud! Thank you for letting him speak without interrupting. Excellent interview! Sincerely.
Love your work Greg,
You make Bloomberg, CNN, CNBC, FOX & MSNBC all look like outright liars.
Thanks AA, They are!!
Greg
FBI had been lying about the murder of Seth Rich!
An attorney has uncovered heavily redacted emails from the FBI, which indicated the agency has been providing false testimony on former DNC staffer Seth Rich who was murdered in 2016. youtube.com 26 days ago
THE REAL SKINNY:
https://video.search.yahoo.com/yhs/search?fr=yhs-omr-001&hsimp=yhs-001&hspart=omr&p=jOHNhERETOhELP+INFO+ON+sETH+rICH&guce_referrer=aHR0cHM6Ly91c2F3YXRjaGRvZy5jb20vY3JlZGl0LW1lbHRkb3duLWNvbWluZy1idXktZ29sZC1zaWx2ZXItbm93LWJpbGwtaG9sdGVyLw&guce_referrer_sig=AQAAABPjAYJbrrqYT7e0OxaeowyCbvu7lTMLPPTUBAyBFHtIe-ODthONioSjLOG2WAN_8IUYZVcKIfkZu4w9RbVmBM0WEZbKOKwUv6rTE4Q4Q3jnYCWJgeeAuxozvWYWoWHts9gST5tFa65t9mbCAbiEMU5LzK3Y1_vj5i5cYe6VfZPh&_guc_consent_skip=1583310951#id=4&vid=ab05374732f19614e73dd0d87c993c71&action=view
One America’s Caitlin Sinclair has more from New York. Visit us at: Website: https://www.oann.com Facebook: https://www.facebook.com/OneAmericaNe… Twitter …
Great report.
Fascinating story about traveling/going through customs with legal tender gold coins and the declaration requirements. Is the value calculated per ounce of gold or face value of the coins?
https://www.streetwisereports.com/article/2020/03/03/the-merits-of-government-minted-coins-versus-privately-minted-coins.html
Hey Greg,
Thank you so much for all that you do. There so much mis-disinformation out there.
Thanks for putting it straight.
I think you need to have USA Watchdog conference.
Get all these great guest and have a round-table discussion.
All these great minds on one stage, imagine what would be brought out.
Thanks again.
Steve
Thank You Steve for your kind comment and support.
Greg
Greg: Excellent comments by Peter. Many complain that he’s a doomer and that many of his predictions have not YET come true, but those that discount his analysis are going to regret it.
Off topic: Greg see if you can find someone who has explored the adverse affects of 5G. I have read numerous articles that are well sourced that claim irradiation symptoms are quite similar to those of the flu and there are too many coincidences with the various ground zeroes of the corona virus; all of which have been totally 5G enabled. All cruise ships; Milan Italy and environs, and Wuhan China. From what I can understand, 5G adversely affects the oxygen molecule in your body through constant irradiation. Think of the known adverse affects of a microwave, but on steroids. The elderly, asthmatics, and people with COPD are most at risk because 5G prevents oxygen in your lungs.
Coronavirus in the jails and prisons. Once the homeless get it in the major cities, it will spread by public transit systems, emergency rooms, and then into the jails. From there into the courtrooms.
https://www.zerohedge.com/health/iran-temporarily-frees-54000-prisoners-confirmed-covid-19-cases-near-3000
Repent, believe on the Lord Jesus Christ. Pray always and be ready for the Lord’s return.
https://www.zerohedge.com/geopolitical/first-case-coronavirus-detected-eu-headquarters-brussels-live-updates
LA County declares a state of emergency. The virus will spread into the homeless population and then into the jails and prisons. It is coming quickly.
Judgment and wrath are coming. The day of salvation is now. Do not be a mocker. God is a just and merciful God. He does not have pleasure in people perishing but that all come to the saving knowledge of the Lord Jesus Christ. The wisdom of the world is worthless. The things of this world will be burned up like wood, hay, and stubble. Seek for the things above.
Certainly He will not overlook sin and rejection of His goodness and mercy. Seek Him while He may be found.
Amen. God is not mocked. California has sinned greatly in the eyes of the Lord. Remember Sodom and Gomorrah, an example was made of them for all time as a warning to all ? California has had decades to turn-around and get straight (repent) but no, voters repeatedly elect the same (related) corrupt elites to rule over them.
So, Californians must accept divine judgement and chastisement in the form of hardships and even plagues. Funny how the same techniques used against Pharaoh are being applied as discipline to errant States/Nations today. California’s leaders better say “Uncle” soon for their own good and that of “the people”, as well.
I have to face the reality (fact), most California voters are stupid and never learn or mature to the third generation! Too bad for them and theirs. “Life is hard, but its even harder if you are stupid”, famous John Wayne one-liner.
Yes!!!
Exactly!!! Once it spreads in the homeless population it will be too late. It will spread like wildfire and probably mutate
COLLAPSING CALIFORNIA
Two days ago my neighbor discovered a homeless man lying in his driveway one afternoon in this established Middle Class L.A. bedroom community (Glendale). For now, the average home is selling for about $1 Million dollars. The homeless man was incoherent when the police eventually arrived.
Homeless encampments are only a short distance away (Highway 2), just outside of the city limits and in L.A. City proper. Increasingly, homeless are on the move like the zombies in the cable T.V. series “Walking Dead”. I imagine when they are spotted on suburban homeowners lawns or driveways in a few more years the homes won’t attract any bids from buyers. So far, nobody in California is doing a thing to address homelessness. If Gov. Gavin Newsom serves two terms in-office ( 8-years) you can expect the entire state to be just like San Francisco ( literally one big shithole).
Interesting how quickly Bloomberg drops out of the race as soon as his ties to Jeffery Epstein and the Mossad are exposed … leaving the “criminal Biden” to duke it out with “commie Bernie” … then we have “Turkey’s criminal Erdogan” asking NATO “to come to his aid to expropriate Syrian territory”!! … it is time for all the crooks to be taken out … Putin has made it clear that “the territorial integrity of Syria is to be re-established” … over the past 72 hours Putin has landed eight(8) Il-76 transport aircraft in Syria carrying military weapons and supplies … Erdogan’s drones are now falling out of the sky at the Turkey/Syrian border … and Turkey’s army is now being targeted with thousands of Iranian precision guided missiles (that can be easily launched if talks between Putin and the criminal Erdogan break down this week) … Hezbollah is also set to join the fight “in real numbers” as Erdogan is supporting “Christian killing Al Qaeda” (in his attempt to hold on to Syrian territory) … the killing of Christians will not be allowed to stand by Russia (or Hezbollah) … this also has “future” dire implications for Israel and the US (as Trump has not only backed Israel’s expropriation of Syrian territory but has himself criminally expropriated Syria’s oil wells) … the US is now oil independent and yet we still have to rob Syria’s oil??? … https://www.zerohedge.com/geopolitical/will-idlib-be-putins-folly-or-erdogans-rubicon
Bloomberg states: “I’ve always believed that defeating Donald Trump starts with uniting behind the candidate with the best shot to do it (Criminal Joe Biden)”!! https://www.zerohedge.com/political/mike-bloomberg-suspending-his-campaign-axios-reports
Now we have the criminal Saudi’s trying to “fix the oil price higher” as people stop driving because other criminals released the Corona Virus to depopulate the world … when are nations “finally going to stand up to the crooks” and demand … a “non-criminal agenda” for the world?? … https://www.zerohedge.com/markets/saudi-urges-opec-cut-more-1-million-barrels-day-amid-virus-crisis
“Interesting how quickly Bloomberg drops out of the race as soon as his ties to Jeffery Epstein and the Mossad are exposed …”
paul… yes very interesting when the dots are connected.
JC,
Remember Polny says it tanks again in April. He called the top 160 points short. He was right.
Greg
Nomura Bank ( 65 page new baseline case for 2020) is currently “predicting” a somewhat different outcome this Spring-Summer ( Qtr. 2 ): A V-Shaped stock market recovery.
However, I do expect high volatility to remain with us most of this year due to election year outcomes. Bernie Sanders strong showing is scaring away foreign investment. The weaker U.S. Dollar reflects the mounting political uncertainty and the prospect of a communist in the White House. Capital is hiding for now.
Don’t you think the Plunge Protection Team (PPT) is going to be working overtime to get the markets back up by Nov. ? Better hope they don’t go down some more and stay there because that could give Joe Biden a handicap and even get him elected instead of Trump. Hard to believe that would be allowed to happen. Just about anything can happen these days !
H,
It is ignoring the risks.
Greg
Country Codger: My Mom used to go out and hear Irwin Schiff when he came to town on a speaking tour. I think he was persecuted and died in jail for telling the truth. Peter is
his son.
Gregg : Thanks for having Peter Schiff on your interview program He knows his subject very well.
God
Family
Water
Food
Seeds
Soil
Medicine/First Aid
Security
Local Allies
Barter Materials
Tools
Energy
My portfolio in a nut shell
I don’t have money, but I have means
God will break the yoke of the mighty and powerful in this country for all their evil and misdeeds……for they have forgotten His Word and Laws in governing the lives of His people. Fear not because God the Father is in control. Those of us who have nothing have the Word of God to provide a way where there seems to be no way. The umbrella of protection will be on those that fear the Lord and believe in His Word and promises. As for me and my house……we will serve the Lord.
regaleagle,
Agreed. Joshua 24: 15
It applied in Joshua’s day. It applies in our day. It is eternal.
Freewill choice, and the consequences that result.
Greg, Shine the light and see them scurry and run…and drop out of their campaigns! lol
https://youtu.be/cpxl0Cnb2Es
Slapping the hands to release their smash and grab? The only answer might be TERM LIMITS for a start?
https://youtu.be/UU72uAz_X3E
Bingo !
Like Peter Schiff … Ray Dalio warns us again: “protect yourself” (meaning buy some physical gold or silver) … better to protect yourself against big unknowns (like the Corona Virus) by accumulating something that has no counter-party risk … than by trying to bet on a black swan induced crash or Fed induced rally in the criminal swamp known as the stock market!! … https://www.zerohedge.com/markets/imagine-worst-case-scenario-protect-yourself-ray-dalio-warns-virus-will-annihilate-some
BRING BACK THE TOP HATS
Gold is not a good vector for viruses. Put it in the stove and sterilize it. Can’t do that with paper money, can you ? You can not eat gold, it pays no dividends, is very volatile in price, and never goes as high as the gold bugs wish because the world left them behind in the 1800’s.
Gold will never again be used in routine consumer transactions. That ended in 1932 with President Roosevelt’s EXO. Gold at $5,000 an ounce would mean that you could buy whole properties by exchanging gold bullion in secure vaults. Only a relatively few people or entities would then own the whole town. Hey, maybe the rebirth of the “Company Town”? One big mansion on the Hill and a bunch of look alike cheap tract homes/condos sandwiched close together on tiny lots ( Like an aerial view of Paris, France today) . Rental payments even automatically deducted from your monthly digital paycheck. Of course, You can keep the “change”.
The market is up about 600 points right now. Primarily because Biden is on the way to the nomination and may have a plurality of delegates meaning the Bernie supporters will grumble but can’t say the nomination was stolen from him. Speculation on a Biden/Gabbert ticket which Ben Shapiro says would be formidable, is increasing. Likely to defeat Trump but, at worst, pretty much guaranteeing the Democrats take back the Senate. The Hunter Biden scandal has fizzled and is not impacting support for Biden anymore than the Trump scandals impacted him negatively. At the same time the grand conspiracy that Trump was supposedly a victim of is collapsing. The Durham report will be it seems underwhelming. Solomon himself is starting to back off of the scam he and controlled conservative media tried to foist on the country. The fact that Trump always refused to declassify documents that would have supposedly confirmed a conspiracy is telling.
Meanwhile the coronavirus may be slowing in China and though the death rate is about 3.4% in the US it seems this will not be the catastrophe some felt it could be. Hence another reason for the markets to regain some of their lost ground.
Do you really believe what you wrote?
Any evidence? Of course China always tells the truth. And the AI controlled stock market is such a great indicator of the global economic situation.
FALSE (FINANCIAL) FLAGS
Both the media-created Corona Virus and the “surprise” FED rate cut really are sidelines marginal to the real economic problems. Too much Bad Debt and Banks that don’t trust each other on account of unknown quality of reserves or collateral in their portfolios. This is why the REPO market began to fail last Sept. and now the REPO crisis is back with a vengeance. There is a severe shortage of pristine collateral (U.S. Treasury Bills ) in the global banking system. So, the dollar may be down, but its FAR from out. Gold is not going to hit $2,000 any time soon. Get off it.
According to Global Economist Martin A. Armstrong, ” This means that the Repo Crisis will get (much) worse and the Fed will have to become the permanent market-maker to maintain short-term rates at these levels.” We may be headed for a tiered interest rate schedule, one for the U.S. Government and another higher one for business and consumers. The national debt requires the FED to up its interventions in our financial markets indefinitely.
https://www.armstrongeconomics.com/markets-by-sector/interest-rates/fed-cuts-rate-on-schedule/
As the global economy further stalls even the U.S. Dollar Index and Gold are down a bit in the last week, as previously they were both rising until last week’s big stock market correction. Capital flows into U.S. Markets are probably down, as well, which explains a weaker dollar at this time. We are headed for a possible Global Depression next year. “Interesting Times”, as the ancient Chinese curse states. America’s politicians and elites have gotten complacent and too greedy for our own good. Now we must all pay the price for our (voter) complicity for the past 30 years.
Peter nailed it…..
The U.S. government needs zero (or negative) rates so that they can continue issuing debt with no interest obligation.
Now, how would buy that debt? Lend money for zero or negative return?
Our government of course!
Ponzi scheme to the max.
And we all will suffer from the results.
The stock market needs to be kept up, because “everyone” is invested.
Pension funds, banks, IRA’s 401k’s
So, look out below if (when?) they fail to keep the scheme going.
April 29th approaches.
https://www.ibtimes.com/4-kilometer-planet-killer-asteroid-headed-towards-earth-2020-may-cause-human-2842061
The righteous need not fear. Greg, I’m not an astronomer, but something this massive cannot help but have some type of impact on the earth. I find it curious that so many high level CEO’s have resigned and left for parts unknown. So we have plagued. We have locust. And we have stars falling from heaven. It makes the economic collapse seem minor doesn’t it?
No one need not fear since the asteroid has no chance to cause anyone harm since it will pass by the earth by millions of miles just like others have before. Just another fear porn article.
Hey Greg,
Off topic slightly. My uncle is turning 83 and he was diagnosed with early stage dementia.
Now its not that bad, but he is off a step or 2 but sometimes he is off a few steps.
The eerie thing is he acts just like Joe Biden….there is something wrong with him and his facilities…
A physician told me one of the side-effects of long term, low dose generic statin to control cholesterol is eventual dementia and progressive muscle weakness, as well.. Did Uncle have a Rx for statin or Lipitor or have to use a wheel chair ?
So what is the Demon psychopath Schumer going to do? … hire his Deep State CIA buddies or give the “hit money” to some underworld proxy “to kill those Supreme Court Justices” who want to limit abortion access across the country … because they want to “save babies from being murdered”??!! … https://www.zerohedge.com/political/schumer-threatens-gorsuch-and-kavinaugh-says-they-will-pay-price-over-abortion-decision
Demon-rat Schumer effectively says to the US Supreme Court Justices: “You won’t know who hit you”!! … but the rest of us Americans will know who “hit them”!!!
Schiff is wrong as the US economy is strong thanks to President Trump. The stock market was up huge a day after Biden looks like he might win the nomination? This is a Trump driven stock market and US economy and it’s going higher as long as Trump is in charge. Sanders spooked the stock market, but it looks like he is done as the DNC is conspiring against him. Sad how corrupt the DNC is, I hope Bernie fights them to the end.
Oh Boy!! … now we learn that the psychopaths who created the Corona Virus were far more inventive then we thought … https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/two%20strains.jpg … it’s not just two strains we have to worry about … but it has been found the Corona Virus (with as many as 161 different strains) can be spreading around the world (making finding a vaccine to counter it almost impossible)!!
paul… Nostradamus saw this coming…
Strange, we haven’t heard from your sidekick paul jr. for quite a while…. I’m not sure if it’s because Greg let him have it about the Silver Doctors comment or he has the virus. Maybe we will never know.
Greg, More Death threats? Must be over the target on the Biden Blackberries in Norfork?
https://youtu.be/JFZvWjMy7_Y
Greg, Port Manager thinks POTUS Trump’s tariffs put U.S. in better position because companies started sourcing products from other countries which likely will make imports pick up sooner if China can not come back on line because of the corona virus there.
https://www.youtube.com/watch?v=UMxF7nJFJpw
https://www.youtube.com/watch?v=zeufAHFZpjo
George at Urban Survival says…
Let’s get real:
The Fed blew the rate cut.
Globalism is dead or dying
People are nervous and on the edge of panic
Yet few have prepared. Despite our writing here since 1997 I “It’s time to leave the cities and disperse.”
That clock has done run-out.
Depression 2.0 Arrives: Planning Yet?
https://urbansurvival.com/depression-2-0-arrives-planning-yet/
Greg,
The feds pumping will lead to Wall Street dumping in April.
https://www.wsj.com/articles/feds-100-billion-repo-intervention-falls-short-of-bank-demand-11583332932
What does it say, when 100 billion in repos is not enough to satisfy the central banks? And now add the spreading corona virus into the mix and you have the perfect black swan event coming in April.
Thank you Jerry for reminding us about the cartoon the economy is complements of the Fed!
Greg
Billionaire Warren Buffet’s timeless words of Wisdom:
“Be fearful when others are greedy. Buy when others are fearful”. Make money.
H.
Buffett is an incompetent geezer that required a taxpayer bailout and should have been forced into bankruptcy in 2008 and 2009.
Greg
Agreed. “Geezer” is a polite way of saying “stupid old bastard.”
Oligarchs can not fail (OCNF) if they have too many investors and control the key industries, such as rail, insurance, reinsurance, banks, tech, etc. Indespensible.
H,
You need to read Revelation — Evil Fails big-time.
Greg
So who is to blame: the addict or the drug pusher? The US is addicted to debt. In fact the entire economy is built on a foundation of debt. The Fed is an evil organization to be sure. However, the US .gov – lead by Donald Trump – seems unwilling to reign in its excessive spending habits. Trump could quite simply veto any funding bill that came across his desk which increased the debt. It’s pretty simple. Harry Truman had a sign on his desk that said “The buck stops here”. Well, it does. The president can veto every spending bill that is presented to him and congress can override that veto if it chooses. That’s the way it works. If Trump wanted to he could easily put the onus on congress, make them accountable for increasing the debt. He won’t do that because ultimately he has no problem with debt and in fact believes it is a good thing. Before he was elected he said he’d eliminate the debt in eight years. That isn’t going to happen and in fact it is going parabolic. He knew there was no way the debt could be reduced because to do so would extinguish the money supply. He knew it when he said it and lied in the process. There is no discernible difference between him and his predecessors, they are all shysters and grifters.
You are very small minded David and there is a much bigger game going on. The decision was made a couple decades ago that America would never pay it back, and now Trump is supposed to crash the economy and turn America over to the Communist/Marxists/globalists? Yourview is extremely narrow & limited. It’s from the 1970’s man–groovy. Get real.
Greg
Greg, you are 100% correct.
Greg,
I would contest that it goes back much further…to the late 19th century and circa 1913….Creation of the FED. They knew full well that having ownership of the country’s money supply would allow them to print infinitum…… intended inflation and ever diminishing value of the Dollar. Debt….. as we all know….. includes the promissory note we call the Dollar. Not only did they capture America’s printing press they also managed to create a paradigm change ….forcing the USD to become the default World Reserve Currency. Pure deceit and work of Evil Men.
That is laughable Greg. I know there is a ‘bigger game’ but Trump is either 1) a willing accomplice or 2) a complete dolt. Which is it? If he was truly aware of all this then why doesn’t he simply begin communicating it to the public? He does have ‘is ‘bully pulpit’ still, right? And his Twitter account. You are basically implying that Trump is just along for the ride, that he is feckless and can’t do a thing about it. What I want to know is where exactly I am wrong?You resort to name calling but cannot defend your own position with specifics. How exactly is my view ‘narrow & limited’? Is there a single fact that I articulated that is wrong and if so how?
David, (Updated)
I told you where you were wrong and I an not implying anything, you are. You are a block head that hates Trump. That’s why you only offered two biased Trump hating choices “willing accomplice or 2) a complete dolt.” Now go away “David”.
Greg
Special thanks to Bob Moriarty…
If you are inclined to panic, always do it early. ”
http://www.321gold.com/editorials/moriarty/moriarty022720.html
And also to Greg Hunter…
“Take some risk off the table.”
Thank you Greg.
I love Peter Schiff.
Gold is going to $5,000.00, that’s it.
Everybody saying $25k and $50k, you will have to wear the “Egg Facial”.
Peter talked about “massive inflation” because of all the money printing.
The inflation went into stocks and bonds.
When the stocks go back to fair value and the bonds default, money evaporates.
There won’t be money to push up food prices.
It will be deflation. Outside of California, gasoline will go to $1.65.
God’s Blessings to you all.
Gold right back up to $1670. Who was calling for gold to crash ? US interests heading to zero, and dollar dropping a lot more very soon, will lead to $50 and $100 up days in gold.
GREG
If the interest rates go to ZERO, how do the banks go about making money?
Well bill. Some years ago about 2013 I decided to start a business in the uk. The interest rate was 1.25% if I can remember. I went along to my local Royal Bank Of Scotland bank and asked for a business loan. 8% was the interest payment on this product. My main competitor in Germany was able to borrow at 2% fixed for 25years. So this is one of the reasons the banks make billions in profits. My savings account was paying me 0.25%. Which is a joke considering inflation was about 5%. So this is how the banks make money and how Germany is the masters of manufacturing in Europe.
I hope you all are praying for a speedy recovery for Jamie Dimon. Mr Dimon has been a beacon of light in the financial industry. He is a great thinker and a great man. I met him a few years ago while on vacation in St Maarten. A true gentleman.
Do You pray Stan?
Stan……are you on another planet?
Greg,
Here is a thought: The FED may be interested in having a digital (blockchain) currency of its own, exclusive of Bitcoin or any other private digital money. Remember when gas stations used to manually change the prices per gallon manually on a sign? By going digital, you revalue the currency and prices in real time by adding a zero now and then.
Nobody would pay much attention to posted price increases or even why. Gas taxes, sales taxes, inflation factors, or whatever. Instant debit on your account. Make it as easy and convenient as possible to incur more debt. Keep everyone enslaved and conditioned not to pay much attention.