Money manager Peter Schiff says don’t fall for the lies the Fed is telling about the so-called “recovery.” Schiff explains, “Everybody is brainwashed. They believe the Fed propaganda. The Fed has been talking about how great the recovery is and that they are getting ready to raise interest rates. None of that is true. There is no recovery, thanks to the Fed. All there is is a gigantic bubble that has prevented a recovery from taking place. The only reason the Fed is pretending to raise rates is so they can pretend the economy is strong enough to withstand that. The Fed basically can’t do that. They are going to do more quantitative easing (QE). They are going to do QE4, and all that is going to do is weaken the economy further. The economy is in worse shape than prior to the financial crisis (of 2008) thanks to the Fed.”
Schiff also points out, “If you look at the data coming out, all the data is consistent with recession, not expansion. In fact, if the Fed were to actually raise rates, it would be the first time the Fed would be raising rates into a slowing economy. This is not what the Fed normally does. Normally, the Fed would be stimulating with economic numbers this bad. The only numbers holding up are the housing numbers, and they are going to implode at some point. What nobody has wanted to acknowledge, under the surface of these 200,000 a month non-farm payroll numbers, it’s all part time work. It’s temporary work. It’s low paying service sector jobs. We’ve had a collapse in the labor force participation rate. That’s why the unemployment claims are so low. You can’t get fired unless you get hired. We are not hiring a lot of people. People are just leaving the labor force, and that is what’s really going on. People are giving up full-time jobs in favor of part-time jobs, and none of this shows economic strength. It all reflects economic weakness. I think this is going to be a horrible Christmas. Americans are broke and they have no money to shop. Inventories are already bloated, and I think there are going to be huge markdowns. If you really want to get good buys, don’t buy anything until after Christmas. I think there are going to be a lot of layoffs come January and February . . . and a lot of these part- time jobs are going to disappear. You are going to see a big increase in the unemployment rate. How is the Fed going to be able to raise interest rates then? If they couldn’t do it when unemployment was falling, how are they going to be able to do it when it’s rising?”
On gold going way down in price, Schiff says, “That’s not going to happen. There will be deflation. If you want to price things in gold, stock prices are coming way down in terms of gold. Real estate prices are coming way down in gold. Consumer prices are coming way down in gold. Commodity prices are coming way down in gold. They are not coming way down in dollar bills because the government can create as many of those as it wants. . . . I don’t know why a guy like a Harry Dent would have so much confidence in a Federal Reserve Note. He has no confidence at all in the U.S. economy and thinks everything is going to collapse, but somehow, in the middle of all that rubble, somehow the dollar is going to emerge supreme. Why would that be? There is no real precedent for that. Every country that has gotten themselves into the mess were in, only on a smaller scale, there has always been a collapse in the currency. . . . I don’t know why cash would be king.”
(There is much more in the video interview. Please note, there is a slight lip-sync problem with Mr. Schiff’s audio that was unfix-able in post-production.)
All links can be found on USAWatchdog.com:
After the Interview:
Peter Schiff is predicting that when it is realized the Fed cannot and will not raise interest rates, gold and silver will breakout to new highs in price. Schiff has analysis and free information on both SchiffGold.com and EuroPac.com.
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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.