Inflation Chickens Will Come Home to Roost – Peter Schiff

By Greg Hunter’s USAWatchdog.com 

Money manager Peter Schiff says all the money printing and debt explosion since the Great Recession comes with a huge downside. Schiff says, “All sorts of bad policies basically took place thanks to the monetary excesses applied by the world central banks, but now we are at a point where all these inflation chickens are going to come home to roost. It will not be in stock prices or real estate prices or bond prices, but in good old fashion consumer prices. Food, energy and all the things that we need to live are going to get a lot more expensive.”

Schiff says the Fed is overlooking some big problems coming. Schiff says, “They (Fed) did not stress an environment where we have more inflation or where we have stagflation, where we not only have a rise in unemployment and a recession, but consumer prices and long term interest rates that go up at the same time. They (Fed) are not even thinking that’s possible, but that’s actually probable. The real problem is when real inflation rears its head, there is nothing the central bankers can do about it. If they try to fight the inflation by tightening up on monetary policy, it’s like slamming on the brakes. They are going to have to jack interest rates very high, and everything is going to start imploding. The whole credit bubble is going to collapse. We are going to see stock markets tumble. Bonds are going to go into default. There will be bankruptcies, layoffs, bank failures and the governments will have to start defaulting on their obligations and payments on social programs, or even interest on principal. You have a massive crisis coming if the Fed fights inflation, but you have an even worse crisis if they don’t. I am betting on this initially. As inflation gets worse and worse, the central bankers are going to say it is a good thing.”

Schiff predicts, “Inflation is going to run out of control. . . . This is why people need to buy gold. Paper currencies are going to lose a tremendous amount of value. So, if you want to preserve your purchasing power of your savings, you better be saving real money and not all this funny money the central banks create. . . . Once the market perceives that there is no light at the end of the tunnel, that we are never going back to normal, that interest rates are going to stay negative in real terms forever, that the Fed has no ability to raise rates, that all the new money that has been created will never be destroyed, that the Fed balance sheet will grow in perpetuity so liquidity will never be removed, then the dollar will fall through the floor. Then we are going to get all that inflation.”

Schiff is predicting another bull market in gold and silver. Schiff says, “If we are going to have another bull market in gold, which we will and it’s probably already starting, we are going to have a bull market in silver. I don’t think we have ever had a gold bull market that didn’t include silver. In every gold bull market, silver has outperformed gold (on a percentage basis). So, there is a lot of upside in silver.

Join Greg Hunter as he goes One-on-One with Peter Schiff, founder of Euro Pacific Capital and Schiff Gold.

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After the Interview:

Peter Schiff has two sites with lots of free information and podcasts. Go to Europac.com and SchiffGold.com to get more original analysis and information.

This segment is sponsored by Discount Gold and Silver Trading. Ask for Melody Cedarstrom, the owner, at 1-800-375-4188.

For a free audio only link to this Peter Schiff video click here.

 

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Comments
  1. Rachel

    Thanks Greg,

    Great update!

  2. Paul in oz

    I have been listening to Peter Schiff since at least 2006. He Jim Sinclair, Gerald Celente and Dr. Marc Faber are of all of a number of your great guests, are IMO absolutely the most accurate assessors of what is going on and will happen. Whether it is Mr. Sinclair’s “QE to infinity” or Mr. Celente’s “monetary methadone” or Mr. Schiffs clear understanding of what markets are and how economics without fraudulent manipulation operate, it is always to hear them on your show. Greg, thank you, and continue to keep up the great work … Since I firmly believe the country is doomed without a second Trump term, whatever short term manipulations occur, no matter how ridiculous they may be, are worth the long term cost, because the cost of Trump not getting a second term is greater than any additional fuel being added to the meltdown fire.

    • Anthony Australia

      Me too, since 2008. Got his books and all.

    • paul ...

      Paul in oz … as Schiff explains: we have a Welfare Cabal … Warfare Cabal … Drug Cabal … and Monetary Cabal that threatens our “State of the Union” … all these Cabal’s are working together to destroy our economy … ordinary Americans who become homeless on welfare, crippled in war, high on drugs and penniless will likely say … “see … we have become great again”!!

      • paul ...

        To defeat the Deep State (DS) … get rid of your cell phones and don’t talk in your car if it is newer then 2003 (all new model cars are bugged) … don’t talk near any electronic equipment (TV’s, dishwahers, etc., etc.) … or you can use reverse psychology and say exactly the opposite of what you think near the TV, etc. (fake it and say how you are going to be voting for Biden but really know you will be voting for Trump)!! … https://www.zerohedge.com/news/2019-06-26/nsa-again-exposed-unauthorized-collection-americans-phone-records

      • ISMAR DIDIC

        Excellent Peter😍🍉

    • Rob

      People like Peter Schiff, Jim Sinclair, Gerald Celente and Dr. Marc Faber are not invited onto mainstream channels because men who speak the unleavened truth on any given subject are always hated because truth kills pleasure:

      2 Timothy 3:1-4 But know this, that in the last days grievous times shall come. (2) For men shall be lovers of self, lovers of money, boastful, haughty, railers, disobedient to parents, unthankful, unholy, (3) without natural affection, implacable, slanderers, without self-control, fierce, no lovers of good, (4) traitors, headstrong, puffed up, lovers of pleasure rather than lovers of God;

      Even in Christianity the unleavened truth is shunned by most bible teachers because it requires much more than most want to hear:

      John 12:24-25 Verily, verily, I say unto you, Except a grain of wheat fall into the earth and die, it abideth by itself alone; but if it die, it beareth much fruit. (25) He that loveth his life loseth it; and he that hateth his life in this world shall keep it unto life eternal.

      There is much more to salvation than what is being taught today from most pulpits:

      https://sumofthyword.com/2018/04/03/once-saved-always-saved/

    • Bob Halton

      Paul in Oz I couldn’t agree more. I love Peter Schiff and hang onto just about every word he says. I know President Trump is well aware of the state of the economy and is trying his best to get reelected so he can work on it in a 2d term. If it goes down “before” the election, we are all in a very bad place. Socialism is definitely not the answer. That is why Mr. Trump is so vociferous in his criticism of the Fed’s policies. It’s merely a stop gap so that the economy won’t fail until after the election. Let’s hope he succeeds.

      • FC

        I find myself in Mongolia and visited the National Museum where university students have varies drawings displaying the corruption between the politically connected and the general public.
        I spoke to the studentd who had organized the event about the socialist rule of Mongolia and current day Mongolia.
        During our conversation he spoke highly of students back in the 80’s and 90’s protesting against socialism and wanting a change to democracy.
        I explained right now in America the complete opposite is happening, he was gobsmacked.

  3. Rodster

    Inflation has been ongoing in various forms so the public doesn’t catch on. You see it in the form of product shrinkage while the price stays the same. Most brands of orange juice are now 52oz instead of 64oz. In my area a half gallon of milk has increased anywhere from 20-45 cents., which translates to $2.45 – 2.99 a half gallon.

    I’m seeing more and more seniors (70-80yrs old) working the checkout lanes because they can’t make it on what they get from the Gov’t.

    Inflation is every where and has been for sometime if you just know where to look.

    • Uncommon Sense

      On the positive side it is easier to lose weight now!

    • Freebrezer

      R – per milk … if you took away the Federal Governments susbsidies, milk would be around 8 to 10$ a gallon. They make sure milk prices are low, this so the poor can afford it.

  4. William Stanley

    Mr. Hunter,
    Thanks for everything, especially for maintaining your journalistic standards.

    • Greg Hunter

      Thank you William.
      Greg

  5. The Zionist 2A American Patriot

    I keep an eye on various market sectors and in addition to bond yields plummeting and metals prices spiking, another worrisome trend has begun: the US Dollar index is falling.
    The lower the Dollar index falls, the less the Dollar is worth and the higher consumer prices go.
    Gold and silver, baby, silver and gold. There is very little time left to get in on metals at a reasonable price level.

    Some will point to the stock market and say “See, stock prices are rising so everything’s okay.” But I believe people are buying stocks now for three reasons:
    1- They see problems but they’re in denial and they think the markets can never crash again.
    2- They’re low-info types who don’t pay attention and they see no problems
    3- They’re treating stocks like gold – a hedge against future troubles

    IMO, only one economic policy can save this economy: a return to conservative, free-market capitalism. But even if all the Pelosis, AOCs and Bernies get voted out, nobody will do what’s right because the system would still have to be allowed to crash to get rid of all the $Trillions of fiat. No politician has the balls to let that happen. So we’re stuck.
    Gold and silver, baby, silver and gold.

  6. The Zionist 2A American Patriot

    Remember the saying:
    “Always have enough gold to bribe the border guards.”

    • Jodyp

      I AM the border guard, and I WILL defend my property.

      • The Zionist 2A American Patriot

        How many ozs do you need to look the other way?

        • Jodyp

          I believe you missed my point. I won’t be running.

  7. Anthony Australia

    Fantastic interview Greg,

    The thing that surprises me is on some business forums in Australia, Peter is unfairly labelled a loon. This is because too many Bozos are calling out predictions based on an ultimate pinpointed timetable, which has passed, rather than lining to the detailed circumstances.

  8. (Rev) Andrew de Berry

    I love your guest. Straight as an arrow in my book. Thanks as always. Andrew UK

  9. sheryl

    Looking forward to reading comments. To me he sounded like an infomercial for his company sorry

    • Greg Hunter

      Sheryl,
      Fair point but Schiff did some very good information and analysis too.
      Greg

    • Robert

      Cheryl, all this pimping of gold and silver yet what are we suppose to do with it? Its not like everyday services are going to be able to transact in gold and silver. The cash registers won’t have assay machines to determine if its even real. So just how are we suppose to use this gold and silver at the grocery store, the gas station, the auto parts store, the bakery, the dept store, the furniture store, the restaurant?

      • Greg Hunter

        Robert,
        Can you spend a share of stock in a restaurant? How about a bond? How about a painting or an acre of land?
        Greg

      • John McGowan

        Robert, the point to holding gold and silver is not to use it for currency (although if things get bad enough that certainly would be a possibility). The idea is to hold it and cash it in for currency should the need arise. It seems you aren’t a savvy PM buyer or investor as you would be aware of how to liquidate your PM’s when/should the need arise. It may also be possible under the right conditions to trade your PM’s for land and automobile or other large commodities. There are a growing number of states (Utah comes to mind) that have passed laws that have made PM’s useable as currency – going back to the original intent of the Founding Fathers. Those who believe that PM’s are worthless or a waste of time are going to be very sorry indeed. I’d rather have it and not need it than to need it and not have it.