Fed set FIERCEST WILDFIRE that’s burning out of control through the entire US economy – Peter Schiff
As wildfires sweep through US West Coast states, causing millions of dollars in damage and disrupting countless lives, economist Peter Schiff says the Federal Reserve has set an even fiercer wildfire: inflation.
According to Schiff, the nation is in danger of inflation burning out of control through the entire US economy.
Speaking about the stock market in his latest podcast, the financial commentator said that he doesn’t think the bulls are out of the woods yet. “I still think the charts look like there is a lot of potential that we can see a bigger decline. Of course, you’ve got the backstop of the Federal Reserve … The reason we didn’t have more follow-through is because people expect the Fed to come to the rescue. In fact, if the Fed wasn’t there, the market never would have been at the levels that it just dropped from.”Also on rt.com California governor declares emergency as military helicopters rescue 200 people trapped by raging wildfires (VIDEOS)
Schiff pointed out that the technicals on gold look incredible. “It is building this new support, or consolidating rather, above the support level that used to be the resistance level,” he said. “The spike-high that we had in 2011 of about 1,900 – that’s now the support. And the longer the old high can remain the new low, the new resistance, I think the stronger this next rally is going to be.”
According to Schiff, the biggest factors that are going to be driving gold and gold stocks are inflation and the weakening dollar. “The dollar is going to lose value, not only against other fiat currencies, but it’s going to lose even more value against real money – gold and silver,” he said.
The government’s latest price inflation numbers, which showed the Producer Price Index (PPI) at 0.3 percent (higher than the projected 0.2 percent), are actually much higher in reality, Schiff explained. “The consumers are paying prices that are rising at rates that are faster than what we get from these official numbers,” he said, adding: “Of course, this is exactly what the Fed wants. They’ve even come out and confessed they are pushing for more price inflation.”Also on rt.com Endgame for America: Dollar literally a BOMB that could go off any day, warns Peter Schiff
“Everybody at the Fed was a closet inflationist. They just didn’t want to come out of the closet and admit it. … Because people think they’re the firemen,” the veteran stock broker said. “They don’t think they’re lighting the fires. But now you have the Fed coming out and telling you, ‘We’re going to light the fires. We’re a bunch of arsonists. And we’re going to go out and set fires.’ And people don’t think that’s a problem.”
The only person who does think it’s a problem is former Federal Reserve Chair Alan Greenspan, said Schiff. Ironically, the current chair, Jerome Powell, also says he’s worried about inflation but for the opposite reason. While Greenspan is worried about inflation because he thinks there is too much of it and it is going to get too high, Powell is worried about inflation being too low. “If Greenspan gets it, why didn’t he do something when he had the chance?” said Schiff.
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