Fed’s Covid cure far more harmful to US economy than the disease – Peter Schiff
The idea that QE infinity is here to stay “is the only thing driving stock prices,” according to the CEO of Euro Pacific Capital.
He notes in his podcast that JP Morgan recently projected US GDP in the first quarter of 2021 to be negative. They are, however, predicting the economy to come roaring back in Q2 and Q3 of next year.
“Obviously, it’s because of massive government stimulus that they’re expecting, probably even more from the Fed than from Congress, because I don’t know how long it’s going to take the Biden administration and Congress to actually enact their initial stimulus,” said Schiff.
He added: “So, it’s the anticipation of this stimulus which is driving the market.”Also on rt.com Dow Jones breaks 30,000 milestone for first time as stocks soar amid vaccine hopes and formal start of Biden transition
According to the veteran stockbroker, the real burden for the economy is not Covid, but all the debt the economy accumulated while the Fed was trying to fight Covid.
“It’s the Covid cure that is far more harmful to the economy than the disease,” said Schiff. “And of course, the US economy is going to be less efficient in this post-Covid world as US companies are still going to have to be covering the costs of being able to prepare for the next lockdown or the next virus that comes up. We already know what the playbook is,” he added.
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