The U.S Economy Is Getting Weaker And Weaker

We are already decelerating, we are already going downhill. We have already passed the peak of economic expansion. We are contracting and we are either nearing recession or already in one. But the longer we go in time the weaker the economy is going to get.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

U.S. Economy: Inflation & Economic Growth

Inflation does not cause economic growth and economic growth does not cause inflation. Governments cause inflation by creating money and economic growth comes from savings and investing. And how do you get savings and investment? You have sound money, low inflation, you have few regulations, you have low taxes, you have limited government. That is what grows an economy.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

The Real Reason Why The Fed Is Not Raising Interest Rates

This is in fact a economic recession wether or not anybody wants to acknowledge it. That is why the Federal Reserve is not raising interest rates.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

What The Federal Reserve Is Really Doing

Everybody still thinks that this is serious. They still don`t get what is actually going on that the Federal Reserve is not going to raise interest rates but they cannot admit that so they keep pretending.

By the time December rolls around the probability of a December hike will be way down and of course the probability of a March hike will be much higher because every time the Fed does not raise rates the markets believe a rate hike is coming. Why? Because the federal Reserve keeps talking about the possibility of raising interest rates but never actually doing it.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Fed Meeting: A Dollar Negative Event

I think this is a dollar negative event. I think this is a gold friendly event. remember the last time the Federal reserve raised interest rates everybody thought the gold would tank and instead it market the bottom and had a huge rally. People thought the Dollar would rise and it went the other way.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Federal Reserve: Why Would They Want To Take A Chance Of Raising Interest Rates Today?

Why would they want to take a chance of raising interest rates today knowing, (A) how weak the data is, (B) knowing that the markets could tank as a result of that rate hike. That is the last thing they want. Then what are they going to do? How are they going to reverse the decline?

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

The Dollar Will Take The Bond Bubble With It

Eventually when the U.S. Dollar bubble bursts it is going to take the bond market with it and this bubble economy is going to implode. Then the economic events of 2008 will look like a Sunday school picnic.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

The Federal Reserve May Start Buying Corporate Bonds And Stocks Next

We are going to get negative interest rates, we are going to get quantitative easing and the Fed will not only be buying bonds and mortgage backed securities, they will start buying corporate bonds, they might buy municipal bonds, they even might buy stocks.  What knows what they are going to monetize.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

We Will Get Negative Interest Rates And More QE

What caused the big rally in the U.S. Dollar was the belief that the QE and zero percent interest rates were successful that the Federal Reserve was going to end the program and it was the anticipation of the tightening, of the normalization of interest rates, of the shrinking of the Fed`s balance sheet, that was what built the rally in the U.S. Dollar. But that was false.

As people figure out that they cannot normalize interest rates, they cannot shrink the balance sheet. In fact their balance sheet is going to grow again and not only are they not going to normalize interest rates, they are going to bring them back to zero. In fact this time zero is not going to be low enough. They will go negative. We will get negative interest rates and QE.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Markets: No Matter What Happens We Are Pretty Much Screwed

Its a problem if the Federal Reserve raises interest rates but they also acknowledged that it is a bigger problem if the Federal Reserve does not raise interest rates. If they raise interest rates they prick the bubble, if they don`t raise interest rates the bubble gets bigger and eventually it pops. So no matter what happens we are pretty much screwed.

(Select Sector Financial Select Sector SPDR ETF (XLF), SPDR Barclays Capital High Yield Bnd ETF (JNK), SPDR Gold Trust ETF (GLD), SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Hedge Fund Managers Criticize The Federal Reserve

There was this conference in New York this week, the Delivering Alpha conference and there was a lot of coverage in the press because a lot of high profile hedge fund billionaires were speaking very negatively about the Federal Reserve.

What they were saying was that the Fe`s policy of zero percent interest rates and quantitative easing have been a failure, that they had not delivered the economic growth that was promised, that actually they undermined economic growth and undermined capital investment and as a result of what the Fed has done the economy has grown less than it would have had they not done it.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

All It Takes To Collapse The Markets

Just the mere possibility of a minuscule interest rate hike (0.25%) is all it takes to collapse this stock market. (SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Index ETF (QQQ), Nasdaq 100 Futures)

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Fed: U-Turn On A Rate Hike Possibility

Clearly the 400 point decline in the Dow Jones Industrials Index on Friday showed that the market was not really very friendly to the possibility of an interest rate hike, let alone the certainty of one. Just the mere possibility however remote that possibility may be spooked the markets. So the Federal Reserve on Monday had the chance to dial it back. they had three Fed Presidents speaking on Monday and none talked about the possibility of a rate hike. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR Gold Trust ETF (GLD), SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Central Banks Are Scaring The Markets

It is not just the Federal Reserve because Draghi in the press conference was asked about what are he was going to do when this QE program ends (and it is scheduled to end in the beginning of 2017) and he basically said that they do not have any plans to do more QE.

We also had some similar statements coming from the Bank of Japan to the extent that they are not going to do anything more and this is scaring the markets because the markets have been riding a sea of liquidity from all over the world. (Nikkei 225 Index, SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Futures, Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Why Is The Market So Scared?

A possibility of an interest rate hike? All these guys (Federal Reserve Governors) say is "We do not rule out the possibility. Well, a possibility is not a probability and it is certainly not a certainty. But the market is acting as if the Federal Reserve is about to raise interest rates and that is why everybody is so scared. (SPDR Gold Trust ETF (GLD), SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

The Best Interest Rates For The Economy

What is good for the economy is not low interest rates or high interest rates but interest rates that reflect the free market, the true savings and borrowing needs of the economy, the time preferences of savers and investors. You need a market rate of interest.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

U.S. Economy: ISM Manufacturing Index Indicates Contraction

We got the ISM Manufacturing number. The prior month we had a bounce backhand everyone was excited about that, up at 52.60. Now the index collapsed to 49.40. That is a horrible number. Anything below 50 indicates contraction.  (Select Sector Financial Select Sector SPDR ETF (XLF), SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Markets: The Fed Is The Only Game In Town

In many cases it does not really matter what the economic data is what matters is what the Federal Reserve says relative to the data. (Select Sector Financial Select Sector SPDR ETF (XLF), SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), SPDR Gold Trust ETF (GLD))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Federal Reserve: The Hawks Are Extinct

When it comes to the Federal Reserve the hawks are extinct. They are all doves of varying degrees.

** Hawk is the term used to describe a fed member who places keeping inflation low as the top priority in monetary policy and has the tendency to be prone to have a high level of interest rates. A monetary dove gives more emphasis to low unemployment, over low inflation thus it tends to prefer low interest rates.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.