The Next Time The Fed Lowers Rates To Zero, The Dollar Will Collapse

President Trump claims that if he had zero percent interest rates the "strong" U.S. economy would be even stronger. He should be careful what he wishes for, as the next time the Fed lowers rates to zero, the dollar will collapse, taking the bond market and the economy down with it!

This Bear Market Is Not Going To End Quickly

Peter Schiff on Fox Business (Oct 29, 2018)

"The Federal Reserve should raise interest rates but the markets will collapse as a result. This bear market is not going to end quickly like the one in 1987. This will be a protracted bear market like the one we had from 1966 to 1982."

Nasdaq: Worst Monthly Decline Since The Financial Crisis

We still have three trading days left in the month of October and the Nasdaq is on pace to its worst monthly decline since the 2008 financial crisis and yet everybody thinks there's no problem!

Stock Market: The Downtrend Is Intact

Some of the highlights from the Peter Schiff Podcast, ep. 402.

Peter mentioned that the Russell 2000 Index is already in correction territory,

"The Russell 2000 is actually down about 14 percent from its highs so it's now officially in a correction."

Peter also mentioned that yesterday's rally had all the characteristics of a short covering rally and that the down trend in stocks in very likely still intact,

"To me this looked like a classic reversal Tuesday type of rally, one of the reversal Tuesday's where you gap way down and then just rally throughout the day The rally did not produce a positive close so it was not a technically significant rally. In fact, I think the downtrend is intact. To me, it looked like a lot of short-covering was going."

Financials are an example of weakness in the U.S. stock market,

"If you look at the financials for example all those stocks continued to go down closing in the red rallied off the lows but no substantial rallies."

The Box That The Federal Reserve Has Placed Itself In

That's exactly the choice that the Federal Reserve is going to have to make. Next time they're going to have to raise interest rates into a weak economy. 

In fact, they're gonna have to raise interest rates into a financial crisis, into a depression and if they don't do it we're gonna have something even worse, we're going to have hyperinflation. 

That is the box that unfortunately the Federal Reserve has placed itself in based on years and years of this monetary policy.

Stock Market: What's Happened Thus Far During The Month

Look at what's happened thus far during the month of October, which I had been warning on my podcast, looked like there could be a weak October given where we were in the market, given how ridiculous the sentiment was in the face of overwhelming evidence that the economy was in fact weakening.

If you look at the numbers the Dow Jones Industrials Average (DJIA) is down 3.8 percent so far on the month. That's the best performing of the averages. The S&P 500 Index is down about 4.7 percent on the month, the Nasdaq Composite is down 7.4 percent, the DJ Transports down 8.3 percent and the Russell 2000 shows a 9.2 percent decline.

September Existing Home Sales Plunged The Most In 2 Years

September existing home sales plunged the most in 2 years, extending the streak of consecutive monthly declines to six. Homebuilding stocks are hitting 52-week lows, registering their worst year since 2008. If housing is this bad during the boom, imagine what happens after the bust!

Bear Market Rallies Try To Create A False Sense Of Confidence

Corrections or bear markets have rallies. So, maybe this 500-point move up in the Dow Jones Industrials Average (DJIA) is the first upward correction in the new bear market. 

There's no way to say that we have not entered a bear market. It's possible that it will be a bear market, you can't call it a bear market now even though maybe 25% of the stocks are in bear market territory. The majority are not but it's only a question of time. There are a lot of stocks that are down quite a bit but just not enough to be a bear market. 

But remember some of the most spectacular moves that you're gonna see to the upside in a market happen in bear markets. Historically the biggest up days have been in bear markets and that is to try to create a false sense of confidence a false sense of hope.

A Bear Market And A Recession

More important that a bear market it's a recession. I mean this is a bubble not just in the stock market but in the entire economy! So, the Federal Reserve has distorted more than just markets and the problem is this recession is going to be far more painful and far deeper than the one that we had  in 2008/09 because it's also going to be accompanied by rising consumer prices. I think as Americans lose their jobs they're gonna see the cost of living going up rather dramatically and so this is going to make it particularly painful.

What Happens Next In 47 Words

1. Bear market;

2. Recession;

3. Deficits explode;

4. Return of ZIRP and QE;

5. Dollar tanks;

6. Gold soars;

7. CPI spikes;

8. Long-term rates rise;

9. Federal Reserve is forced to hike rates during recession

10. A financial crisis without stimulus or bailouts!

The Recession Is Obviously Coming

Recent article on Seeking Alpha.com: "Peter Schiff: The Recession Is Obviously Coming"

All Bear Markets Start Off As Corrections

“All bear markets start off as corrections. I think this one is probably a bear market. It’s long overdue. This is a bigger bubble than the one that blew up in 2008, and the crisis that is going to ensue is going to be far larger.” - in RT.com

It's Not Trump's Trade Policies That Are Going To Cause The Crash

It's not Trump's trade policies that are going to cause the crash, the crash was happening anyway. In fact Donald Trump gave a speech today and he said that when he was elected President or before he was elected the economy was on a verge of a collapse and he was right. But now it's on the verge of an even bigger collapse because all Donald Trump did was blow more air into Obama's bubble or more accurately the Federal Reserve's bubble.

Video: Rising Rates Crash Stocks

Peter Schiff was recently on RT.com to explain the recent turmoil in the U.S. stock market.

Video: Market Selloff (FOX Business)

Peter Schiff’s recent appearance on Fox Business to talk about the recent market turmoil: "Like all sequels, the next financial crisis will be worse." - Peter Schiff

The Price of Gold Finally Woke Up

"The real standout today in the market was gold right the price of gold finally woke up or traders woke up and noticed how cheap gold is and it rose by about $30 today back over 1220."

- Peter Schiff, Ep. 399: "Gold Breaks Out, Bitcoin Breaks Down" of the Peter Schiff Podcast

Stocks: A True Bear Market

"Everything is going down and so now I think the stealth bear market that started earlier in the year is now becoming a true bear market. Of course, nobody thinks so. Everybody that I'm listening to is talking that it's just a correction in a bull market."

- Peter Schiff, Ep. 399: "Gold Breaks Out, Bitcoin Breaks Down" of the Peter Schiff Podcast

Markets: Stocks & Bonds

"If we get stocks going up then interest rates are gonna go back up which is gonna scare the market."

- Peter Schiff, Ep. 399: "Gold Breaks Out, Bitcoin Breaks Down" of the Peter Schiff Podcast

It's Not A Normal Bull Market Correction

Everybody is talking about how this is just a normal correction in a normal bull market. Well, first of all there's nothing normal about this bull market, right? This bull market is already the longest bull market ever. So based on duration it ain't normal. Also based on all the stimulus that was required to create it, all the quantitative easing, the years of 0% interest rates, there is nothing normal about this bull market. If anything it's a bubble, it's not just a bull market and of course if it's not a normal bull market then why would it have a normal correction, right?

My Feeling About The Stock Market Was Confirmed

My feeling about the stock market was confirmed today with a 831 point drop in the Dow Jones Industrial Average down 3.15%. This is the biggest decline that the Dow has had since that 1000-plus point drop that we had in February. I think it's maybe the third biggest down day ever point-wise.

Week Stocks Beneath The Surface

If you look at some of the sectors that continue to get beat up making new 52 week lows so even though the headlines are probably gonna be about the Dow Jones Industrials Average (DJIA) making another all-time record high, beneath the surface are a lot of stocks that are having a lot of problems.

Italy Is Putting Pressure On The Euro Currency

The Italian market is under a lot of pressure because the Italian government is running deficits that exceed the two percent guidelines imposed by the Eurozone. I think they're proposed new budget deficit is 2.4 percent of Italian GDP and so this is putting pressure on Italy which is all so putting pressure on the euro currency.

We've Had Some Substantial Stock Market Declines In October

We have had some substantial stock market declines in October. Obviously, not every October has a big drop, in fact, most of the October's don't but some of the most notable declines have incurred in the month of October including the crash of 1987 and the crash of 1929. But given that our valuations are probably higher now than they were at those prior peaks you would think that there'd be more concern right now about the possibility of another October surprise in the way of a major decline in the stock market.