What Is Going To Happen To GDP If The Fed Withdraws The Stimulus

Think about this. If the U.S. GDP grew at just 1.9 percent last year while the Federal Reserve was doing 85 billion a month of QE the entire time, the entire year, what is going to happen to GDP this year if the Fed withdraws that stimulus before the year is over? The numbers are going to be even lower. They are not going to be higher than they were in 2013.

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

GDP Report Misses Expectations

I guess this is the last time they are going to be able to blame weak GDP numbers on the weather. Although how they can blame the first quarter`s number on the weather is beyond me but they are getting away with it.

The government reported that the first quarter GDP was up 0.1 percent... 0.1 percent? That is basically flat!

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 Fed Will Reverse Course On QE

I do expect the downward trend in job gains to continue, which is why I believe the Fed will do an about face on QE.

 Related ETFs: SPDR Gold Trust ETF (GLD), SPDR S&P 500 Index ETF (SPY)

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