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.