The Risk Of Inflation

The main reason the Federal Reserve doesn't want to acknowledge the risk of inflation is that it's not prepared to do anything to put out the fire once it really gets started. So, it plays down the risk as long as it can, knowing that ultimately the inflation fire will burn the economy down.

Many People Have Over-Reacted To The Actual Health Threat

The crazy thing is that while so many people have over-reacted to the actual health threat posed by Covid-19, they have under-reacted to the grave financial and economic threats posed by the increase in government spending, borrowing, and money printing in reaction to Covid-19!

The U.S. Needs More Savings

Powell was asked what the Federal Reserve can do to make the economy more resilient to these type of shocks. The question is ironic as its the Fed's fault the economy is so vulnerable to these shocks in the first place. What's needed is more savings, which requires higher interest rates!

Two Wrongs Do Not Make A Right

Unfortunately, there is now a growing consensus that since we have abandoned capitalism during bad times, we must also abandon it during good times. If we socialize the losses, we must also socialize the profits. While this is logically consistent, two wrongs don't make a right.

How Long Before A Currency Crisis?

The national debt now exceeds 24.6 trillion dollars. It was just two weeks ago that it hit 24 trillion dollars. 

We are adding $1 trillion per month to the national debt. That was the size of the entire national debt as late as Oct. 1981. 

How much longer can this pace continue without a crisis?

Gold Stocks Are The Perfect Hedge

Gold stocks are the perfect hedge few portfolio managers own, as they will rise regardless of which direction stocks move. If stocks rise due to Federal Reserve money printing, gold stocks will rise more. If stocks fall due to a weak economy and falling earnings, gold stocks will also rise.

Clearly, everything that is happening right now in the economy, with central banks, is extremely bullish for gold. There is no question about it.

Read the complete article here: Peter Schiff: Gold Is the No-Brainer Investment