If The Fed Was Data Dependent They Would Not Be Raising Rates

The economic data is bad. They do not want to acknowledge that. If the Federal Reserve was data dependent they would not be raising rates based on their own criteria, but they do not want to acknowledge what should be obvious. ( Select Sector Financial Select Sector SPDR ETF (XLF), SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ))

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

If The Fed Raises Rates, They Will Cut Them Back Again

I think when the Federal Reserve raises rates the next thing they are going to do is to cut them back down to zero. We will probably be in a recession next year or close enough to it, that the Federal Reserve tries to delay the onset of that recession by stimulating again by going down to zero, doing QE4 and of course when the Federal Reserve does that they will look like complete fools. (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.

The Most Dovish Interest Rate Hike Ever

Manufacturing is in recession and the overall economy will likely join the manufacturing sector next year. In fact, we lost manufacturing jobs again this month.

Everyone is still convinced that the Federal Reserve is about to raise interest rates next week. They might just do it now because Janet Yellen has basically assured everybody that it does not matter if they raise rates now, what matters is what they will do afterwords. She is basically trying to take the sting out of it by making this the most dovish interest rate hike ever. (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.

U.S. Economy: The Recovery is Ending

Manufacturing is already in a recession. Look at the ISM number that came out last week at a 6 year low. Even the Services sector ISM came way below estimates. Retails sales have been abysmal, consumer confidence is going down. All signs point that the recovery is ending.

Markets: Interest Rate Hike, Tightening Cycle

If we actually get an interest rate hike next week that is the only interest rate hike we re going to get from the Federal Reserve. It is not going to be the beginning of the tightening cycle, it is going to be the end of the tightening cycle which actually begun a couple of years ago when they first started talking about the taper.  That was the beginning of the tightening cycle and I think the first official rate hike, if we actually get one, is going to be the end of the process.

I Expect The Dollar To Be Weaker

As I have been saying, we have the biggest problems in the United States and so I do expect the U.S. Dollar to be weaker than these other fiat currencies and when they are sinking but the dollar is sinking faster that is when the price of gold can really take off. (SPDR Gold Trust ETF (GLD))