The Federal Reserve is raising interest rates and the higher rates are going to be problematic even more so now than they were back
then because we have a lot more debt. But
I don't think they will succeed in
raising rates as high as they did before. I think the tipping point is going to
come much lower if it hasn't already
come.
I do think
that they're gonna abort these interest rate
hikes much sooner than people think. Potentially they could use the
trade war and it's unexpected negative effect on the
economy as the excuse to do what they
were gonna do anyway, which is to call the whole cycle off and start
cutting interest rates again and going back to
quantitative easing. That's where
we're headed.
Jul 16, 2018
Jul 10, 2018
The Perfect Excuse For The Federal Reserve
What's gonna happen as a result
of the tariffs in the trade war and
again this is a perfect excuse for the
Federal Reserve I mean this is like a
gift from heaven because now when the
Federal Reserve has to cut interest
rates, the Federal Reserve has to do
QE 4.
They can just blame it all on the
tariffs on the trade war they could say
everything was great, we were
going to normalize interest rates, we
were going to shrink our balance sheet
but Trump went and started a trade war
and it unexpectedly sent us into
recession. So now we've got to cut interest rates again and do QE 4.
They were gonna
do that anyway whether or not we had the
trade war, whether or not we had any of
these tariffs but now this gives them a
perfect excuse to blame something on
which they had no control.
Jun 26, 2018
Gold: The Last Safe Haven Standing
Even though gold has made a move down with the breakout in the dollar – or the move up in the dollar – I think that’s the last safe haven standing. I mean, once you run out of safe havens, where are your going to go? That’s where people are heading because nobody is looking there now. People don’t even think they need a safe haven. In fact, I don’t even know if money is moving based on a search for a safe haven. It’s just going where the momentum is.
Jun 25, 2018
Most Banks Would Fail A Stagflation Stress Test
Peter Schiff explains in this podcast why most US banks would fail a stress test in a stagflation scenario.
Jun 20, 2018
Markets: Trade War, Small Caps
Traders have
convinced themselves that America is
going to win a trade war or at least
take the fewest casualties because the
reason that the Russell 2000 is doing
better than the Dow or the S&P; is that
you don't have the multinationals. And the theory is that the domestic
economy can easily weather the trade war. That it's no big deal, that trade is a
small part of the US economy and so we
got nothing to worry about but if you
are worried well maybe worry about the
multinationals that stand to lose so
just focus on all these small companies
that are just benefitting and basking in
the glow of the greatest economy in the
history of the world. If you don't
believe it just ask President Trump and
he will tell you. But this is all a bunch
of nonsense and the nonsense continues
to drive the dollar higher.
Jun 11, 2018
Trump Is Right About Trade
What Donald Trump is saying about trade is correct. But what he fails to mention is that eliminating the deficit means much higher consumer prices and interest rates in the United States.
So to receive the long-term gain, Americans will have to suffer through a lot of short-term pain!
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