Aug 24, 2018
We Are Headed Into a Massive Recession
We are headed into a massive recession. Trump bought the economy some time with the tax cuts but all it's doing is pushing off the day of reckoning. - Peter Schiff on Fox Business
Aug 21, 2018
Trump Criticizes The Federal Reserve
He's been critical of
the Federal Reserve for having raised rates. One of the things President Trump said
apparently was that when he nominated
Powell he had expected him to be a
easier money guy. That he nominated him
thinking that he wouldn't have all these interest rate hikes and so he's disappointed that
his nominee is not being as easy when it
comes to monetary policy as what he had
hoped when he appointed him.
The Weak Dollar Policy
It should be obvious that Donald Trump has a weak dollar policy whether he wants to name it a weak dollar policy or not.
Jul 26, 2018
The Next Recession
It's not that
the inversion of the yield curve causes
the recession. It's that's that long
rates start to fall as investors start
to look beyond the expansion to the next
recession and they start pricing in the
next round of rate cuts.
So it's not that
the inversion causes the recession it
simply is a good indicator that a
recession is coming so you don't need an
inverted yield curve to get a recession
and we're gonna have a recession this
time without the yield curve inverting
given how little headway the Federal Reserve was
able to make in normalizing interest
rates.
Jul 23, 2018
The Catalyst For The US Dollar Drop
The catalyst today for the US Dollar sharp reversal was more tweets from President Trump where he is expressing anger not only at the Federal Reserve right or not only at the ECB and at the Bank of China because he is accusing both Europe and China of being currency manipulators of taking advantage of us by weakening their currencies.
This was
probably one of the biggest down days
for the US Dollar this year - across the
board weakness which is likely to
continue. Believe me we're gonna
have days that are gonna be much much
weaker than this, I believe later in the year and of
course next year and the year after that I think the dollar is gonna get
particularly beaten up.
Jul 20, 2018
U.S. Dollar: Forex Market Intervention Ahead?
Given Trump's accusations against Europe and China regarding currency manipulation I would not be surprised if the Treasury intervenes in forex markets to drive the dollar lower. The dollar's demise will happen on its own anyway, so intervention will only accelerate the process.
Jul 19, 2018
Gold, Gold Stocks and Inflation
The
price of gold is falling,
this is the new low for the price of
gold this year.
Gold stocks are continuing to
hold up very well in the face of the
decline in the price of gold. Gold stocks
are not making a new low for the year at
least not yet and though they are down
today they are not down nearly as much
as you would assume with a 10-12 dollar
drop in the price of gold.
I still think that traders have this wrong.
They're still looking at the the trade
war as somehow being dollar positive. It's
dollar negative. That is impacting gold.
They are dismissing the increasing
inflation numbers that we're getting as
transitory because they think the Fed is
gonna hike rates more to fight the
inflation which is going to be good for
the US Dollar and bad for Gold.
The reality
is they're not gonna fight the inflation
they're gonna surrender. Inflation is
going to win because if they fight
inflation they cause the worst financial
crisis since 2008 and they don't want to do that.
Jul 18, 2018
The Economy Is Going To Fall Into a Severe Recession
Peter Schiff: "I think the economy is going to fall into a severe recession."
Jul 16, 2018
Markets: Interest Rates, Federal Reserve
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.
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 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!
Markets: This Is What Everybody Is Missing
This is what everybody is
missing: there is no way that the Federal
Reserve is going to be able to shrink
its balance sheet. There's no way that
the Treasury is going to be able to find
private buyers for all this debt at interest rates that are low enough not
to collapse the US economy.
Jun 8, 2018
Jun 6, 2018
Precious Metals: A Spike In Silver?
If global industrial growth soften or even plunge, so would lead/zinc and copper mining, which together accounted for 59 percent of silver extraction in 2017. That could also cause the price of silver to spike.
Related trading instruments: iShares Silver ETF (SLV)
Jun 5, 2018
The Federal Reserve Will Not Save The Stock Market Again
If the stock market gets cut in half again, the Fed is not going to bail you out with another round of quantitative easing.
They’re not going to bail you out with rate cuts because the next time the Fed tries to do that, it will destroy the dollar. I am confident of that. The next time is the last time. We will have a dollar crisis and a sovereign debt crisis.
Banks: Deutsche Bank (DB) Could Be The Weak Link Of A Chain
Deutsche Bank (DB) could be the weak link of a chain. If you remember back to when we had the financial crisis 2008, first, you had the sub-prime mortgages blowing up, and everybody was like don’t worry about it. It’s contained. I said it’s not contained, it’s just showing up first in the sub-prime market because these are the weakest mortgages.
I think the banking system has a huge problem because it’s lived off of the life support of artificially low interest rates. As that is removed, it’s like pulling the plug off of someone who has lived off life support. The irony is you have so many analysts that think higher rates are good for the banks...
Jun 4, 2018
Markets: Interest Rates Are Going Back Up
I think that
we're going back up and making new highs
on interest rates which of course is
going to be problematic for every aspect
of the economy that is in debt including
you know the consumers who are taking on
more debt to continue to spend because
they're not earning that money.
Jun 1, 2018
Forex: The Consensus Is Extremely Bullish On The US Dollar
The consensus is
extremely bullish now on the US dollar. it was quite bearish a few months ago
and now all of a sudden everybody is
bullish everybody is looking for the
dollar to go up it's probably almost as
strong the bullishness on the dollar and
bearish this on the euro is probably
almost as extreme as it was at the
beginning of last year and of course
that ushered in the worst the biggest
decline in 14-year
the dollar.
May 29, 2018
The National Debt Disaster
The 21 trillion dollar
national debt which of course is now
closer to 21.2 trillion and
rising rapidly - the problem there is not
just the enormity of the debt but the
cost of financing it.
One of the
things that candidate Trump promised was
to take advantage of these ultra-low
long-term interest rates by locking them
in and moving the debt more towards
long-term rates. Well, he actually did the
opposite as President. He's actually
shortened the maturity even shorter. We're relying even more heavily now on
short-term financing than ever before.
But as interest rates are rising the
cost of servicing this debt is exploding
and that is one of the principal drivers
of the deficits now being over
a trillion dollars a year is the extra
cost of paying the interest on the money
that we've already borrowed. Not the
money we're borrowing now to fund the
current deficit but the money we have to
constantly borrow
to fund the 21 trillion of debt that we
already have.
So this is not a
disaster for the future this is a
disaster that we're gonna be dealing
with in the here and now.
May 25, 2018
The Highest The Fed Gets Is About 2.50%
If you look at what the Federal Reserve is saying, they're also talking about the fact that we're a lot closer to a neutral rate of interest than they might have felt in the past and that there's really not that many rate hikes left.
I mean maybe the markets are looking for two or three interest rate hikes this year but I think what people are now starting to think is that that may be it. I mean after this year the Federal Reserve is done hiking and so maybe the highest the Federal Reserve gets is about two and a half percent and then they're done hiking.
May 22, 2018
Stock Market: Celebrating The Cease Fire In The Trade War
Peter Schiff discusses the markets on this 30 minute podcast.
May 17, 2018
Record Foreclosures In The Subprime Auto Market
I just read an article that we're now
seeing the biggest foreclosures in the
subprime auto market that we've ever
seen, even bigger than in the 2008
financial crisis. That is one symptom of
what happened during the credit bubble
and now you know the heroin is
starting to wear off and it exposes all
of the bad loans that fueled the
spending binge on automobiles.
May 16, 2018
May 15, 2018
Opportunities To Invest In Emerging Markets, Foreign Currencies and Gold
If you're an investor, it's an
opportunity to invest more in emerging
economies, in foreign currencies, in
precious metals. Obviously the gold market is being suppressed
a bit by the strength of the US Dollar but
as the US Dollar surrenders those
ill-gotten gains that is going to be
particularly good for the gold
market.
Related trading instruments:
Related trading instruments:
- SPDR Gold Trust ETF (GLD)
- Market Vectors Gold Miners ETF (GDX)
- Newmont Mining (NEM)
- Barrick Gold (ABX)
May 14, 2018
Inflation Is Going Dramatically Higher
We are
going to have rising inflation and a
falling dollar that for political
reasons the Fed will be unable to or
unwilling to raise interest rates
sufficiently to put out the inflationary
fire and prop up the US dollar.
The Next Bear Market
May 11, 2018
US Dollar: A Bear Market Rally
The big story continues to be the bear
market rally that has been going on in
the US dollar the US Dollar Index today
closed above 93 the low this year was
just above 88 so we've risen about 5% so
far in the US Dollar Index from the lows.
Is Gold Being Manipulated?
May 10, 2018
Federal Reserve: Shrinking The Balance Will Have Consequences
When Alan Greenspan took over the Federal Reserve in 1987, its balance sheet was at about $200 billion. A few years ago, it reached $4.5 trillion. Shrinking it will have consequences.
Related trading instruments:
- SPDR S&P 500 Index ETF (SPY)
- SPDR Dow Jones Industrial Average ETF (DIA)
- iShares Russell 2000 Index ETF (IWM)
- Nasdaq 100 Index ETF (QQQ)
May 8, 2018
Inflation: The Danger To Bondholders
How comfortable
are bondholders going be when inflation
is above 2 percent when they're barely earning
2 percent on their bonds now?
I mean you're not
even getting 3 percent on a 10-year Treasury
right now, you're getting around 2.95.
Well, if
inflation is above, let's say
inflation is two and a half, well you're
getting two and a half percent inflation
if your yield is only 2.95 you're not even getting 50 basis
points. But of course after taxes you're
losing money because the Treasury bond yield
is not tax-free. The federal government
still taxes you on the money you earn on
Treasuries, so after taxes if you're
getting a two point nine five percent
coupon if there's two and a half percent
inflation you are losing money.
May 7, 2018
Federal Reserve: Willingness To Tolerate Higher Inflation
I want to talk about what happened with
the Federal Reserve this week because I think that
is the most significant news of the week. In fact, I think it's the Federal Reserve's statement
on Wednesday and the comments from today
that's the real reason we had the 300
plus point rally in the Dow Jones Industrials Average today that's
why we had the 400 plus point turnaround
in the Dow on Thursday. I think it's all
about the Fed and its willingness to
tolerate higher inflation.
May 4, 2018
Are Rising Rates Bullish For The US Dollar?
I know people say that rising
interest rates are good for the US Dollar.
That's rising short-term interest rates
which in theory are good for the dollar
not rising long-term interest rates.
Gold & Gold Stocks
Gold continues
to pullback. Remember we got above 1350
briefly and we couldn't break out and
now here we are going back down to 1300
but one
thing that looks good to me
are the gold stocks.
US Dollar Strength: The Current Drivers
The strength of the US Dollar I think again is being driven by
the rise in bond yields. The yield on the
10-year US Treasuries is back up to 2.97 percent, still below three percent but I
don't think it will remain below three
percent for long.
May 3, 2018
Stocks: Sell In May And Go Away
There is an old Wall Street adage sell
in May and go away and the reason for
that saying is that seasonally the
market tends to produce better returns
in the first four months of the year
January through April and then
historically beginning in May and
throughout the summer the market could
generally go down and I think the time
to buy back in is typically September , October.
you know there's a lot of
big down days down in September, October so kind of
get out of the market in May, go away and
then come back later in the year and buy
back what you sold.
Well today was May
1st and it looked like a lot of people
weren't gonna wait that long and they
were quick to sell.
Apr 30, 2018
The Only Thing That Can Stop A Bear Market
I do
think there's a good chance that in
February we began a long overdue bear
market. Technically we haven't gone down 20 percent so
Wall Street still calls it a
correction and recently we've had a bit
of rally which to me looks like the
correction in the bear market.
The only
thing that would stop the bear market
from actually materializing
would be a change of policy by the Federal Reserve which I wouldn't rule out because I do
expect the Fed to change policy.
I expect
the Federal Reserve to reverse the rate hikes and to go
back to zero interest rates. I expect the Fed to launch another round
of quantitative easing, QE4. So if
they do that before we're in an official
bear market then we may never have an
official bear market so I just don't
know how long the Fed is gonna wait
before showing its hand.
Apr 26, 2018
Stocks: This Is A Bear Market
It looks like
the period of relative calm in the
markets is over and the next leg down
has begun.
This is a bear market, the
upward move was the correction. It was
the first correction in this young bear
market that technically is not a bear
market yet because we're not down 20 percent but that's only a matter of time before
people call the bear market what it is.
Apr 19, 2018
Global Debt Has Reached Record Levels
Global debt has reached record levels. According to a recent International Monetary Fund (IMF) report, the world has amassed $164 trillion of debt. Three countries account for half of the total global debt – the US, China and Japan.
Petroyuan Clould Be The Death Blow For The U.S. Dollar
As an article at the Gold Telegraph starkly put it, “the rise of the petroyuan could be the death blow for the U.S. Dollar.”
Apr 18, 2018
Podcast: The Calm Before The Storm
Peter Schiff discusses the state of the economy and his market outlook on his most recent podcast.
Apr 11, 2018
Gold: Ever Tightening Supply
During the Squawk Box interview, US Global Investors CEO Frank Holmes noted that the massive money-printing around the world has made gold an important part of an investment portfolio. Holmes also mentioned the ever tightening gold supply.
Related trading instruments:
- SPDR Gold Trust ETF (GLD)
- Market Vectors Gold Miners ETF (GDX)
Apr 9, 2018
Stock Market: Short-Term Pain
Even
President Trump came out today and he
said the stock market might be in for
some short-term pain right but he says
it's worth it because we're going to get a long-term gain and of course he's
referring to his tariffs or a trade war
that we're gonna win this trade war and
that's going to deliver the long-term
gain. It ain't! We're gonna have
short-term pain and then the pain is
gonna get worse
in the long run.
Apr 6, 2018
Gold: A Tight Trading Range
If you
look at the gold chart the range
is really getting compressed. We're
not breaking out but we're not breaking
down. It's getting narrower and narrower, we're really consolidating.
Related trading instruments:
- Market Vectors Gold Miners ETF (GDX)
- Market Vectors Junior Gold Miners ETF (GDXJ)
- SPDR Gold Trust ETF (GLD)
Apr 3, 2018
Stock Market: We Are In A Bear Market
We're in a
bear market, it's just not officially
acknowledged yet. You know, just like a lot of
times you know they don't acknowledge
the recession until after you have two
quarters of negative GDP growth but
clearly you're in the recession for a
long time before it's officially
admitted.
There's
one caveat if the Federal Reserve comes
in and changes the game by taking away
the rate hikes or launching QE 4 then we
may never make it to a bear market. But
if the Federal Reserve continues on its current path
and maintains the current pretense then
we are in a bear market and it's only a
question of time before it is officially
acknowledged.
Related trading instruments:
- SPDR S&P 500 Index ETF (SPY)
- SPDR Dow Jones Industrial Average ETF (DIA)
- iShares Russell 2000 Index ETF (IWM)
- Nasdaq 100 Index ETF (QQQ)
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