Friday, July 20, 2018

Government Regulation is Why Drugs Cost so Much



Wednesday, July 4, 2018

Peter Schiff Explains Why Sagging Productivity Is Bad News For Your Pocketbook

US productivity numbers for the first quarter of this year were disappointing, to say the least. Analysts expected Q1 productivity to rise by point 0.7%. Instead, it came in at nearly half that, rising by 0.4%. This was only a slight improvement over the 0.3% increase in the final quarter of 2017.

There wasn't a whole lot of chatter about sluggish productivity in the mainstream financial press, but in his recent podcast, Peter Schiff pointed out that it could have significant ramifications for the economy - and on your pocketbook. If you're counting on productivity to keep a lid on consumer prices, you have a big problem.

"That is the only way to keep prices from rising when you're creating all of this money is to have an increase in productivity."

As Peter pointed out, rising productivity doesn't prevent inflation. It merely masks it. Most Americans don't understand what inflation actually is. In fact, the mainstream has effectively redefined the term, as Ron Paul explained during an episode of his Liberty Report. Peter provided a succinct explanation of inflation during his podcast.

"Remember, a lot of people think that inflation is what happens to prices. It's not. Inflation is what happens to money. That's where the word comes from. Inflate means to expand and prices don't expand. Prices go up, prices go down. What expands? The money supply. It expands during inflation, it contracts during deflation. A result of an expansion of the money supply inflation is that prices tend to rise. But they might not rise. If productivity is rising faster, prices might not go up at all."

So, even if increasing productivity keeps prices from rising as fast as they would during an inflationary period, it still harms consumers because they could have benefited from even lower prices.

"If inflation robs you from the benefit of increased productivity, that's still an inflation tax. This is still harming the economy. But the modern day bankers and Wall Street - everybody - they're only worried about inflation if it makes prices go up, not if it prevents them from going down, although now they actually want inflation to make prices go up. They just don't want inflation to make prices go up too much. In fact, if inflation doesn't make prices go up enough, that is supposedly a problem, right? Inflation is too low. That's what's been fueling a lot of the monetary policy."

- Source, Seeking Alpha

Sunday, July 1, 2018

Peter Schiff: The Fed Is Pushing Us Toward A No Growth, High Inflation Economy

As expected, the Federal Reserve nudged rates up another .25 basis points on Wednesday. Perhaps more significantly, the Fed took a more hawkish tone than expected, signaling it would likely increase rates two more times this year for a total of four hikes. The central bank had been projecting three 2018 rate increases.

A buildup in inflation pressures was a major reason for the Fed's more hawkish tone. According to the latest data released by the Bureau of Labor and Statistics, the Consumer Price Index (CPI) jumped by 2.8% year over year in May. The central bankers projected inflation will likely run above their 2% target into the near future. Analysts expect the CPI to hit 2.1% this year and run at that level through 2020.

In his latest podcast, Peter Schiff said higher inflation might be a victory for the Federal Reserve, but it will be a big loss for consumers. In fact, we are heading for a no-growth, high-inflation economy.

Peter said he doesn't think he's ever heard a Fed chairman so bullish on the economy. That might not be good news.

"Given the fact that the Fed is a pretty good contrarian indicator as far as being reliable, if Powell is extremely bullish, as bullish as a Fed chairman has ever been, it likely means that the best days of so-called growth are behind us and it is all downhill from here."

While everybody is taking up the Fed's hawkish stance, Peter said he thinks the Fed is actually pretty dovish when it comes to inflation if you read between the lines. In fact, Powell said it was too early to "declare victory" on inflation and he wants to make sure it doesn't drift back down.

"As if victory over inflation is defined by lifting the inflation rate up to 2%. I mean, that's not a victory. Do you think consumers are going to celebrate that?"

In fact, it's not hard to generate inflation. Just print money. The hard part comes when inflation runs out of control and the central bankers have to bring it down. That's real victory - a victory Peter said Powell will never achieve.

- Source, Seeking Alpha

Monday, June 18, 2018

Peter Schiff talks gold investment strategies at mining conference in Canada


Peter Schiff Keynote. Cambridge House International Inc. International Mining Investment Conference, Vancouver, B.C. May 15th 2018.

- Source, Peter Schiff

Friday, June 15, 2018

Peter Schiff: Interest Rates and Gold Will Both Go Up


Money manager Peter Schiff issues a stark warning, “This is not going to end well, and I don’t think the Fed is going to be able to save us again. If you get it wrong this time, you’re done. You are down for the count. You just can’t hold and hope. 

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.” 

What about gold in a rising rate environment? Schiff says, “Gold can go up when rates are rising. 

In fact, gold will go up when rates are rising. Rates are generally rising because you have more inflation. More inflation is good for gold.”

- Source, USA Watchdog

Thursday, June 7, 2018

Peter Schiff: How to Think About the Federal Reserve


Money has been used as a medium of exchange since ancient times. It affects not only economics, but also history, politics, and culture...