Thursday, May 12, 2022

Peter Schiff: Outrageous Positive Spin on Negative GDP


  • Mortgage are rates too high for anyone to refinance for better rates.
  • Markets rally on horrific economic news.
  • Russia ranks higher than Ukraine in economic freedom.
- Source, Peter Schiff

Wednesday, May 4, 2022

Peter Schiff: People Are Going to be Spending Less, Companies Will Suffer

We can see the impact of falling real wages on American savings. The US household savings rate has imploded in 2022. It’s now lower than it was prior to all of the COVID stimulus and PPP checks going out.

In late 2020 and into 2021, there was a big jump in savings because the government sent everybody a bunch of money. People paid down credit cards and stashed some money in the bank. Now we’re seeing savings depleted and people are running up credit cards at a blistering pace. Consumer debt is rising at the fastest pace since 2001.

"Now, not only is [savings] completely gone, they actually have less savings than they had before they got that government slush fund because they spent that money on rising prices. Now, that money is gone, and they’re relying on credit cards to fill the gap between what they earn and what they spend.”

Peter reiterated that this is an “unprecedented” decline in real earnings for American households. And it’s going to impact the broader economy.

"They have to cut back everywhere they can.”

In other words, people will try to spend less. They will cancel the Netflix subscription. They won’t go on vacation. They won’t eat out as much. This is bad news for an economy that is predicated on people spending money on stuff.

Peter said this will trickle over into the stock market, particularly in the NASDAQ where companies are priced for growth.

"Not only are they not going to get growth; they’re actually going to see a reduction in their business. And so, the stocks are priced for perfection, and what we’re actually getting is the opposite of that. There is still a long way down to go for all these stocks because they were overpriced. But the fact that earnings are not even coming close to expectations, these stocks need to be marked down in a much bigger way.”

- Source, Schiff Gold

Sunday, May 1, 2022

Peter Schiff: Real Incomes Collapsing at an Unprecedented Rate

Americans are earning more, but inflation is eating up their rising wages and then some.

In his podcast, Peter Schiff talked about the unprecedented collapse in real incomes and how it will trickle down through the economy.

Year-over-year, average hourly wages for production and nonsupervisory employees were up 6.7% in March. That sounds great – until you factor in inflation.

With CPI at 8.5% (according to official government numbers), real wages for these workers have dropped nearly two percent. Their bigger paychecks aren’t even covering rising prices.

Overall, wages are rising at around 4 to 5%. That means in aggregate, real wages are dropping even faster.

Peter says it’s even worse than that.

"The wage numbers are real. Those are actual numbers because they’re easy to measure. There is no hedonics. There is no substitution. The wage increases are accurate. It’s the price increases that are not. Because if inflation is actually 17 or 18%, not 8.5% but wages are only growing by four or five percent, real incomes are collapsing at an unprecedented rate.”

- Source, Schiff Gold

Wednesday, April 20, 2022

Fed Doves Pretending to Be Inflation Hawks Are Chickenhawks


Bond market continues getting beaten up. 
Lael Brainard spooks the markets with sudden hawk talk. 
When you live in a glass White House, don’t throw stones. 
Sanctions created a bottom and bull market for the Russian ruble.

- Source, Peter Schiff

Saturday, April 16, 2022

Peter Schiff: German CPI Exposes ECB’s Low Inflation Lies


Europe has a serious inflation problem. 
The ECB says the cost of living isn’t rising fast enough. 
Politicians and central bankers are using covid and Putin as scapegoats for inflation. 
The bigger the government, the bigger the problems. 
Gold and oil react to peace talks in Ukraine.

- Source, Peter Schiff

Thursday, March 3, 2022

Peter Schiff: The Fed Is Running Out of Minutes


  • Economic data blows away expectations. 
  • Wages are a price and prices are going up because of inflation. Keynesians can’t even follow their own playbook. 
  • Real demand is determined by supply. 
  • Don’t take free heroin just because you don’t want to waste it. 
  • Fed hawks went the way of the dodo bird. 
  • Fed policy is the opposite of Teddy Roosevelt’s Big Stick policy.

Friday, February 18, 2022

Peter Schiff: Inflation Tsunami Is Just Getting Started


Peter Schiff and Larry Shover discuss the economy, Fed, inflation, and interest rates on Fox Business.