Last Friday, all three major stock markets hit new record highs ignoring the storm clouds on the horizon. In his latest podcast, Peter Schiff said this reminds him of 1987.
The stock market is rising despite the fact that there are very, very negative factors that are building, that are hiding in plain sight, that everybody is ignoring.”
When it comes to the economy, most people aren’t worried about anything when there is everything to worry about.
Peter highlighted a number of ominous signs, including rising inflation, as evidenced by the surging price of oil, the tanking dollar, and warning signs in the bond market with reports China plans to quit buying US Treasuries. Peter says it’s the perfect setup for a 1987-style crash that nobody sees coming. Of course, they should see it coming.
That’s going to be the crazy part. When it’s going to happen, everybody is going to say, ‘Well, nobody could have possibly seen this coming. How could anybody have possibly known this was going to happen?’ I mean, this is the most obvious crisis ever, yet of course, yeah, they’re oblivious.”
Meanwhile, the markets are priced for perfection. So, what will the Federal Reserve do when the air starts to come out? They are going to try to stop it.
Let’s say the Dow drops 1,000 or 2,000 points.
Now the Fed has to come out and stop the carnage, right? They don’t want to let it continue. So they’ve got to fess up, ‘Oh, you know, we’re not going to hike … then the dollar implodes.”
So, if the Fed has to launch another round of QE and buy up bonds, how is that going to happen? It will have to print money, because would you want to own the dollar?
The president is talking about, ‘Why do we let all these immigrants in from these
- Source, Seeking Alpha
