Peter Schiff

The Federal Reserve Is Hillary Clinton's Secret Weapon

Say what you want about Donald J. Trump, but he is correct about one thing: the Federal Reserve has, with near certainty, been holding interest rates down for political purposes - namely, to aid Hillary Clinton in getting elected president of the United States.

Recession Now... Or Depression Later

Currently economists and market watchers roughly fall into two camps: Those who believe that the Federal Reserve must begin raising interest rates now so that it will have enough rate cutting firepower to fight the next recession, and those who believe that raising rates now will simply precipitate an immediate recession and force the Fed into battle without the tools it has traditionally used to stimulate growth. Both camps are delusional, but for different reasons.

The Noose Is Tightening Quickly On The Global Economy

At bottom, it is not central bank stimulus and intervention alone that drives equities and bond markets; it is the naive faith and willful ignorance of average market participants.  There is a problem with this kind of economic model, however.  Reality is never kept in check indefinitely.  Fiscal truths will be exposed, one way or another.

"Welcome To Fantasy Land" Peter Schiff Warns Negative Rates Will Kill Growth

"So we have a choice, either we continue down the road of negative rates to Fantasy Land, where central banks own all the stocks and bonds and asset prices always rise, but real wages and average living standards always fall, or we take our chances on a different path that leads to reality, however unpleasant the transition may be. I for one would choose the latter, but it looks like I won’t have much company."

5 Reasons Why Austrian Economics Is Better Than The Mainstream

Mainstream economics is fraying at both ends. At one end, heterodox and Austrian economists keep pulling on loose strands: pointing out the inconsistencies, failures, and absurdities of their unrealistic models. At the other end, top mainstream economists and mouthpieces are doing the same, but with a touch of deflection and embarrassment.

Peter Schiff Explains How Central Banks Are Choking Productivity

If the cost of money is high, people think carefully about where they want to put their money. They select only the best investments. This helps everyone. When money is cheap, they throw darts against a wall. This is not the best use of societies' scarce resources. Is it any wonder productivity is down?

Peter Schiff Slams The Fed's 'Loud Talk, No Stick' Policy

Theodore Roosevelt’s famous mantra “speak softly and carry a big stick” suggested that the United States should seek to avoid creating controversies and expectations through loose or rash pronouncements, but be prepared to act decisively, with the most powerful weaponry, when the time came. More than a century later, the Federal Reserve has stood Teddy’s maxim on its head. As far as Janet Yellen and her colleagues at the Fed are concerned, the Fed should speak as loudly, frequently, and as circularly as possible to conceal that they are holding no stick whatsoever.

Former Fed Governor Admits "Fed Is Not Data Dependent; It Is Propping Up Asset Markets"

"They look to me asset price dependent more than they look data dependent. When the stock market falls like it did in the beginning of this year, they say, ‘Oh, we better not do anything.’ Stock markets are now at career highs. I suspect when they meet next week they will suggest, ‘Oh, now they look like they can be somewhat more responsible.’"

Peter Schiff: "Brexit Is Just What The Doctor Ordered"

British voters may not know what they will get with an independent Britain, but they knew that something was rotten, not just in Denmark, but all over the European Union. The same holds true in the United States. Until our leaders can paint more realistic pictures of where we are and where we are going, we should expect more “surprises” like the one we got yesterday.

Keynesian Triumph: Americans Are Broke

So here we are. After decades of what essentially could be called a new “Industrial Revolution” with the advent of computers and the internet, the US government has managed through its monetary authorities and through its other policies to decimate savings and leave millions of Americans financially vulnerable. It has been no accident.

Follow The Yellow Brick Road

For over a hundred years, it’s been theorised that author L. Frank Baum wrote his 1900 book, “The Wonderful Wizard of Oz”, as a fanciful way to explain the economic situation at the time and that the Yellow Brick Road was a reference to the path created by gold ownership. Whether or not the theory is correct, for many people today, “Follow the Yellow Brick Road” might serve as a mantra for alleviating economic woes.