Peter Schiff: We Are In A Bear Market, All News Is Bad News

Authored by Mac Slavo via SHTFplan.com,

After rallying on Friday, stocks tanked on Monday, dropping over 450 points. In fact, it was the worst first day of the second quarter since the Great Depression.

Stocks dove Wednesday as well on the heels of China’s announcement that they will intensify the trade war with more tariffs, according to most analysts, before exploding higher for no good reason whatsoever. 

But Peter Schiff, the financial guru who accurately predicted the 2008 recession has a different take.

According to Schiff’s blog, Schiff Gold, most analysts blamed the plunge on the escalating trade war, but Peter Schiff sees it quite a bit differently. He said it was just another bad day in a bear market. In fact, he said the market could have rallied because the Chinese response wasn’t as bad as it could have been. But when you’re in a bear market, all news is bad news.

Schiff says that the media’s talking heads are simply using the tariffs as an excuse. The real truth is that most people are in a selling mood. “Stocks are expensive. The bull market is over. It’s now a bear market. People want to get out. People are allocating out. Growth is slowing whether people want to acknowledge it or not,” said Schiff.

The media pundits are optimistic too; just like they were before the 2008 recession, said Schiff.

“That’s what’s going on now. Nobody thinks there’s a problem. Everybody is optimistic. Everybody is bullish. So, when you see these classic signs that something is going wrong, you just ignore it.

The bottom line is Schiff thinks the economy is going to tank (although he isn’t sure how soon that will occur) and the stock market is going to continue its bear run. But the Fed is not going to be able to come to the rescue this time around because of inflation. If it does try to launch more QE to bail out the stock market, it will completely tank the dollar.

When we do all that, the dollar is going to implode because everybody is going to know that the experiment failed. Everybody is going to know there is no way out of this box. There is no normalization of rates that is ever going to happen. Their balance sheet is never going to shrink. The balance sheet is going to grow permanently, which means this banana republic debt monetization. 

They can no longer pretend that they’re not doing the same things as South American banana republics. It’s a pure ‘we just print money to finance government spending,’ which is going to explode.

The national debt is an often overlooked aspect of the economy, but in truth, it will play a big role in an economic collapse and Schiff is sounding the alarms.

And maybe that - among other things - is why stocks collapsed back down the last two days...

Comments

small axe Fri, 04/06/2018 - 17:30 Permalink

been a long time coming

it will only get worse if we don't kill the beast now

ignoring the absurdity of our current Keynesian voodoo is not an option

DownWithYogaPants RafterManFMJ Sat, 04/07/2018 - 00:33 Permalink

I won't tolerate any shit talking Schiff.  The reason for this is Peter Schiff's father. 

We all owe people like Irwin Schiff a debt of sorts.  He died shackled to a hospital bed

When the day finally arrives I meet Peter in person I'll shake his hand and thank him for his father since I can't thank his father himself.

So yeah he's Jewish.  But he is Irwin Schiff's son and that deserves some modicum of respect.  He did things I hesitate to say I have the guts to do.

In reply to by RafterManFMJ

gdpetti DownWithYogaPants Sat, 04/07/2018 - 14:28 Permalink

True, but I think his best comment was on our trade in ag stuffs... 3rd country product lines.. not the finished goods China is putting out, even if they are just assembling much of it... it's obvious that the roles have reversed, as expected by the oligarchs that told Clinton to fast track them.. this is NWO setup... OWO isn't needed any longer, and bringing most main countries up to par level for the new course has been basic empire building since forever... this is what the SG do.

Schiff isn't his father, but it makes a difference being in that shadow... same as Rand Paul with his father Ron... anyone that wakes up, realizes that the game is rigged... it's all fake.... especially in our current puppet show of Great Game psychos... and bringing down the OWO market is just part of the script, but it seems so few of them have been informed of what's next... not just a change of hands at the helm.. Mother Nature is swinging in to clean house... that means 6th Extinction protocols... then add in the comets/plagues/volcanoes/EQs/tsunamis et al... endtimes... so no surprise with this market.

I think Schiff, like most of us, was a little surprised at the nonchalant attitude the market's have had since we went off the gold standard... and especially since that false flag op 9-11... none want to rock the boat... it's all they have left in an OWO that is expendable... and looking like our infamous cat getting kicked against that brick wall.

In reply to by DownWithYogaPants

In.Sip.ient Thought Processor Fri, 04/06/2018 - 17:46 Permalink

The problem, is that gov't blew their books

back in 2008 bailing out the corporations.

A truly stupid move, because now they

don't have the "credit" to do this.

 

If their not careful, this time, not only can

you forget about a corporate bailout, BUT

it just might be your freindly neigbhorhood

gov't that needs the bailout... and where will

that come from?  Debt addled voters???

 

In reply to by Thought Processor

VK lester1 Fri, 04/06/2018 - 17:40 Permalink

Maybe because US companies went there and got them to work like slaves and despoil their environment for the profit of US corporations. The Chinese have worked for decades for America as a colony of worker bees and it's only recently that they've seen some of that wealth at a per capita level. 

In reply to by lester1

Endgame Napoleon TalkToLind Sat, 04/07/2018 - 20:33 Permalink

True. I read a Stockman article today that really clarified the situation in China, which is sad, actually, but I still have to be more concerned about the disaster that is the US economy. The Chinese economy got that way by a government that badly mismanaged money despite all of the foreign investment from US elites that could have been used to build up this country’s deteriorating real economy.

In reply to by TalkToLind

Cloud9.5 Fri, 04/06/2018 - 17:38 Permalink

If you go back and read the 1929 headlines most people did not realize what was coming.  Schiff could read the charts and calculated the time when the subprime mortgages would reset.   The trends are discernable but the timing is much more difficult this time around.   The great recession started in 08 when gas prices peaked and a whole host of subprime mortgages reset.  The smoke and mirrors in the energy sector has kept a lot of people confused.   How can Venezuela and Saudi Arabia be experiencing hard times when the demand for oil keeps on going up?   How can the market be flooded with shale oil when it is not profitable to extract?   High finance and manipulation is concealing the annual reduction of net energy supplies.  Exponential debt and exponential grow are running up against finite resources.  What we are witnessing are the symptoms of a faltering system.

rejected Fri, 04/06/2018 - 17:45 Permalink

Stocks 140 pct of GDP. Normal is 40-50 pct.  Nope nothing abnormal here. 

Libor rates going up since 2015. Nothing to see here, move along. 

FED raising interest rates. Did the same before the 29 crash. (1928, 1929) Again in the 30's (1931 - 1933). Nothing here either. 

Americans cash tapped out. Credit tapped out. Back to home equity loans. Yes,,, Back to the Future. 

Here's the possible skinny! 

Everyone wants manufacturing to return,,, yes?  ,,, Stick with me here. 

When they crash it ALL and the majority of people are homeless and hungry, they'll work for anything to survive... even $2 buckeroos an hour. 

Then we will be able to compete with the 'other' slave states, even live like them.  It'll be great! 

America will be great again! Trump will be re-elected to make America even greater! 

Cloud9.5 HRH of Aquitaine 2.0 Fri, 04/06/2018 - 18:51 Permalink

I read Bracken’s essay a number of years ago. Everyone should read it while they sit up in the peanut gallery and fanaticize how cool it would be to bring on the zombie apocalypse.  Most people do not realize that the zombies will be good old boys and gangs who have not eaten in a week.   People do not read history.  They have no idea what the green line was.  They don’t know that the defenders of Stalingrad ate a small patty of mystery meat mixed with sawdust just to survive.   The source of protein became evident if you had the misfortune to walk through the grave yard full of bodies stacked like cord wood.  They were not buried because the ground was frozen.  What became patently obvious was that the choice cuts were missing.

 

In reply to by HRH of Aquitaine 2.0

east of eden Cloud9.5 Fri, 04/06/2018 - 19:08 Permalink

You American's really do have a talent for raising the hackles on anybody and everybody. No one is kicking down your door armed with a Russian machine gun.

You won't have to eat parts of dead corpses, although the story does speak to the incredible will to survive of the Russian people. You will be given peanut brittle bars and allowed to grow fat and diabetic, to die without any affordable health insurance.

In reply to by Cloud9.5

HRH of Aquitaine 2.0 Cloud9.5 Fri, 04/06/2018 - 19:13 Permalink

Perhaps you need to reread his essay. It was't about the good old boys, as you call them, eating the dead. The cities cannot function without handouts. People have no skills.

I agree about cannibalism happening. But it will be the coloreds eating each other and anyone that stumbles into their territory. People only eat each other due to a lack of religious training and no moral or ethical code. If they had that code they would eat rat, pigeon, possum, racoon and squirrel long before long pig was on the menu.

In reply to by Cloud9.5