{"id":1500759,"date":"2024-11-06T16:25:00","date_gmt":"2024-11-06T21:25:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1500759"},"modified":"2024-11-06T16:25:00","modified_gmt":"2024-11-06T21:25:00","slug":"schiff-the-data-says-stagflation","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/schiff-the-data-says-stagflation\/1500759\/","title":{"rendered":"Schiff: The Data Says Stagflation"},"content":{"rendered":"

Schiff: The Data Says Stagflation<\/span><\/p>\n

\n

Via SchiffGold.com,<\/em><\/a><\/p>\n

On Friday Peter capped off the week by discussing the latest round of troubling data. With the\u00a0nonfarm payroll report<\/a>\u00a0coming in far below expectations, Peter elaborates on the predicament the Fed is in. With mounting political pressure and an election in mere days, how will the Fed possibly manage both inflation and a stagnating labor market?<\/strong> Peter\u2019s answer? They can\u2019t.<\/strong><\/p>\n<\/p>\n

During the last several months, the media and political class have insisted the economy is healthy, even if it is cooling. But disappointing economic metrics and multiple downward revisions to important data reinforce the American consumer\u2019s intuition. The economy is not doing well:<\/p>\n

\u201cVoters are not necessarily fooled. That\u2019s why so many want change – they don\u2019t want to stay the course.<\/strong> They\u2019re not buying what the media is selling about how great the Biden-Harris economy is. In fact, all the data coming out this week confirms that this is a weak economy. We\u2019re probably in a recession. It\u2019s stagflation, or worse\u2014recession and inflation at the same time<\/strong>.\u201d<\/em><\/p>\n

The\u00a0Fed\u2019s gambit to cut rates and hope for the best is backfiring<\/a>. The cuts have actually triggered long-term rates to rise, and the recent nonfarm payroll report is only going to make things worse:<\/p>\n

\u201cRising government debt is causing bond investors to lose confidence in the Treasury\u2019s ability to repay without creating inflation.<\/strong> What\u2019s happening in the bond market is exactly what I predicted. \u2026 Today\u2019s results offer more proof. They were expecting 125,000 jobs, but we ended up with just 12,000\u2014well below the lowest estimate of 57,000. Plus, the prior two months were revised down.\u201d<\/em><\/p>\n

The Fed is stuck between inflation and a stagnating economy. The nation\u2019s eyes are on the election, and it\u2019s very unlikely Jerome Powell will be able to resist political pressure to start printing more money:<\/p>\n

\u201cThe Fed\u2019s not going to do anything about it\u2014they can\u2019t. In fact, they\u2019re going to fuel the fire. <\/strong>They\u2019re going to cut rates, going back to quantitative easing, because the recession is going to keep getting worse. The economy will weaken as inflation gets stronger. So what can they do? They can\u2019t fight both; they have to pick. And all the political pressure, whether from Harris or Trump, will push them toward stimulating the economy.\u201d<\/em><\/p>\n

Turning to the latest campaign headlines, Peter notes that the betting market have seemingly backed off of their Trump optimism. In reality, Peter says, this fluctuation is probably the result of traders closing their positions, not a sudden loss of confidence in Trump:<\/p>\n

\u201cIt reached about $55 a share on Tuesday and then closed barely over $30, at $30.56. DJT stock was plunging as traders took profits on DJT, covering their bets on Donald Trump and unwinding them. That\u2019s why we saw this big move today, with Harris shooting up and Trump collapsing. It\u2019s not that the polls really changed or that Trump is much less likely to win today than yesterday; it\u2019s simply that those who made those bets now have an incentive to cover because they exited their trade.\u201d<\/em><\/p>\n

In other news, Michael Saylor\u2019s company,\u00a0MicroStrategy, is planning on purchasing over $40 billion in Bitcoin.<\/a>\u00a0Peter shows his literary side, comparing Saylor to the myopic Captain Ahab:<\/p>\n

\u201cHe really is Captain Ahab, and Bitcoin is his Moby Dick. But he\u2019s going to go down, and everyone on the ship is going down with him. Even if I were bullish on Bitcoin\u2014I know there are people who watch this podcast and say, \u2018Hey, I agree with everything Peter Schiff says, except for Bitcoin.\u2019 So, if you really like Bitcoin, here\u2019s what you need to do: Sell your Bitcoin now and buy it back when MicroStrategy goes bankrupt.<\/strong>\u201d<\/em><\/p>\n

Peter wraps up what may be his last podcast before the election with a sober dose of reality. Donald Trump is undoubtedly the best hope America has to fix our political dysfunction, but we shouldn\u2019t pretend his track record is something to be proud of:\u00a0<\/p>\n

\u201cEverybody knows I support Trump. I\u2019ve encouraged my supporters to vote for him<\/strong>. But I am not going to say that his first term was an economic miracle. Now, I know people like to oversell, hype it up to get votes, but that destroys all your credibility. If we\u2019re ever going to solve the problems that need solving, we can\u2019t pretend that Trump\u2019s first term was great. All the problems got worse under Trump. They would have gotten worse under Hillary too, but they got worse under Trump. Government spending increased\u2014where\u2019s the miracle? Trade deficits hit record highs under Trump even before COVID. \u2026 They slashed interest rates to zero, and we had massive quantitative easing. That\u2019s the illusion that was created.<\/strong>\u201d<\/em><\/p>\n

Make sure you catch up on other news from last week with JD and Joel\u2019s analysis on the\u00a0SchiffGold Gold Wrap Podcast.<\/a><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 11\/06\/2024 – 11:25<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/personal-finance\/schiff-data-says-stagflation<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Schiff: The Data Says Stagflation Via SchiffGold.com, On Friday Peter capped off the week by discussing the latest round of troubling data. With the\u00a0nonfarm payroll…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1500759","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1500759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1500759"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1500759\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1500759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1500759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1500759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}