{"id":1505508,"date":"2024-12-02T11:30:00","date_gmt":"2024-12-02T16:30:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1505508"},"modified":"2024-12-02T11:30:00","modified_gmt":"2024-12-02T16:30:00","slug":"peter-schiff-its-time-for-downward-revisions","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/peter-schiff-its-time-for-downward-revisions\/1505508\/","title":{"rendered":"Peter Schiff: It’s Time For Downward Revisions"},"content":{"rendered":"

Peter Schiff: It’s Time For Downward Revisions<\/span><\/p>\n

\n

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

On Saturday, Peter took to his podcast to cover last week\u2019s economic news and political events. In this episode, he discusses rumors of large downward revisions in jobs numbers, the issues with and irony of a state Bitcoin reserve,\u00a0 and the striking resemblance between the government\u2019s spending situation and a Ponzi scheme.<\/p>\n<\/p>\n

Peter addresses the possibility that very large downward revisions in jobs numbers are going to be announced. Now that the election is over, there\u2019s no need for government statisticians to manipulate the numbers:<\/p>\n

On Wednesday of this week, the Department of Labor announced that it\u2019s very close to another major downward revision in the non-farm payroll numbers.<\/strong> This will affect the numbers from June 2023 up until June 2024. An entire year\u2019s worth of jobs reports is about to get significantly revised lower. \u2026 [The government] is now going to say, \u2018Oops, we\u2019re sorry, they weren\u2019t created at all.\u2019 \u2026\u00a0 I specifically said it would happen after the election, when there was no longer a reason to sugarcoat these numbers.<\/em><\/p>\n

If this really is the case, there could be major ramifications in foreign exchange and the gold markets, which responded throughout the year to the relatively optimistic labor statistics:<\/p>\n

It\u2019s most likely that if you reduce any given month by about 100,000 jobs, you\u2019re going to end up turning a job number that was a beat because it was above estimates into a miss because it was below estimates.<\/strong> So it means all of the headlines were wrong. The market reaction was wrong. If the dollar rallied, if gold sold off, if the market rallied based on a beat, it wasn\u2019t a beat. It was a miss.<\/em><\/p>\n

Peter turns to increased optimism about the\u00a0creation of a government Bitcoin reserve<\/a>. <\/strong>He points out the irony in this situation:<\/p>\n

If they do that, it\u2019s great for the people who own Bitcoin, who can sell their Bitcoin to the unwilling U.S. taxpayer who is being forced to buy Bitcoin at gunpoint.<\/strong> Because that\u2019s the coercive power of the state, which is the ultimate irony, right? Because Bitcoin was supposed to be anti-government. It was a way to circumvent government, to get out of fiat currencies. This is a decentralized thing. It\u2019s away from government. It\u2019s voluntary. It\u2019s the free market. But its salvation now is the government. It\u2019s the government buying Bitcoin that everybody is now counting on to make the price go up.<\/em><\/p>\n

With companies like\u00a0Microstrategy\u00a0<\/a>and\u00a0Mara Holdings<\/a>\u00a0dumping billions into Bitcoin, Peter worries that we\u2019re foolishly misallocating capital in what amounts to a Bitcoin bubble.<\/p>\n

But if capital is going into these ridiculous money-losing businesses that are just gambling on Bitcoin, where is it coming out of? <\/strong>We don\u2019t have an unlimited supply of investment capital, right? So any capital that is directed to Bitcoin, blockchain, crypto, is capital that can\u2019t go someplace else. It can\u2019t go someplace where it\u2019s actually needed to produce real goods, real things. Instead, it\u2019s being squandered.<\/em><\/p>\n

Peter speculates on what\u00a0Treasury Secretary nominee Scott Bessent<\/a>\u00a0will do if confirmed by the Senate:<\/p>\n

I know that Scott Bessent has reiterated his belief that the U.S. dollar should stay as the reserve currency. And of course, he\u2019s not going to say the opposite. I mean, it\u2019d be ridiculous to say the opposite<\/strong>. But I think the markets are probably going to take that to mean, \u2018Oh, well, I guess we\u2019re going to have the strong dollar policy, return to the strong dollar policy.\u2019 But we never really had a strong dollar policy.<\/em><\/p>\n

Peter wraps up by comparing the way the government uses debt and spending to a Ponzi scheme. The only difference? The government doesn\u2019t try to hide it:<\/p>\n

Every time that we get to the debt ceiling, what does the government say? If we don\u2019t raise the debt ceiling, we\u2019re going to default. If we can\u2019t borrow more money, we\u2019re not going to pay back any of the money we already owe. Well, that is an admission that you\u2019re running a Ponzi scheme.<\/strong> You\u2019re telling everybody that it\u2019s a Ponzi scheme. I mean, Bernie Madoff would never do that. It\u2019s Ponzi 101. You got to keep that quiet.<\/em><\/p>\n

For more analysis of the week\u2019s events, check out Friday\u2019s episode of the\u00a0SchiffGold Gold Wrap Podcast.<\/a><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 12\/02\/2024 – 06:30<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/peter-schiff-its-time-downward-revisions<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Peter Schiff: It’s Time For Downward Revisions Via SchiffGold.com, On Saturday, Peter took to his podcast to cover last week\u2019s economic news and political events….<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1505508","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6jEo","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1505508","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=1505508"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1505508\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1505508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1505508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1505508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}