{"id":1509075,"date":"2024-12-20T17:20:00","date_gmt":"2024-12-20T22:20:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1509075"},"modified":"2024-12-20T17:20:00","modified_gmt":"2024-12-20T22:20:00","slug":"schiff-prepare-for-a-return-to-qe","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/schiff-prepare-for-a-return-to-qe\/1509075\/","title":{"rendered":"Schiff: Prepare For A Return To QE"},"content":{"rendered":"

Schiff: Prepare For A Return To QE<\/span><\/p>\n

\n

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

Peter recently joined Anthony Scaramucci for an interview on Speak Up, a YouTube show\u00a0hosted on the Wealthion channel.<\/a>\u00a0The duo discuss Jerome Powell\u2019s recent statement, pointing out the dissonance between his assertions and reality. Peter also predicts a return to QE-like monetary policy, noting that a recent surge in long term interest rates will likely motivate inflationary policy in 2025.<\/p>\n<\/p>\n

Schiff begins by describing the surprising resilience of the current economic bubble, stressing that policymakers like\u00a0Powell are not openly admitting their role\u00a0<\/a>in enabling it:<\/p>\n

What surprised me, Anthony, is that the bubble has gotten so big without any adverse consequences<\/strong>. In fact, one of the questions that Powell got was, does the amount of debt impact your decisions on raising rates\u2013 which of course it does\u2013 but he lied and said, \u2018Oh, no, no, no, we\u2019re nowhere near there. I mean, we don\u2019t even consider how much debt the US government has. We raise rates to whatever level we think is appropriate. We\u2019re not in a position yet where the government has so much debt that interest rates are a significant factor.\u2019<\/em><\/p>\n

Peter recounts how the initial experiment with\u00a0Quantitative Easing (QE) laid the foundation for perpetual debt\u00a0<\/a>expansion, defying his early predictions that the bubble would burst sooner:<\/p>\n

But I\u2019m surprised that, you know, from the launching of QE1,<\/strong> which, you know, when they first launched it, they didn\u2019t call it QE1 because they all assumed it was going to be one and done. I was one of the few people that said, no, this is the beginning of a process that will never end. But we\u2019ve now added $30 trillion of debt.\u00a0<\/strong><\/em><\/p>\n

He notes that while the dollar still appears stable next to other weak currencies, its underlying purchasing power continues to erode, raising serious long-term questions:<\/p>\n

So the purchasing power of the dollar has gone down. But relative to the euro or the Japanese yen or other currencies, the dollar\u2019s doing pretty well. <\/strong>And interest rates are still relatively low. You know, the government is paying four and a half percent on a 30 year treasury. That seems ridiculously low given the enormity of the debt and the probability that it\u2019s going to get inflated away. So yeah, the bubble has gone on for a lot longer than I thought.<\/em><\/p>\n

The mounting debt load, coupled with low savings and high interest rates, traps households in a system that\u00a0few politicians dare to reform:<\/a><\/p>\n

They\u2019re paying record high interest rates on that debt on their credit card. And so they\u2019re desperate for the situation to change. But unfortunately, none of the candidates, and I think Trump would be included, have the guts to actually do what\u2019s needed. <\/strong>I mean, even though Trump has now got himself surrounded by Elon Musk \u2026 just based on what he did in his first term, and I don\u2019t see a huge transformation. I think Trump said what he needed to say to get elected.<\/em><\/p>\n

Printing money to fund deficits ultimately leads to inflation as\u00a0citizens pay for government largesse\u00a0<\/a>at the grocery store and the gas pump:<\/p>\n

And so if there\u2019s a difference between what the government spends and what it collects, which in the United States, there\u2019s a multi trillion dollar difference every year, the public has to pay for that one way or another. We don\u2019t get all this government for free. And if we just print the money to cover the deficit, that doesn\u2019t mean it\u2019s a freebie. <\/strong>What happens is the value of all the money that already exists goes down, prices go up. And those additional prices, those price hikes, that\u2019s how we pay for the bigger government. We pay for it through inflation and a reduction in the value of our money.<\/em><\/p>\n

Peter concludes by warning that the Federal Reserve will likely resort to renewed intervention,\u00a0further eroding the dollar\u2019s integrity\u00a0<\/a>and boosting the long-term case for tangible assets like gold:<\/p>\n

\u201cI do think they\u2019re going to restart the QE engine. Because I think that they\u2019ve already lost control of the long end of the bond market. <\/strong>Because one of the forecasts that I made that I got right recently, I was saying that when the Fed cuts rates, that was going to be the bottom of the long term rates and that they would go up…<\/em><\/p>\n

And that\u2019s going to be very problematic for the Fed because it\u2019s going to be harmful to the economy, to the housing market. And when we\u2019re in a recession, or when the recession gets worse, I think the Fed is going to be pressured to try to lower long term rates.<\/strong><\/em><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 12\/20\/2024 – 12:20<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/schiff-prepare-return-qe<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Schiff: Prepare For A Return To QE Via SchiffGold.com, Peter recently joined Anthony Scaramucci for an interview on Speak Up, a YouTube show\u00a0hosted on the…<\/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-1509075","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6kzV","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1509075","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=1509075"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1509075\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1509075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1509075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1509075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}