Trump Puts QE4 in Play – Ep. 457

* We had some wild swing in the market today, particularly the stock market and the gold market * At one point this morning, the Dow Jones was down about 270 points * It finished the day up 53 points * There wasn't any real news that caused the market to go up; people were buying the dip * The oil market also turned around; it was down a buck and change and managed to close up .20-.30 * Gold was the mirror image; gold was up at one point to $27-$28, back above $1250 * Then when the stock market rallied back the gold market sold off * It managed to closed with a small $3 gain or so * Gold stocks closed the day mixed, most still positive on the day * The reason why the stock market falling is positive for gold is the effect that a falling stock market is going to have on the Fed, and its decisions on future interest rate hikes * Even if the stock market is not going down, the Fed will still reverse on rates because of the economy * The economy is back in recession, whether the Fed wants to acknowledge the fact or not * We had another Fed official, Richmond Fed President Jeffrey Lacker, actually came out saying he sees no signs that a recession is imminent * He sees no reason why the Fed should not go forward with the planned rate hikes for 2016 * Maybe rose-colored glasses are standard issue over at the Fed * There is ample evidence that there is a recession * However, if someone of Lacker's stature would come out and say, "Look, we're going into a recesssion, but rates are really low and the Fed has to raise them anyway, and this is going to be difficult." That would be honest. * But the Fed is saying they are going to raise rates because the economy is in great shape * To do otherwise is to admit that the Fed's monetary policy failed * The Fed is playing a very dangerous game * Not only do they risk making the economy worse, they risk their credibility * Here is some economic news that came out today, after Lacker's speech * At 9:45 am we got the February PMI Flash  Services Index * Last month, the number was 53.7 and this number was expected to repeat for February * The February number came out at 49.8! This shows that the recession is not contained to manufacturing * This reminds me of what they said about sub-prime: "Don't worry about it, the recession is contained to sub-prime." - That was nonsense and it is nonsense now * The problems in the economy are not contained to manufacturing, and today's numbers prove it * The service sector contracted in February * The last time this happened was in October of 2013. That was during the government shut-down, so a lot of government services were not available * That's an outlier - if you take that out, the last time we had a service sector PMI below 50 was during the great recession * So again, another indicator flashing recession * It's amazing to me that the Atlanta Fed still hasn't walked down their 2.6% forecast for Q1 GDP *  We've gotten so much bad news since the good news that prompted that forecast yet they've done nothing to downwardly revise their estimate * The FOMC might have said, "Hey, Atlanta, get with the program! We're talking up the economy - stop coming up with these negative forecasts." * On Friday, we're going to get the revised Q4 GDP numbers, which was originally reported as +.7 * I think it will be revised down, in fact the consensus is a revision down to .4 * So we're getting closer and closer to zero * The numbers we're getting for the first quarter could be worse, despite the Federal Reserve's rosy scenario * Also we got New Home Sales, which was a disaster; they were looking for 520,000 and we got 494,000 - that was a big, Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

25 Feb 201626min

* It looks like Jamie Dimon's bottom turned out to be the trap door I thought it was, with the Dow Jones today down almost 190 points * The market was let lower by the financials, JP Morgan itself down better than 4% * Remember it was Jami Dimon having the confidence to put a year's salary into company stock that sparked this rally, but it seems to be losing steam and rolling over * Because we're not going to get a lasting bottom until the Fed makes that bottom *  It's not going to be a Jamie Dimon bottom, it has to be a Janet Yellen bottom; and as much as I have no interest in seeing Janet Yellen's bottom, that's exactly what we're going to have to do to get a real low in this market * Every single decline that the market has experienced since 2009, the bottom has been set by the Fed * It's been the Fed forming that bottom by coming to the rescue with rate cuts, QE programs, Operation Twist, hinting about more QE, and so far, the Fed has done none of that * The Fed is still sticking to its narrative that rate hikes are coming * Yes, nobody believes they're coming anytime soon, but that is still the official forecast * Meanwhile, the markets can't even deal with rates as is * The gold market will be the mirror image of the stock market; gold was up about $16 today * It reversed a near $20 decline yesterday, but it consolidating its huge move above $1200 * So we are not getting the pullback that Dennis Gartman and Jim Cramer are hoping for to get on board * I think if people want to get on board this train, this is the stop. * If you like gold, just buy it and be happy that you're getting it for $1225 - yes, you could have bought it below $1100 in December, but $1225 is still cheap * The most interesting about yesterday's drop in gold - the gold stocks didn't really decline * Most of the gold stocks finished positive on the day * Gold stocks added to their gains today, and many are sitting on their highest close of the year, and several are at 52-week highs * Other than the gold stocks, the 52-week high list is pretty short * The 52-week low list looks like a rap sheet * Something happened on Friday that made some people believe that help from the Fed is not forthcoming * Which may be part of the reason why the markets are declining * The release of the CPI number caught a lot of people by surprise: January consumer prices, forecast to drop by .1% * The real number was the core rate, which excludes food and energy was up .3, month over month - the biggest jump since August 2011 * The increase in the core price year-over-year was 2.2%, the biggest increase since June of 2012 * Remember, the Fed says our target is 2%, well, we got 2.2! * We're there! We can raise rates! That's what's so scary * I wrote a commentary that is posted on this website, "The Fed’s Nightmare Scenario", and I got that title after reading an article in which an economist who, observing that the CPI was 2.2% announced that this is a"dream come true" for the Fed * He cited inflation as the primary barrier to the Fed's rate increase goals * The Fed's "mandate" of 2% inflation is finally met * First, the Fed doesn't have a mandate of 2% inflation. They made that up. * The Fed's real mandate is price stability, which doesn't require a definition, because everybody knows what the word "stable" means * The Federal Reserve decided to interpret that mandate to mean an increase of 2% * The late U.S. Supreme Court Justice Antonin Scalia was one of the few justices who believed in the "bizarre concept" of original intent Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

24 Feb 201627min

* What a difference two days make! Two days ago I recorded my podcast, "Goldman Sachs Sacks Gold", and that was because Goldman Sachs' comments about shorting gold were partially responsible for the severity of the drop in gold over the holiday weekend * Today, gold is fighting back, at one gold was up better than $30, although as I record this the price has pulled back a bit, still above $1230 - up about $22 on the day * Gold stocks, the GDX index I mentioned in my last podcast, was up 6% on the day, the biggest move up of the year * That index has recovered everything it lost on Tuesday * GDX would have been up a lot more, except that Newmont Mining came out with lower than expected earnings for the 4th quarter; so that stock was only up about 1% after dropping  7% in the first hour of trading * Several gold stocks made new 52-week highs today and several others are at the highest point of this calendar year * A very strong day for gold and gold stocks just a couple of days after Goldman Sachs recommended selling the metal short * People would have been much better off shorting Goldman Sachs * One of the other catalysts for the rise in the price of gold may well have been the comments made overnight by Jim Bullard, president of the Federal Reserve Bank of St. Louis * After I read his comments, I expected the price of gold to rally right away, but it didn't begin until later this morning * Bullard was one of the real Hawks on the Fed, he wanted to raise rates much earlier, citing concern about a stock market bubble * Talk about closing the barn door after the horses have left!  They have left the stables, the property, they're barely on the planet! * His comments last night about why the Fed should slow down the rate hikes are ironic, because his reason is the volatility in the stock market * Let me get this straight: He wants to raise rates because we don't want a stock market bubble; * They raise rates, the bubble is deflating and he wants to stop the rate cuts * You can't have it both ways. * Do you want to use monetary policy to prop up the stock market or not? * Bullard has not turned dove, do who's left? The FOMC minutes came out Wednesday and they showed that only a couple of governors did not show concern over the weakness in the stock market * What really should get the Fed governors nervous is the economy * Today we got the Leading Economic Indicators and last month they were down, in fast the original estimate for December was-.2 - instead, it was revised to -.3 * January is now -.2, so that is the second consecutive month of declining Leading Economic Indicators * That has not happened since August and September of 2011 * Here's the interesting part: QE2 ended in June of that year, so 2 months after the end of QE2, the economic indicators flashed recession * What did the Fed do? In September of 2011, the second month of the back-to-back declines in LEI, the Fed launched Operation Twist * That's what happening now, they just raised interest rates, we got back-to-back declines in LEI, what's the Fed going to do? They are going to come back and save the market * We got more bad economic news today; the Philly Fed, this is the 6th consecutive monthly decline * January was down 3.5%; February was down 2.8% * They were expecting -2.5%, so we got a bigger decline than expected * We got weak news on the housing market; housing starts dropping to a 3-month low, much lower than the 1.175M - instead we got 1.099M * Permits were also light; they were looking for 1.334M and we got 1.202M on starts * I think we are just getting started when it comes to the fallout in the housing market Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

19 Feb 201630min

* The big story of the day was the pullback in the price of gold * Gold was above $1260 last week; it pulled back a little bit on Friday, but the real damage happened overnight on Monday, while we were celebrating Presidents' Day * At one point gold was down almost $50; trading even below $1190 * When we opened up for trading in New York, gold was back above $1210.; it tried to rally, but really couldn't, in fact the only time gold rallied today is when the Dow sold off to +50 from +150 * The stock market and the gold market are the mirror image of each other right now * Ultimately, I do believe that stocks, gold stocks and gold will be going in the same direction because they will all respond positively to the Fed admitting that it will not raise interest rates, and in fact cut them and will launch QE4 * Now, gold is the safe haven from weak stocks, but the best environment is when the Fed steps up to save stocks, and that's when the gold trade is going to catch a bid * But when the market closed on the highs of the day, up over 200 points, that means gold closed on the low of the day * GLD, the ETF for gold, for today's decline, we were down $35.90 * In the spot market, we closed right about $1200 even * A good point: look at the gold stocks, GDX, that index was down 8.65% * In all the big gold up days, we never had a comparable up day for gold stocks * On gold's best day, the biggest day since 2008, gold stocks were just up about 5% * Yet on the down side, a -3% move in gold produces a -9% move in gold stocks * Why is all the movement on the down side? * One, there's still more fear than greed in the gold market * This is a good sign - a bull market climbing a wall of worry * This is just a resumption of a long-term secular market that began in 1999-2000 * Goldman Sachs rhetoric may in part be responsible for the sharp selloff * I mention on last week's podcast that Goldman was recommending a sell on gold, that it was going back down to $1000 * On Monday, while the market was having a holiday, Goldman Sachs was out with their PR again, not only telling people to sell gold, but to short gold * Why would Goldman Sachs be telling people to short gold? *  Why would they bother with a 20% short when there are so many stocks being killed right now that would be much better to short * Gold will never be worthless, what if it goes up? Why risk losing all that money? * The risk/reward isn't there * Goldman says they don't think there will be a recession and the Fed's going to keep raising rates * They admit there is a small chance of a recession this year: what's going to happen to gold if we go into recession? * What happens if you have shorted gold, hoping to capture just 20%? * The only thing that would make sense to me is that Goldman Sachs wants the price of gold to go down because they're probably already short - that's why Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

17 Feb 201624min

* Big day in gold today; gold broke over $1200 for the first time in almost over a year, in fact we hit a new 1-year high * I saw gold trading above 1260 at one point in the morning, that was up better than $60 on the ounce; It closed up 49.10, I believe at $124.90 * Remember, I was on CNBC "Futures Now" earlier in the week and gold was around $1180-$1190 and they were trying to press me on where I thought it would go, and I said, it's going to go higher, I'm bullish in the short term, the medium and the long term * But I'll tell you one thing: when gold brakes through $1200, it's going to move to $1300 very quickly and people are going to be surprised * It's just been one day and we're halfway there * Gold stocks still reflect a lot of skepticism on this rally; Gold stocks were up about 7% on the day * Gold stocks have a long way to go to catch up * I mentioned on the last podcast, Dennis Gartman, who got bullish on gold, told people not to buy, he said wait for a pull back * Well the people who are waiting f or a pull back are still waiting and they missed this entire $50 move * The stock market was the mirror image of the gold market today; at one point, with less than an hour to go, the Dow was down 400 points again, the NASDAQ was maybe down about 60 * Then all of a sudden there was a rumor floated that the United Arab Emirates was considering meeting with other OPEC nations about a production cut and all of a sudden the market rallied * The NASDAQ actually rallied positive; the Dow got to  about -170 and then they rolled over on the close, Dow down 254, NASDAQ down 16.76 - horrible close * Of course the weakest stocks on the day continue to be the financials getting decimated to new lows * Goldman Sachs down about 4.5%,  Morgan Stanley down 4.5%, Bank of America down 6.8% - many of these companies making new 52-week lows * But outside the financials, the debacle du jour, in the stock market is Boeing, which is a Dow component, was down 7% on the day, near a 3-year low; the lowest I saw inter-day was -12% * The news is that the SEC will investigate their accounting practices - that can't be good * Also they reported that they are going to be laying off workers in an effort to contain their costs * It's not just about bad oil loans, that's part of the story, that's just the tip of a huge iceberg * In fact, the market rallied because of the rumor of OPEC is making moves to support oil prices * We hear people saying that what the stock market needs is higher oil prices.  No we don't! * Higher oil prices will help oil stocks, but they're not going to help the overall market market because some guy writes an algorithm that runs a program that says, "Buy stocks when oil goes up" * Steve Liesman said on CNBC recently that he never would have believed the market would be so dependent on oil prices * A lot of people make that mistake, assuming that oil is driving the stock market but the same factors are dominating both:  fear of higher interest rates and weakness in the U.S. economy * But eventually, I think oil prices will go up, and the stock market will continue to go down * Many people are hopeful that Janet Yellen's second trip to Capitol Hill, this time talking to the Senate, might save the market; apparently that was not the case * Janet Yellen, this time, in the Q&A was closer to admitting that negative rates are coming * She actually said they would consider doing it if the economy needed it * All the discussion is going straight to negative rates and skipping over zero interest rates and QE * There was no discussion about reversing December's .25 rate hike * If Janet Yellen is thinking about negative rates, she has ready considered zero rates and QE Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

12 Feb 201627min

* Janet Yellen was up on the Hill today for the first of her two-day testimony before Congress * Remember I said the only way that Janet Yellen could stop the market from falling is to admit that the Fed will alter its 4-rate-hike trajectory for 2016, and she didn't do that * As a result, the stock market failed to sustain its early morning gains; the Dow was up better than 100 points - closed near the low of the day down 99.64 * The NASDAQ, which was up not quite 100 points earlier in the day closed on the low of the day, up only about 14 points on the day * It was the opposite for gold; gold was actually down this morning before Yellen spoke, down around 1180-ish on the lows; we closed up $8 on the high of the day - $1197 - knocking on the door of $1200 * The gold stocks were clobbered this morning and they closed positive; the gold index was up about 2-2-1/2% - it was down 4% earlier when gold was down but by the stock market opened gold wasn't down $8 anymore, it was down about $2 or $3, yet gold stocks were clobbered * Maybe it's still the overhang from Goldman Sachs coming out yesterday and predicting that gold would fall below $1000/oz in 2016 * That probably means that Goldman Sachs is short a bunch of gold and they want to cover, or they just need to buy and they're trying to convince the muppets who actually pay attention to what they say, to sell their gold to them * Janet Yellen continued with the narrative that everything is O.K. - the economy is fine, the recovery is on track, yes, she acknowledged some headwinds: growth was a little bit slower at the end of last year, but no big deal * There are some problems overseas that they're monitoring , there are some financial tightening: overseas markets are weak, domestic markets are weak, yes the Fed is paying attention to all that * But so far, from their perspective, everything is on track, the recovery is moving along, the labor market is strong, despite the fact that there is no improvement in labor force participation, there's no improvement in the part-time workers who want full-time work, there's no real wage growth other than the bump from the minimum wage hike * But despite all that, Janet Yellen still maintains that everything looks good, that we will overcome these headwinds - this is her most likely scenario * She did acknowledge that monetary policy is not fixed, that the trajectory is not set in stone, that the Fed will monitor incoming data, and if the data evolves in a manner they don't expect, then yes, they might not raise interest rates as much as they believe they're going to raise them * As far as the Fed is concerned, based on the data they have now, their most likely scenario is that everything is fine, which means the market is going to keep falling * It's almost ironic that Yellen would say, "The markets are weak, and if they stay weak then we might have to adjust our monetary policy" - that means the markets are going to stay weak! * The only way to stop the markets from falling is for the markets to know that rates aren't going up * I think it's more than just the absence of rate hikes: this market needs more QE * The Fed dialed back the dosage and the market requires it now, or it will start going down * I was watching a great interview with Jim Grant today on CNBC and he was saying all the things I am saying: he says we're already in a recession; he's confident that it began at the end of last year and he thinks the Fed is going to go back to zero and do more QE, and that they might go negative * Janet Yellen was asked about negative rates in her testimony, apparently the Fed had considered it back in 2010 and they rejected it and she was asked if negative interest rates are even legal * Yellen said to her knowledge there is nothing legally preventing the Fed from going ... Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

11 Feb 201634min

* It was another volatile day in the U.S. stock market, with the Dow swinging from positive to negative to positive to finally closing negative, but well off the lows and the highs of the day * The NASDAQ was only down about 15; the Dow down about 12 points * The real action was in the currency markets: the dollar got clobbered today, a new 4-month low in the euro, 2-year low in the yen, the Swiss franc was probably the strongest currency on the day * The dollar index actually traded in the 95 handle before recovering slightly back up above 967 * Gold, several times flirted with $1200 again, couldn't quite make it there; the highest I saw it was $1198, it didn't touch $1200 * The gold stocks got hammered - they were down about 4% today, I guess the fact that gold could not break through to $1200 caused people to sell gold stocks, even though there was very little selling in gold itself * What I want to discuss on today's podcast is my appearance on CNBC's web program, "Futures Now" * My appearance was promoted on television, although this appearance was actually on CNBC.com * They like to have me on, because I am good for their ratings online * The YouTube video of my appearance is posted on my Facebook page * Go back and look at my last several appearances on Futures Now with Scott Nations, who constantly wants to remind everybody how wrong I am about everything * They have to admit that I was right about several things * When I was on their show the day after the rate hike and also several times before the rate hike * I said I did not think the Fed could raise rates because it would push the economy into recession, cause a bear market in stocks - basically prick the bubble * I did not think the Fed would be willing to put themselves in the difficult position of having to reverse the rate cut and lose credibility * Up until December, I was right.  But even I had started to admit that the Fed might do such a thing by the time they actually did it * Look at what's happened.  It's been a blood bath since they've raised rates * Look at what's happening in the financials - they've lost half their value * Look at gold: I said if the Fed raised rates, Gold would go up- it went up from $1050/oz. the day after they raised rates to $1200 * I said if the Fed raised rates, the dollar would go down and now it's at a 4-month low - Gold's at a 7-month high * Dollar going down, gold going up, stocks getting crushed that's exactly what I said * You'd think they would at least acknowledge that I got something right * But then, you'd be wrong * Host Jackie DeAngelis' introduced me by saying, "Peter Schiff claims he got everything right!" * They are implying that they disagree that I was right about the consequences of the rate hike * In the article on the interview, they misquoted me by saying that I claimed to get everything right. * I did refer back to my published quotes, which clearly state that I thought the market and the dollar would tank and gold would go up if the Fed actually raised rates. * Scott Nations said, "I don't know if Peter Schiff got anything right" * All the forecasts on "Futures Now" I made the day after the Fed raised rates were correct and Scott Nations got everything wrong * The very first thing the host said to me on my interview was that I was wrong, in that I said it was impossible for the Fed to raise rates * I did not say that.  I said it would be impossible for the Fed to raise rates without causing the stock market to go down, Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

10 Feb 201634min

* As I mentioned in my video blog I recorded on Friday,  the jobs data that came out on Friday was just not weak enough for the market * So the markets' carnage continues, because everybody still believes the Federal Reserve may in fact be raising interest rates - the only question is, will it be in March, will it be in June, the markets don't know and so they continue to be under pressure * At one point today, the Dow Jones was down nearly 400 points * The NASDAQ was down about another 150 intra-day * We had one of these last hour rallies, just to keep hope alive so the Dow closed down just 177 points, the NASDAQ down 79 * At the lows today, we were within 1% of a bear market, in the NASDAQ, so technically Wall Street can pretend they are not in a bear market, maybe for a few more days * The same thing is going to happen with the recession - everybody is saying there is no recession, but eventually they will have to admit it * I was reading an article by an economist from one of the bigger banks, who said, there will be some more downside, maybe the NASDAQ will go down to  about 3900 * But, he said, "Don't worry, it's not going to be as bad as 2000 or 2008 because the economy is in good shape and the odds of a recession are very slim." * What would make him think the odds of a recession are slim? All the data is horrible. * Manufacturing is already in a recession; the service sector is contracting rapidly * It has been seven years since the last recession so we're overdue… * The Fed is tightening, raising interest rates, as a matter of fact they've been tightening for 2 years if you understand that the "Taper Talk" was the beginning of the tightening * Plus, we're in a bear market * We often hear, "The market has predicted 10 of the last 5 recessions" * OK, well, the Fed has predicted zero of the last 5 recessions * They always say there's not going to be a recession right before there's a recession, in fact, they have a history of saying there won't be a recession when we're already in a recession * What led the carnage in the stock market was the sell-off in European banks and it was brutal, in fact these big banks are lower than their lows in the depth of the Financial Crisis * The big one is Deutsche Bank had to come out today and re assure everybody that they did not have a solvency problem * All the U.S. stocks hit 52-week lows: Morgan Stanley hit a 52-week low, Goldman Sachs down 4-1/2% - 52-week low, Bank of America down 5-1/4% -  52-week low * These stocks will continue to suffer until the Fed cries Uncle, or Aunt * The ECB can't do it, the Bank of Japan can't do it - negative rates are actually making it worse for the European banks * There is no more stimulus coming from Europe because the stimulus is causing a bigger problem than it is supposed to cure * I've said this many times: bankers in Europe were worried about, "Lowflation" as they see weak oil prices, so now they want to stimulate * But whenever they stimulate, they cause the dollar to strengthen and the stronger dollar further suppresses the commodity prices, threatening more "Lowflation" * The Bank of Japan can't do anything, in fact the yen was up again today a new 52-week high for the Japanese yen, so even though Japan has gone negative the yen is rising not just to a 52-week high, this is the highest it has been since October of 2014 * In Europe they are making the situation worse by easing * Who's left? Janet Yellen will speak to Congress Wednesday and Thursday this week and maybe she'll throw the market a lifesaver this time instead of an anchor * This is exactly what I have been saying would happen - the Fed would prick its own bubble with just a tiny .25 hole and the air has come gushing out Our Sponsors: * Check out Aeropress and use my code GOLD for a great deal: https://aeropress.com * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Boll & Branch: https://boilandbranch.com/SCHIFF * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

9 Feb 201625min