Did August Jobs Ready Fed for Sept. Rate Hike?
The Peter Schiff Show Podcast4 Sep 2015

Did August Jobs Ready Fed for Sept. Rate Hike?


* Earlier today we released the most important Non-Farm Payroll report ever, at least according to the media
* A WSJ article stated that this report could "seal the deal" on rate hikes
* Interest rates have been at zero for 7 years as the Fed contemplated lift-off
* It all boiled down to one jobs report?
* If the Fed were going to raise interest rates in 2 weeks, how can it count on its accuracy or the fact that numbers will change next month?
* Let's get into the numbers:
* The number we got was 173,000 - well below the consensus forecast
* One of the weaker components was private payrolls, which only grew by 140,000 vs and expected 211,000
* The headline number is the unemployment drop to 5.1% - the lowest in the Obama presidency
* Once again, the devil is in the details
* The unemployment rate is falling because of the mass exodus from the labor force
* Another 261,000 Americans left the labor force this month
* The participation rate held steady at 62.6%
* The lowest rate since 1977
* I think it's heading lower
* The total number of persons not in the labor force rose to a new record: 94,031,000
* Also this month another 158,000 Americans find themselves involuntarily employed part-time
* That's what's responsible for the "improvement" in the labor numbers
* Janet Yellen specifically wanted to an increase in labor force participation and more full-time jobs before contemplating raising rates
* Those numbers have gone in the wrong direction
* Why is nobody pointing this out?
* This is the 9th month in a row that year-over-year factory orders have declined
* The only other time that has happened is during recession
* Every time we've seen a sharp decline in the market accompanied by an increase in the volatility index, the Fed has responded with Quantitative Easing
* More and more people now do not believe the Fed will raise rates in September
* If the Fed raises interest rates and the market keeps falling and the economy rolls over, the Fed loses a lot of credibility
* This is affecting global markets
* The Dow is now in correction
* I pointed out in my last video blog that: a) the Fed has never raised interest rates from zero and b)normally the Fed raises interest rates into an accelerating economy
* This time the Fed is raising interest rates when the economy is weakening
* This time a rate hike will prick a much larger bubble
* Even if the Fed raised rates to a quarter of a percent, that is still cheap money
* The markets are forward-looking and they are not going to like what they see
* The dollar strengthened on anticipation that the Fed will raise rates
* America cannot afford higher interest rates on the debt we have now
* One of the things most people overlook is the huge stockpile of U.Ss treasuries that are held abroad
* Why do the emerging markets have so may dollars?
* In the aftermath of the 1997 Asian economic crisis, they bought dollars as a reserve to defend their currency if it started to fall
* That is happening
* So now, foreign governments are going to start drawing on their reserves, selling treasuries to shore up their currencies
* The vast majority of the accumulation happened after QE1, when we had a currency war
* The media has labeled this sell-off "Quantitative Tightening"
* China has already started to gradually sell treasuries
* The Fed has promised not to roll over maturing treasuries and to shrink the $4.5 trillion balance sheet to about a trillion
* That's $3.5 trillion of Quantitative Tightening
* Interest rates would have to rise dramatically to attract real buyers to U.S. treasuries
* No one can afford higher rates, Our Sponsors: * 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

Avsnitt(1081)

SchiffRadio Podcast Episode 16

SchiffRadio Podcast Episode 16

Episode 16 Synopsis: * Looking under the 5.8% unemployment number headline * Biggest increase was in food service * Labor force participation rate is low * Employment costs are high * Gold & gold stocks rally * European markets encouraged by Mario Draghi's stimulus talk * If the economy disappoints, U.S. may look toward stimulus, too Our Sponsors: * 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

8 Nov 201430min

SchiffRadio Podcast Episode 15

SchiffRadio Podcast Episode 15

Episode 15 Republican victory a reality only because recovery is a fantasy Our Sponsors: * 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

6 Nov 201426min

SchiffRadio Podcast Episode 14

SchiffRadio Podcast Episode 14

Episode 14 The U.S Recovery is as Real as Ireland is a Part of the U.K. Our Sponsors: * 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

6 Nov 201429min

SchiffRadio Podcast Episode 13

SchiffRadio Podcast Episode 13

Episode 13 Synopsis: Treats on Wall Street Equal one Big Trick. Belief that QE worked sparks optimism: * New record high in Dow Jones & S&P * NASDAQ highest since 2000 * Dollar index closed at a 4-year high * Yen at a 6-year low * Gold/Silver prices at a 4-year low * Gold Stocks at a 10-year low or more Our Sponsors: * 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

6 Nov 201428min

SchiffRadio Podcast Episode 12

SchiffRadio Podcast Episode 12

Episode 12 Synopsis: Greenspan's QE Criticism Too Little Too Late * FOMC declares "substantial improvement" in economy. * Does this narrative reflect the best possible spin or ignorance? * Behind the 3.5% GDP number: * Deflator - 1.3% indicates decrease in inflation. * 4.6% surge in gov't spending * Big drop in trade deficit resulting from drop in crude oil prices adds 1.3% to GDP Our Sponsors: * 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

2 Nov 201434min

SchiffRadio Podcast Episode 11

SchiffRadio Podcast Episode 11

Episode 11 Synopsis: Where is the Apology? Preview of the Michael Brown Grand Jury case does not support liberal media's narrative. * The officer knew that Michael Brown had just robbed a convenience store. * The bullets entered Michael Brown from front as he was approaching the officer. * Blood evidence on Michael Brown indicates he was moving toward the officer. * Wounds in upper arm indicate he did not have his arms in the air. * Michael Brown was shot in his thumb at extremely close range. * A majority of eyewitnesses support the officer's testimony Our Sponsors: * 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

2 Nov 201438min

SchiffRadio Podcast Episode 10

SchiffRadio Podcast Episode 10

Episode 10 Synopsis Hillary's Fractured Economic Theory: * Raising the minimum wage will create jobs. * Businesses don't create jobs; the government creates jobs. * Regan Economics "failed spectacularly". * Clinton's economy was based on "arithmetic", not a bubble. Our Sponsors: * 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

31 Okt 201420min

SchiffRadio Podcast Episode 9

SchiffRadio Podcast Episode 9

Episode 9 Synopsis * Deflation Spin Cycle: Peter debunks recent articles "redefining" deflation. * QE Infinity: Brandeis economics professor predicts the Fed doesn't need an exit strategy. Our Sponsors: * 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

29 Okt 201421min

Populärt inom Business & ekonomi

badfluence
framgangspodden
varvet
rss-borsens-finest
uppgang-och-fall
rss-svart-marknad
svd-ledarredaktionen
rss-dagen-med-di
lastbilspodden
24fragor
rss-inga-dumma-fragor-om-pengar
rss-kort-lang-analyspodden-fran-di
borsmorgon
affarsvarlden
fill-or-kill
avanzapodden
kapitalet-en-podd-om-ekonomi
bathina-en-podcast
svd-tech-brief
rss-en-rik-historia