Moral Hazard and Unintended Consequences – Ep. 482

* Volatile day in the markets * Largest decline in Personal Spending since September 2009 * Wages and Salaries gain slowest in 7 months * December ISM Manufacturing Index down to 53.5 * December Employment growth at 7-month low * 2.6% GDP number will likely be revised downward * U.S. Factory Orders declined 3.6% in December * Oil prices triggering momentum against the dollar * The FOREX markets are beginning to acknowledge U.S. economic weakness * QE4 will accompany a budget-busting economic stimulus * S&P was the only agency penalized by the government for rating sub-prime mortgage AAA * S&P is actually being penalized for downgrading U.S. government debt 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

4 Feb 201530min

* Fed's official statement released yesterday * Received by the market as hawkish, Fed is still reiterates "patience" * The statement noted unguarded optimism about the U.S. Economy * Fed ignored unstable markets, Europe, oil prices and strength of the dollar * Response: the market sold off and the dollar rallied * Gold declined on Fed's expectations * The Fed's underlying goal may be to talk the dollar up and talk the markets down * Strong dollar buys time * Continued "patience" indicates Fed's true agenda 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

29 Jan 201517min

* Wall Street spared blizzard only to be buried in bad earnings and bad economic news * December durable goods down 3.4%; expected to come in at +.7 * Consumer confidence up to 102.9; contrarian indicator * Last time consumers were this confident was in the middle of 2007 * Number will collapse when reality has a violent confrontation with perception * P&G earnings down 31% * Caterpillar warned * Microsoft stock down 10% today * UPS announced they overestimated holiday sales * Businesses geared up for a recovery in late 2013 that was not going to happen * Layoffs coming in 2015 * This may give the Fed an excuse to delay rate increase * How can a strong dollar be good for America but a weak euro be good for Europe? 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

28 Jan 201535min

* The President is taking credit for an economic recovery that is a bubble created by the Fed * Obama voters' salaries are much lower now than when he was elected * We have fewer full-time jobs during Obama presidency * Obama is offering freebies to the middle class, promising to tax the "wealthy" * Getting money that you didn't earn is "fair" * Higher taxes on earned money is "fair" * Capitalism built the middle class * The Government has destroyed the middle class * Obama actually claimed that he "reduced" the national debt 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

23 Jan 201510min

* Big action from the Central Banks this week * Bank of Canada lowered rates from 1% to .75% * The ECB announced the launch of first QE program * The Euro plunged against gold * Central Banks' goal is to raise the level of inflation to guard against falling prices * Falling prices accelerate economic activity * Regulations and taxes slow down economies * QE in Europe lets the politicians escape the consequences of regulations and taxes * QE will send European money abroad * Inflation is an obstacle to economic growth 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

23 Jan 201523min

* Biggest 7-day surge in Gold prices since 2011 * U.S. GDP will be lower than in Canada this year * Canadian gold production will rise in 2015 * Gold is rising against most currencies except the Swiss Franc * The IMF still believes the U.S. economy is recovering * Outlook for gold in Australia is also positive * The Yuan will probably be the next peg to go, allowing it to rise against the dollar * The American workforce is being rewarded for incurring large debt to engage in unproductive careers 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

21 Jan 201522min

* Thursday, January 15, will be remembered as the day Switzerland abandoned its peg to the Euro * The Swiss defended their policy to peg to the Euro, but suddenly reversed, limiting their losses * They admitted they were wrong * Although the Swiss stock market went down in their currency, it was up in every other currency * Gold is up against everything except the Swiss franc * The news in the Swiss market will be a tremor compared to the earthquake if the Chinese abandon their peg both to the Hong Kong Dollar and the Yuan * America will win the currency war to the detriment of the American people 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 Jan 201524min

* The Swiss people have given up the inflation ghost to win the currency war * Media reports negative on the news: "silly decision" * Oil down against the Swiss Franc * Swiss stocks up in U.S. dollars * Wall Street expects Eurozone QE, but without Swiss, QE might be less likely * Gold up against other currencies * Franc surging in value against the dollar * This move may signal economic reform * Unfortunately Janet Yellen is not going to get this memo * Volatility from Swiss move is nothing compared to consequences of a U.S. QE 4 * This move is bearish for the U.S. market * Buckle up, it's going to be a bumpy ride 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

15 Jan 201517min