All Bubbles Eventually Find a Pin – Ep 622

* Two days of bad economic news this shortened week * The Fed still says the economy is recovering * Recent FOMC minutes maintains pretense they can raise interest rates * FOMC members are worried about raising rates "too soon" * The Fed is worried about how to remove the word "patient" from communications * How confident can the Fed be in the "recovery" if they still fear raising interest rates? * The "recovery" was just a bubble masquerading as a recovery * If we had a real recovery the Fed could have already raised rates * They are now concerned about weakness overseas * They are worried about a strong dollar * They expressed concerns about the risks of lower oil prices * Low inflation causes concerns * The Fed is clearly paying attention to the negative economic news * Empire State Manufacturing down * Home Builder Confidence at 4-month low * Industrial production weak * PPI number declined .8 * Eventually the economic numbers will force the Fed to acknowledge weakness and resume stimulus 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 201520min

* Friday 13th was not unlucky for Wall Street * S&P 500 traded to an all-time record high * The Dow closed above 18,000 * NASDAQ at almost a 15-year high * Despite overall trend of weak corporate earnings * Weak economic data does not dampen Wall Street's spirits * Central Banks are behind the surge with excess liquidity * Wednesday - Mortgage Applications plunged 9% * Purchases declined 7% following a 2% decline prior week * 10% decline in Mortgage Refinances * Jobless claims up 25,000 from prior week * Biggest back-to-back decline in Retail Sales since October of 2009 * Consumer Confidence is down 2 weeks in a row * Business Inventories rose by just .1% contrary to expectations * Inventory to sales ratio highest since July 2009 * Huge drop in Consumer Sentiment * Jobs number is a lagging indicator * Part-time economy is a double-edged sword 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

14 Feb 201521min

* China announces a record trade surplus * Media reports surplus as bad news for China * Because of the strength of the Yuan, Chinese can buy more imports for less * Chinese consumers purchasing more * Chinese businesses manufacturing more * Contrary to press reports these factors point to a strong economy in China * U.S. has record deficits along with a strong dollar * The short term effect of a strong currency is that trade deficits should go down because imports are cheaper * The fact that our trade deficit continues to rise illustrates underlying economic weakness * Media double standard: China trade surplus is bad but U.S. trade deficit is good * Media reports "low rate of unemployment" among college grads, however: * Record number of college graduates are under employed * Only 44% of employed Americans work 30 hours or more per week * In future, the smarter students will skip low-value degrees in favor of work experience * Shake Shack IPO valuation $1.5 billion on $5 million profits * Grilled Cheese Truck: valued at $100 million on negative revenues * Black is white and white is black: Twilight Zone 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 201527min

* Monthly non-farm employment number beat expectations * Upward revisions to prior months * Average hourly earnings number jumped by .5 * Immediate reaction in the market was swift * Dollar up; gold down * Unemployment up * Labor force participation down among younger workers * Jobs number inconsistent with other weak economic data * Layoffs are up * Government is way off on "jobs lost" data * Yesterday's trade deficit was the largest increase recorded * If our economy were strong, our workers would be producing and we would not rely on imports * Trade deficit is subtracted from the GDP * Productivity numbers weaker than expected * How many times can the dollar rally on the same news? 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

7 Feb 201519min

* 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