The Peter Schiff Show Podcast

RATE AND REVIEW this podcast on Facebook. https://www.facebook.com/PeterSchiff/reviews/ Another "Greatest Deal Ever" 'The Dow rose a little over 180 points today, closing above 26,000 -26,031.81, to be exact, for the first time during this bear market rally.  I still believe that we are in a bear market rally, not a new bull market. the catalyst for today for today's stock market strength, and it was across the board; the markets were strong from the opening bell to the closing bell.  I think the high in the Dow was maybe just above 200; we sold off intra-day.  But the NASDAQ, the Russell 2000 were also higher on, again, optimism that there is going to be a trade deal between the U.S. and China.  Donald Trump is saying that he is negotiating the greatest deal ever, which is something that I have been saying, regardless of what the deal ends up being, Trump is going to say "It is the Greatest Deal Ever". What Helps China Is an Appreciating Yuan But there was a lot of attention being paid to the deal, a lot of stories coming out that were close to a deal.  In fact, I read that they do have a agreement on exchange rates.  Currencies, obviously the U.S. likes to accuse China of being a currency manipulator, and so maybe there's some type of deal that says they won't manipulate their currency - they won't use their currency as a weapon. Which is something China wasn't going to do, anyway. To the extent that we win any concessions from the Chinese, where they agree not to weaken their currency, that basically amounts to nothing. In fact, a weak currency is bad for China.  What helps China is an appreciating Yuan. Today's "Fedspeak" on Inflation More important than the talk about the trade deal was a lot of  "Fedspeak" today.  You had a lot of Fed officials that were talking; James Bullard, Clarida, John Williams - they were all talking.  The real common theme today was inflation. I have been talking about this for years.  How was the Federal Reserve going to basically respond to inflation above their 2% target? The real rate of inflation has probably been above 2%, in fact I'm confident that it's been above 2% every year. 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 Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

23 Feb 201953min

RATE AND REVIEW this podcast on Facebook. https://www.facebook.com/PeterSchiff/reviews/ FOMC Minutes Describe Abrupt About-Face This afternoon we got the minutes from the last Federal Open Market Committee meeting which took place a few weeks ago.  This was the meeting where the Federal Reserve did what is now being described as probably the biggest policy shift in the history of the Fed. This was really an abrupt about-face, where they went from "Everything is great; we're going to keep on raising interest rates, and we are on auto-pilot - we are going to let the balance sheet continue to decline."  All of a sudden, now they're "patient", meaning they're not going to raise rates at all in the foreseeable future, and not only is the balance sheet reduction program no longer on auto pilot, but it is now going to end prematurely sometime this year. Fed Balance Sheet North of $4 Trillion Of course, the balance sheet is still north of $4 trillion, and if the reduction program comes to an end this year, you're still going to be talking about a balance sheet $3.5 to $4 trillion in size.  This would mean that almost all of the mortgages and treasuries which the Federal Reserve purchased in the aftermath of the 2008 financial crisis as part of its Quantitative Easing Programs, 1,2&3.  Almost all of that debt will remain on its balance sheet after the Fed has finished shrinking it.  Also, FOMC officials are now talking about Quantitative Easing once again as just another tool in the Fed's tool box. It's no longer something that will pulled out for an emergency, it's just going to be a normal policy tool for the Fed to deal with recession.  Of course, that's going to be their main tool, given that this next recession is going to start when interest rates are at 2.25%. So there is not a lot of room for the Fed to try to artificially stimulate the economy when it hardly has any room to reduce rates. Quantitative Easing is Debt Monetization Of course, what does that mean about the Fed's balance sheet? That means the balance sheet will ultimately be much higher than it was when it began its current Operation Quantitative Tightening. We will be higher than we were before it started. All this does is confirm what I've been saying all along, that Quantitative Easing is Debt Monetization. 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 Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

21 Feb 20191h 1min

RATE AND REVIEW this podcast on Facebook. https://www.facebook.com/PeterSchiff/reviews/ Market Rallies on Old News The U.S. stock market continues to rally on basically the exact same news story that keeps on getting replayed.  Today, it was the absence of another government shutdown.  I guess now, this is final when it comes to no more government shutdowns, although that should have been obvious to everybody when Trump caved the last time and decided to pay everybody and temporarily end the shutdown. I said on my podcast at that time that that was it; that there was no way that there was going to be another government shutdown - yet the market continues to celebrate when they think that the shutdown's not going to happen. A National Emergency for the Wall Well now they know for sure it's not going to happen.  Everything's signed, it's a done deal and Trump is getting his wall anyway because he has now declared a national emergency, and so now because it's a national emergency, we are now going to pull these funds from other parts of the budget and we are going to build the wall. The National Debt is the Real National Emergency Of course, the real national emergency is not the lack of a wall, the failure to build the wall, but building up the national debt. The $22 trillion national debt.  We eclipsed that dubious milestone earlier in the week.  And again, when you talk about the national debt at $22 trillion, we're talking about the tip of a huge iceberg. This is just the funded portion of the debt.  This is where the U.S. sells a bond and somebody owns that bond. The Tip of the Iceberg It doesn't include liabilities like what the government owes for Social Security, or guaranteed bank deposits, or mortgages or student loans - that's not there.  Those are contingent liabilities.  They're just as real. They're not even part of the national debt. So, when you look at all the liabilities that the U.S. government is on the hook for, you're talking about well over $100 trillion - so $20 trillion is maybe d5 or 10 percent of the debt. But that debt is the real national emergency. 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 Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

16 Feb 201955min

RATE AND REVIEW this podcast on Facebook. https://www.facebook.com/PeterSchiff/reviews/ The 7th Best Start Ever for the S&P 500 The Dow was up 372 points today, continuing the bear market rally.  In fact, this is the best start for a year in almost 30 years - 28 years to be exact. I think it is the 7th best start ever for the S&P 500.  Now I think the other 6 starts that were better; 3 of those happened during rather dubious circumstances. Two occurred during the Great Depression, and one of them happened in 1987, and we all know how that year ended up. So sometimes getting off to a good start doesn't necessarily mean that the year is going to finish strong, or the year, itself, is going to be a prosperous year. Again, I think the main reason that the market is so strong early this year is, A) because of the sharp decline we had at the end of last year and B) because the Federal Reserve came in to save the market precisely the way I had forecasted for many years. How Many Times Can the Market Rally on the Same Good News? We had a lot of news today that was supposedly good news which provided the extra catalyst for the market.  The question, of course, is, "How many times can the market rally on the same good news? One of the pieces of good news was the fact that it looks like maybe there is some kind of compromise on the border that will avert a second government shutdown, and that is supposedly good news. Of course, we've been having this type of good news over and over again. Also, on the trade front, there were some rumors that the negotiations were going well (some of these rumors started by Trump), so when the market hears that, and that they will probably extend the deadline.  If the negotiations were really going great, they wouldn't have to extend the deadline. 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 Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

13 Feb 201945min

RATE AND REVIEW this podcast on Facebook. https://www.facebook.com/PeterSchiff/reviews/ Disguising "Red" Goals in Green Wrapping I'm still here in my hotel room in Orlando at the Money Show, but before I went downstairs on this Saturday morning,  I wanted to record a podcast to address the issues raised by Alexandria Ocasio-Cortez, AOC, as she is now being referred to - I guess I'm just going to call her the bartender for simplicity.  Well, anyway, the bartender-turned-congresswoman has released the laughable details of her "Green New Deal".  Of course, the Green New Deal really lays bare the smokescreen that I have always believed existed with respect to extreme environmentalism.  I've always thought that it masked a real desire for socialism; that the real goal of some of these radical environmentalists was socialism: nationalizing the means of production, getting government control.  But they couldn't come out and say that. They had to disguise their "red" goals with green wrapping. This Bartender is Advocating Fascism They had to approach it as an environmental issue;"Hey, we have to save the planet!" and, yeah, who isn't in favor of that? Everybody wants clean air and clean water.  So the way the Socialists really try to wedge their way into the mainstream was with this veneer of Environmentalism.  But when you actually read the "Green New Deal", it blows all the smoke away. It really lays bare the Socialist agenda of environmentalists.  Really, that's what the Green New Deal is all about.  It's Red. It's all about turning America into a Socialist economy, or more particularly, a Fascist economy, because Fascism is really the form of Socialism that best describes what this bartender is advocating. The Government Taking over the Means of Production I have said from the beginning when Ocasio-Cortez ( the bartender) describes herself as a Democratic Socialist - "I'm not a real Socialist, I am a DEMOCRATIC Socialist - putting the word "Democratic before something bad doesn't make something bad into something good.  If you read this proposal, it is pure, unadulterated Socialism. It is about the government taking over the means of production.  The bartender actually believes that  the government, by micromanaging the economy, it will succeed in creating prosperity.  This is what every Socialist who has risen to power, rather by force or by vote, has promised the public. They always promise pie-in-the sky prosperity, all these great things that the government is going to provide. In order to get people to buy into this, they have to create a false threat of global warming. 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 Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

9 Feb 201950min

See Peter in person at the Orlando Money Show https://conferences.moneyshow.com/moneyshow-orlando/ Celebrate Peter's birthday with him on the 2019 Investor Summit at Sea! Visit schiffbirthday.com State of the Union Not Addressed Last night President Trump delivered what purported to be a State of the Union address but really, Donald Trump talked about a lot of things, but he didn't really speak at all about the State of the Union. Bernie Sanders recorded his own response. He didn't do the official Democratic response; that was done by Stacey Abrams, the woman who ran for and lost the Governorship of Georgia in 2018. She was a Democratic candidate.  I think the Democrats are grooming her probably to run for Senate in 2020 so they wanted to put her up on that stage and shine the spotlight on her. Bernie Did a Better Job of Laying out Economic Problems But Bernie Sanders delivered his own response on YouTube, and Bernie Sanders did a much better job of describing the problems in the U.S. economy, that Donald Trump ignored in his State of the Union address.  He spoke a little bit about the economy; he said we're having an "economic miracle" here in the Unites States, that we were the envy of the world, the hottest economy in the world.  Everything is great, and theoretically the only thing that could screw it up is if the Democrats keep going after him with this ridiculous investigation, but everything is doing great, which, of course is a bunch of nonsense. Socialism, However, Won't Work Bernie Sanders did a much better job of presenting the facts. He pointed out that maybe, if Donald Trump is talking about his rich friends at Mar-a-Lago Country Club - for those guys, the economy is great. But for average Americans, the economy is lousy and Sanders describes some of the problems that Donald Trump overlooked or ignored when he gave his address.  This is going to be the problem for the Republicans in 2020 when they run for re-election, talking about how great the economy is, they don't have a chance.  It's the Democrats who will be feeling the pain of the voters and coming up with their own solution.  The problem is, the solutions that Bernie Sanders is putting forth, Socialism, aren't going to work. 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 Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

6 Feb 20191h 4min

See Peter in person at The MoneyShow Orlando https://conferences.moneyshow.com/moneyshow-orlando/ Stronger than Expected Jobs Number We actually got a bunch of economic data released today; apparently the shutdown no longer is affecting some of these newer releases, although we still have a bunch of old data that has yet to be released. I have a feeling that there is a lot of weak economic data that has yet to come out. Today we got some stronger than expected data including the January jobs number. They were looking for 158,000 jobs to be created, which would follow the 312,000 number that we got for December, which was a surprisingly strong number.  So the consensus was that we would have a weaker number in January; but we ended up with 304,000 jobs allegedly being created in January. December Jobs Number Revised Down 90,000 Jobs But they now tell us that we didn't create 312,000 jobs in December - we only created 222,000 jobs, which is still a pretty big number, but it's 90,000 less.  That's a huge revision, to think that they were off by 90,000 jobs.  Maybe they're off by 90,000 jobs in January. I guess we'll have to wait another month to find out.  But that number was much bigger than what was expected; and of course, even if you take into consideration the revisions, it was still a better net number than what the markets were looking for. U6 Went from 7.6% to 8.1% The official unemployment rate rose to 4%.  Part of that was because the Labor Force Participation Rate continued to notch up. It went from 63.1 to 63.2, and since more people are now looking for work, those people are now officially unemployed. But a bigger story than the official rate is the U6 rate, which is far more accurate if you want to get a real look at the U.S. labor market.  Of course, it's not 100% accurate because it only includes discouraged workers who have discouraged for under a year.  So it doesn't capture any of the long-term unemployed, which are a big part of the American labor market. But the U6 rate includes the short-term discouraged workers, but also the people who are working part time, but who really want to work full time. We had a surge, like half a million part-time jobs were added according to household survey during the month, so a lot of people working part time - they probably want to work full time, but they are settling for part time work.  That meant that the U6 number went from 7.6 to 8.1. 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 Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

2 Feb 201947min

See Peter in person at the The MoneyShow Orlando https://conferences.moneyshow.com/moneyshow-orlando/ Monetary Drug Pushers Earlier today, the monetary drug pushers at the Federal Reserve gave the addicts on Wall Street exactly the fix that they have been craving. In fact, not only did Powell deliver exactly what the doctor ordered with respect to interest rates, saying the Fed was going to remain "patient", probably indefinitely, with respect to another rate hike, but Powell also made it clear that the balance sheet wind-down, otherwise known as quantitative tightening, was off of auto-pilot.  In fact, based on what Powell said, I would be surprised to see any significant reductions in the Fed's balance sheet from here.  Not surprising, the market rallied as a result of getting what they wanted out of the Fed.  At one point, I think, the Dow was up better than 500 points, but it did close up 434 points - back above 25,000 - 25,014.86, to be precise. Quantitative Easing and a Return to Zero But, you know, just like any addict, they can never get enough. I think that soon the markets are going to be demanding a lot more from the Fed than just a cessation of rate hikes and a commitment not to shrink the balance sheet.  I think what the addicts are going to require is going to be more quantitative easing and a return to zero, and that is exactly what the Federal Reserve is going to provide, once it realizes that that's what's necessary. Of course, I don't think that is going to work; I think that is going to deliver the overdose that I have been warning about since the Fed first went down this mistaken policy road. I knew that we would ultimately end up exactly where we're headed.  It's just that the markets still haven't figured this out. Markets Need to Focus on the Why The markets really need to be focusing on the Why. Not just looking at what the Fed is doing, but why the Fed is doing it, and what it actually means about the underlying health of the U.S economy or the efficacy of prior Fed policy. Now if you listened to the press conference, or even just read the prepared remarks, the Federal Reserve wants to pretend that everything is still great - that the U.S. economy is still in great shape.  In fact, the Fed wants to pretend the U.S. economy is just a good as it was when it hiked rates during the September meeting, let alone the December meeting. Continued Rate Hikes and Auto Pilot QT Going back to September, when the Fed was saying that they were going to do maybe 3 or 4 rate hikes in 2019, and that the balance sheet unwind was on auto-pilot, that the Fed was going to set that aside and sell off about $50 billion worth of treasuries and mortgages every month, just forget about it, not even worry about it and that the Fed was going to simply focus on interest rates. 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 Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy

31 Jan 201948min