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Peter Schiff expressed: Investors are worried the Fed made a policy mistake in thinking inflation was transitory. Now it will be forced to raise interest rates even higher as a result. The bigger mistake will be not raising rates enough to slow inflation to avoid crashing the markets and the economy.
Community Response: If anyone knows…How much does the govt debt service go up with these rising rates? And at what point can’t the fed raise rates to risk default on debt?
The most important metric is the weighted average rate on outstanding debt and net interest as a percent of GDP.
The markets are overvalued. They are going to crash at any time QE life support is pulled. Valuation multiples have been rising, not actual values and real profits.
How can I short the market easily? QQQ? Probably with micro futures.
I love how people act like ending QE is going to crush the economy. There’s trillions of stimulus still floating around out there and rates are barely going to move with no QE.
Don Meredith “TURN out the lights the party OVER” it will come when you least expecting it. Raise rates. Raise the dollar.
It is supply lead inflation. Raising interest rates will be a mistake. The middle class are indebted to the hilt with no discretionary spend.
That’s what Powell said in his speech. Which is why I know you are wrong.
Yes, money supply has no effect on prices. I also just pooped in my hand.
I agree, monetary debasement is the real issue. Look at the SPY, Boomers made it impossible for the millennials and younger to save and own their own homes.
I think the feds kept pumping liquidity into the economy for long months because it was focusing on unemployment rate when the unemployment rate became low the fed started tapering.
What does “not raising rates enough.” look like? 2.5-5.50 range or higher.
Peter, you should be happy gold is up today. Wait you don’t own much gold. Blah blah blah the point about raising rates is true, but can’t happen without tanking the economy. Bitcoin wins.
Peter, you should be happy gold is up today. Wait you don’t own much gold. Blah blah blah the point about raising rates Is true but can’t happen without tanking the economy. Bitcoin wins.
Biggest concern should be declining productivity and consequential negative potential output, spare capacity and in the end the fiscal stimulus sugar high, turns out to be recessive. So better the Fed speeds up the hikes.
I know Peter Schiff is feeling elated as Gold is going up, after it had been stagnant for a while. If we say inflation is not transitory, are we also saying COVID19 conditions are here to stay, we’ve been told the cause of inflation was started by this!
I agree 100% on your view of economics, except we have an internet-based economy and gold/silver is not conducive to internet transactions. You know what is? I don’t hate on metals either, I own them.
The monetary value of gold/silver in computers/conductors is a fraction compared to the amount of money transacted on the internet.
So, which crypto make me rich? I would suggest researching the different types and use cases of cryptos then make your own decision.
Can’t or won’t, not meaningfully anyway. Face it like Bitcoiners have, it’s a dumpster fire. All you can do is wonder how long it will take to burn out.
When that comes will be a great time to short. They will close the stock market until the time value eats your put even though you made a factual gain.
What if they know exactly what they are doing? What if crashing spectacularly was the plan all along.
