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Peter Schiff Shared: The U.S. trade deficit “unexpectedly” widened sharply in Nov. to 80.2 billion dollars, as goods imports surged 5.1% to a record-high of 254.9 billion dollars, while goods exports fell 1.8% to 155.9 billion dollars. The problem is too much money, not too few goods. The Fed creates inflation!
Years of reckless monetary policy resulted in the worst inflation in U.S. history. The Fed proposed fighting the inflation it created by slowly raising interest rates to 1% this year. But that extremely low rate is still far too accommodative to reduce inflation.
The Fed also proposed shrinking its balance sheet by selling U.S. Treasuries. But there’s no way the government can finance its budget deficits or roll over maturing debt without the Fed buying. So rate hikes, if they even happen will be too little too late, and QT is impossible!
People are worried about what an inflation fight means for the Stock Market. But no one is concerned about what it portends for fiscal policy. If the Fed stops monetizing budget deficits, the government will have to slash entitlement spending and raise taxes on the middle class!
Community Response: Japan has a trade surplus; they can buy their bonds/QE without hyperinflation. Our Gov realizes we can’t keep QE with the trade deficit. Then you ask why the ports are not working overtime to offload ships. They must slow down the import of goods to slow down the trade deficit.
I finally understand why I read the news that there is no direct shipping at the port. This led to a wild rise in prices in the country. This is deadly, I think. It doesn’t solve the problem fundamentally.
Peter this is purely from pull forward demand due to the supply chain. The big companies all brought tons of extra inventory early for Christmas.
It’s the very right time for you to buy the BTC. This great opt will never come again!
Trade deficit comes with other inflation. Inflation will move faster than the initial forecast while the US govt prevented their workers from working because uneducated economics promoted MMT.
Peter Schiff, a bearded hype man with a lot of followers, little accurate focus not intentionally wrong, just misleading, selling products to those who will listen.
When the Federal Reserve reverses again and goes megadose in 2022 or 2023, the emperor has no clothes. Commodities will be repriced again upwards.
Really? What is the report you Americans that every recent event is the worst in history? Is the time-frame of history something like months and you call something in years differently? What about the 30s?
BTC Amount of leverage, constantly growing since Nov 2021 not only in USDT pairs but UST pairs also. We definitely can see lower levels on BTC to flush out this much leverage. Please be cautious, wait to get a clear direction from the market.
You’d think if they wanted to fight inflation, they would try stopping wasteful government spending but it’s the opposite, they just tried to pass a trillion-spending bill. Makes no sense. Trim the excessive wasteful spending in government, if they want to help inflation.
Government spending isn’t the biggest mover of inflation. But if you insist on cutting government spending let’s start with an overblown yearly defense budget rather than worrying too much about a one-off spending plan to jump-start the economy.
