GoldSeek Radio Nugget: Peter Schiff
Peter Schiff & Chris Waltzek Ph.D. - May 30th, 2019.
Highlights
Peter Schiff, head of SchiffGold, Euro Pacific Capital, and Euro Pacific Gold Fund (EPGFX)returns with key insights.Our guest notes the Wall Street adage, "Sell in May and Walk-away..." where investors look for bargains later in the year.Peter Schiff expects a bear market to overtake US equities.The trade skirmish between the US and trading partners, especially China is the root cause.Investors are advised to expect two quarters of back to back negative GDP growth resulting in an economic slowdown.Chris Waltzek compares the low Fed balance sheet of $500 million before the Great Recession with the current $4 trillion.Policymakers failed to seize the decade long economic boom to curtail excess monetary expansion.Given the inability for the Fed to liquidity, a new era of endless money printing seems imminent.The guest / host concur that only two options remain for the Fed:1) Take the short-term pain to preserve global reserve currency hegemony by ringing the excess liquidity, $3.5 trillions off their balance sheet, inadvertently crushing the financial markets and the domestic economy while potentially sending the entire global economy into a new dark ages circa 1930's Great Depression;
2) or continue on the current destructive path via renewed rate cut cycle as implied by the CME Fed Fund Futures contracts as soon as December 2019, essentially renewing QE operations further jeopardizing the global hegemony of the US dollar while sacrificing the general welfare of future generations.
Peter Schiff, head of SchiffGold, Euro Pacific Capital, and Euro Pacific Gold Fund (EPGFX) returns with key insights on US equities, noting the Wall Street adage, "Sell in May and Walk-away..." where investors look for bargains later in the year. Peter Schiff expects a bear market to overtake US equities following one of the most impressive 10 year bull rallies, due in large part to the trade skirmish between the US and trading partners, especially China. Investors are advised to expect two quarters of back to back negative GDP growth resulting in an economic slowdown. Chris Waltzek notes relatively low Fed balance sheet $500 million before the Great Recession of 2008 and the current $4 trillion dollar figure, where policymakers failed to seize the decade long economic boom to curtail excess monetary expansion. Given the inability for the Fed to liquidity, a new era of endless money printing seems imminent. The guest / host concur that only two options remain for the Fed:
1) Take the short-term pain to preserve global reserve currency hegemony by ringing the excess liquidity, $3.5 trillions off their balance sheet, inadvertently crushing the financial markets and the domestic economy while potentially sending the entire global economy into a new dark ages circa 1930's Great Depression;
2) or continue on the current destructive path via renewed rate cut cycle as implied by the CME Fed Fund Futures contracts as soon as December 2019, essentially renewing QE operations further jeopardizing the global hegemony of the US dollar while sacrificing the general welfare of future generations.