Posted on 01/29/2016 12:01:58 PM PST by blam
Bob Bryan
January 29, 2016
Based on today's GDP release, it appears that the US economy is slowing but not near any sort of massive collapse.
Peter Schiff begs to differ.
The CEO and chief global strategist for Euro Pacific Capital, and noted perma-bear, said that serious economic destruction is just a few months away.
"I think the Fed is going to have negative interest rates before the election because we're going to be in a serious recession," Schiff told Business Insider on Friday.
In fact, Schiff said that we may already be in recession and this one is going to be a doozy.
"We're in worse shape now than we were in 2007," he said.
Chief among his concerns is a growing bubble of debt that has accumulated in the US, which he said "is even bigger than the real-estate bubble" that burst in 2008.
He said that there isn't as much debt in the real-estate sector, but the total sum of debt from student loans, auto loans, government debt, and the Fed's balance sheet is massive. According to Schiff, this total is by far bigger than what we saw before either the housing or tech bubbles.
Once this bubble pops, and Schiff fears that it may already have, the following recession will force the Federal Reserve's hand. This will make them pull interest rates into negative territory, much like the Bank of Japan's move on Friday.
"The Fed is going to go negative because they want to do something stimulative to try and boost the economy so the Republicans — or someone like Donald Trump — don't just walk away with the election," Schiff told us.
(snip)
(Excerpt) Read more at businessinsider.com ...
I'm still waiting for the collapse that was to happen during the summer of 2010.
What exactly would constitute an economic collapse? These guys never say!
Actually, the way it works as first everything plunges in the deflationary stroke, then everything goes up in the inflationary stroke. Right now, all the markets are being manipulated. The total rise in the stock market in the past seven years has come from the FED’s balance sheet. Right now they aren’t adding any new money, but they are reinvesting the bonds that have “bought” as they come due. So the interest from those bonds is added to the balance sheet and the market. However, the real economy has been tanking, slowly up until now when it is starting to head down in earnest.
The USA won’t be destroyed by any bomb, missile, terrorist, or army. We’ll die by our own hands. One hand on the money machine pressing print, the other on the credit card pressing accept.
The good news for me is that Howard Ruff doesn’t know where I live anymore...lol.
Japan just announced negative rates yesterday, I believe.
Why not the USA?
It is coming.
Thanks for this piece. I could use some cheery news. :-)
I’M tired of end of world imminent stories.. IRan NOrth Korea Tehran all threaten life as we know it. Elderly , children and DemonCRATS most affected
I almost wish it would hurry up and come...we all know it IS coming.
We have our “leaders” to thank for this.
oh it’s coming, negative rates until 2017 then the freefall all blamed on Republicans.
Japan is in a deflationary spiral because it can't grow through one or both of the only two mechanisms that work: population growth and productivity growth.
With all due respect, I disagree.
It’s our fault. Over the years, we (the voters, taxpayers, and citizens), have failed to hold those we elect to office to a high enough standard.
After all, it is us to elect, and continue to re-elect, these same people, election cycle after election cycle.
Japan now uses more Depends than diapers.
Some towns don’t even have any school-age kids anymore.
Would negative interest rates boost the stock market?
If, in theory, banks began charging you money for having a savings account, wouldn’t you take your money and put it in mutual funds instead?
That’s right.
I agree. It is the fault of the moronic pinheads who elect and reelect these degenerate politicians of all stripes.
Doesn’t Schiff realize that the most important issue facing the nation is the figure of the Barbie doll?
Would negative interest rates boost the stock market?
If, in theory, banks began charging you money for having a savings account, wouldn’t you take your money and put it in mutual funds instead?
Of course if the you know what really hits the you know what then banks aren’t safe either. In which case then we’re really in deep kimshee.
“Japan now uses more Depends than diapers.”
But this is Japan. It could be some sort of weird kinky sex thing of theirs. Lord only knows the things they dream up.
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