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American Dream vs. FED Induced American Nightmare

Peter Schiff on RT 2/14/2017

Transcript : what analysts say about the efficiency 0:02 of the Fed Senate hearings and what the 0:05 Fed is doing for Americans in the 0:08 immediate and distant future 0:09 well let's bring in peter schiff CEO of 0:11 euro pacific capital thanks for joining 0:13 me on this with a neat you know you say 0:15 Yellen said nothing of real value to the 0:17 American people you're not impressed 0:19 she's missing the point of what 0:20 Americans you really want to hear and 0:22 what is that in your opinion what 0:24 Americans aren't really even paying 0:26 attention to what she's saying it's more 0:28 the financial markets that are sitting 0:30 on pins and needles parsing over every 0:33 word that she says but you know she 0:35 talked about the fact that it would be a 0:37 problem if the Fed waited too long to 0:40 raise rates to remove the accommodation 0:42 bulldog 0:43 I mean she's already waited too long I 0:45 mean it's the time to nip that in the 0:46 bud has launched his past in fact the 0:49 minute the Fed lowered interest rates 20 0:52 that was the mistake right the minute 0:53 they checked us in to this monetary 0:55 roach motel there was no way to check us 0:58 out 0:59 that is why the fed has already acted so 1:01 slowly in their in their increasing rate 1:04 because i think they know that another 1:06 crisis is coming there you know just 1:08 hoping that they don't get blamed for it 1:10 what do you think then that the Fed is 1:11 essentially postponing the pain of its 1:13 fire mistake in Congress for that matter 1:16 what that's going to hurt 1:17 well that's all it that's all it does is 1:19 it makes mistakes and then it takes 1:21 action to try to mitigate the short-term 1:24 pain but only at the expense of making 1:27 the mistakes even larger so that the 1:29 future pain is even worse I mean that's 1:31 what happened when the Fed slashed 1:33 interest rates and 0102 to mitigate the 1:36 mistakes that inflated the stock market 1:39 bubble the tech bubble and then those 1:41 larger mistakes inflated a bigger bubble 1:43 in the housing market and then when that 1:45 bubble burst in 2008 they made even 1:48 larger mistakes and that bubble which 1:51 was inflated by Bernanke and Yellen has 1:54 yet to pop but when it does the fallout 1:57 is going to be much bigger than a 2008 1:59 financial crisis and so that is the 2:02 reason that yelling is dragging her feet 2:04 on these rate hikes because the higher 2:07 rates go the sooner that crisis is going 2:10 to arrive 2:11 well then 2:11 this right how long can we go without 2:13 the economy heading straight back into a 2:15 recession and what your prescription for 2:17 keeping us out of it or if it's you know 2:19 if we've had terminal velocity of 2:21 pulling a sabot it sounds to me like 2:22 you're saying it's gonna feel like a big 2:24 piece of duct tape ripped off your arm 2:27 well I don't think we ever really came 2:30 out of recession I mean everybody says 2:32 that this is the weakest recovery in 2:34 history in fact the recovery is so weak 2:37 that for the average American the 2:40 recovery was actually worse than the 2:42 recession that we supposedly recovered 2:44 from and I think the reason the recovery 2:47 is so weak is because it isn't a 2:49 recovery it's actually a recession 2:51 camouflage doesn't occur as recovery 2:54 behind phony GDP numbers you know 2:57 because the government is under 2:59 estimating inflation we have a deflator 3:02 that is too low and so we've been able 3:04 to manufacture out of thin air economic 3:07 growth winner is not see that's why 3:09 Donald Trump is the president of the 3:11 united states if we had real economic 3:13 growth 3:14 he wouldn't have even been the 3:15 Republican nominee let alone the 3:17 president but it's because the economy 3:19 is so weak he was able to exploit that 3:21 weakness and the fact that the public 3:23 realizes that are being lied to their 3:25 being lied to by the government are 3:27 being lied to by the media by wall 3:29 street they're all trying to shove this 3:30 phony recovery down their throat and 3:33 they threw up all over it and elected 3:35 I'll drop well I graphically putting it 3:38 but you know a lot of people probably 3:39 totally agree with you let's talk about 3:41 what we heard Janet Yellen say earlier 3:42 about the labor markets labor market 3:45 unemployment is down jobless rates for 3:47 certain minorities though it's very high 3:49 in those areas 3:50 she seems to be parroting what a lot of 3:53 pundits were talking about when they 3:54 said you know the job market growth the 3:56 recovery people don't seem to be feeling 3:58 that do you think that these remarks 4:00 sort of lends itself to the argument 4:02 that you're making their well they may 4:05 be feeling it but not where Janet Yellen 4:07 that and everybody likes to like to 4:10 pretend I mean these are these are phony 4:12 numbers again 4:13 yes we have a low unemployment rate 4:16 because millions and millions of people 4:17 who are not working are not counted as 4:19 being unemployed and millions more who 4:22 are underemployed who are working part 4:23 time jobs but who can't find full-time 4:25 job they're not being counted so this 4:28 again is a government illusion created 4:30 by the statisticians and you know one of 4:33 the things that happened recently we got 4:35 the most recent jobs numbers and we had 4:37 for the first change we had about 4:39 700,000 people who had left the labor 4:42 force coming back in now they didn't get 4:44 hired there are now unemployed so the 4:46 unemployment rate has started not job 4:48 but if more and more people who have 4:50 been on the sidelines when it comes to 4:52 the job market if they now try to get 4:54 into the game because they need the 4:55 money maybe they can no longer afford 4:57 the luxury of not working we're going to 4:59 start to see a big increase in the 5:01 official unemployment rate and then 5:03 we'll see the Fed Janet Yellen change 5:05 her tune up pretty quickly 5:07 ok so we're talking about changing it 5:08 quickly right now it would you you think 5:12 Jack them up right now it's going to be 5:14 painful but we gotta do it right now 5:15 because on top of this there's a lot of 5:17 political grandstanding going on at 5:18 these hearings have nothing to do with 5:20 fiscal policy level and sort of covering 5:21 a political basis so if you could go 5:23 into that room and they look brass tacks 5:26 your fellow this is what we need to do 5:27 that p 5:28 yeah well personally write the whole 5:31 thing is a circus it's all kinds of 5:33 grandstanding but meanwhile Janet Yellen 5:35 is the ringleader of this circus and 5:37 it's all show you know politicians are 5:39 trying to score brownie points they 5:41 speak in soundbites their constituents 5:43 you know so none of this really means 5:44 anything but again wall street looks at 5:46 this as if you know Janet Yellen 5:49 actually knows something about the 5:50 economy and you know gold the price of 5:53 gold was up 10 box before her prepared 5:55 testimony was out as soon as the words 5:57 came out that you know it would be a 5:59 mistake to wait too long to raise rates 6:01 gold sold off it went negative it 6:03 matters to close up a few bucks but 6:05 they're reacting to this is that there's 6:06 actually anything new to be cleaned out 6:09 of these statements but you know if i 6:11 was there if I was the Fed Chairman you 6:14 know I would basically want to admit to 6:16 all the mistakes that have been done by 6:18 Chairman that preceded me as I look 6:20 we're no longer going to price fix 6:22 interest rates the Fed is not going to 6:24 try to micromanage interest rates like 6:27 the Politburo in the Soviet Union used 6:29 to try to fix the price of bread 6:31 we're gonna let the market set interest 6:32 rates were not going to interfere 6:34 we're not going to be doing quantitative 6:36 easing 6:37 and interest rates would go way up i 6:38 mean they have to go up America has lots 6:41 of debt we have no savings interest 6:43 rates need to go up in fact one of these 6:46 senators ask janet yellen why the 6:48 economy is growing so slowly 6:50 it's this monetary policy that one it is 6:52 one of the main reasons we don't have 6:54 real capital investment we don't have 6:56 increasing productivity because the Fed 6:58 is diverting all those resources to 7:00 propping up speculative bubbles in the 7:02 stock market a real estate market in the 7:04 bond market and to prevent the 7:06 government from making necessary cuts 7:08 the government spending that would 7:10 actually unleashed the free market 7:11 growth that would produce a rising 7:14 standard of living 7:15 so we need to let interest rates go up 7:16 but then we need to let the chips fall 7:18 where they may 7:19 because if we do that now after rates 7:21 having been solo for so long 7:23 we're gonna have a financial crisis 7:25 worse than 2008 and at this point we 7:27 just have to suck it up and Barrett and 7:29 if it means a lot of people lose money 7:31 and if it means banks fail and it means 7:33 people lose their jobs 7:34 that's what has to happen because we 7:36 have to clean house we have to allow the 7:38 economy to restructure so we can rebuild 7:41 it the right way and not rebuild it 7:43 based on government central planning but 7:45 let the free market rebuild it based on 7:48 millions of Americans pursuing their own 7:50 self-interest this is what made America 7:52 great in the first place it was limited 7:54 government it was freedom where people 7:56 could save and invest and produce that's 7:59 what we need again we need to go back to 8:00 the American dream but before we can get 8:02 there we have to get out of this bed 8:04 adduced american nightmare 8:06 thank you so much for your input on this 8:08 Peter chef CEO of euro pacific capital

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