Peter Schiff: The Fed Is "Unable To Delay" The Recession

According to Peter Schiff, the chief global strategist at Euro Pacific Capital, it was a “huge mistake” for the Federal Reserve to cut interest rates last month. “They never should have taken rates to zero in 2008 and held them there for 7 years,”Peter Schiff told Russian TV RT. “Zero interest rates and quantitative easing have created problems in our economy that will take generations to fix. However, the healing will never get underway if the Fed goes right back to zero which is where they are headed.” “the Fed is not causing the recession; they are just unable to delay it any longer.” Peter Schiff Addded . Hard to not like Schiff, and see his logic. it was a “fraud and a crime” for the Federal Reserve to cut interest rates last month. Schiff is right, he is just pointing out that we're all poorer, working longer and still don't have enough to satisfy Shylock. In reality the debt will never be paid off without massive QE4. And everyone knows that. The national debt continues to raise by over a trillion every year. This is nothing other than Modern Monetary Theory by stealth . Of course Quantitative easing , Zero interest-rate policy and Negative Interest Rate Policy are a joke. Of course rates should have been raised during Obama's presidency. The only thing Zero interest-rate policy and Negative Interest Rate Policy allows is more Consolidation. Everyone should know that by now. I like to say Centralized Confiscation and Consolidation through Counterfeiting. It's really that simple. At this point in time there are 2 ways out of this debt trap. Debt jubilee or complete watering down of ALL currencies. The world can't possibly grow it's way out of this cycle. Shiff is outspoken in his belief that the U.S. economy is barreling full-throttle toward another recession and that this event has the potential to erode the value of the dollar and the United States’ dollar-based investments in a cataclysmic fashion. Schiff’s investment style is strongly influenced by his libertarian political views and by his firm conviction that U.S. economic policies are fundamentally unsound. According to Schiff, the Federal Reserve sets artificially low interest rates that discourage Americans from saving money and encourage them to rack up credit card debt. Government intervention through regulation, stimulus programs, and corporate bailouts throw the economic equation even further out of balance. Schiff gets too much criticism for this. His forecasts aren't just simple broken clock eventualities. He accurately forecasted exactly how the housing crisis would unfold, not just that it would drop. He also forecasted the Federal Reserve would do exactly what it did afterwards with QE and rates to zero. The fact that they've gotten away with it this long is what people hate about Schiff prognostics . But Schiff remains consistent and still tries with his predictions on that part regardless. Industrial output just hit three year low. I would say we are already in a recession. Depressions and recessions are inherent in a debt driven economy and need to be allowed to playout. Economic downturns cleanse the economy of unproductive debt that is distorting the markets. The reason Capitalism succeeds when socialism does not is because Capital allows unproductive entities to fail. Let the markets determine what succeeds not a central authority. Link the rate of change of private sector debt to the interest rates, end the central banks and let the chips fall where they may.








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