{"id":5371,"date":"2023-09-06T14:56:59","date_gmt":"2023-09-06T19:56:59","guid":{"rendered":"https:\/\/nakedpolitics.net\/?p=5371"},"modified":"2023-09-06T14:56:59","modified_gmt":"2023-09-06T19:56:59","slug":"peter-schiff-fed-isnt-making-any-progress-against-inflation","status":"publish","type":"post","link":"https:\/\/nakedpolitics.net\/?p=5371","title":{"rendered":"Peter Schiff: Fed Isn\u2019t Making Any Progress Against Inflation"},"content":{"rendered":"\n<script>!function(r,u,m,b,l,e){r._Rumble=b,r[b]||(r[b]=function(){(r[b]._=r[b]._||[]).push(arguments);if(r[b]._.length==1){l=u.createElement(m),e=u.getElementsByTagName(m)[0],l.async=1,l.src=\"https:\/\/rumble.com\/embedJS\/u4\"+(arguments[1].video?'.'+arguments[1].video:'')+\"\/?url=\"+encodeURIComponent(location.href)+\"&args=\"+encodeURIComponent(JSON.stringify([].slice.apply(arguments))),e.parentNode.insertBefore(l,e)}})}(window, document, \"script\", \"Rumble\");<\/script>\n\n<div id=\"rumble_v3cpmec\"><\/div>\n<script>\nRumble(\"play\", {\"video\":\"v3cpmec\",\"div\":\"rumble_v3cpmec\"});<\/script>\n\n\n\n<p>Peter Schiff recently appeared on Fox Digital and poured a bucket of cold water on those who believe the Federal Reserve is winning the inflation fight. In fact, the Fed isn\u2019t making any progress at all.<\/p>\n\n\n\n<p>Peter started the interview by noting that the\u00a0<a href=\"https:\/\/schiffgold.com\/key-gold-news\/job-numbers-have-been-revised-down-for-seven-straight-months\/\">Bureau of Labor Statistics (BLS) has revised the nonfarm payroll numbers down<\/a>\u00a0for all seven months this year.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:18px\">If we\u2019ve done something seven times in a row, it doesn\u2019t seem very random. Because if these were random numbers, sometimes they\u2019d be too high, sometimes they\u2019d be too low. Like, it\u2019s difficult to toss heads seven times in a row. So, if you toss it seven times in a row, maybe the coin is not fair.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Peter said he thinks the BLS is biased in its assumptions and thinks the labor market is stronger than it actually is.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:18px\">Obviously, unemployment picked up. So, that\u2019s a sign of weakness. Average hourly earnings \u2014 up less than expected, which is problematic because prices continue to rise.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Peter also noted there was a big spike in spending last month, but a very small gain in incomes.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:18px\">The way consumers handled that was raiding their savings.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The savings rate plunged to 3.5%.<\/p>\n\n\n\n<p>In fact, American consumers have\u00a0<a href=\"https:\/\/schiffgold.com\/commentaries\/americans-have-nearly-depleted-their-excess-savings\/\">blown through nearly all of the excess savings they accumulated<\/a>\u00a0during the government pandemic lockdowns. Aggregate savings peaked at $2.1 trillion in August 2021. As of June, the San Francisco Fed estimated that aggregate savings had dropped to $190 billion.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:18px\">That\u2019s a sign that the economy is weak because consumers need that rainy day fund, right? Because it\u2019s raining. They\u2019re having a hard time.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>And Peter said it also shows the Fed isn\u2019t making any progress in its inflation fight.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:18px\">Consumers keep spending and reducing their savings in spite of the rate hikes. The rate hikes are supposed to reduce spending and increase savings. That\u2019s how they bring down inflation. But nothing has worked, and so inflation is going to get worse.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>When you boil it all down, this is stagflation.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:18px\">The economy is weakening, the labor market is weakening, but consumer prices&nbsp;are strengthening.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Peter said he thinks we\u2019ve bottomed out on&nbsp;<a href=\"https:\/\/schiffgold.com\/commentaries\/price-inflation-down-but-not-out\/\">headline CPI<\/a>&nbsp;and noted that we really haven\u2019t seen much of a reduction in core CPI.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:18px\">So, now we\u2019re bending back up again and the Fed is at five-and-a-half. They\u2019re no closer to getting 2% inflation than when they had rates at zero.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Meanwhile,\u00a0<a href=\"https:\/\/schiffgold.com\/key-gold-news\/biden-budget-deficits-look-like-those-normally-seen-in-recessions\/\">federal budget deficits continue to spiral upward<\/a>.\u00a0The government is spending more instead of less.<\/p>\n\n\n\n<script>!function(r,u,m,b,l,e){r._Rumble=b,r[b]||(r[b]=function(){(r[b]._=r[b]._||[]).push(arguments);if(r[b]._.length==1){l=u.createElement(m),e=u.getElementsByTagName(m)[0],l.async=1,l.src=\"https:\/\/rumble.com\/embedJS\/u4\"+(arguments[1].video?'.'+arguments[1].video:'')+\"\/?url=\"+encodeURIComponent(location.href)+\"&args=\"+encodeURIComponent(JSON.stringify([].slice.apply(arguments))),e.parentNode.insertBefore(l,e)}})}(window, document, \"script\", \"Rumble\");<\/script>\n\n<div id=\"rumble_v3cqzby\"><\/div>\n<script>\nRumble(\"play\", {\"video\":\"v3cqzby\",\"div\":\"rumble_v3cqzby\"});<\/script>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:18px\">Nothing has worked, and the markets are completely wrong on their benign outlook for future inflation.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>Peter said the \u201cproper response\u201d would be for the Fed to continue to raise rates while the federal government cuts spending. Of course, the Biden administration isn\u2019t going to cut spending. And while you might see another quarter-point rate hike in September, it\u2019s not going to be enough.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p style=\"font-size:18px\">We actually need much higher interest rates. The problem is we can\u2019t afford them. So any interest rate high enough to fight inflation is too high for the markets. And in fact, not only does the Fed create a recession. But it creates a financial crisis, and that financial crisis will be considerably worse than the one we had in 2008.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p><\/p>\n\n\n\n<p>Original Article: <a href=\"https:\/\/americafirstreport.com\/peter-schiff-fed-isnt-making-any-progress-against-inflation\/\">https:\/\/americafirstreport.com\/peter-schiff-fed-isnt-making-any-progress-against-inflation\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Peter Schiff recently appeared on Fox Digital and poured a bucket of cold water on those who believe the Federal Reserve is winning the inflation fight. In fact, the Fed isn\u2019t making any progress at all. Peter started the interview by noting that the\u00a0Bureau of Labor Statistics (BLS) has revised the nonfarm payroll numbers down\u00a0for all seven months this year. If we\u2019ve done something seven times in a row, it doesn\u2019t seem very random. Because if these were random numbers, [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,14],"tags":[],"class_list":["post-5371","post","type-post","status-publish","format-standard","hentry","category-finance","category-inflation"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/5371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5371"}],"version-history":[{"count":1,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/5371\/revisions"}],"predecessor-version":[{"id":5372,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/5371\/revisions\/5372"}],"wp:attachment":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}