The printing presses are running at full speed as the Federal Reserve creates money out of thin air at an unprecedented rate. Peter Schiff recently appeared on Kitco News to talk about the impact of all money-printing, borrowing and government spending. Somebody has to pay for this and we all will. In fact, a lot of people will be wiped out by the inflation tax.
US stock markets have generally been rising despite dismal economic data. Any optimistic news about coronavirus, such as the recent promising vaccine trials sends stocks up.
Peter said he thinks people are looking for an excuse to buy, but what’s really driving stocks is the Federal Reserve.
Powell on 60 Minutes [Sunday] night basically committing to print an unlimited quantity of money and urging Congress to borrow and spend as much money as they want and that the Fed is standing ready to monetize an infinite amount of government spending. So, I think people think that’s good for the market but it’s not. It’s a disaster for the economy. It will destroy the value of the dollar. And sure, that means stocks will go up, but so what, if you’re pricing them in worthless currency?”
[ZH: Consider Venezuela's awesomely fantastic 'economy' market]
Peter said that there is a limit to how much money the Fed can print.
That’s when it collapses in value. What’s the point of printing money that doesn’t buy anything?
So what should the Fed do? Peter said if the central bank had been doing the right thing all...