I mean

 

the man is spitting truth you don't wanna hear.

Peter Schiff: We Can’t Postpone Inflation’s Day of Reckoning Much Longer

"Peter Schiff says we’re nearing an inflection point, but the markets don’t get it yet. As he explained in his podcast, the Fed’s monetary tightening is causing a recession, but ultimately, the central bank will surrender to inflation. There is a day of reckoning ahead and we can’t avoid it much longer."

"Not only are we starting from an unprecedented level of excess valuation, but it’s also happening at a time of unprecedented macroeconomic imbalances. The economy has never been weaker while stocks have been more overpriced.”

(And things will sort themselves out eventually. Just because people don't wanna believe things doesn't mean they aren't true.)

 "Artificially low interest rates did their job, incentivizing not only corporations, but also individuals and governments, to take on more and more debt.

Because of the Fed, everybody is leveraged to the hilt. The economy has never been this leveraged and never been this dependent on the cheap money that the Federal Reserve is now taking away. So, we’re going to go through the mother of all economic withdrawals as the Fed is weaning us from this monetary heroin.”

As businesses have to pay more to service their debt, that reduces earnings. It also lowers dividends, and it also means less money for stock buyback schemes. That means stock prices will likely continue their downward trend.

"Anybody who thinks we’re anywhere near the bottom just doesn’t understand the stock market. And anybody who thinks the Fed is going to win this inflation fight doesn’t understand inflation.”

(Lets review:

'Artificially low interest rates did their job"

We only had 'Artificially low interest rates" as a response to the financial crisis. Woe #1 in my book.

"everybody is leveraged to the hilt. The economy has never been this leveraged"

You really gonna argue that doesn't correct itself someday? And someday soon? Visit the previous post about the conflict in the Ukraine.)

"In fact, Fed policy led to both excessive debt in the economy and rising prices.

Because it left monetary policy so loose for so long and allowed the economy to get so leveraged, allowed inflation to get this out of control, it’s not about the fact that fighting inflation is going to cause a recession. It’s going to cause a financial crisis. There is no way around that.”

Why don’t more people understand this?

They don’t understand what caused the last financial crisis. They don’t understand that it was the Federal Reserve. And they also don’t understand that the Fed’s policies subsequent to that crisis, which were supposed to alleviate the problems, actually made them worse. The problems have been compounded. But they’ve been kicked down the road. And we are dealing with those problems now, but few people seem to grasp that understanding. Well, they are going to be in for a rude awakening.”

"The problems have been compounded."

Covid...Woe #2. 

Now we cant do business as usual any more. Artificially low interest rates, supply shocks in energy and food etc...

"but few people seem to grasp that understanding."

(There's one of "the few" who "grasped that understanding". Its why he did what he did in Ukraine...

Goodness just want people to understand where we are RN...

Its the biggest inflection point the world has ever seen, it really is, he would not have invaded if he wasn't willing to use nukes, decision time, get your hearts right etc...)

"Powell will surrender and inflation will win because when push comes to shove, and when we are in a financial crisis, Powell will not continue to fight inflation. He will give up that fight in order to save the economy and the markets from the consequences of that financial crisis. And that’s when inflation will cause an even greater crisis in terms of the US dollar crisis and a sovereign debt crisis, a fate that, so far, the US has managed to avoid. But its ability to postpone that day of reckoning will rapidly come to an end.”

Unfortunately Peter Schiff is right.

Were here.

Its literally right now, 

seers can see it coming, 

they're trying to tell you.

Godspeed everybody.