M&M Exclusive: Peter Schiff — Fed Stimulus Will Light ‘Fire Under Hard Assets’

Business

Notably, Euro Pacific Capital CEO Peter Schiff said he believes the Federal Reserve will do whatever it takes to reinflate the bubble after Wall Street collapsed this week in a bear market.

And things are certainly very bad right now, even casual observers are generally aware that stocks have fallen since mid-February, with the top three US indexes falling in a bear market, a decline in 20% or more from recent historical highs.

Likewise, it has been indicated that the fall finally ended with the record expansion that began in 2009.

While the numbers did not officially drop 20% until this week, Schiff said in an exclusive interview with Money & Markets that it was simply a matter of catching up on the reality of equities, which he said were already at a bear market.

Experts speak

In this way, for crazed people, Schiff said central banks around the world will likely put a floor on asset prices through the stimulus, which will be a boon to hard assets. While savers hurt by the Fed, they should return to the gold standard.

For his part, former presidential candidate Ron Paul has long called for the Federal Reserve to be audited and terminated. Schiff is also a frequent critic of central bank policies and also believes that the United States should return to a gold standard.

And it is that Schiff also referred to the policy of negative interest rates, or NIRP, and said that the Fed is obliged to use it, which will crush people trying to save money.

“Yes, they will take negative rates. There is no limit to what they will try. They don’t care about savers” said Schiff. “Adjusted for inflation, rates are already negative and they will get a lot more negative in the future regardless if the Fed pushes nominal rates negative”

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Source: Shaun Cox | Money & Markets

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