Peter Schiff, "I told you so" Its time to listen.
Back in 2008, the fed came up with a temporary measure to save the financial markets. Zero interest rates and Quantitative Easing QE. This was never tried before and was only a temporary measure. They got away with this crazy plan because once the economy recovered, they would return to normal. Raise interest rates and unwind it QE balance sheet of $4 trillion of US treasuries. Perer warned that the Federal Reserve would fail, and could not suceed. That moment has come.
Interest rates could only be raised back to 2.5% and the balance sheet could only be reduced back to 3.2 trillion. That 3.2 trillion will be monetized. Thus causing inflation of the currency and reduction of value, with happens to the banana republics. Like Venezuela today, and Germany in the 1930's
The Federal Reserve Started QT, Quantitative Tightening when their balance sheet had grown to 4.5 trillion. They could only reduce it to $3.89 trillion until Trump screamed STOP.
Peter David Schiff is an American libertarian, stock broker, financial commentator, and radio personality. He is CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut.
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