Peter Schiff exposes inflation, the hot button topic of our time,  and most importantly, how investors can protect themselves from the eroding effects of inflation.

Peter Schiff is an economist, stockbroker, financial specialist, host of the Peter Schiff Show Podcast, and author. He is the CEO and chief global strategist of Euro Pacific Capital. 

“Peter Schiff exposes inflation, the hot button topic of our time, and most importantly, how investors can protect themselves from the eroding effects of inflation”

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Peter Schiff exposes inflation as an integral part of the government, which has been growing in size and importance over the past decades, impacting everyone’s lives

Inflation is a creature of the government, it is a stealth way the government taxes us, according to Peter Schiff.

“Inflation by definition is the expansion of the money supply,” according to Peter Schiff.  

There are different schools of thought about whether the inflation rate matters. Some economists argue that it is the velocity of the M2 money supply. The rate at which money changes hands in the economy is more important than the inflation rate.

Peter Schiff exposes the inflation view from the Austrian school of thinking. Austrians believe that expanding the money supply leads to hyperinflation. But those advocating Modern Monetary Theory MMT believe it is the velocity of money that determines inflation. So, if M2 expands but investments and consumption fall, and savings increase, there is no demand-pull inflation. 

“To inflate means to expand,” he said.

“Inflation by definition is the expansion of the money supply”

PETER SCHIFF

“When you increase the supply of money, you diminish the value of the money,” said Peter Schiff.

Peter Schiff notes that more money is needed to buy those goods and services, so the prices rise to reflect the additional money needed.  

The price increase is merely the result of inflation created by the government, according to Peter Schiff.  

“The Fed is encouraging the government to run bigger deficits so it can monetize them” – Peter Schiff

Peter Schiff exposes inflation as a political or government Phenomenon 

The Federal Reserve is expanding the money supply, but the government is ultimately spending that money supply into circulation when it sends out checks without collecting tax revenue.

“You have big budget deficits, so where is the government getting that money to spend if it is not collecting it in tax,” he said. 

“It is getting it from the government, which gets it from the Federal reserve that is printing it out of thin air,” said Peter Schiff. 

“The government doesn’t want the public knowing inflation is created by the government. Otherwise, they might oppose it,” he said.

But has anyone seen protests in the streets when the government sent out stimulus checks?

“They want to blame inflation on the public Creedy corporation gouging their customers, or on Opec for increasing the price of oil on speculators for trading in commodities. Sometimes they blame greedy unions demanding higher wages,” he said. 

“The government wants to point the figure at everyone but itself,” he added.

Here is the takeaway from Peter Schiff expose inflation piece. 

“The Fed is encouraging the government to run bigger deficits so it can monetize them,” said Peter Schiff.

In other words, state capitalism will use cash, universal basic income, as a tool of mass control. For investors, cash is trash, so investors need to invest in companies with longevity.