Peter Schiff exposes the reality in his recent interview. “We’d Be Lucky To Escape With Just A Recession,” he said.
Peter Schiff recently appeared on Real America, where he spoke frankly about inflation, rising unemployment and the perilous state of the economy. “We’d be very lucky to escape with just a recession. I think this is a depression. We’re probably already in it. It’s just going to get worse.”
“We’d be very lucky to escape with just a recession. I think this is a depression. We’re probably already in it. It’s just going to get worse”
Indeed, the core inflation, which strips out the cost of food, shelter, and energy is hiding the reality, which is depressed household budgets as discretionary household spending collapses.
It is a charade how mainstream economists cheer the recent fall in CPI inflation and complement the Fed’s success of rate hikes in getting inflation under control. The Fed bases its tightening policy success on core inflation. But Core inflation data contains most items households already have, discretionary items. It is no surprise inflation continues to fall by CPI measures, and we would not be surprised to see deflation here.
So standby for the mainstream media, economists, Fed-aligned think tanks, and Fed officials all circle jerking to the virtues of monetary tightening policy curtailing inflation.
But the real deal is the ongoing double-digit inflation in food, shelter, and energy is squeezing household budgets, collapsing consumer demand for discretionary spending and sending CPI inflation lower.
If food, rent and energy (best items worth watching) are up by 30%, and wages increase by a measly 2% or remain the same, then you have collapsing disposable household income, strikes and civil unrest.
“the ongoing double-digit inflation in food, shelter, and energy is squeezing household budgets”
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Peter Schiff exposes the reality; of no soft landing and likely depression and cautioned investors about the March job report
He pointed out that one of the reasons the numbers weren’t worse is that the government created around 50,000 jobs, while private sector job creation was well below estimates. The problem with government jobs is the taxpayers get the bill, he noted.
“Most of these bureaucrats aren’t producing anything. They’re making the rest of us less productive. We need private sector jobs to pay for themselves and that add to our productivity, not more government jobs that require taxpayer funding and diminish our collective productivity,” he said.
“The people who are getting laid off from these tech companies are getting two or three jobs waiting tables or working in hotels” – Peter Schiff
Gig economy, low paid unstable jobs, is another characteristic of a depression; Peter Schiff exposes the reality
Look at the jobs that weren’t created by the government. The number one is ‘leisure and hospitality.’ These are restaurants and hotels. And of course, a lot of these are people returning from their COVID absences. But these are low-paying jobs. Many of the jobs created are part-time jobs for the people who lost their good full-time jobs. The people who are getting laid off from these tech companies are getting two or three jobs waiting tables or working in hotels, and somehow the economy is stronger because, on a number basis, we have more jobs. But the quality of those jobs has gone down. And most people who have two or three lousy jobs — would rather have one good-paying job. But unfortunately, they no longer have that option,” said Peter Schiff.
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