Peter Schiff’s zero rates deadhead view was put forward in his July’s podcast.

“I was the only one who said that the Fed would most likely cut rates in 2019 rather than hike” said Peter Schiff. Back in January, the conventional wisdom at that time was that the Fed would raise rates.

Peter Schiff’s zero rates deadhead view is partly based on a disastrous Fed rate hike in December 2018 which resulted in the worst December for stocks since the Great Depression. 

“TI was the only one who said that the Fed would most likely cut rates in 2019 rather than hike

PETER SCHIFF

“So the Fed took away the last hike and the rate is where it was before the December rate hike” said Peter Schiff.

Peter Schiff’s zero rates deadhead view goes against what the Fed should do which is raise rates and not cut them

“I believe the Fed should raise rates not because the economy is doing well but because cheap rates are what is fueling asset bubbles” argued Peter Schiff.

That won’t happen reckons Peter Schiff. “The Fed is more concerned about keeping this unhealthy bubble growing which is what president is concerned about” he said. 

So the Fed has aborted its attempts to normalize rates and shrink its balance sheet. The Fed has given up on both.

I believe the Fed should raise rates not because the economy is doing well but because cheap rates are what is fueling asset bubbles

PETER SCHIFF

Peter Schiff’s zero rates deadhead view is based on the US economy not doing great despite what the Fed says

“Either the Fed Powell is an idiot or he is lying” said Peter Schiff.

“I tend to believe the latter because if he was telling the truth he would scare the shit out of everyone” added Peter Schiff.

25bp isn’t going to cut it and that is why the market fell after the rate cut” – Peter Schiff

This has been the biggest monthly decline in Chicago PMI in thirty years. This number is flashing recession. There are worrying signs in the auto and housing market too, argued Peter Schiff. Retail sales have been sluggish too.

Peter Schiff points out that the Fed will always deny a recession in the hope of delaying the inevitable.

Fed Powell doesn`t want to upset the narrative that the US economy is great because if he admits problems he is pretending that cutting rate without any problems.

Peter Schiff’s zero rates deadhead view is based on the July’s 25bp not being able to cut the mustard

“25bp isn’t going to cut it and that is why the market fell after the rate cut” said Peter Schiff.

“It is not one and done, it is not going to be a long rate-cutting cycle because we are going to get to zero relatively quickly,” added Peter Schiff.

Peter Schiff’s zero rates deadhead view is also based on political pressure from President Trump

“The fed is anticipating more cuts I am sure president is going to provide more behind the scene pressure to be more aggressive in its rate cuts,” said Peter Schiff.

“Gold had sold off on anticipating of a rate cut. But I do expect the gold market to resume its rally and take out its 1500 USD resistance. I do not think dollar strength will continue as the realization that the domestic economy is weak and needs further rate cuts” said Peter Schiff.

Peter Schiff’s zero rates deadhead view could play out.

Peter Schiff’ points out that the Fed will always deny a recession in the hope of delaying the inevitable.

See Peter Schiff’s podcast.

TRADING SOFTWARE

Dan Loeb targets Sony. Dan Loeb is an activist investor and founder of Third Point, which oversees about $14.5 billion in assets.

Last year the activist investor viewed Campbell soup as a bargain when Third point reported that the soup maker could fetch a takeover value of $52 to $58 per share.

A year later and the activist investor Dan Loeb targets Sony

Dan Loeb's activist hedge fund Third Point is raising an investment vehicle to generate between $500 million and $1 billion so it can continue to buy Sony shares, according to a recent report in Reuters.