Peter Schiff recently appeared on Real America with Dan Ball to talk about the state of the US economy. He described it as a disaster and said Bidenomics consists of putting lipstick on a pig.
The administration and its mainstream support network insist the economy is strong. They often point to the “resilient” American consumer as proof that the economy is plugging along. After all, how can the economy be bad if people keep spending money?
But how have Americans managed to keep up with rising prices?
Peter said people have made ends meet in two ways.
First, you mentioned a few million jobs that have actually been created during the Biden presidency. Well, those jobs went predominantly to people who already had jobs. … Moonlighting is at a record high in America. So, people are paying these higher prices by taking on second and third jobs and giving up their leisure. The other way they’re doing it is by borrowing more money.”
Consumer credit data backs up Peter’s second point. Even with interest rates at over 20%, credit card debt is at record highs. The problem with borrowing is the money eventually has to be paid back and that’s starting to become a problem.
Auto delinquencies are surging. People can’t even afford to make their car payments.”
Meanwhile, saving levels have fallen into the basement.
As prices skyrocketed last year, Americans blew through their savings to make ends meet. Aggregate savings peaked at $2.1 trillion in August 2021. As of June, the San Francisco Fed estimated that aggregate savings had dropped to $190 billion.
In other words, Americans ate away $1.9 trillion in savings in just two years.
The savings are gone. They went for rent. They went for food. They went for insurance and other costs that keep on going up.”
Peter called the US economy “a disaster,” and he said that’s what the Federal Reserve and Jerome Powell just surrendered in the war on inflation.
He knows he can’t raise rates anymore. He needs to prop it up by creating more inflation.”
During the Q&A session after the December FOMC meeting, Powell conceded that the Fed needs to start cutting rates long before the CPI gets to the 2% target.
He said that even in 2026, he expects inflation to be 3%, which is still 50% higher than 2%. But the reason he said he wanted to start cutting in advance is he didn’t want to ‘overshoot,’ meaning he didn’t want inflation to go below 2%. Why not? I mean, Americans could use some relief.”
Peter said the idea that the economy is strong is a myth perpetuated by the government like propaganda.
They’re trying to dumb us down and brainwash everybody into thinking that a weak economy is actually strong.”
Dan rhetorically asked how the pundits on the mainstream financial news networks can sit in front of their audience and lie. Peter said they are a part of the establishment, and they have a vested interest in perpetuating the narrative.
So, that’s what they do. They have a very cozy relationship. These major networks get all these guests coming on from the administration. So, in order to get the guests, they have to give them these softball questions.”
Peter said that’s exactly what Powell is doing.
Powell lied today when he said that he does things that are in the best interest of the economy and not politicians. Everything he’s doing is political. The economy takes a back seat to reelecting the incumbent party, which is the Democrats, which is Biden. So, everything Powell is doing, the goal is to reelect Biden. Hopefully, the public won’t allow him to achieve that goal.”
Peter said “Bidenomics” is just putting lipstick on a pig.
The public isn’t buying what they’re selling. They should be buying gold, especially now that the Fed has surrendered. Everybody is pretending that the Fed just won the fight against inflation. If you thought inflation was bad now, wait until you see how much worse it’s about to get now that they’ve claimed victory.”
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