Posted on 01/29/2016 12:01:58 PM PST by blam
Bob Bryan
January 29, 2016
Based on today's GDP release, it appears that the US economy is slowing but not near any sort of massive collapse.
Peter Schiff begs to differ.
The CEO and chief global strategist for Euro Pacific Capital, and noted perma-bear, said that serious economic destruction is just a few months away.
"I think the Fed is going to have negative interest rates before the election because we're going to be in a serious recession," Schiff told Business Insider on Friday.
In fact, Schiff said that we may already be in recession and this one is going to be a doozy.
"We're in worse shape now than we were in 2007," he said.
Chief among his concerns is a growing bubble of debt that has accumulated in the US, which he said "is even bigger than the real-estate bubble" that burst in 2008.
He said that there isn't as much debt in the real-estate sector, but the total sum of debt from student loans, auto loans, government debt, and the Fed's balance sheet is massive. According to Schiff, this total is by far bigger than what we saw before either the housing or tech bubbles.
Once this bubble pops, and Schiff fears that it may already have, the following recession will force the Federal Reserve's hand. This will make them pull interest rates into negative territory, much like the Bank of Japan's move on Friday.
"The Fed is going to go negative because they want to do something stimulative to try and boost the economy so the Republicans — or someone like Donald Trump — don't just walk away with the election," Schiff told us.
(snip)
(Excerpt) Read more at businessinsider.com ...
“Yup. Some towns with only half the people that were there just a few years ago. What will that do to house prices?”
Buyer’s market.
I think you are right.
Thanks, blam. Will read.
I am a big time investor into it into several millions of dollars. I find myself DAILY assessing now, though I have been doing so almost every other day or weekly under this Obama economic malaise, and my God it is looking very bad.
I have become very good at shifting the investments around based on economic, world events, interest rates (domestic AND globally), the strength of the dollar and currency manipulation, key commodities such as oil and gold, the 10 year Treasury yield, the Asia Markets (I now check regularly in the very late evening Pacific time, then often 2am but then 5am - to try an predict the Market for the day), on and on. I have been lucky, but I can imagine it is not easy for the average investor in MFs, ETFs, bonds and such.
I can tell you right now. The next six months are going to be hell. And probably we are looking at 20% drop in the DOW now with the .7% GDP, this is horrible. And we have 20 Trillion in debt, and many have massive credit card debt. I believe if Yellen raises the interest rates 2 more times, the entire thing is going to collapse. I am not saying there isn’t a good reason to raise them, it is a matter of timing and damn it this is not the time.
We need to get the Dems OUT, or a lot of you guys and gals are going to REALLY suffer - the Middle Class is going to be destroyed under the Obamanists.
I am voting Trump. The economy, terrorism, and illegal alien invasion (and each has a symbiotic relation to each other - especially economy and illegal alien interlopers, but another big terrorist attack IS going to have a big negative impact), the issues are NOT abortion or who goes to church every Sunday, or gays or such, no matter how strong you feel about those things, get your head together and realize you are about to lose YOUR POWER ITSELF to MAKE CHANGE as you lose your wealth and property.
Go Trump.
"I can tell you right now. The next six months are going to be hell. And probably we are looking at 20% drop in the DOW now with the .7% GDP, this is horrible. And we have 20 Trillion in debt, and many have massive credit card debt. I believe if Yellen raises the interest rates 2 more times, the entire thing is going to collapse. I am not saying there isn’t a good reason to raise them, it is a matter of timing and damn it this is not the time."
Is the Japan action why the DJIA went up 400 points today?
Japan Just Lit the Fuse on a $9 Trillion Debt Implosion
Last night the Bank of Japan implemented Negative Interest Rate Policy, or NIRP.
It is the second Central Bank to do so. The European Central Bank or ECB first went to NIRP in June 2014.
Thus, between Japan and Europe, over 20% of the world’s GDP is being managed by a Central Bank with NIRP.
More importantly, TWO major currencies in the world are now at NIRP while the US Dollar is at 0.5%.
Why does this matter? Because hundreds of billions of Dollars in capital will be fleeing Japan to come to the US.
(snip)
Yup, that is why.
I know ! Mrs. Onona just got approval to work remotely, so we are busting butt to get the house ready to sell. The sooner the better !!
Are you in Japan?
No, New York
Good luck on your house.
speaking of elections,maybe the globabl elites do control the higher offices but if we only voted in good conservative people on the local level, we might be able to pull thru...and it starts with non-teachers on school boards, with good mayor’s and council members, with good local judges...judges that are conservative, sheriffs, etc...
we still have the junk silver we paid gobs for on the advice of Howard Ruff during the Hunt bros escapades...
look in the mirror America....no marriage...no babies...no future...
"The option of lowering the cost of borrowing below zero has been on the cards for Japan's central bank since the early 2000s and it was the first in the world to consider it.
But when it comes to implementing the policy, Denmark, Sweden and Switzerland were first, followed by the European Central Bank which had to do everything it could to keep the EU economy afloat after the eurozone economic crisis."
where I work, there are lots of Russians, Ukranians, a few Serbs, a few Marshalese, even a priest from Nigeria....
these people have good work ethics and are friendly and trying to mix in ....
then you have the somalians and the Syrians....enough said...
Yes, they're crap...70% silver. They are in a safe place, in the pantry behind the garbanzo beans.
No one is going to “walk away with the election.”
Negative rates? Pure insanity.
I think that obama must be arrested and legally tried for treason.
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