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Tag Archives: Monetary Policy

The Fed Just Keeps Getting More and More Dovish

Is Jerome Powell the most dovish Fed chair yet?Peter Schiff said he wasn’t when he first took the position and was raising interest rates. But he is now. The minutes from the January FOMC meeting released last week bear this out.“We’re all doves now. That is the problem, the Fed gets progressively more dovish,” Peter said in a recent podcast.An economy built on a foundation of debt needs more and more monetary accommodation to keep it going.Whatever preconceived notions Powell had when he...

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Peter Schiff: Uncle Sam Funds Christmas in January

After three straight months of sagging retail sales, American consumers flush with stimulus money went on a spending spree last month. Retail sales surged 5.3% to start the year, significantly beating expectations. In his podcast, Peter Schiff called it Christmas in January.The Christmas season was a disaster for retailers. Sales dropped in October and November and then fell again in December. In fact, the Commerce Department revised December sales down from a 0.7% drop...

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Translating Fed-Speak: SchiffGold Friday Gold Wrap Podcast Feb. 19, 2021

The Federal Reserve released the minutes from its January meeting this week. It featured some pretty thick Fed-speak. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey translates and tells you what the Fed is telling you about inflation. He also talks about why he thinks gold and silver are both struggling in an economic environment that should be bullish for precious metals. The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals...

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Promise to be irresponsible?

This Matt Yglesias tweet criticizes a recent Bloomberg article by Noah Smith: Yglesias is referring to an important 1998 paper by Paul Krugman, where he argued that when in a liquidity trap a central bank should promise to be irresponsible, that is, commit to higher than normal inflation after the economy has recovered and interest rates have risen above zero. Like J.M. Keynes, Krugman is very good at expressing unconventional ideas in an evocative fashion, but it’s...

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Peter Schiff: Inflation Is Good for Gold; High Inflation Is Better for Gold

The bond market is getting clobbered. Long-term interest rates are rising and that is putting significant pressure on gold. Peter Schiff talked about rising rates and the gold market in a recent podcast. He said the rise in long-term yields is a function of inflation and people seem to forget that inflation is good for gold. On Tuesday, the yield on the 10-year Treasury was just under 1.3%. It was just last month that the yield hit 1% for the first time since COVID. In other words, the...

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When is fiscal stimulus appropriate?

Greg Mankiw recently presented a graph showing that the US is doing much more fiscal stimulus than other big economies during the Covid crisis, even as a share of GDP: I was struck by the big difference between the US and major European economies such as Germany, France and Italy.  According to mainstream macroeconomic theory, the Eurozone economies should have been doing far more fiscal stimulus than the US. The standard model suggests that monetary policy should...

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Peter Schiff: Signs of Inflation

Last week, Federal Reserve Chairman Jerome Powell said he wasn’t worried at all about inflation. But there are signs that inflation is heating up everywhere, from surging commodity prices to rising bond yields. In his podcast Friday (Feb 12) Peter Schiff talked about increasing inflation and the unreasonable expectations Wall Street has when it comes to the Fed’s willingness or ability to do anything about it.Commodity prices and bond yields continue to climb. On Friday,...

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Economics Is a Thing: SchiffGold Friday Gold Wrap Feb. 12, 2021

With Joe Biden in the White House and Democrats controlling both houses of Congress, it seems pretty certain we’re going to get a federal $15 an hour minimum wage. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey discusses the economic ramifications of minimum wage laws. Hint — they are not good. He also talks about Fed Chair Jerome Powell’s comments this week and why they should make you even more bullish on gold.The SchiffGold Friday Gold Wrap podcast combines a...

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Hume, hockey sticks, and The Great Forgetting

In the 21st century, macroeconomics is entering a new Dark Ages. We seem to be forgetting much of what we learned in the last half of the 20th century. That judgment may be harsh, but if I’m wrong then you should no longer read anything I write (including the book I have coming out this year), because in that case I wouldn’t actually know anything useful about macroeconomics. Perhaps the most firmly established proposition in late 20th century macroeconomics is that...

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Peter Schiff: The Federal Reserve Has Handed the US Government a Blank Check

On Wednesday, Federal Reserve Chairman Jerome Powell called for a “society-wide” commitment to reaching full employment, calling for “contributions from across government and the private sector.” He said getting people back to work would require “continued support from both near-term policy and longer-run investments.” He also dismissed concerns about debt saying the focus needs to be on the economy’s immediate needs. As Peter Schiff put it in his podcast, Powell handed the US Treasury a...

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