Peter Schiff: Angry Elites Should “Blame The Fed” For Trump’s Rise To Power
by Tyler Durden
ZeroHedge.com
Feb 23, 2017
Peter Schiff recently appeared on CNBC’s “Future’s Now” letting millions of American voters know that if they’re frustrated with Trump, they should blame the Federal Reserve.
“If the economy was in good shape, not only would he have not been elected, he wouldn’t have been the Republican nominee.”
Peter explained why Fed Chairwoman Janet Yellen is reluctant to raise interest rates because of the fallout from removing cheap borrowing from investors and consumers.
“What was inappropriate was slashing rates in the first place. It was inappropriate to leave them as low as they were as long as they were. [Yellen’s] afraid of the consequences when she tries to remove this unprecedented accommodation.”
The show’s host presented a common question to Peter about justifying his bearish stance on an economy that’s realizing stock market gains. It’s a common misunderstanding from mainstream media that CPI numbers, record-setting stocks, and inflation are indicators of a “healthy” economy. In reality, these are symptoms of a struggling economy that’s being kept on life support through money printing and quantitative easing.
“The economy is very weak. That’s one of the reasons that the stock market has been strong. It’s the weak economy that has been the primary reason the Fed has been able to keep rates so low for so long.”
Peter’s comment may be too obvious for many to comprehend. If the economy continues to make gains, why hasn’t the Fed raised rates more often and with larger hikes? The Fed’s slow movement on interest rates will be a hard habit to break when interest rates continue accelerating, as indicated by the latest CPI numbers.
The Fed’s misguided monetary policy has essentially created two US economies: a fake one and a real one.
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