FAST FIVE: Peter Schiff: Don't Listen To What The Fed Says; Look At What The Fed Is Doing
Despite a big rally in the stocks on Friday, the stock market finished its sixth consecutive week in the red.
The tighter they perceive future monetary policy is going to get, the more problematic everybody believes that's going to be for gold and silver, and they're selling these gold and silver stocks.” But Peter said even if the Fed does what it claims it will do in terms of raising interest rates and shrinking its balance sheet, it still won't be enough to bring inflation back down to 2%.
And so, for some reason, they believe that this is going to succeed.” There is also this myth that the US economy is strong enough to handle the bitter medicine the Fed will have to deliver in order to get inflation under control, despite all the signs that the economy isn't as strong as everybody imagines.
For some reason, the markets aren't there yet.” This is why every time the markets get surprised by hotter than expected inflation, they just assume the Fed is going to have to fight harder.
In effect, this is more gasoline on the inflationary fire.