Economic advisor Peter Schiff has long been warning of the false stability and phony prosperity we are seeing the markets. He’s now saying that since the elections, it is about to get much worse, as a divided Congress means even bigger deficits.
It’s difficult to imagine the United States government spending even more money than they already do. But Schiff says this is the new reality under a politically divided Congress, according to Seeking Alpha. The blue wave, which turned out to be more like a blue ripple, will force gridlock in the government, which is great news for anyone favoring smaller government and less interference in their everyday lives by the sociopaths claiming the right to rule over them. But a divided government also means larger deficits because Democrats don’t want to do anything about the government’s spending problem.
Peter believes that president Donald Trump will actually do substantial harm to the economy by working with House Democrats to pass some kind of economic stimulus in 2019. That major disaster will see the economy begin to slow down.
I think the next fiscal stimulus is going to be more of a spending stimulus – an infrastructure plan. Just more money spent to kind of prime the pump Keynesian-style.” –Peter Schiff
This wouldn’t be at all out of character for the Trump, either. He talked frequently about an enormous infrastructure plan during his campaign. He certainly wouldn’t have much trouble convincing Democrats that this level of spending is a good idea. The Republican-controlled Senate might be a little tougher sell, but Trump likely raised his stock among Republicans with the elections and will probably have even more pull than he did during his first two years.
I think Trump is going to try to position himself as a guy that can cross the aisle and work with the other side, especially going into the 2020 elections… so we’re probably going to get big increases in government spending.” –Peter Schiff
That’s horrific news considering the Federal Reserve has plans to continue to raise interest rates too. Schiff also said that he feels that there may some middle-class tax cuts to help relieve some of the economic pain, but those won’t impact the broader economy.
“In other words, these tax cuts won’t even create the appearance of growing the economy. They’re simply going to grow the debt and lead to higher inflation. It is going to feed the stagflationary fire that will be burning. This is going to be negative for the dollar. This is going to be positive for gold. This is going to be very positive for investments outside the United States.” –Peter Schiff
Schiff also warns that the household debt situation, which is worsening in the United States, will play a role in the next economic downturn.
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Inflation is a hidden tax and poorly understood. Americans are going to come face-to-face with inflation.
If you had bought (and kept) five one-ounce gold coins, 100 years ago, for $100, those coins are worth about $6K, today. If you had kept $100 in cash, from 100 years ago, that cash is now worth less than $4. That is inflation, writ large enough so that any moron can understand its horror and its power.
Or just ask any Venezuelan.
“I think the next fiscal stimulus is going to be more of a spending stimulus – an infrastructure plan. Just more money spent to kind of prime the pump Keynesian-style.”
Check the archives. 🙂
I told this community two years ago that it would take TRUMP a year to get control of the Government and prosecute the Swamp. Sessions FAILED to meet his responsibilities.
I also said at that time, that TRUMP would target infrastructure spending AFTER the next recession, coming soon, short and sweet; about one year. I repeated that mantra a year ago.
In the meantime, TRUMP is targeting government expenditures and subsidizes like CHINA; $400 billion a year, ILLEGALS $500 billion a year, the EU $160 billion a year, Mexico $125 billion a year and Canada $25 billion a year. If he gets those subsidies down, WE can afford infrastructure spending.
Infrastructure spending can also be funded by federal tax exempt bonds (think municipal bonds) that could be supported at least in part, by user fees from the new infrastructure projects, as I have mentioned here in the past. As the EM AND CHINA crash, investors will be seeking a “safe haven” for their cash and this cash will flow back into the USA for new plant and equipment and new infrastructure projects.
BTW Canada represents the cost of the damages (SO FAR) from the California fires. No federal funds should be used to reimburse California as long as it promote Sanctuary Cities, and harbor criminal ILLEGALS.
BIG INSURANCE HAS BEEN RECEIVING FIRE INSURANCE PREMIUMS FROM HOME OWNERS IN THE AFFECTED AREAS FOR DECADES. NO REASON TO SUBSIDIZE BIG INSURANCE OR THE PEOPLES REPUBLIC OF KALIFORNIA !!! 🙂
Durangokidd hasn’t made a correct prediction here yet, so he tells people to “check the archives”, because there are no real archives you can search here. Ask him for a link to his predictions, he won’t give you one. Biggest.Fraud.Ever.
Get what you need now and eliminate all debt.
Jim, good advice. Even at the BOL I’m still shopping and stacking, LOL. Being debt-free has a certain advantage. I hope Schiff is wrong about Trump working with Dems on the economy or anything else. You never work with people who have bad intentions toward you. I can’t think of anything more insane.
I want to know what kind of legal bill all these “witch hunts” — like the Progressive Socialist Democrat Herr Mueller probe — have cost the American Taxpayer (And their children. And their grandchildren. And their grandchildren’s children.)
What happened through rotten fiscal and political policies, unscrupulous politicians on both sides pushed not only ruinous deficit spending, but destroyed on purpose the industrial base through embracing globalism and free trade. They presumed America was switching to an information based service economy and that lowly Chinese peons would do physical labor in industry.
But what was worse, the USA foolishly decided to become arms merchants and embraced war as an industry. Beginning in WW2, we fought against the Axis powers first by embargoing the Japanese in the late 1930’s, then fighting a guerilla war through the Flying Tigers in Manchuria.
FDR wanted WW2 to happen to establish a New World Order with America at the forefront. He illegally sold armaments to England as well. Then Japan declared war at Pearl Harbor and the Germans followed suit.
This meant a massive change with an immense number of American men fighting a ground, naval, and ar war, and subsequently a total inability for men to work in industry. That sucker ploy then employed a massive number of women in the workforce.
Eisenhower warned the America citizens that this new military-industrial complex was ruinous and insidious to American life.
Today you have both a husband a wife together making LESS than an American male sole breadwinner made in 1990. Going back even further, it was not unusual in rural Kentucky for many housewives to mostly work at home with small supplemental income.
IF you DOUBLE the workers, it’s easy to maintain low wages as you created a GLUT of workers.An insufficient number of workers often means raising wages or massively increasing immigration.
But our politicians on both sides after Eisenhower sloppily allowed high legal immigration and illegal aliens! This further diluted wages.
Meanwhile the US education system severly faltered producing less proficient workers AND fostering degrees that were not useful to remaining corporations. So the globalists pushed for even more worker visas from other nations.
The politicians and the globalist corporations both are culpable of imploding the US economy.
Take veto powers away from the Federal Reserve, and give it to the accountability office.