Peter Schiff & Chris Waltzek (Podcast)

Peter Schiff & Chris Waltzek Podcast

Highlights

  • Peter Schiff, Chairman of SchiffGold.com discusses the Fed’s reaction to the threat of higher inflation. 
  • With a quarter point rate hike expected in Dec and possibly 2 more in 2017, policymakers are concerned that prices are moving up to quickly. 
  • Inflation is typically a positive for the PMs markets, e.g., the 1970’s inflation / PMs rally. 
  • Real interest rates will remain negative, constraining the US dollar and encouraging gold / silver purchases. 
  • Bond bears are in control – the sector could crater much further, requiring sizable QE activity by the Fed to contain the toxic debt.
  • Dollar bulls may find themselves trapped, as officials are forced to ramp up QE and lower interest rates.
  • If bonds continue to decline, the cost of financing stock buyback related debt will soar, reducing demand for US shares and lowering equities prices. 
  • The liberated funds will fuel the uptrend in the $CRB commodities index despite the dollar breakout, suggesting that PMs could soon find a price floor. 
  • Additional blowback from higher rates includes the potential for a 20%+ housing price decline, as homedebtors struggle to make payments.
  • Until the forward looking housing starts index declines abruptly, the uptrend will remain intact. 
  • The election shock reaction in the PMs shares may be overdone presenting opportunities in the Euro Pacific Gold fund, EPGFX.

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Gold Seek

Various authors presenting analysis and commentary on the precious metals, economy and precious metals mining markets.