Peter Schiff recently made an appearance on Real The united states with Dan Ball to talk about the economic climate, energy prices, and inflation. Peter said if you think inflation was bad this year, wait until next year with a much weaker dollar.
Dan set the particular interview up with a list of tech firms set to lay off employees. He asked how people can say the particular economy is just fine if you have tens of thousands getting laid off, nobody has any savings, plus when the housing business is tanking .
Peter said they’re going to keep saying that, but it basically isn’t true. He pointed out that the entirety of the Q3 GDP increase was from a decrease in the trade deficit.
“ It’s not like it went away. It just got slightly much less enormous than it had been. Which was for two reasons. The particular strong dollar enabled all of us to buy imports cheaper. But also, all that oil that was launched from the Strategic Petroleum Book, we got to export that, so that increased our exports and reduced our debt. And so that helped all of us out. ”
But those impacts are already starting to reverse. The dollar is usually tanking.
“ And all of the economic data that’s come out up to now on the fourth quarter shows that GDP in the fourth quarter is going to be negative again. ”
That will mean a drop within GDP in three of the four quarters in 2022. And Peter said the Q4 drop could be the greatest yet.
So far as the petroleum reserves, Philip said we’re going to run out at some time next year.
“ And I think in California, by the time Biden finishes their first term, and ideally his only term, We bet you guys in California will be paying 10 dollars a gallon for gas. ”
Currently gas in California is just over $5 a gallon. People feel better mainly because earlier this year it was over $6 a gallon. Dan mentioned “ the new normal sucks. ”
Peter said that if he is right about the dollar going down, the cost of oil will go way upward.
“ We’ve had the benefit of a powerful dollar for the last year or two. So , if you thought inflation was bad this year, wait before you get a load of it the coming year when we have a weak buck. ”
Dan accurately pointed out that these price increases because of inflation are a tax . Peter said, “ definitely! ”
“ Every dollar that the government spends must be covered by the public, one way or another. There are two ways the government gets money from the public. One is honestly, through taxation, where it will take our money and then spends it. But the other way is dishonest. They just print money. They don’t tax us. They print money, and then they spend that into circulation. But when they actually that, the price of everything we all buy goes up. And so, rather than taking our money, they take our purchasing power. Each time you go to the supermarket plus you’re paying a higher price, you’re paying a tax. Those higher prices would be the cost of big government. As well as the more government spends, the higher prices are going to rise. ”
Peter and Dan wrapped in the discussion by talking about Biden’s attempt to forgive student loans. A court recently struck the plan down. Peter said that it really is hopefully dead in the water because it was a terrible decision.
“ It would cause tuition costs to rise much faster in the future compared to they had in the past. And all of it was going to be financed with the inflation tax. What we need is to end completely government’s involvement in education. No more guaranteed loans. No more direct financial loans. We need to get the government away from education so we can get the free market in, which will bring prices way lower and quality way upward. ”
Dan summed up the conversation.
“ Get the government out of every damn thing! ”