According to Peter Schiff, the chief global strategist at Euro Pacific Capital, it was a “huge mistake” for the Federal Reserve to cut interest rates last month. “They never should have taken rates to zero in 2008 and held them there for 7 years,”Peter Schiff told Russian TV RT. “Zero interest rates and quantitative easing have created problems in our economy that will take generations to fix. However, the healing will never get underway if the Fed goes right back to zero which is where they are headed.” “the Fed is not causing the recession; they are just unable to delay it any longer.” Peter Schiff Addded . Hard to not like Schiff, and see his logic. it was a “fraud and a crime” for the Federal Reserve to cut interest rates last month. Schiff is right, he is just pointing out that we’re all poorer, working longer and still don’t have enough to satisfy Shylock. In reality the debt will never be paid off without massive QE4. And everyone knows that. The national debt continues to raise by over a trillion every year. This is nothing other than Modern Monetary Theory by stealth . Of course Quantitative easing , Zero interest-rate policy and Negative Interest Rate Policy are a joke. Of course rates should have been raised during Obama’s presidency. The only thing Zero interest-rate policy and Negative Interest Rate Policy allows is more Consolidation. Everyone should know that by now.
There is no doubt the US economy is heading toward recession, per Peter Schiff, chief international contriver at monetary unit Pacific Capital. He says it had been a “huge mistake” for the Fed to chop interest rates last month.
“They ne’er ought to have taken rates to zero in 2008 and control them there for seven years,” the veteran broker told RT. “Zero interest rates and quantitative easing have created issues in our economy which will take generations to mend. However, the healing can ne’er get current if the Fed goes right back to zero (which is wherever they’re headed).”
According to Schiff, it’s not possible to create a viable economy on the rear of unnaturally low interest rates. “All it accomplishes it to push up quality costs, making bubbles and malinvestments that hurt the economy. looking forward to low interest rates for growth makes it sure that recessions can prove once financial policy tightens.”
For years, the enlargement has been burning by unnaturally low interest rates, however “the party is finally returning to Associate in Nursing finish.” Runaway government debt and therefore the Trump tariffs provided the ultimate push to tip US back toward Associate in Nursing inevitable recession, Schiff same.