Peter's Blog

“Silver Isn’t Scarce” and Other Myths

A commenter on the SchiffGold Facebook page recently asserted that silver coins are “junk.” Why? Because as he put it, “silver is not rare,” and, “The silver/gold ratio investment premise is obsolete in this industrial, computerized and AI world.” What should we make of these assertions?

CPI Spiked Again in August Throwing Cold Water on Disinflation Narrative

About that disinflation… It was transitory. As we predicted, a jump in gasoline prices helped drive the August Consumer Price Index (CPI) higher, throwing cold water on the disinflation narrative.

The Federal Reserve Is Losing Money and You’re Going to Foot the Bill

The Federal Reserve is losing money. That means the American taxpayer is losing money. In most instances, a business bleeding red ink has a big problem and could ultimately go under. Not so for the Fed. In fact, losing money isn’t a problem for the central bank at all. But it is a big problem […]

Say’s Law Says It All

As the world descends into a much-heralded recession, the surprise will be that interest rates will continue to rise as economic activity contracts. This is not what the economic establishment expects. This article puts the outlook in the context of classical economic theory, when it was the principles behind the division of labour which went […]

Pain at the Pump: Rising Gasoline Prices Undermine Disinflation Narrative

Falling energy prices were a significant factor in the big decline in the Consumer Price Index (CPI) earlier this year. Bad news: energy prices are now heading up. That means the CPI relief was almost certainly transitory.

A Brief History of the Gold Standard

As evidence mounts that the major Western economies are heading into a banking and monetary crisis due to contracting credit, we face the consequences of unsound money. The era of fiat is drawing to a close and its death will be painful for the highly indebted advanced economies in North America, Europe, and Japan. History […]

We Don’t Need Better Government Policies for Workers; We Need Better Money

Labor Day is coming up. That means we will hear a lot about the plight of American workers. And we will undoubtedly hear calls for new policies to help make their lives better. But we don’t really need more government policies to help workers. We need better money.

Ten Reasons to Doubt the Possibility of a “Soft Landing”

There is a growing consensus that the Federal Reserve can slay price inflation while guiding the economy to a “soft landing.” In fact, Fed economists now project the US economy will not spin into a recession. Other mainstream pundits and prognosticators have taken up this narrative. But there are plenty of reasons to doubt it.

Banning “Price Gouging” Hurts More Than It Helps

Gov. Ron DeSantis issued a state of emergency for 33 Florida counties on Saturday in anticipation of Hurricane Idalia, thus activating one of the most misguided and counterproductive economic policies imaginable. Yes, with the sweep of his pen, DeSantis banned “price gouging.”

Americans Have Nearly Depleted Their Excess Savings

One of the reasons Americans were able to continue spending even as price inflation raged was they saved a lot of money during the pandemic lockdowns. But those savings are nearly depleted, according to a study released by the Federal Reserve Bank of San Francisco. Aggregate savings peaked at $2.1 trillion in August 2021. As […]