Peter's Blog

Gold Is One of the Best Performing Assets of 2022

Given historically high inflation, why haven’t we seen a big rally in gold and silver? There are a number of factors that have weighed on precious metals, but as the World Gold Council points out, it’s important to put gold and silver’s recent price movements in a broader perspective. In fact, gold has been one […]

Feelings Trump Economics: Price Gouging Edition

Hurricane Ian is taking aim at Florida. That means there is already talk of “price gouging.” People have a visceral emotional reaction to people raising prices during a disaster. But it is nothing but feelz. In fact, “price gouging” serves an important economic function. Not allowing prices to rise actually causes more harm.

Fed Policy in a Nutshell: Live in Hope; Die in Despair

During his post- FOMC meeting press conference, Federal Reserve Chairman Jerome Powell said, “Hope for the best; plan for the worst.” I think he meant, “Live in hope; die in despair.”

Retail Sales Headline Reveals Mainstream Cluelessness About Inflation

When it comes to the economy, inflation, and the Federal Reserve, the mainstream just doesn’t get it. This headline from Fox Business reveals the level of confusion. “Retail sales unexpectedly edge higher in August despite soaring inflation” [Emphasis added]

A “Silver” Lining in the Metals Market: Silver Rally Could Bode Well for Both Gold and Silver

While gold dropped last week, silver rallied. Peter Schiff called it a “silver lining” that could indicate we’re near the bottom in the precious metals dip. Gold and silver have sold off with every inflation surprise to the upside. The markets think persistent inflation means the Fed will get even more aggressive with rate hikes. […]

The Dirty Little Secret: SchiffGold Friday Gold Wrap Sept. 16, 2022

We got the August CPI data this week and it came in hotter than expected. Stocks suffered a big selloff. Everybody is betting on the Fed to get even more aggressive in its inflation fight. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey breaks down the data and exposes a dirty […]

The CPI Is Not Cooling and That’s a Big Problem for the Fed

The August Consumer Price Index surprised to the upside, ramping up expectations for another aggressive Federal Reserve rate hike. It also reveals a big problem for the Fed that most people haven’t come to grips with yet.

The Fed Is About to Start Losing Money; What Does That Mean?

What happens if the Federal Reserve loses money? The Fed typically earns interest income from all of the bonds it holds on its balance sheet. It also collects fees for services that it provides. Most of any Fed operating profit is remitted to the US Treasury under federal law. That money becomes part of the […]

Fed Paper Admits the Central Bank Can’t Control Inflation; Finger-Points at Federal Government

It appears somebody at the Federal Reserve has figured out that the central bank can’t tame inflation, so it’s setting up a scapegoat – Uncle Sam. A paper co-authored by Leonardo Melosi of the Federal Reserve Bank of Chicago and John Hopkins University economist Francesco Bianchi and published by the Kansas City Federal Reserve argues that […]

Biden Student Loan Forgiveness Scheme Fixes Nothing

President Joe Biden recently announced a student loan forgiveness program. While it will provide some people a small amount of relief from student loan debt, this $300 billion taxpayer-funded scheme does nothing to address the underlying problem. In fact, it will exacerbate it. The underlying problem is the high cost of a college education.