Peter's Blog

US Government Kicks Off 2020 With Another Big Deficit

The US government posted another massive deficit to start out calendar-year 2020. According to the latest data released by the US Treasury Department, Uncle Sam spent $32.6 billion more than it took in last month. That compares with an $8.7 billion surplus in January 2019. Analysts had projected an $11.5 billion shortfall in January.

Whether You Call It QE or Not the Fed Is Monetizing the US Debt

Last October, the Federal Reserve relaunched quantitative easing. Of course, Fed Chairman Jerome Powell insists it’s not quantitative easing. But as Peter Schiff pointed out in a recent tweet, that debate is really just semantics. The argument over whether the current Fed balance sheet expansion constitutes QE is pointless. QE was always just a euphemism […]

CBO: Massive Budget Deficits Pose “Significant Risk” to Economy

The CBO projects the federal government will run massive budget deficits into the foreseeable future and says the ballooning national debt poses “significant risk” to the economy and financial system. According to the CBO, the federal budget shortfall will hit $1.02 trillion in FY 2020 and rise into the foreseeable future. Deficits will average $1.3 […]

Deal or No Deal? SchiffGold Friday Gold Wrap Jan. 17, 2020

Donald Trump and Chinese Vice Premier Liu inked their signatures on the Phase 1 trade deal this week. But was it really a big deal? Or was it no deal? Mike Maharrey talks about it on this week’s Friday Gold Wrap podcast. He also talks about why the gold market seems to be holding steady […]

Spending Us Into Oblivion: Federal Budget Deficit Tops $1 Trillion in 2019 Calendar Year

The US federal government ran a budget deficit of over $1 trillion in the 2019 calendar year. It was the first budget deficit over $1 trillion in any calendar year since 2012 — in the midst of the Great Recession. The budget shortfall from January through December totaled $1.02 trillion, according to the latest report issued […]

Peak Irony: Fed Paper Admits Fed Policy Can Lead to Economic Ruin

A paper  by Scott A. Wolla and Kaitlyn Frerking for the Federal Reserve Bank of St. Louis warns that the Fed’s own policy could lead to “economic ruin.” The paper titled “Making Sense of National Debt” explains the pros and cons of national borrowing in typical Keynesian fashion. In a nutshell, a little debt is […]

Peter Schiff: It’s the Fed’s Fault!

Jerome Powell lectured Congress about the national debt last week, calling it unsustainable. The Federal Reserve chairman is concerned. He admitted that with interest rates already close to zero, the central bank has very little room to cut rates in the event of an economic downturn. Peter Schiff appeared on the Claman Countdown, along with […]

J. Powell Goes to Congress: SchiffGold Friday Gold Wrap Nov. 15, 2019

There was more optimism about a trade deal this week. There was also more pessimism about a trade deal this week. Markets reacted accordingly. But there was some other interesting news out there. Jerome Powell lectured Congress about the national debt and last month’s inflation data came in hotter than expected. Host Mike Maharrey covers […]

The Federal Government Spending Is Even Worse Than Advertised

Uncle Sam is spending money far faster than he’s taking in. The US federal government ran the biggest budget deficit in seven years in fiscal 2019, according to the Treasury Department. And the spending is even worse than advertised. The $984 billion deficit amounts to 4.7 percent of GDP. That’s the highest percentage since 2012. […]

2019 Federal Budget Deficit Was the Biggest in Seven Years

When is a $984 billion budget deficit good news? When you thought you might get a $1 trillion budget deficit. The Treasury Department released the fiscal year 2019 budget numbers on Friday. The budget shortfall came in at $984 billion right on the CBO estimate. A CNBC report said this would likely, “come as a […]