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Thursday, February 16, 2017

Inflation Finally Rears Its Head -- Peter Schiff

The Peter Schiff Show Podcast - Episode 228










Transcript : and leadership shows we had a very 0:09 significant day in the currency and gold 0:13 market yesterday in fact that almost 0:15 recording the podcast yesterday but 0:17 maybe it's even better today because we 0:19 had some good follow-through today and 0:22 it really buttresses the point that i 0:24 want to make and what happened was we 0:27 got some economic news that was released 0:30 yesterday that would have been 0:32 considered bullish for the dollar and 0:36 bearish four goals by most of the people 0:39 are pretty much all the people probably 0:41 other than me you know who trade 0:44 currencies and who trade gold but the 0:46 fact that gold did not sell off for the 0:50 dollars did not rally was very 0:52 significant now the news that we got was 0:55 the CPI and retail sales 0:58 first of all over retail sales that came 1:00 out the same time but retail sales came 1:02 out stronger than expected they were 1:04 looking for a gain of 2.1 and we gotta 1:08 gained 2.4 and they actually revised 1:10 prior months gain from up points62 up 1:13 one now a lot of the gain in retail 1:16 sales though has to do with the fact 1:18 that prices are higher because retail 1:21 sales are not adjusted for inflation so 1:23 if prices are going up that means retail 1:26 sales maybe going on particularly up 1:28 like you look at things for like 1:29 gasoline right 1:30 gas prices people by about the same 1:32 amount of gas whether the price goes up 1:34 or not and so gas prices go up then that 1:37 is going to contribute to higher retail 1:39 sales but it's not just the price of gas 1:40 is going up prices everything is going 1:43 up the CPI came out at the same time as 1:47 retail sales and that I think is the 1:49 bigger number we got a point six percent 1:53 rise in consumer prices that's versus 1:57 the point three percent that had been 1:59 expected and even the core right to take 2:02 out food and energy we were up point 2:04 three there versus an estimate point2 2:07 year-over-year CPI is now up to 2.5 2:12 first 2:13 now that's the official number obviously 2:15 prices are going up a lot faster than 2:18 that but according to the government 2:21 they're going up a 2.5% even if you take 2:23 out food and energy and just look at the 2:25 core year-over-year that changes 2:28 two-point-three percent now remember the 2:30 Fed is saying their target is two 2:32 percent and when Janet Yellen testified 2:35 this week she said that she's confident 2:37 that we're going to hit her objective 2:39 but we're already surpassed her 2:42 objective the objective is to and where 2:45 a two-and-a-half and if you just look at 2:46 the core where 2.3 and of course if you 2:49 take that six tenths of a percent gain 2:52 from january what if we have six ten 2:54 percent every year from now to the end 2:56 of the year and what is that eight 2:58 percent inflation i'm not even sure i 3:00 didn't i didn't do the math the 3:01 compounded but obviously that is a very 3:04 very high number now as a result of this 3:06 number bowling sacks which had earlier 3:09 in the week and I mentioned this my last 3:11 podcast had moved the probability of a 3:14 market rate hike from fifteen percent to 3:17 twenty percent based on Janet yellen's 3:19 testimony yesterday increase the 3:23 probability from twenty percent to 3:25 thirty percent based on the higher CP on 3:28 but based on a CPI numbers this high 3:31 with interest rates this low the 3:35 probability should be 100-percent the 3:38 Fed should raise interest rates for sure 3:40 if they really cared about inflation in 3:43 fact they wouldn't even wait to march 3:44 they would raise them right now they 3:46 would have raised of the day this number 3:48 came out and they need to raise by more 3:50 than a quarter point the fact is only 3:52 thirty percent probability of a 3:54 quarter-point rate ice when you just 3:56 printed a six tenths of a percent 3:58 increase in consumer prices in January 4:00 two-and-a-half percent your rear end the 4:03 fed still got interest rates and a half 4:04 percent to 75 basis point obviously all 4:08 the people who were talking about the 4:09 Fed potentially falling behind the curve 4:12 has missed the obvious fact that they 4:14 fell behind the curve years ago and this 4:17 is a big acceleration inflation but what 4:20 I said that was very important was the 4:21 market reaction the need your reaction 4:24 was exactly what you would expect gold 4:26 sold 4:27 off about pen box and the dollar index 4:29 rally big round the dollar index but the 4:33 rally in the dollar didn't hold the 4:36 dollar index closed negative on the day 4:38 and then it dumped today it was down 4:40 closer to a full percent or 70 and gold 4:44 which ended up rallying yesterday 4:46 rallied again today we closed out just 4:49 under 12 40 and announce for the price 4:52 of gold and when you have a market that 4:54 won't go up on good news 4:57 meaning inflate higher inflation and a 4:59 higher probability of a rate hike right 5:01 that is good news for the dollar and the 5:04 dollar didn't go off it went down and 5:06 then it went down even more today the 5:08 opposite with gol gold did not go down 5:12 on bad news higher inflation the way 5:15 everybody else other than me has been 5:16 spinning it is that tire inflation is 5:19 bad for gold because it means we're 5:21 going to get rate hikes and gold went 5:23 off so when a market doesn't go down on 5:27 bad news it's going up and when the 5:30 market doesn't go up on good news it's 5:33 going down so meaning the dollars going 5:35 down and goal is going up and what I 5:37 think people are finally going to figure 5:39 out is it doesn't matter if the Fed 5:42 hikes rate because it's too little too 5:45 late 5:46 inflation is accelerating faster than 5:49 the rate hikes and as long as this head 5:51 stays behind the curve it will fall 5:53 further and further behind the curve 5:55 because these tiny increases in interest 5:58 rates spread out over a month will not 6:00 do anything to slow down the 6:02 acceleration in the rate of inflation so 6:06 the set is going to fall further and 6:08 further behind the curve as it raises 6:11 rates and there's no way that I think 6:13 they're going to accelerate and actually 6:15 deliver more rate hikes to the market 6:17 expects because they don't want to have 6:19 to deal with the aftermath in the stock 6:21 market in the bond market and the 6:23 economy and also i think people are 6:25 gonna start to figure out that higher 6:27 inflation is bad for the dollar I mean 6:30 the idea that higher inflation is good 6:32 for the dollar is asinine 6:33 what is higher inflation it means the 6:36 dollar is losing purchasing power prices 6:39 are going up 6:40 so the dollar is buying left so 6:42 inflation is bad for the dollar because 6:45 it means the dollars losing value the 6:47 only way that traders were able to 6:50 concoct this crazy explanation was that 6:54 the higher inflation would result in an 6:57 effort on the part of the Fed to spite 7:00 the inflation to stop it right and it 7:02 would do that by aggressively raising 7:04 rates so that was the idea all we have 7:06 more inflation now the Fed really has to 7:08 raise raids to rein it in and it was the 7:11 higher rate that were causing people 7:13 want to buy the dollar but when people 7:15 realized that even if the Fed raises 7:16 rates it won't be enough to slow down 7:19 the acceleration of inflation and so 7:22 that the dollar will continue to lose 7:23 purchasing power despite the increase in 7:26 interest rates and even though interest 7:28 rates are rising they will still be 7:30 below the rate of inflation so interest 7:33 rates will still be negative 7:35 all of this is very negative for the 7:38 dollar is bearish for the dollar and it 7:40 is bullish for goal again the flip side 7:43 of this crazy argument was that higher 7:46 inflation was bad for gold that is 7:48 absurd higher inflation is exactly why 7:51 people want to own goal now if you 7:53 believe that Janet Yellen is going to 7:55 channel paul volcker and gold medieval 7:58 on the markets right jack interest rates 8:00 way up and fight inflation will then you 8:03 can make an argument that it could be 8:04 buried for gold but there isn't a 8:06 snowball's chance in hell that she's 8:08 going to do she is going to allow the 8:11 inflation to get worse just just watch 8:14 they're going to be talking about this 8:15 they're still going to be talking about 8:16 trying to achieve their objective of 2% 8:18 even though inflation is well above two 8:20 percent and then they're going to start 8:22 to say well you know it's only a month 8:24 so now it's only two months we need to 8:26 we need to make extra certain that this 8:28 trend is really going to stay because 8:30 we're worried you know what if we get 8:32 some lower numbers and then they're 8:34 going to start talking about well you 8:35 know we were below two percent for so 8:38 long we can be above two percent for a 8:40 while just to balance it out i mean how 8:42 is it going to go four five six seven 8:45 before that actually have to acknowledge 8:47 that they've got a problem 8:49 they're still in denial but this is just 8:51 early 8:51 what's happening in the markets now and 8:53 I think that these trends now up and 8:57 gold down a dollar are just going to 8:59 accelerate and it doesn't matter whether 9:02 or not the Fed raises rates in march or 9:04 not right because the probability of a 9:06 height went up and the dollar went down 9:08 and gold went up anyway so even if the 9:11 Fed hikes it's not going to matter and 9:13 of course what if they don't like what 9:14 if they don't raise rates and I think 9:17 what's really going to happen i've been 9:18 saying this all is this recovery this 9:21 phony recovery is going to end right and 9:25 we're gonna be back in an official 9:27 recession the unemployment rate is going 9:29 to move up 9:30 it's not going to stay down at this 9:32 low-level people are going to try to 9:34 re-enter the labor force there aren't 9:36 going to be job their unemployment going 9:38 to go up layoffs are coming and what is 9:41 the Fed gonna do is defend going to jack 9:44 up race in the face of a weakening 9:46 economy and rising unemployment 9:48 not a chance they have to decide right 9:50 they have to pick which battles are 9:51 going to fight and what is the 9:53 politically popular battle to fight 9:55 unemployment right a weekend economy 9:58 you're not going to say you know we 9:59 don't care about unemployment we don't 10:01 care about the economy we're just gonna 10:03 raise race because inflation is to us 10:05 they're never going to see that 10:06 especially since the Fed believe that 10:09 there's a trade-off they believe in the 10:10 Phillips curve they actually think that 10:13 allowing there to be more inflation is 10:15 going to help the job market they think 10:17 it's going to help the economy as far as 10:19 they're concerned insulation is the 10:21 goose that lays the golden eggs 10:23 so why do they want to kill it right 10:24 they don't understand the real dynamics 10:27 or to be said that they do the last 10:29 thing we're going to do is level with 10:30 the American public and especially with 10:34 the Trump administration and the 10:35 Republican Congress I mean they're not 10:38 going to want to take the punchbowl away 10:40 for the Republicans when they kept it 10:41 you know filled to the brim under the 10:44 Democrats I mean imagine the you know 10:46 what your reaction would be if Janet 10:49 Yellen tried to raise rates into a 10:51 weekend economy into arriving interest 10:54 rate I mean that would enable the 10:56 republicans are trumped to blame the 10:57 fence for the problems that all this is 10:59 all political you would never be doing 11:01 this 11:01 it was a Democrat it was Hillary Clinton 11:03 or Barack Obama was still there means 11:05 you provided all the stimulus and now 11:07 what 11:08 just because I'm here you're trying to 11:09 put the blame on me by x rays and rate 11:12 so there's no reason to think that the 11:15 Fed would respond to the higher interest 11:17 rates by raising rates aggressively but 11:19 if they did if the Fed did raise rates 11:22 aggressively we would be a massive 11:24 recession this stock market crash the 11:27 bond market will crash the real estate 11:29 market crashed we would be in another 11:31 financial crisis and then what is the 11:32 biggest nothing i mean they're just 11:34 going to let everybody collapse there's 11:36 gonna be no bail out the next time we 11:38 have a financial crisis there's going to 11:39 be no stimulus does anybody believe that 11:41 no so even if they raise rates they're 11:43 gonna have to take it all back because 11:45 now they're going to be in another 11:46 financial crisis meanwhile we continue 11:49 to see surging gold stocks nobody is 11:53 talking about i said this on my last 11:54 popcap it's not climbing the wall worry 11:57 its climbing a wall of security 11:59 nobody has even noticed that gold stocks 12:02 are climbing this wall which is 12:03 fantastic i mean we don't even have any 12:05 big up things I mean we just we just go 12:08 up although some of those stocks that 12:09 good attorney say barrick gold was up 12:11 about six percent today so is Goldcorp 12:13 up about six percent so a couple of gold 12:15 stocks had better than expected earnings 12:17 so they were up a lot more than the 12:19 group but in general just even if you 12:21 look at the gtx unique out another one 12:23 percent gain today the gdxj 12:26 one-and-a-half percent again you know 12:28 these up everyday get all the reports 12:31 are about the dowel the dow actually 12:34 manage the game again today 18 points i 12:36 guess it's another record closing of the 12:37 transports although actually they were 12:39 only down to about 80 they rallied to 12:40 the clothes they were down a hundred 12:42 most of the day I think there is a 12:44 batteries reported one of the car rental 12:46 companies which were down quite a bit 12:47 they were down about a hundred points 12:49 which you know that's going to get worse 12:51 because there's this auto bubble there's 12:53 going to be a collapse and used-car 12:54 prices and that's a big problem for 12:56 these rental car companies that have a 12:58 lot of cars that they need to sell so 13:00 weekday there and the financials finally 13:03 had a down day I mean they weren't down 13:04 the law but this is an accident waiting 13:07 to happen and financial but you know 13:09 they're going to talk about the stock 13:10 market all a new record high in the dow 13:12 they're not going to talk about what's 13:14 going on 13:14 in the gold stocks and they're not going 13:16 to talk about what's going on in 13:17 emerging markets 13:18 I mean there are emerging market stocks 13:19 that I own that are up twenty thirty 13:22 forty percent this year they're not even 13:23 gold stocks right that's just stock in 13:25 emerging market that is what's going on 13:28 right now outside the united states and 13:30 these stocks are coming from 13:32 ridiculously low prices so even though 13:34 they're up a lot even though they're up 13:36 so much more than the us-backed market I 13:38 think they still have a lot more upside 13:40 to go because there's still cheap I mean 13:42 we're just starting bull market in some 13:45 of these emerging markets we are ending 13:47 a bull market in the united states so 13:49 the upside potential is minimal in the 13:52 u.s. relative to the downside risk and I 13:55 think the only way the US stock market 13:56 does continue to rise if the dollar 13:58 continues to fall and so in real terms 14:01 the markets gonna go down and so people 14:03 are just going to be operating under the 14:04 delusion that their portfolios are 14:07 gaining value when they're actually 14:08 going to be using purchasing power the 14:10 real way to gain purchasing power is 14:12 going to be to invest internationally to 14:14 invest in a foreign country's foreign 14:16 markets the right sector and beanies 14:18 commodity stocks and again it's not just 14:20 gold all these commodities are going 14:21 higher as a dog goes down and that's 14:23 another reason why the emerging markets 14:25 are going to do well because a lot of 14:27 them are exporter's of commodities but 14:30 also a lot of these countries have 14:31 dollar-denominated debt and as the US 14:34 dollar fall that is a huge relief 14:37 it reduces the burden of servicing and 14:39 repaying these deaths so this these bull 14:41 markets are starting they're starting in 14:43 obscurity nobody's paying attention 14:45 they're all paying attention to the bull 14:46 market that that dying and they're not 14:49 paying attention to the new ones that 14:50 are being born also want to talk a 14:52 little bit about the second day of janet 14:55 yellen's testimony this time before the 14:57 house and a couple of very interesting 14:59 conversations took place one of them has 15:02 to do with labor force participation 15:03 finally somebody called her out on this 15:06 I mean she was out there saying well you 15:09 know the labor force participation rate 15:10 is down because of the retirement of the 15:13 baby boom we have an older population 15:15 and so that's why labor force 15:18 participation is out and I've been 15:19 saying for years when she was saying 15:22 this and when Bernanke was saying this 15:23 but they were pulled it because i know 15:26 that the one demographic 15:28 group where labor force participation is 15:30 rising is over 55 it's the older people 15:34 people in her seventies and eighties who 15:36 are working like never before 15:37 they're broke they can't afford to 15:39 retire the decline in labor force 15:42 participation is happening with people 15:44 in their twenties and thirties so that's 15:47 not because of retirement 15:48 these people are retiring everybody's 15:50 got started here they never got the 15:52 first job so Janet Yellen tried this BS 15:56 and this congressman called her out on 15:58 it and said exactly what i said only not 16:00 as strong he said wait a minute it's the 16:02 older people that are working more than 16:04 ever 16:05 so what you're saying isn't true he 16:06 pointed to some studying some academic 16:08 study that just came out of my get some 16:10 college was Harvard I forget where it 16:12 was or maybe was a maybe was up from a 16:15 newspaper but hey I didn't even need to 16:17 do it academic study I've been saying 16:19 this for years you don't need to wait 16:20 for that study mean maybe you know maybe 16:22 maybe he's a listen to the peter schiff 16:24 show over the years and knows about it 16:26 that way but she just glossed over it 16:29 she didn't even acknowledge that she was 16:31 wrong and then another congressman 16:33 pointed out to EP call around the same 16:35 thing and you know she didn't even go 16:38 back and correct herself she still 16:40 sticks to her her her script that the 16:44 fall in the labor force participation 16:46 rate is due to the baby boomers retiring 16:48 even though they're not retiring even 16:50 though they're working on in the highest 16:52 percentages ever is young people and 16:54 then she was even more clueless when she 16:57 was talking about household formation in 17:00 the real estate market and why young 17:03 people are not forming household and she 17:07 mentioned that this was you know a 17:08 problem that young people were living 17:10 with their parents and they weren't 17:12 going out and informing household they 17:15 weren't buying their own house and she 17:17 said that this was happening despite the 17:18 fact that unemployment is very low and 17:21 job growth is very high and so she 17:23 didn't have an explanation because she 17:26 was asking why is this happening and she 17:28 was like well you know we don't know and 17:30 you know and it's curious because it's 17:33 happening even though we have such low 17:35 unemployment and and you know all this 17:38 job growth 17:39 well she is completely clueless three 17:41 isn't the reason that the job growth and 17:45 the low unemployment are not helping 17:47 people move out from their parents 17:49 basement is because the job stink 17:51 these are low paying jobs these are 17:54 part-time jobs she just doesn't get that 17:56 she's scratching her head trying to 17:58 figure out why all these kids are still 18:01 living with her parents because there's 18:02 all these jobs that she not realize what 18:05 these jobs pay does she not realize how 18:07 many hours people actually get to work 18:09 and also a lot of these young kids are 18:12 buried under a mountain of student debt 18:13 whose fault is that government 18:15 encouraged them to take on all this debt 18:17 had made it easy by keeping rates low 18:19 and so that's another reason that young 18:22 people can move out of the house because 18:23 even if they have a job they're spending 18:25 all their money repaying their loans and 18:27 with what's left over they can't afford 18:29 the increasing the cost to rent which 18:31 may be Janet yellen's oblivious 22 18:33 because the CPI just focuses on over his 18:36 equipment which is some completely 18:38 nonsense number that means nothing 18:39 because owners you can actually pay 18:42 owners equivalent rent the actual rents 18:44 are going up but you know the Fed 18:45 doesn't acknowledge that because the way 18:47 to stack of the specifics but I thought 18:49 it was very interesting that she has no 18:51 idea why this is happening because she's 18:53 clueless and also she was asked a 18:57 question about why us productivity 18:59 growth is so slow and again she didn't 19:01 know course she doesn't know I mean it's 19:04 partially her fault but i think the Fed 19:06 is one of the main reason why 19:07 productivity is growing so slowly but 19:10 the Fed acknowledges it but they're 19:12 clueless as to why it happens and of 19:13 course some of these congressmen were 19:15 trying to say well couldn't it be that 19:16 one of the reasons that productivity 19:18 growth solo is because of all these 19:20 regulations and she didn't really want 19:22 to acknowledge that but then later she 19:24 said well she is concerned about the 19:26 cost of regulations and she would try to 19:28 help work to reduce that but she didn't 19:31 think that economic growth will be much 19:33 higher or even higher at all if we just 19:35 had fewer regulations which really 19:37 didn't want to make sense 19:38 I just don't think she wanted to 19:39 validate the deregulation that Trump is 19:42 talking about she didn't want to throw 19:44 Obama under the bus by trying to say 19:47 that we would have stronger economic 19:48 growth if we would have had less less 19:51 regulation but of course what nobody 19:53 bothered to point out 19:54 is that artificially low interest rates 19:58 are undermining our productivity because 20:00 we are diverting resources from real 20:03 capital investment because we're 20:04 discouraging actual savings and instead 20:07 we're fuelling speculative bubbles on 20:09 Wall Street and were propping up the 20:12 government were enabling the government 20:13 to keep on borrowing and spending if we 20:16 have higher interest rates the 20:18 government have to stop spending and 20:20 that would free up resources for actual 20:22 capital investment which would result in 20:25 higher productivity rising real wages 20:27 and higher standard with it 20:29 Janet Yellen is one of the main reasons 20:31 that we don't have a higher productivity 20:34 growth and she is clueless about that 20:36 just like she's cool as the fact that 20:38 these young people living at home even 20:41 though they have jobs the jobs don't pay 20:43 enough to afford to rent your own wrong 20:45 apartment 20:46 another important development on the 20:48 weak labor a sec party secretary nominee 20:52 Andrew buzzer and he is probably 20:55 probably the best the point right i 20:57 think that Trump came up with I mean 21:00 when it comes to the Labor Department I 21:01 mean next to just getting rid of the 21:03 department of labor which is what we 21:04 should do we should have won but to the 21:06 extent that we're going to have won a 21:08 guy like pleasure is exactly who you 21:10 need guys that actually employed people 21:12 right he is a CEO of the carl's jr. and 21:16 hardee's right they employ a lot of 21:17 people they apply a lot of those field 21:19 people they provide a lot of entry-level 21:21 jobs he understands the problem that 21:25 government is creating for workers when 21:28 they try to get jobs in fact he had been 21:30 very critical of the minimum wage law 21:33 which is the main reason that he 21:35 couldn't get nominated and he had to 21:37 pull out because you have a bunch of 21:38 gutless Republicans who are afraid to 21:41 confirm this guy because you know he's 21:44 against the minimum wage i hear all 21:46 these are left of you know congressmen 21:50 or senators think oh this is the worst 21:52 Labor Department nominee ever because 21:55 he's so anti-labor he's not anti-labor 21:58 he is pro-labor the minimum wage law 22:02 that's anti-labor what does the minimum 22:05 wage law do it says to worker 22:08 there is a minimum price at which you 22:10 are legally allowed to sell your labor 22:12 it limits workers and their ability to 22:14 sell the only asset they have their own 22:17 labor and so the minimum wage is is 725 22:21 right what the government says is you 22:23 need to convince somebody to hire you 22:26 for at least 7 25 which means you need 22:28 to be able to deliver seven dollars and 22:31 twenty-five cents worth of productivity 22:32 before will let you sell your labor so 22:35 if you can only deliver five dollars 22:37 worth of productivity you can't get a 22:40 job 22:40 you cannot sell your labor for five 22:42 dollars an hour you have to get 725 an 22:45 hour and if they raise that to ten 22:46 dollars an hour or fifteen dollars an 22:48 hour if the government says you can't 22:50 sell your labor unless you can get 22:52 fifteen dollars an hour that's going to 22:54 price a lot of people out of jobs a lot 22:56 of workers will be unable to sell their 22:59 labor because they don't have enough 23:01 productivity they cannot create enough 23:02 value for an employer to get fifteen 23:05 dollars an hour maybe they can maybe 23:07 they have enough value to get five 23:09 dollars an hour but the governor's no 23:11 you can't do that and that is terrible 23:13 for labor because if my productivity is 23:16 only work five dollars an hour 23:18 what do i need i need a job so I can 23:21 increase my productivity I need to make 23:24 myself more valuable to employers and 23:26 you know how you do that you get a job 23:28 any job regardless of how low it paid 23:31 because where'd you get skills is on the 23:34 job the way you make yourself more 23:36 valuable to your employer is by working 23:38 for your employer and learning on the 23:40 job learning the skill learning the 23:42 responsibilities and then you can earn 23:44 more money but if the government makes 23:45 that illegal then you're never gonna do 23:48 that 23:48 so Andrew pleasanter actually understood 23:51 this 23:52 he understood he would have been the 23:53 best friend that labor could have had 23:56 because he feels their paint he 23:57 understands the source of their pain is 23:59 government so he wasn't anti-labor he 24:02 was pro-labor now you can say is the 24:04 anti Big Labor organized labor 24:07 yes right labor unions love the minimum 24:09 wage because it keeps out low-skilled 24:12 competition right so yes Big Labor 24:14 organized labor that represent people 24:17 that make three or four times and then 24:18 wait right people working for these 24:20 labor use 24:21 get twenty twenty-five thirty dollars an 24:22 hour yes they love the minimum wage 24:24 right but average workers average people 24:28 who don't have jobs the minimum wage is 24:30 the biggest reason they don't have them 24:32 and so Andrew cluster would have been 24:35 probably the first labor secretary who 24:36 actually couldn't work to the benefit of 24:39 Labor like what benefits labor more job 24:42 right 24:43 how do you create jobs stop punishing 24:46 people for hiring people stop you know i 24:49 said it's all the time that the worst 24:50 thing you can do an American hire 24:51 somebody the minute you start employing 24:53 people you're public enemy number one 24:54 there's all sorts of regulations aimed 24:57 against you there's all sorts of ways 24:59 you can get fine you can get sued right 25:02 so we make it we created incentive not 25:04 to hire people or if you're going to 25:07 hire people hire a few people as you can 25:09 possibly get away with try to outsource 25:11 right so what positive might have done 25:14 is recognize all the problems that 25:15 governs created for labor and try to 25:19 mitigate that damage but now it's not 25:21 going to happen because too many 25:23 Republicans were afraid to go back to 25:25 their constituents and say I voted for 25:27 guidance against them in ways i know 25:29 there was also something about siata a 25:32 nanny that might have been illegal I 25:34 mean that's I mean that's happened a lot 25:35 of people and some of them have been 25:36 approved and I guess he had to pay some 25:38 back taxes on on that but that's not the 25:41 real issue the real issue is the fact 25:43 that he had the guts to tell the truth 25:46 about the damage that the minimum wage 25:48 law does and because so many politicians 25:51 don't have the guts to stand up for the 25:53 truth when it comes to their 25:54 constituents he's not going to be the 25:56 labor second final fought on on this 26:00 week the IRS following Donald Trump's I 26:04 guess executive order to kind of 26:06 minimize the burden of the Affordable 26:09 Care Act otherwise known as Obamacare 26:11 the IRS says now that they're not going 26:15 to be requiring people who fill out 26:17 their tax returns to fill out the 26:19 question as to whether or not i have 26:20 insurance and if they don't have to pay 26:23 the penalty so basically the penalty tax 26:26 whatever you want to call it is not 26:28 going to be enforced so now you have an 26:30 even greater incentive not to buy health 26:33 insurance because remember I 26:34 this from the beginning that for most 26:37 young people paying the penalty tax is 26:40 cheaper than buying the insurance which 26:42 is the only reason the Supreme Court 26:44 held constitutional they said hey the 26:47 taxes so low that it's not really 26:49 forcing anybody to do anything because 26:51 he just you know you would just pay the 26:52 tax or the penalty instead of buying 26:55 insurance because what's the point of 26:58 buying insurance if you're healthy now 26:59 that insurance companies can't 27:01 discriminate based on pre-existing 27:02 conditions 27:03 you'd be an idiot if you're young if you 27:05 went out and bought insurance because 27:07 you're probably not going to get sick 27:08 and if you do get sick while it doesn't 27:10 matter because you can go get your 27:12 insurance askin fact because they can't 27:14 discriminate against you for 27:15 pre-existing condition just like nobody 27:18 would buy auto insurance if they said 27:21 Otto's auto companies have to give you 27:23 insurance regardless of whether or not 27:25 you know for accidents have already 27:26 taken place the bike and call up and say 27:28 hey my car was just in a wreck I'd like 27:30 to buy your insurance policy I mean why 27:32 would i buy an advanced same thing with 27:34 my fire insurance if its insurance 27:36 companies casualty company couldn't 27:38 discriminate based on a pre-existing 27:39 condition 27:40 well then the fact that my house already 27:42 burnt down couldn't prevent me from 27:44 buying fire insurance so why buy it in 27:46 advance I mean what's the odds of my 27:48 house burning down it's probably not 27:49 going to burn down so why waste my money 27:51 paying all that premium when I could 27:53 just go and buy the policy after the 27:55 fact 27:55 well of course if you could do that 27:56 nobody would buy fire insurance and so 27:59 there wouldn't be any fire insurance 28:00 company the reason that health insurance 28:02 companies can exist is because a bunch 28:04 of healthy people pay premiums and they 28:06 don't need the money because they don't 28:08 get sick that's the only reason that the 28:10 six you get paid is because they're 28:11 helping people pay in and don't draw out 28:14 but you know what Obamacare does is it 28:17 says hey if you're healthy don't pee in 28:18 your you know now they tried to convince 28:20 you to pay in with a penalty but the 28:22 penalty was too low and now the penalty 28:24 is zero and so what this is obviously 28:26 going to do is accelerate the demise of 28:28 Obamacare because now is more healthy 28:30 people decide not to not to buy the 28:32 insurance because now there's no penalty 28:33 at all now fewer people are going to buy 28:37 insurance and they're all going to be 28:39 sick and so now the cost of insurance is 28:41 going to gonna rise even faster now than 28:43 it was before and that's going to cause 28:45 even more people not to want to 28:47 quiet and it's just against the spiral 28:49 out of control and everything is just 28:51 going to get a lot worse and of course 28:54 the insurance companies mean this gate 28:56 they could be driven into bankruptcy it 28:58 is as if this happened i know they have 28:59 been making money before from Obamacare 29:01 but you know ultimately they're gonna 29:04 fail if this continues but of course you 29:06 know Trump they're talking about we're 29:08 going to repeal and replace Obamacare 29:10 it's a replacement part that I think is 29:12 the problem because if they had simply 29:14 been talking about repealing it they 29:16 could repeal it but they can't replace 29:19 it because that people expect something 29:20 for nothing 29:21 nobody expected to replace it with the 29:24 free market the Republicans and Donald 29:28 Trump have got people to expect that the 29:31 replacement will be better in that it 29:33 will provide even more free health care 29:35 for even less money and that's 29:37 impossible to be costly can't replace it 29:40 they never repeal it but they just knock 29:42 the legs out from under it so this whole 29:44 thing is going to collapse even quicker 29:45 than it would have had you know had that 29:48 the IRS not come out with this with this 29:51 ruling today's financial advisors behave 29:58 like Pro Wrestling TV commentators they 30:00 scream that the recovery is strong that 30:02 is manageable inflation is low and that 30:04 the federal reserve has everything under 30:06 control they may be oblivious but the 30:08 danger is real 30:09 looking beyond the media hype can over 30:11 the world of broader investing ideas 30:12 euro pacific capital is a registered 30:15 investment advisor that offers stock 30:17 focused wealth management services that 30:18 closely follow the strategy of our 30:20 founder and CEO peter schiff we 30:22 concentrate on those countries that are 30:24 more closely into Peters vision of how 30:26 capitalism is supposed to work in these 30:28 investments are not hard to find 30:29 provided you know where to look 30:31 isn't it time you change the channel and 30:33 let euro pacific put a little reality 30:35 back into your portfolio if you live in 30:37 the United States and $25,000 or more to 30:40 invest call 877 7922 that 800 7277 9229 30:46 us residents access similar strategies 30:48 to euro pacific bank at euro pack 30:50 bank.com euro pacific capital and your 30:53 Pacific Bank or affiliated companies 30:55 hi 30:55 this is peter schiff and laws before 30:57 foreign governments were buying gold 30:59 urge my clients to put five to ten 31:01 percent of their portfolios into 31:03 physical precious metals despite goals 31:05 massive rise over the last decade i 31:08 still think that a five to ten percent 31:10 allocation to gold and silver is a smart 31:12 investment decision but buyers have to 31:15 beware big TV gold dealers push all 31:18 sorts of coins that are poor investments 31:20 bait-and-switch deals price protection 31:22 guarantees leverage gold accounts these 31:26 are just a few of the sleazy tactics 31:28 used to swindle inexperienced gold 31:31 buyers my gold company is different we 31:34 never offer a point or bar unless I 31:36 consider it to be a good 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