GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

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 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 investment 31:39 I want my customers to be educated 31:41 that's why i'm offering you a free 31:42 research report exposing the biggest 31:45 scams and rip off in the industry 31:47 download my report classic gold scams 31:50 and how to avoid getting ripped off for 31:52 free at gold scams dot-com this report 31:56 tells you everything you need to know 31:58 about how to avoid losing thousands of 32:00 dollars with scan bowl dealers it even 32:03 tells you how to tell if a salesman is 32:05 lying to you on the phone this is a must 32:08 read for anyone considering a gold or 32:10 silver investment download this free 32:12 report today at gold scams dot-com 32:15 that's gold scams dot-com

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