Wall Street mogul Peter Schiff (Peter Schiff) warned that high inflation will make a comeback and that the Federal Reserve will need to raise interest rates drastically. He also said that gold investors are buying gold because they know inflation will continue.
Peter Schiff, CEO and chief global strategist at Euro Pacific Asset Management (EuroPacific Asset Management), reiterated his concerns about the US economy, warning that high inflation could return and that the Federal Reserve needed to take aggressive action. Schiff also criticized JPMorgan CEO Jamie Dimon (Jamie Dimon) for whitewashing the seriousness of the US economic situation. However, he acknowledged that Damon's views “are closer to being correct than most other Wall Street CEOs.”
Economist and gold bully Schiff wrote on social media X on Tuesday (April 9): “I just woke up to find that the price of gold had risen by more than $26, reaching a record high of more than $2,364/oz.”
He added, “When will Wall Street finally wake up? It not only notes that the price of gold has reached a record high, but it also warns that high inflation will make a comeback and that a sharp increase in interest rates is necessary.”
In response to the recent surge in gold, Schiff explained on Monday: “Gold investors understand this. They know that inflation will continue and that the timing of interest rate cuts is irrelevant, so they buy gold as soon as they hear the news.” Investors often see gold as a way to hedge against the risk of inflation.
In contrast, Schiff warned: “Gold stock investors, on the other hand, still don't understand what's happening. They trust the Federal Reserve and are always worried that the price of gold is about to collapse.”
On Monday, Schiff also objected to J.P. Morgan Chase CEO Dimon's recent comments on the state of the US economy.
In an annual letter to shareholders, Dimon wrote, “Massive government deficit spending and past stimulus measures have boosted economic growth. As we continue to transition to a green economy, restructure global supply chains, increase military spending, and cope with rising health care costs, there is also a growing need to increase spending. This could lead to more stubborn inflation and higher interest rates than market expectations.” The J.P. Morgan Chase boss also stated, “We are probably entering one of the most dangerous geopolitical eras since World War II.”
While admitting that “Jamie Dimon is closer to being right than most other Wall Street CEOs,” Schiff notes, “He's actually whitewashing the problem. If he deliberately underestimates how well he knows the problem, then the situation is far worse than he thought or publicly revealed.”
Peter Schiff also recently warned that something important is happening, but few investors are prepared for it. “More importantly, governments and central banks are also unprepared for this,” he stressed. Schiff explained that the Fed's interest rate cut would worsen the inflation problem.
Schiff wrote on March 31: “It is very rare for the price of gold to rise above $30. What's even rarer is that the price of gold showed this trend without news.” Spot gold prices surged 38 US dollars at the close of trading on March 28.
“Something major is happening, but few investors are ready,” Schiff warned. More importantly, governments and central banks are unprepared for it. It would be interesting to see commodity prices skyrocketing while the Federal Reserve continues to claim that inflation is still slipping towards 2% and that interest rate cuts are imminent. When will Wall Street or the financial media finally uncover this nonsense?”
Schiff has issued warnings about the US economy many times. In December of last year, he said, “The biggest surprise in 2024 will not only be the economy falling into recession, but also a resurgence of high inflation.”
Schiff also warned: “The dollar is on the verge of a historic collapse. This will change the rules of the game for the Federal Reserve and the US economy, as it will cause inflation, interest rates, and unemployment to soar. Forget about soft landings. This is burnt down with jade.”
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