CNBC Admits Peter Schiff Was Right (Video)

by SchiffGold 4

Last month, Peter Schiff told CNBC the US stock market would fall dramatically if the Federal Reserve hiked rates. That is exactly what has happened in the new year, and when CNBC spoke with Peter yesterday they admitted his prediction had been right. However, they were still skeptical of Peter’s forecast of the economy sliding back into a recession. Notice how Peter’s favorite rival, Scott Nations, kept his mouth shut through the entire interview. Peter noted: “The expression on his face is priceless. I did not even know he was there.” Review their rivalry here.

The markets are going to drop until the Fed changes the game. When is the Fed going to take away the rate hikes? When are they going to cut? When are they going to launch QE4? That’s the only thing that’s going to put a floor beneath the market, because the economy is going into recession.”

Highlights from the interview:

“I don’t think what’s happening in China is the reason for the market decline. I think the reason the market is going down is because the Fed pricked the bubble, the Fed raised rates. You can claim one of the reasons the Chinese market is selling off is because of what the Fed did. All of these problems are emanating from the Fed. Yet we’re trying to rationalize it by trying to pretend that what’s happening in the US stock market has to do with factors beyond our control. I think that is a way to rationalize what’s happening so people can continue with this narrative that everything is fine, that we have a legitimate recovery, that the Fed can continue to raise interest rates, and everything is going to be great. All we had is a bubble. All the problems that everybody believes were solved were actually exacerbated during the seven years of zero-percent interest rates and quantitative easing. Now the Great Recession of 2008 is going to resume in earnest…

“What’s happening in China – they’re having pressure on their currency, the yuan, because many other currencies have already dropped in anticipation of all these rate hikes that are never going to materialize. So it’s the weakness in the yuan that’s causing the capital flight from the Chinese markets. But all of that is based on the Fed raising rates and the erroneous belief that a lot more rate hikes are going to follow; this is going to be some sort of normal tightening cycle. It’s not…

“The markets are going to drop until the Fed changes the game. When is the Fed going to take away the rate hikes? When are they going to cut? When are they going to launch QE4? That’s the only thing that’s going to put a floor beneath the market, because the economy is going into recession. Corporate earnings are going to continue to fall. Why should the market not go up? The entire reason the market rallied was based on the Fed. They’ll even admit this. They deliberately engineered a stock market rally to create a wealth effect. Well that phony rally cause the economy to do things that it shouldn’t have done. People behaved in ways they shouldn’t have behaved had they not had all this phony wealth. Now that that phony wealth is disappearing, we have to basically correct all the damage…

“I’m still invested. I’m just not invested in the US. Obviously, the strength of the dollar is hurting the value of all of my international investments. But I am waiting for the Fed to capitulate; for the Fed to admit that the economy is weaker than they believed and that they are going to do more stimulus. I believe that is going to be very good for the foreign investments that I’m holding.

“Yes, I do hold gold. Gold has risen somewhat since the Fed hike rates, but it really hasn’t risen that substantially, because people still believe in the myth of this recovery. They still believe the US economy is the cleanest dirty shirt in the hamper…”

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