Peter Schiff

But they announced, you know, they were doing quantitative tightening, right?

They were shrinking their balance sheet because the balance sheet blew up, you know, after the financial crisis and then after COVID.

And so the Fed was reducing, shrinking the balance sheet.

And they stopped in December, just this month.

But now they restarted expanding it again.

They're now printing money to buy up treasuries in order to suppress interest rates.

But the underlying problem with the US economy has been for decades now, interest rates are too low, right?

Everybody says, oh, we need lower interest rates.

We need lower interest rates.

We actually need higher interest rates.

The reason our economy is so screwed up is because interest rates have been too low.

That's why nobody saves because you don't have a return on savings and everybody is going into debt.

We have record debt in the government, record debt in the corporate sector, record debt in households, all because the Fed has kept interest rates too low.

And they've done that to keep this bubble economy going.

In fact, that's the real reason when the Fed started hiking rates, the reason it stopped hiking rates wasn't because they finished the job and they beat inflation.

It was because the banks started to fail.

You had several banks that went under because of higher rates, which was another thing that I predicted, just like I predicted the 2008 financial crisis.

I predicted that the Fed was set so in the stage of another crisis by keeping interest rates so low because the banks were loading up on low yielding long term mortgages and government debt.

And everybody thought this was great.

You know, people can go out and borrow, buy a house and they can borrow money at three and four percent.