5 MINS AGO! Peter Schiff: 'Something MUCH WORSE Than A Recession Is COMING'

5 MINS AGO! Peter Schiff: "Something MUCH WORSE Than A Recession Is COMING"

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The U.S. economy suffered an unexpected setback in July as hiring fell sharply and the unemployment rate rose for the fourth straight month, with raised interest rates taking a toll on businesses and households. Employers added just 114,000 jobs in July — 35% fewer than expected — and unemployment, now at 4.3%, is the highest since October 2021, the Labor Department reported Friday. Hourly wages rose just 3.6% from July 2023, the smallest year-over-year gain since May 2021 and another sign that inflation could be heading closer to the Fed's target.
Economist Peter Schiff warns that we are currently experiencing a historically weak labor market with a high unemployment rate, accompanied by elevated inflation, especially when measured using methods from the 1970s. Schiff believes that the government will ignore inflation and attempt to stimulate the economy and create jobs. However, by creating inflation, these efforts will backfire, harming the economy and destroying jobs while worsening inflation.
The increase in the unemployment rate from 4.1% in June marked the fourth straight monthly increase. Its rise from a five-decade low of 3.4% in April 2023 to now the highest level since September 2021 all but guarantees a September interest rate cut from the Federal Reserve, with economists calling for a 50 basis point reduction in borrowing costs. The sharp slowdown in the labor market had been flagged for a while in sentiment surveys, and a rise in the number of people on unemployment benefits.
Schiff highlights that the birth-death model assumed 256,000 jobs were created by businesses that supposedly started up, even though these businesses' existence is not confirmed. This assumption significantly inflates the total job creation number. Schiff questions the logic behind this, noting that if existing businesses are barely hiring or laying off employees, it's unlikely that many new companies are starting up and hiring in large numbers within the same month.
Federal Reserve Chair Jerome Powell said on Wednesday that interest rates could be cut as soon as September if the U.S. economy follows its expected path, putting the central bank near the end of a more than two-year battle against inflation but square in the middle of the nation's presidential election campaign. The Fed chief, in response to a question from a reporter on Wednesday, said the central bank's only consideration was the state and direction of the economy and the progress of inflation back to its 2% annual target, not the political calendar or any party's fortunes.
Peter Schiff finds the most interesting aspect of the recent press conference wasn't what was said but what was omitted. There was no mention of the national debt, which had just surpassed $35 trillion a few days prior. Schiff also notes that regardless of the outcome of the next election, the incoming president is likely to break the previous administration's debt record. This is because the U.S. is on the verge of a debt crisis, a topic that was conspicuously absent from the press conference.

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[Fxceless]

The messed up part is the people trying to warn you of the truth have all been discredited by the "credited."

[michaelcorbintCorbin-vd]

I think we just need to breathe and sit back and watch, you have to consider there are those unemployed in the world not getting unemployment or reporting it so its actually higher than 🎉

[sawtoothbygeorge]

I do not think any "small" business can compete with the giants. The small business just has no buying power for products.

[ericktippett]

What about AI to confirm Fed data? They are said to be using it now, according to some commentary!

[UniversalSovereignCitizen]

We're all gonna die...
In Ferdy seconds?
TRULY !!!

[MadhumitaRoy-il]

No works
Minimum cost to paid by works
Itne level is minimum
Totally no works
Totally organisations is wher is gone
situation is now what is ?
Organisations are not workings
If organisations are main to controllings overall then it's powrs of who takes

[Phil-su]

Recessions suck but people r talking about every recession we go through like it's gnna be the next great depression.

[Pimp-Master]

So this is an edited version of what he just posted this week, minus the soft talk about his own problems that are endless with Puerto Rico

[RobertSinclair-xiub]

I'm 62 and Canadian. I'm thinking in 2025.