Peter Schiff – St Valentines’ Day Massacre – Deficit Time Bomb

Well maybe not a massacre today but it’s coming.

The deficit is going to blow up this economy.

Dollar is going to get slaughtered in the days ahead.

Bond Market is going to get slaughtered.

Donald Trumps’b budget is going to blow up the deficit and drive the economy in the ditch.

What foreign government is going to buy our debt when Trump is basically blowing up the debt and saying we don’t care about the deficit.

One of the assumptions is that the US is going to have sustained growth of 3% uninterrupted for the next ten years. This expansion is already 9 years old.

They are projecting this growth rate even with a budget that doesn’t balance. They are projecting trillion dollar deficits.

Big political problem is that they are not going to be able to hang the deficits around the neck of Obama.

When Obama ran the deficits they were running deficits because they were necessary to get us out the recession.

Bill Clinton balanced the budget and even generated a surplus.

Then he handed it over to Bush who proceeded to give big tax cuts to corporations and the rich and the economy tanked.

Obama’s deficits were necessary to get us out of the recession to stimulate the economy.

Obama handed off a great economy to Trump who proceeded to do the same thing Bush did. He gave tax cuts to the rich and greedy corporations and exploded the deficit.

Republicans are hypocrites. The economy is going to tank.

We are in the midst of a major expansion of the government and deficits are exactly the problem.

We are not even going to have the 4% growth the Atlanta FED projected. They have already revised their estimate downward.

The air is already coming out of the bubble.

The budget deficit is going to be even larger.

In economic news the CPI was revised up from 1% to 2% this week. It was revised for this month to 5%.

Why are people selling gold? Because they think that the FED is going to raise the interest rates.

People that use their brains are realizing that inflation is good for gold.

Dollar went up Why? Algorithms – Inflation is bad for the dollar.

Stock market futures went up. But why didn’t the stock market fall?

Retail sales were revised from .4% to flat

First year of the Trump administration could have a GDP growth of 1%

People are buying less stuff but paying more for it

We have been in this bubble so long that the experts have been fooled – now they are realizing the bubble is popping.

Dollar bubble has popped.

Bond bubble has popped.

Stocks have probably popped.

Gold about to break out.

Commodities are about to break out.

The Powell put is in.

If you have a strong healthy economy you will have a strong stock market.

The fed is running monetary policy as if a good stock market will give you a strong economy.

We didn’t need tax cuts for the rich. That was just a reward to Trump’s buddies.

The swamp that Trump was going to drain is deeper than ever.

Peter believes gold is gong to $1400.

The deteriorating economic conditions are becoming more apparent to everyone.

Stock market is in for a one two punch – inflation and rising interest rates. What if earnings aren’t there? What if what the tax cuts give us the deficits take away growth?

Bill Fleckinstein says stagflation is ahead and the economy is going to tank.

Clients are adding to their precious metals accounts here.

Look at the dollar.

Look at the Stock Market.

Look at the charts.

Want more from Peter? Listen to Schiff Radio  If you want to by an updated version of his book click the link below this post.

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