Skip to main content

Peter Schiff Fires A Grim Warning Investors Who ... Expect Inflation To Slow Down Are In For Rude Aw



Economist and gold bug Peter Schiff believes inflationary pressure hasn't been contained yet and has further legs to play out.

What Happened: Following this week's inflation reports that showed a spike in pricing pressure due to higher energy prices, Schiff shared a stark warning to unsuspecting investors. "Investors who have closed their eyes and expect inflation to slow down are in for a rude awaking," he said Friday in a post on X, formerly Twitter.

Explaining his rationale, Schiff said Americans have lot of debt and use a lot of energy. Additionally, both bond yields and oil prices have been steadily increasing, he noted. "Not only are those gains likely to continue but accelerate," he said.

Why It's Important: The U.S. national debt has ballooned to about $33 trillion, and the country has been living beyond its means every year since 2001. Congressional Budget Office's estimates released in June showed federal debt held by public equaling 98% of GDP by the end of 2023 and increasing further to 181% of the GDP by 2053.

"Such high and rising debt would slow economic growth, push up interest payments to foreign holders of U.S. debt, and pose significant risks to the fiscal and economic outlook," CBO said.

This, in turn, can keep bond yields elevated, snuffing out hopes of a Fed pivot, which has been behind the recent market rally.

On the energy front, U.S. consumed an average of about 20.28 million barrels of petroleum per day, or a total of about 7.4 billion barrels of petroleum in 2022, data from the Energy information Administration showed. The country was a net crude oil importer in 2022, importing about 6.28 million b/d of crude oil and exporting about 3.60 million b/d.

Supply constraints amid several OPEC nations' decision to voluntarily cut oil output have sent prices soaring in recent months. The WTI crude oil prices ended Friday's session at $91.20, up 1.15%, marking the highest closing level since Aug. 30, 2022. Higher oil prices have the potential to push up inflation as they nudge higher fuel prices for both businesses and consumers.

The United States Oil Fund, LP (NYSE:USO) ended Friday's session up 0.21% at $81.29, according to Benzinga Pro data.

Read Next: Inflation Still Bites: Gold Bull Peter Schiff Foresees Triple-Digit McDonald's Family Lunch Prices

Photo: Shutterstock

Comments

Post a Comment

Popular posts from this blog

Osho Quotes on Meditation

Osho Quotes on Meditation If tea-drinking can become a meditation, then anything can become a meditation — cooking or washing your clothes, any activity can be transformed into meditation. And the real sannyasin, the real seeker, will transform all his acts into meditation. Only then, when meditation spreads over all your life, not only when you are awake in the day — slowly slowly it starts penetrating and permeating your being in sleep too — when it becomes just part of you, like breathing, like your heartbeat, then, only, have you attained to the discipline, to the essential discipline of Zen. Meditation means: drop all thoughts, drop all ideologies, drop all knowledge. Drop the mind itself. The mind is constantly talking. If the inner talk can drop even for a single moment you will be able to have a glimpse of no-mind. That’s what meditation is all about. The state of no-mind is the right state. It is your state. Millions of people miss meditation because meditation has taken on...
2 comments
Read more

Im a mum I save time doing my kids lunches using savvy hacks its easy

EVERYONE parent will know just how crazy the mornings can be when you're getting the kids ready for school. From prepping their lunches, to getting them washed and ready - time can fly by. But one savvy mum has shared just the hack to help speed up the process in the mornings. The mum, who goes by the name of Azure MacCannell on TikTok, has revealed a super time saving trick. She preps all of the sandwiches for the week, and freezes them. Azure has two lines of separate pieces of bread next to each other, On one line she spreads peanut butter, and on the other line she spreads jam. Azure then places the bread on top of each other to make a sandwich, before using a crust cutter to make the sandwiches into smaller squares. She then puts them into a big container and freezes them and use them "as needed." Azure also freezes the crust for "delicious French toast sticks." The video attracted thousands of likes, with many rushing to the comments section to share their...
Post a Comment
Read more

Osho on Witnessing technique

Osho on Witnessing technique – You can witness breathing, you can witness the thought process in OSHO INSIGHTS ON MEDITATION Osho – Societies will come and go. You will take birth and you will die and many lives will come and go, and many, many clouds will pass through you. But the inner sky – AKSHAT – remains uncorrupted, virgin. But you can become identified with clouds. You can begin to feel that ”I am the clouds”. Everyone is identified with his own thoughts which are nothing more than clouds. You say, ”my thought,” and if someone attacks your thought, you never feel that your thought is being attacked – you are being attacked. The sky is fighting – fighting for clouds because some cloud has been attacked. The sky feels, ”I am attacked!” The sky was there when there was no cloud, the sky will be there when there is no cloud. Clouds add nothing to the sky. And when clouds are no more, nothing is lost. The sky remains itself totally. This is the nature – the inner sky, the inn...
Post a Comment
Read more