By Samuel Bryan
The Federal Reserve kicks off its Federal Open Market Committee meeting Tuesday. Just a couple of weeks ago, it was a foregone conclusion that the Fed would announce a rate hike during the meeting. But after the shockingly bad May employment report, most agree the interest rate increase is off the table.
In fact, Peter Schiff says this meeting is going to be a dud.
In his most recent podcast, Peter said the Fed will use the Brexit as the excuse as to why it is not going ahead with the rate hike, but that isn't the reason at all:
"Again, I just think all that stuff is an excuse. I mean, they're really concerned about the US bubble-economy and the problems domestically, but they don't want to acknowledge that. So, they want to rationalize it or blame things on problems abroad because that doesn't play as badly at home."
Peter went on to talk about why the British should exit the EU. In fact, he argues US states would do well to leave the Union for many of the same reasons.
Peter also touched on the horrible shape the financials are in and why gold is a good bet right now, the surge in Bitcoin, and Donald Trump's war of words with the federal judge overseeing the Trump University Case.
He closes out the podcast with a story about his son's school that would be funny if it wasn't so indicative of the state of the US education system.
Highlights from the podcast:
"For a while there was this speculation that the Fed was going to pull the trigger and increase interest rates for the second time, in what, 10 years or something like that - for the first time this year. But pretty much I don't know if anybody expects the Fed is going to raise rates on Wednesday."
"The Brexit - that was one of the things the Fed was supposedly concerned about… Again, I just think all that stuff is an excuse. I mean, they're really concerned about the US bubble economy and the problems domestically, but they don't want to acknowledge that. So, they want to rationalize it or blame things on problems abroad because that doesn't play as badly at home."
"It's too bad the British haven't had enough of their own big government. But I guess they don't mind big government imposed from Britain, they just don't want it imposed from Brussels."
"Whatever benefits member nations got in the beginning from freer trade, they've already lost from regulation, taxation and micromanagement coming out of the EU."
"The problem is the federal government is not abiding by the constitutional restraints on its powers. The federal government is not acting as the framers envisioned. It has usurped power that was not granted to it in the Constitution, and so the federal government is no longer a benefit to the United States, just like the EU is no longer a benefit to Europe."
"I think any state in the Union would be better of seceding from the Union. So if American states could have a vote, and we could vote you want to leave the Union, you want to leave the United States and become your own country, I think every state would be better off leaving."
"Every time you can remove a layer of government, you restore more freedom. You restore more prosperity."
"European banks are not only at 52-week lows, they're as low as my charts go back… This is another example again of what happens when you get into bed with the devil, the devil being the government. Because all the financials are in bed with the government - of course, the government bails them all out - so they all love the government."
"If the European banks are there, how far can the US banks be behind?"
"The gold stocks got killed in 2014 and 2015, but they've made it all back in 2016. So now, it's the financials that are getting clobbered and the gold stocks that are on fire. So, it's the reverse, and I think it's very, very early in this process of unwinding that trade - where money is going to go out of the financials and go back into hard assets - real safe havens like gold and gold stocks."
"I think if they [British] leave [the EU], that's going to be positive for the pound… I think all these fears about how terrible it's going to be for the British are just being drummed up to try to scare people into voting to stay in the EU."
"The problem with the political correctness is even the Republicans are afraid to stand up to it because they're afraid of being called a racist themselves."
"[My son] basically said, 'I just learned more by watching a five-minute YouTube video than I learned for an entire year in my music class.' And that pretty much sums up the educational system."