{"id":61135,"date":"2021-12-27T10:19:03","date_gmt":"2021-12-27T15:19:03","guid":{"rendered":"https:\/\/olduvai.ca\/?p=61135"},"modified":"2021-12-27T10:19:03","modified_gmt":"2021-12-27T15:19:03","slug":"peter-schiff-there-is-no-ceiling-on-inflation","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=61135","title":{"rendered":"Peter Schiff: There Is No Ceiling on Inflation"},"content":{"rendered":"

Peter Schiff: There Is No Ceiling on Inflation<\/a><\/h3>\n
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Gold<\/a>\u00a0closed out the week before Christmas above $1,800 an ounce, despite rising bond yields. The $1,800 level has been viewed as a ceiling for the price of gold. In his podcast, Peter Schiff said people need to start thinking of $1,800 as a floor. And he said they will once they realize there is no ceiling on inflation.<\/span><\/p>\n

We got the personal income and spending data for November last week. Incomes grew at a slower pace than projected \u2014 0.4%. Meanwhile, spending was up 0.6%. Obviously, if spending is outpacing income, the difference has to come from somewhere. It appears Americans are dipping into their savings to cope with\u00a0rising prices<\/a>. The savings rate declined to 6.9%. That is the lowest level since December 2017.<\/p>\n

We also know that consumers are\u00a0turning to debt<\/a>\u00a0to make ends meet, with credit card balances growing at a fast pace.<\/p>\n

The savings rate shot up and Americans paid down their credit cards when the government showered them with stimulus. Peter said it appears the stimulus has run out.<\/p>\n

Obviously, Americans have now exhausted that windfall. They\u2019ve depleted that savings war-chest that was built up with stimulus money, and now it\u2019s gone. And so, they\u2019re having to go into debt.\u201d<\/p><\/blockquote>\n