{"id":64755,"date":"2023-01-17T09:18:33","date_gmt":"2023-01-17T14:18:33","guid":{"rendered":"https:\/\/olduvai.ca\/?p=64755"},"modified":"2023-01-17T09:18:33","modified_gmt":"2023-01-17T14:18:33","slug":"peter-schiff-inflation-is-going-to-win-the-war","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=64755","title":{"rendered":"Peter Schiff: Inflation Is Going to Win the War"},"content":{"rendered":"

Peter Schiff: Inflation Is Going to Win the War<\/a><\/h3>\n
\"\"<\/a><\/div>\n

The\u00a0CPI data for December<\/a>\u00a0buoyed markets and raised hopes that the Federal Reserve is winning its war against inflation. But in his podcast, Peter explained that the Fed isn\u2019t winning the war. It is losing and will ultimately surrender to inflation.<\/span><\/p>\n

Markets rallied after the CPI data appeared to show further cooling in price inflation. Most people assume that means the central bank can be less aggressive and ease up on rate hikes in the coming year. And if there is enough progress, many people think the Fed will reverse course and start cutting interest rates later in 2023.<\/p>\n

Peter said he agrees that there is a good chance the Fed will cut rates this year. And he thinks there is an even better chance the central bank returns to\u00a0quantitative easing<\/a>, whether it cuts rates or not. But this pivot won\u2019t be because of a victory in the war against inflation.<\/p>\n

No. They\u2019re going to surrender. Inflation is going to win that war. The Fed is going to run to fight another battle \u2014 at least it\u2019s going to try to fight because it\u2019s going to lose that battle too. That battle is going to be recession, maybe financial crisis, maybe a battle to try to prop up the US government whose insolvency is becoming a bigger problem with rising interest rates.\u201d<\/p><\/blockquote>\n