It’s the word that is on the tip of everyone’s tongue: inflation.
We were of course told by talking heads, Democrats, and Biden that inflation would not occur.
I even remember Jerome Powell saying that “printing money is no longer tied to the value of that money.” That is a WILD statement to make, and modern monetary theory doesn’t seem to hold up.
Peter Schiff is here to set the record straight, and I think what he is saying is time tested and true. The claims of modern monetary theory though? Not so much……
Schiff warns of coming inflation that may be as high as 20% in 2021.
The C.P.I. depending on how it is measured is also at its highest in 40 years, and some are even saying that this will make the 1970s look like a picnic.
Here is what Schiff is saying:
Taken directly from The Schiff Gold page:
Joe Biden unveiled details of his $2 trillion-plus infrastructure plan complete with tax hikes. The claim is that this is going to strengthen the economy and create opportunity. Peter broke down the spending plan in his podcast and said it will do the exact opposite. It’s going to weaken the economy and destroy opportunity.
The tax hikes primarily target corporations, along with people who earn over $400,000 per year, but Biden said they weren’t meant to punish people. They are intended to create opportunities for others.
In other words, he thinks the only way to create opportunities is to take money away from the entrepreneurs who earned it and have the government spending it ‘creating opportunity for other people, which basically is taking a stake to the very heart of capitalism.”
Daily Caller had more on Schiff's warning to America:
“We’re going to see massive inflation,” Peter Schiff, the chief economist and global strategist of Euro Pacific Capital, told the Daily Caller News Foundation in an interview.
“People are going to be paying higher insurance, they’re going to be paying higher property taxes, local tax, utility rates are going to go way up, maintenance costs,” Schiff continued. “Americans are going to see a big drop in their standard of living, a very substantial drop.”
Lawrence Summers, who previously led the Treasury Department and the National Economic Council, said he is concerned about inflation even as the economy recovers from the coronavirus pandemic in an interview with Bloomberg on Sunday. The labor shortage will contribute to higher inflation rates.
Before Democrats passed the $1.9 trillion coronavirus relief package, Summers warned that such stimulus would spark inflation “of a kind we have not seen in a generation.”