by SchiffGold.com
LewRockwell.com
In this episode, Peter reacts to a hotter-than-expected CPI report, big trades in Bitcoin, and the federal bill that would ban the popular social media app TikTok. He also notes silver’s historically low price, which is nearly 50% of its 2011 high.
Prior to this week’s CPI numbers, the market was under the impression that inflation was coming down. Even if this were true, rate cuts are still a bad idea:
“The conventional wisdom is that the Fed has won the inflation war. That its rate hikes have done the trick. The inflation genie is back in the bottle. ‘Sure it’s not quite two percent. It’s a little over three percent, but we’ve gone from nine to three, so we’re most of the way there. … The Fed could substantially cut interest rates, because we don’t need five percent interest rates anymore.’ … That view could not be more widely held, yet it could not be more wrong! First of all, even if inflation was going to go down to two percent, substantial reductions in interest rates would not be warranted because you have to have a positive rate of interest.”
This week’s CPI numbers were roughly the same as last month.