Peter Schiff Discusses Inflation and the State of the Economy

Interview with Jay Martin on This Week in Mining

Peter Schiff recently appeared on This Week in Mining with Jay Martin, where they discussed the current state of the economy, the government's interference with sound money, and the potential of the mining sector as an investment.

The Dilemma of the Federal Reserve

Schiff began the interview by outlining the predicament that the Federal Reserve is likely to face in the near future. He suggested that as the economy weakens and enters a recession, inflation is likely to increase. This will force the Federal Reserve to make a difficult and unpopular decision: either fight inflation by raising rates, which could worsen the recession and potentially cause a financial crisis, or ignore the inflation problem and attempt to stimulate the economy by creating more inflation.

Potential Outlawing of Gold

Schiff also discussed the potential consequences if gold were to be outlawed, as it was in the 1930s. He suggested that even if it were illegal, there would still be a market for it, albeit a black market. He also pointed out that even if gold were outlawed in America, it would not necessarily be illegal in other countries, meaning there would still be legal gold markets.

Central Bank Digital Currencies

The conversation also touched on central bank digital currencies, which Schiff described as the latest trend in authoritarianism. He argued that the more power the government has to interfere with the economy, the worse the economy will be. He suggested that central bank digital currencies would only serve to increase the government's power and make it more intrusive and oppressive.

The True Cause of Inflation

Schiff emphasized the importance of understanding the true cause of inflation. He argued that the government is the source of inflation, and that Wall Street and academia often mislead the public by discussing inflation in terms of rising prices, which shifts the blame onto farmers, businesses, and labor unions.

Opportunities in the Mining Sector

Both Schiff and Martin saw potential in the mining sector, particularly if gold continues on its current path. They suggested that gold reserves that are currently unprofitable to mine could become extremely valuable in the future.

Royalty Companies and the Mining Sector

Schiff also discussed the benefits of investing in royalty companies like Franco-Nevada, which offer protection from rising costs in the mining sector, albeit at the expense of reduced exposure to the price of gold.

Final Thoughts

This interview offers valuable insights into the current state of the economy, the potential future of inflation, and the opportunities in the mining sector. It's a must-watch for anyone interested in these topics. What are your thoughts on Schiff's views on inflation and the economy? Do you agree with his predictions about the mining sector? Share this article with your friends and join the conversation. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6pm.