The Peter Schiff Show Podcast Will 2025 Be the Year the Bubbles Finally Burst? - Ep 1001
Dec 28, 2024
Explore the unpredictable nature of financial markets and recent stock trends, including a dip in the Dow and gold's evolving role. Delve into the effects of government spending and the implications of rising U.S. debt. Discover how tariffs impact consumers and the economy, and examine the looming threat of an economic downturn. Predictions about inflation and the Federal Reserve’s struggles to maintain balance add depth to the discussion. Schiff warns of impending crises, urging wise investments during turbulent times.
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Inverse Effect of Rate Cuts
- The Fed's rate cuts have had the opposite effect on long-term interest rates, causing them to rise.
- This is inflationary and counterintuitive to the Fed's goal.
Yen Carry Trade Risk
- Rising yields on Japanese government bonds, like the 10-year JGB reaching its highest since 2011, could trigger a global margin call.
- This is because the yen carry trade, where people borrow cheap yen to buy global assets, will unwind, causing widespread selling.
Social Security Fairness Act Impact
- The Social Security Fairness Act, increasing benefits for government workers, exacerbates the already insolvent Social Security system.
- This adds to the growing national debt and raises questions about future spending cuts.