Blog

Via SchiffGold.com,

President Biden keeps saying the economy is great.

Fed officials say the economy is expanding at a “strong pace.”

Peter Schiff isn’t buying the narrative.

He says we may already be in a recession and he made a strong case in his podcast.

Peter started with a deep dive into the October non-farm payroll report. He said threw cold water in the face of the “we have a strong labor market” narrative. Strong job reports have created the foundation for the “strong economy” narrative. Over the past several months, Peter has been dissecting these BLS reports pointing out the hidden weaknesses in the labor market. For the October report, he didn’t have to.

The projection was for 180,000 new jobs. The reported number was 150,000. Only 99,000 of those jobs were in the private sector. Of all the jobs created, 34% were government jobs.

The unemployment rate went up to 3.9%. While this number is still relatively low, the trajectory is up. The unemployment rate has gone up by half a percent since last spring.

Meanwhile, we continue to see a huge increase in the number of people holding multiple jobs to make ends meet. In October, 390,000 people took on a second or third job.

Peter said he thinks the economy may already be in a recession.

The Great Recession officially started in December of 2007, although nobody realized it at the time.

It wasn’t until the end of 2008 when the financial crisis blew up that people realized there was a problem. Later, the statisticians went back and revised all of the numbers from early 2008 down.

In this podcast, Peter also breaks down last week’s Federal Reserve meeting and the FOMC’s decision to keep its finger on the rate hike pause button.