http://moneymorning.com/2015/09/08/peter-schiff-the-fed-wont-raise-rates-its-part-of-the-bluff/
Fed proving that the 'recovery', is not nearly as steady as people would like to think. Another bubble looms?
An all-important U.S. Federal Reserve meeting on Sept. 16-17 will decide whether interest rates will be raised for the first time in nearly a decade.
An Aug. 31 Bloomberg News survey found that 48% of 54 economists polled see a September increase in the benchmark lending rate, the first move up since 2006. That's double the 24% who say the move will occur in December. Seventeen percent predicted October.
But Peter Schiff, economist, best-selling author, and CEO of Euro Pacific Capital, doesn't believe the Fed is at all even considering a rate hike, despite the speculation.
"I don't think the Fed ever really, seriously considered raising rates in the first place," he told Kitco News on Sept. 2. "I think they wanted to create that impression, they wanted the markets to believe that rate hikes were under consideration, because they want markets to believe that the economic recovery is legitimate and that the economy can actually withstand the higher rates that they're pretending that they're ready to deliver."
"But I think it's all been part of a show to mask the fact that the Fed understands all we have is a gigantic bubble, not a real recovery, and if they were to raise rates, they would prick that bubble," Schiff continued. "That's the last thing they want to do, which is why all they do is talk about raising rates, but haven't actually followed through with any of that talk."
The article is from the 8th.
Fed proving that the 'recovery', is not nearly as steady as people would like to think. Another bubble looms?
An all-important U.S. Federal Reserve meeting on Sept. 16-17 will decide whether interest rates will be raised for the first time in nearly a decade.
An Aug. 31 Bloomberg News survey found that 48% of 54 economists polled see a September increase in the benchmark lending rate, the first move up since 2006. That's double the 24% who say the move will occur in December. Seventeen percent predicted October.
But Peter Schiff, economist, best-selling author, and CEO of Euro Pacific Capital, doesn't believe the Fed is at all even considering a rate hike, despite the speculation.
"I don't think the Fed ever really, seriously considered raising rates in the first place," he told Kitco News on Sept. 2. "I think they wanted to create that impression, they wanted the markets to believe that rate hikes were under consideration, because they want markets to believe that the economic recovery is legitimate and that the economy can actually withstand the higher rates that they're pretending that they're ready to deliver."
"But I think it's all been part of a show to mask the fact that the Fed understands all we have is a gigantic bubble, not a real recovery, and if they were to raise rates, they would prick that bubble," Schiff continued. "That's the last thing they want to do, which is why all they do is talk about raising rates, but haven't actually followed through with any of that talk."
The article is from the 8th.
