On Friday, the Federal Reserve accidentally published the economic forecasts of its staffers, which normally remain private. The numbers reveal that the Fed is painting a much rosier picture of the United States economy than they publicly admit. Peter Schiff dug into these numbers during his podcast published on Saturday. Use the chart below to follow along with Peter's analysis. Peter also discusses the gold market, which he believes is setting itself up for a massive short squeeze.
Highlights from the podcast:
“The Dow Jones just had its worst week since January. We closed the week at 17,568, down 518 points on the week. Friday's drop alone accounted for 163 points…
“If you look at all the economic data that's been coming out this year, it's all negative, whatever it is: retail sales, capital investment, industrial production, capital utilization. The list goes on and on and on. All the economic measures that are normally rising when the Fed raises rates are now falling, every single one of them. In fact, there is no precedent for the Fed ever raising rates when all of its key economic indicators are going down. Normally, the Fed would try to fight that by cutting rates. If all your economic indicators are falling and your economy is slowing down, the Fed would try to push against those forces. It would try to stimulate the economy. Instead, the Fed is saying, ‘We're going to implement an economic sedative…
“Probably the most interesting part of Friday's market action was this leaked report from the Federal Reserve. This supposedly came online by accident. What it showed was the economic forecasts of the Fed staffers. This is not the FMOC, these are the people that the Fed employs. They make their projections, then they share those projections with the FOMC…
“The projections came out. First of all, the growth projections are way below what the Federal Reserve is publicly saying. Either they don't believe the work of their own staffers, in which case why not just fire them if you think they're incompetent. Or they believe it and they're afraid to admit. But now they're stuck with it, because somehow this stuff ended up on the internet.
