CNBC's Futures Now interviewed Peter Schiff yesterday to hear what he expects from the federal reserve's announcement this afternoon. They also spoke at length about gold, which Peter points out hasn't gone down at all in 2014 contrary to many expert forecasts. In fact, when priced in other global currencies and stock markets, gold has risen significantly.
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“Oil is not the only market that's been floating on a sea of cheap money. It's QE that propped the oil price up in the first place. But quantitative easing propped the stock market up in the US, the real estate market, it's created this phony recovery. Oil prices are going down, but stock prices, real estate prices are going to come down for the same reason. We are headed back to recession. The market is pricing in an end of quantitative easing. All of these assets that the Fed inflated are going to deflate…
“I don't think crude is the thing to pop that bubble… All of these bubbles are going to burst because of the same thing, which is the Fed withdrawing the stimulus. People are talking about how falling oil prices are going to help the consumer. Well, oil prices fell from $150 a barrel down to $32 a barrel in 2008. That helped the consumer too, but it didn't stop the financial crisis…
“The same thing is happening now, and you're whistling past the graveyard if you think what's happening is good news…
“I've been expecting the Fed to backtrack from its talk about rate hikes. I know it's all bluff. I know they can't raise rates, or they'll bring about a worse financial crisis than 2008. But the Fed can't admit that, so they have to pretend that they can raise rates so they can keep their con game going…
“I've been saying all along that if they actually tapered, they'd have to have an excuse to un-taper. Maybe this is going to be it. I don't know when they're going to tip their hats, but they're going to have to come clean about launching QE4. Because if they don't do it, we're going to have a much worse recession and a much worse financial crisis than what we had in 2008 and 2009…
