Peter Schiff recently appeared on Tucker Carlson to talk about inflation, the economy, and Treasury Secretary Janet Yellen’s admission that she was wrong about inflation. There’s an economic hurricane on the horizon and Peter said it’s going to be a Cat 5.
Tucker started the segment by showing several clips of Yellen insisting that inflation was transitory last year. Tucker said it “takes a lot of brass” for Yellen to describe herself as an economist.
She’s not an economist. She’s a ridiculous figure who does not get the credit she deserves for screwing up in, a very serious, way the US economy.”
With inflation continuing to rage, Yellen finally had to admit she was wrong about it being “transitory.” Meanwhile, J.P Morgan CEO Jamie Dimon told investors an economic hurricane is on the horizon.
I said there are storm clouds. They’re big storm clouds. It’s a hurricane. Right now, it’s kind of sunny. Things are doing fine. Everyone thinks that the Fed can handle this. That hurricane is right out there, down the road, coming our way.”
Tucker brought Peter on calling him “an actual economist.” So does, Peter agree with Dimon’s assessment?
Well, I do. Except I think it’s going to be a category 5 hurricane. So, I think he’s sugar-coating it a bit.”
So, what would Peter do to avert the storm, or at least lessen its effect?
Unfortunately, there is no way to avert it. But, what we have to do is deal with it in a responsible way, something that Janet Yellen has never been a part of. She’s complaining about inflation, but she helped create the inflation. When she was chair of the Federal Reserve, she kept interest rates at zero for half of her term. And then when she finally started to raise them, it took her two years to get to 1.25%. And then, if you go back to her tenure as head of the Federal Reserve Bank of San Francisco, she was there during the housing bubble and the financial crisis, and at the peak of the housing bubble, she assured the nation in several speeches that there was no housing bubble. And then she went on to say even if there was a bubble, if she was wrong and it popped, it would do no damage to the US economy. So, she was incompetent at the Fed, and she’s still incompetent as secretary of the Treasury.”
Tucker wondered how Joe Biden could appoint Yellen Treasury secretary given her track record. Peter said, “it’s all politics.”
But had he not appointed her, he might have appointed somebody equally bad. I mean, there are so many bad people to choose from. Because they pick these people for political reasons. It’s not because they actually know anything about the economy. Biden wants somebody who’s going to validate his political agenda, even if that political agenda is detrimental to the economic health of the United States.”