Peter Schiff: “You Can’t Solve Climate Change By Creating Inflation”
Submitted by Quoth the Raven from QTR’s “Fringe Finance” at http://quoththeraven.substack.com,
This is an exclusive interview with Peter Schiff. Peter is an economist, financial broker/dealer, author, frequent guest on national news, and host of the Peter Schiff Show Podcast.
Q: Hi Peter, thanks for taking the time today. I first wanted to ask what you thought about AOC and Rashida Tlaib calling for Fed Chair Jerome Powell’s resignation in favor of a Fed chair focused on climate change and racial justice?
I’m no fan of Powell, but such a replacement would be even worse. You can’t solve climate change or advance justice by creating inflation, which is the only power the Fed has. Of course inflation can blow asset bubbles, widen wealth inequality, badly distort an economy, and lower living standards, but I don’t see how that helps the climate or make anything more just.
What is the supposed purpose to the Fed’s objectivity? Why shouldn’t it be involved in these issues?
Monetary policy has no effect on these issues. The Fed’s main role should be preserving the purchasing power of the dollar. It’s current official role is price stability (now defined as annual inflation above 2%, and full employment , which is impossible to define). Even that is too broad, but adding these other goals would be an even bigger disaster.
How politicized do you think the Fed is at this point in time?
The Fed is completely politicized. Independence is a sham. All policy is politically, rather than economically, motivated. Also the Fed is not partisan. It works to help reelect whatever party holds the White House.
If we got a more dovish Fed chair and went full MMT, how would gold respond?
Gold should already be much higher given the current dovish policy.
The reason it’s not is that markets still incorrectly expect the Fed to successfully fight inflation. Obviously going full MMT might change those expectations. But either way the markets will get much more inflation than they expect. MMT will just make inflation much worse, and send the price of gold much higher.
What do you make of the state of mainstream financial journalism? Do you think it’ll eventually be swallowed by independent content creators like yourself?
I think mainstream journalism is far too …read more