Peter Schiff: It’s Very Difficult To Undo Inflation

In a recent episode of “The Peter Schiff Show,” well-known American stockbroker and financial commentator Peter Schiff argued that undoing inflation that came as a result of massive spending is far more difficult than many have been led to believe.

Both the CPI and the PPI proved to be at far higher levels than previously predicted in January.

“In my opinion, it indicated a trough in so-called disinflation,” Schiff said.

Schiff Gold accused Federal Reserve chair Jerome Powell of giving up on trying to convince people that he is winning the fight against inflation. The website noted that the strategy of the Fed initially appeared to be successful, but ultimately was nothing more than smoke and mirrors. According to Schiff, it never amounted to more than “wishful thinking.”

“I was pointing out that it was not going to be nearly as easy to get that inflation genie back in the bottle as the markets expected,” Schiff said on his show. “The CPI and PPI data should have thrown cold water on that narrative.”

Schiff Gold reported that the NASDAQ reported gains last week, primarily on riskier stocks. According to the website, this indicates that markets are currently not concerned about Federal Reserve monetary tightening.

Schiff stated that historically the Fed has not done a good job of keeping inflation under 2%.

“If you look back in time going back to the 1970s — that’s when inflation really got out of hand — but going back to the year 1970, there have only been 11 years since then when inflation has been 2% or lower.”

He additionally explained, “to highlight how difficult it is to have a 2% inflation rate in this modern fiat economy, we’ve only had 2% or less 11 times since 1970,” before noting that eight of those 11 years occurred prior to the 2008 financial crisis.

Schiff added, “In other words, before the 2008 financial crisis, when we kind of had a normal economy, we only had three years out of 38 where we had 2% or lower inflation. That’s 8% of the time.”

In other recent news, Schiff appeared on Greg Hunter’s USA to discuss his view that the Fed is throwing in the towel on the battle against inflation. Schiff alleges the group is instead trying to stop a total economic collapse.

The financial commentator’s website also covered a bill passed by the Oklahoma House committee, which mandates that brick-and-mortar businesses and government agencies in the state allow cash transactions for goods and services.