Huge News from the Fed! If You Own GOLD or SILVER, WATCH THIS NOW - Peter Schiff & Marc Faber

[00:00:00]The Fed's balance sheet rose another uh 7.4 billion. The balance sheet went up.

[00:00:06]It's expanding. It was the Fed monetizing government debt. So, he knows the Fed's balance sheet is too big. Yet, he continues to make it bigger. So, he can talk, but he can't act. And again, if the markets are not figuring this out, it should be obvious because if uh Walsh did what he needed to do, the markets would be crashing. In fact, I think he wants to prove the world that the Fed is actually independent. That I would ever say anything nice about the Fed. But in this case, I think they're doing the right thing, namely not cut rates. Because look, the stock market is at an all-time high. The gold market is near high and silver as well. And there are price pressures also because of the tariffs. The global financial architecture faces heightened uncertainty as central bank balance sheets expand alongside mounting sovereign debt. Systemic price pressures remain a major concern for investors looking to protect capital against long-term purchasing power erosion.

[00:01:13]Peter Schiff, a prominent chief economist and author, alongside Mark Faber, a renowned global investor and publisher of the Gloom, Boom, and Doom report, caution that current monetary strategies are creating deep market imbalances. They contend that policymakers will rely on verbal assurance rather than shrinking the central bank balance sheet or raising interest rates aggressively. Because genuine rate hikes would trigger severe equity crashes, monetary authorities will continue fueling liquidity. With new tariffs driving up imported consumer goods prices and money supply expanding, inflation will remain elevated.

[00:01:49]Consequently, fiat currency purchasing power will drop, sending gold and silver significantly higher. While overvalued residential real estate and stock markets face inevitable corrections, investors should focus on holding hard assets rather than chasing speculative stock gains. Now we present the clips from their interview. Before we continue to discuss this, please hit the like button, subscribe to the channel, and ring the bell icon. Thank you and enjoy the video. Donald Trump is saying, "If you want basically what amounts to insider information, market moving information, I'll share it with you early if you pay me money." He's basically selling access to this information so you can trade off of it before anybody else gets it. How is there not outrage over what Trump is doing? Because it's actually an admission, too, that his posts can move the market because that's the only added value. I mean, why would you? Why else would you pay? Oh, these posts are so important. I need to pay extra to get them 10 seconds earlier or 20 seconds earlier. Who cares? Except if you get them 10 or 20 seconds earlier, you can position yourself in the markets before everybody else. Now, of course, if a lot of people end up buying the tweets early, then or the posts rather, that's going to reduce their value, right? But pretty much everybody who's trading off of this is going to have to pay up because if they don't pay up, they're going to be too late. So this is a massive grift. I mean, can you imagine?

[00:03:20]Is this what all the presidents are going to do from now on? They're just going to post exclusively on a particular platform and then charge you money so that you could see the market moving uh posts that they're making. But so a lot of the criticism, you know, that Wars got was actually Trump criticism, right? They were they were trying to get Worsh to agree that Trump was a bad guy and he was doing us bad stuff. And of course he's not going to do that, right? So he's so they're just grandstanding. They're just talking, you know, for a sound bite and for their own constituents. But there were a couple of interesting uh questions and answers. So one of them, and this was uh Senator Kennedy, and and this was probably the the best exchange. So Kennedy asked Walsh, "What caused inflation? What caused it?" He said, "I want a quick answer." And Walsh responded, "Metary policy caused it." Yes. Perfect. He admitted that the inflation that we have was caused by monetary policy. Well, who was in charge of monetary policy? The Fed. So Walsh admitted that it was the Fed. It wasn't COVID. It wasn't Putin.

[00:04:32]It wasn't supply chains. He acknowledged that the Fed caused the inflation. Now again, as I said on the last podcast, the Fed didn't cause it by itself. The Fed had a partner in crime and that was the US Congress and the president, right? Because it was fiscal policy that he monetized that caused the inflation.

[00:04:56]So Walsh is accepting the Fed's responsibility yet Congress is not accepting theirs. But then Kennedy followed up and it was a great follow-up. He said, "Okay, is he said, "Is inflation, the high inflation going to be there permanently?" And Walsh said, "Nope, not on my watch." And then Kennedy said, "Okay, what are you going to do about it?" Perfect. What are you going to do about inflation? And then Walsh said, "I got three things that I'm going to do about inflation." And then he listed the three things. Number one, he's going to make sure that the markets know that the Fed is serious about bringing down inflation. Right. And so then, uh, Kenny said, "Okay, so you're going to talk about it." Exactly.

[00:05:37]They're going to talk. They're going to say, "You know what? We're serious about bringing down inflation." The second thing they're going to do was take ownership of the inflation, which he basically did. We own it. We created it.

[00:05:48]And then say that the Fed has the power to do something about it. In other words, more talk. they're going to own it and they're going to talk about what they're going to do about it. So, of the first two things that he's going to do is just talk about it. Now, he gets to the third thing that he's going to do.

[00:06:05]He said, "We're going to look at our tools, interest rates and the balance sheet, and decide if we need to make any adjustments." So, they're going to talk and they're going to look. How does that count as what they're going to do about it? I mean, doesn't he know what he's going to do about high inflation? If he understands that the Fed caused it and its money supply and artificially low interest rates, why doesn't he say, "We're going to shrink the balance sheet. We're going to jack up interest rates." Because that's the only thing he can do. Instead, he doesn't want to do any of that. He's just going to talk.

[00:06:37]He's going to look, right? That's why I said it's all Meanwhile, look at money supply M2 uh up 5.6% 6% year-over-year. That is not a Fed that's fighting inflation. That is a Fed that is creating inflation. Now, we haven't got the money supply numbers yet under Worsh. We'll get that I think in another week or so. We get we'll get the first monthly because they release these numbers every month and we'll be able to see uh what happened under his under his watch. But we have been able to see the balance sheet, right? The balance sheet uh is there and it's been growing. In fact, the most recent week, the Fed's balance sheet rose another uh 7.4 billion. The balance sheet went from 6.736 trillion to 6.743 trillion. So, the balance sheet went up.

[00:07:29]It's expanding. Why is he doing that? In fact, he admitted that he was uncomfortable with the balance sheet in its current size. and he said it's so big to him it looks more like fiscal policy which it is. It was the Fed monetizing government debt. So he knows the Fed's balance sheet is too big yet he continues to make it bigger. So he can talk but he can't act. And again if the markets are not figuring this out it should be obvious because if uh Walsh did what he needed to do the markets would be crashing if he did it. That's not doing it. That's why he set up all of these task force to study a problem where the solution is obvious. And you know, I mentioned on the the last podcast that, you know, the Fed has 23,000 employees, right? Whereas it had 40 when they first started in 2014. So, the real inflation has been in the number of people that work for the Fed.

[00:08:28]But we went from 40 people to 23,000 people. Can't those 23,000 cover it? We really need five new task force. We really need to bring on even more people to try to figure out what to do about inflation when none of these 23,000 has any idea. We need more. And it it's not rocket science. It's easy. And because it's easy, that's why they're setting up these task force because they don't want to do it. You know that the problem it's not knowing what to do. It's the fact that if you do it, you create such a big problem. That's why the Fed has always chosen to create inflation. And I mentioned yes worse says inflation is a choice and he is going to choose inflation for the exact same reason that all of his predecessors chose inflation.

[00:09:17]>> Commercial real estate values have plunged drastically across urban centers, signaling a broader contraction ahead. While residential housing markets currently sit above historical highs, weakening household spending power will inevitably trigger a widespread housing decline. Meanwhile, aggressive rate cuts would spark a steep drop in currency values, forcing global investors to prioritize capital preservation. As trade tariffs boost retail prices on everyday imported goods, basic consumer living expenses will continue to climb.

[00:09:49]Moving forward, capital will pivot toward defensive assets that drop far less than general price levels during systemic economic downturns. Now, let's get back to the interview.

[00:10:00]>> In a capitalistic system, of course, prices will fluctuate. Uh they'll go up and down depending on demand and supply and so forth. But I give you an example.

[00:10:11]uh as you know in the US the stock market is selling at a high [clears throat] valuation and uh real estate uh let's say we distinguish commercial real estate has collapsed is down I mean in some buildings in some cases by 70% in other cases less but their buildings they were worth maybe $300 million suddenly there was 20 million. Nobody nobody moves in there. And I have several examples about that. But the residential real estate in America and other cities around the world and Canada is skyhigh. It's much higher than at the previous peak of the real estate bubble in 2007 2008. And after that real estate residential went down the I think it will go down. But the Fed is aware that a significant decline in residential real estate would cause significant harm to the economy because people they bought a house say 20 years ago. They paid $300,000 and suddenly it's worth now a million. So some people can sell it and move into a smaller place and so forth. they or they can borrow money against it and so forth and so on. So the rising asset prices in my opinion have created a wealth effect, a wealth illusion where people feel rich and they spend more. And when these asset prices including stocks and real estate will go down, I think it will have a huge impact on spending. And lately, as you know, retail sales have been okay but not fantastic. And a lot of stores are complaining about uh people being careful in their spending patterns. In my view, this comes about because most people haven't made much money in the stock market in the last 12 months unless they were in the f and related stocks say 10 stocks and real estate is no longer going up. In some areas it's going down actually quite a lot from the peak maybe down 15 20%. So the spending power has diminished in my view and the Fed of course Trump he wants interest rates at 1%.

[00:12:50]>> [clears throat] >> But if he cuts interest rates to 1% in my view the dollar will collapse because I I'm happy to hold dollars because I get say 4 and a half% on 3 months deposit in Thailand I would get maybe 2% peranom that's it so I have an advantage to be investing in dollars also as a Swiss Frank holder in Swiss Frank I hardly get any interest at all and in dollars, I get the 4 and a half%. So, it's not bad. It's probably less than inflation, but I I think investors must start or begin to think how do I lose the least quantity of money, not how do I make the most money, but how uh do I invest in assets that will go down less than the general price level. In fact, I think he wants to prove the world that the Fed is actually independent. I don't think they're independent, but in this particular instance, and I never thought over the last 40 years that I would ever say anything nice about the Fed, but in this case, I think they're doing the right thing, namely not cut rates.

[00:14:10]Because look, the stock market is at an all-time high. The gold market is near high and silver as well and there are price pressures also because of the tariffs. I mean it's very clear that department stores say Walmart they sell goods probably around 80% are imported goods from foreign countries with the tariffs all these prices will have to be increased somewhat not all that much because say if you buy a Nike shoe uh the tariffs don't touch say the $80 or $150 you pay in the store, they touch the price of the shoe that comes out of China or Vietnam. So that would be say $12 a pair. The rest is all added wholesale, retail and so forth. But the tariffs for sure they will increase the the prices. That is clear because the government says we collected last month say $18 billion or $30 billion and so forth. that is paid by the American consumer, by nobody else.

[00:15:24]>> Global asset markets remain heavily distorted by artificial liquidity, keeping stock valuations elevated even as real economic fundamentals soften.

[00:15:33]Retail activity indicates that everyday consumers are tightening spending squeezed by persistent inflation and stagnant income. Major department stores and retailers face mandatory price hikes on imported foreign products due to expanding trade tariff policies, directly shifting financial burdens onto households. Simultaneously, central bank leadership remains structurally trapped.

[00:15:57]Implementing genuine tightening measures or rapidly shrinking the $6.7 trillion balance sheet would spark severe market liquidations. As a result, monetary officials will form administrative task forces and rely on rhetoric, all while continuing stealth balance sheet expansion. With the money supply steadily growing, ongoing currency devaluation is guaranteed. In this environment, precious metals like gold and silver are predicted to maintain a strong upward trajectory as essential portfolio hedges. Looking ahead, successful wealth management will depend on holding tangible assets capable of outlasting persistent inflation and market volatility. Share your thoughts about this interview in the comment section below. If you found this video helpful, please hit the like button, subscribe to the channel, and ring the bell icon. Thanks for watching.