Schiff on Legitimate Targets: Trump’s Policies Will Trigger Inflation

In a recent appearance on Legitimate Targets, Peter lays out a bleak scenario for the U.S. economy if current trade and fiscal policies continue. He ties rising consumer prices, falling asset values, and geopolitical shifts in global reserves to the political choices being made, and he warns that voters are not getting the honest accounting of what those choices cost.  

He opens by describing the wrenching re-pricing that Trump’s goals require for them to be achieved — and why ordinary Americans will suffer for it:

And we’re starting to see the beginning of that right now because what has to happen to achieve the goals that Trump has? You have to have much higher consumer prices in America, much higher interest rates, and much lower asset prices. So we need stock prices, bond prices, real estate prices to go way down, but the price of everything you buy to go way up. So that’s not what Americans signed up for. But that’s what they’re going to get.

Peter then connects trade conflict to shifts in global reserve management, noting that China is moving away from Treasuries and into other assets — an adjustment that helps Europe and hurts the U.S.: