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IPFS News Link • Inflation

Peter Schiff: The Fed Is Going To Lose The Inflation Fight

• https://www.zerohedge.com, Via SchiffGold.com

And the Fed is going to lose that fight.

Oil hit 7-year highs last week with the price over $92 a barrel. This is yet another indication that we've yet to hit peak inflation. The price of oil is already up 23% on the year.

Oil also got off to a strong start in 2021. It rose 18% through the first week in February. Peter said this seems to support his belief that inflation will be worse in 2022 than it was in 2021.

The Fed is hanging its hat on the fact that it thinks the inflation rate will come down, that the supply shortages are going to dissipate, and that the bottlenecks are going to unclog. And so, there's not going to be as much inflation in 2022 as there was in 2021. The reality is there's going to be more."

Peter said there is nothing but blue skies in front of the price of oil.

Oil had its last big peak in 2008 at just under $150 a barrel. But at that time, the dollar was extremely weak with the dollar index in the 70s. Today, the dollar index is above 95. Also, the discount rate in 2008 was over 6 percent, at the high point in the cycle. Today, the discount rate is at 0.25 percent – the low of the cycle.

My point is that the dollar has a lot of room to fall and interest rates have a lot of room to rise before we may break the back of the oil bull market."

The 2008 financial crisis broke oil's back in 2008. Peter said that's not going to happen – at least not immediately.


www.universityofreason.com/a/29887/KWADzukm