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IPFS News Link • Economy - Economics USA

Peter Schiff: Stagflation Is Here!

• Schiff Gold - Peter Schiff

We got the highly anticipated employment report on Friday. It came in far below expectations. But despite weak economic data, bond yields are rising, along with the price of just about everything. Meanwhile, a gold rally fizzled. Peter Schiff talked about it during his podcast, explaining just how badly the markets are misinterpreting the data. When you add up plunging bonds yields, strong oil, and weak economic data – that equals stagflation.

According to the September Labor Department report, the US economy added 194,000 jobs last month. The projection was for around 500,000 new jobs.

A big decline in government jobs helped drive overall job growth down. As Peter noted, that's not necessarily a bad thing.

"The only way to pay government workers is through taxes. So, if government workers are not employed, that is actually a benefit for the taxpayer because they're relieved of the burden of paying their salaries. And of course, a lot of the government work that's done actually interferes with productivity. We're actually better off without those workers because the workers are simply getting in the way of the productivity of everybody else."


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