https://www.youtube.com/watch?v=/gMKq4WeG6Us
Inflation, which peaked at 9.1 percent in June, has further to rise in 2023, said Peter Schiff, Chief Market Strategist at Euro Pacific Asset Management, who correctly forecasted the 2008 housing crash and high inflation in 2022.
“We’re not getting anywhere near 2 percent [inflation],” he said. “Maybe we’ll go below 7 percent before we go above 10 percent, but I think we’re going to take out the highs from 2022 before the end of 2023 on a year-over-year basis.”
The Federal Reserve has hiked rates over the year by 425 basis points in an effort to rein in inflation, but Schiff said they could end up making the situation worse.
“Rising interest rates actually feed into higher consumer prices,” he explained. “If I am a business… I have to pay interest on my debt. Well, if interest rates go up, that’s a cost of doing business. I might have to raise prices to cover that.”
Schiff spoke with David Lin, Anchor and Producer at Kitco News.
Reducing Inflation
Schiff, who campaigned for a Senate seat in 2010, said that the way to stop inflation would be through fiscal prudence.
“If we want to stop taxing people through inflation, we have to either tax them another way, or we have to cut spending,” he said. “In other words, we have to balance the budget.”
However, he added that it is unlikely that such a policy would be adopted, because it would fail to…
