Peter Schiff: Kamala's policies are getting worse

In Friday’s episode, Peter focuses on the Harris campaign’s recently announced and economically illiterate policy proposals, including What are effective price controls? And Additional subsidies drive up housing costs. He also discusses that it was a great week for gold as the metal closed the week above $2,500.

Peter first reminds us that price controls would actually do nothing to combat price inflation:

“You can't stop something by treating the symptoms. If someone has skin cancer and it starts to show up, you have some moles or something on your skin – if you just put a Band-Aid on the mole so you can't see it anymore, that doesn't treat the cancer. The cancer is still there and it's getting worse. You're never going to treat a disease by trying to cover up the symptoms. You actually have to find the root cause of the disease. And the root cause of the inflation disease is deficit spending, which is ultimately monetized by the central bank.”

He explains that the Federal Reserve’s actions are only making the situation worse rather than addressing the core problems:

“We need to suck out the money – all the new money that's been put into circulation. We need to pull it out. We need deflation… But everybody is fighting deflation. Nobody wants deflation. That's the cure, isn't it? But instead they want more of the disease. They just want to try to cover up the symptoms so we don't notice it, but of course we're going to feel it, because prices go up one way or another when you create inflation.”

If price controls were actually introduced, this would lead to shortages and black markets:

“Everything she's proposing is hyperinflationary… If criminals start selling oranges, they're going to be really expensive oranges. Why? Because the criminal is taking a risk… But let's say there's a black market. How are you going to pay? Well, it's all going to be cash, right? You want to buy oranges and all you have is a central bank digital currency? You're not going to get oranges.”

Expanding housing subsidies is bad enough in itself, but this measure would also increase debt and could fuel inflation:

“She also said to give every first-time home buyer $25,000 as a down payment to the government. But first, where is the government going to get the $25,000? Because it doesn't have it, right? We have a $35.2 trillion national debt. So where is the government going to get the money to give people the down payment? It's going to borrow it. And who is it going to borrow it from? It's probably going to borrow it from the Fed. And the Fed is going to print it. So to give people $25,000 as a down payment, it's going to have to create a lot of inflation, right?”

He goes on to discuss the disastrous impact these measures could have on the US dollar:

“We have convinced our creditors to continue to lend us money. We have convinced the world to continue to hold US dollars and US Treasuries as reserves. But all they have to do is listen to what Kamala Harris says and they will run away from the US dollar.”

The silver lining (or gold lining) of the week is that gold is looking better than ever. Peter thinks even $2,500 is a bargain:

“The trend is going to accelerate… The key is whether you don't buy at $2,500, but wait for $2,400 or $2,300 and never get it, and before you know it, we're at $5,000. … Just buy it now. … That's a lot cheaper than buying a lot more expensive.”

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