Peter Schiff appeared on Fox Business yesterday to discuss whether or not the Federal Reserve is going to start quantitative easing again in 2015. Anchor David Asman gave Peter credit for predicting that the economy is too weak for the Fed to raise interest rates, which Morgan Stanley now believes as well. On top of that, Asman credited Peter for predicting poor UPS earnings in the fourth quarter. Peter and Asman still wrangled over whether or not the US is falling into another recession.
Follow along with this partial transcript:
David Asman: Morgan Stanley saying today what our next guest has been saying for months now: that the economy is too weak for the Fed to start raising rates this year. So what happens now? … They say, Peter, that plagiarism is the sincerest form of flattery, so you should feel honored that Morgan Stanley listened to what you said and repeats it. What does happen now? If, in fact, the economy is getting weaker because of what is happening overseas, does the Fed get back into a QE mode where it actually starts buying bonds again?
Peter: First of all, it’s not because of what’s happening overseas, that’s the excuse… They never run out of them; it’s whatever’s going on. The minute the Fed stimulated the economy with quantitative easing and 0% interest rates, they guaranteed that it wouldn’t work. Because when you do it, you just create an artificial high. When the stimulus wears off, you’re always in worse shape economically than you were when it first began. That’s the point that we’re at. We’re going back into a recession in the United States, and it’s not just that the Fed is not going to raise rates. They’re going to have to do QE4 to keep us out of recession…
Asman:Â What other signs of a recession do you see?
Peter: All the economic data that has come out in the last few months has been pretty weak…
