Peter Schiff talks about Trump’s ‘New Foundation for American Greatness’ which cuts $1.74 trillion from social security programs.
Schiff quips,
“First of all, the cuts are too trivial to actually make a dent in the budget deficits. The budget deficits are going to rise, they’re not going to fall.”
Schiff thinks Trump will need to make cuts in National Defense and other areas to balance the budget.
On gold, Schiff explains,
“This last quarter was our weakest sale of gold in the history of the company, and it’s not just my company. I’ve been told we’re actually doing better than our competitors; this is industry wide. And if you look at the statistics from the U.S. mint, Americans have never bought as little gold as they are buying now.”
Schiff goes on to say,
“Americans are buying stocks and shunning gold and I think the reason for that is Donald Trump.”
Schiff thinks Republicans who were rightly worried about the US economy and buying gold, are now buying stocks. Instead of buying gold as a hedge against inflation, these investors are no longer worried. Schiff believes this is foolish and that these people will soon be disappointed.
On the eventual crash, Schiff explains the “next dose of monetary stimulus will be lethal.” He is referring of course, to the U.S. dollar. Donald Trump will need the U.S. economy to put up strong and sustained GDP numbers in the coming quarters.
