Peter Schiff: “People Have No Idea How Bad This Is About to Get” | The Diesel Crisis - #NewNewsupdates

Peter Schiff is an economist. He's the chairman of Schiff Gold and the host of Schiff Radio. He's been watching all of this very closely. And when we wanna know what's going on with the economy, what's going on with food prices and everything else, we have to check in with Peter. So Peter, I don't know where the diesel prices are right now as of you and I connecting here, but this sounds devastating. I mean, for just about everything in the US economy. Am I reading this wrong? No, we have all time record high diesel prices. I don't know if we hit a new record high today. We may have. I know oil prices are as high as they've been for this move. We had West Texas above 96 and Brent was above 101. But the other day we were at six, I think 685 or as if no 585, I think for diesel. But it was a record high. Now, some people might think, well, I don't drive a diesel car. So that doesn't affect me, but remind everybody how this does affect all of us because most of the products that you buy are shipped on diesel. Most of just, can you give us what could be the domino effect of what does run on diesel in our economy? Yeah, well, there are a lot of generators that run on diesel. My generator here in Puerto Rico runs on diesel. So if I need it, it costs me more to fill it up. Fortunately, I have a lot of diesel stored up, but the trucks that are delivering everything run on diesel. And so the companies that deliver all the goods, look at all these Amazon trucks running around. They need diesel. So prices are gonna have to be higher. If you have a boat, you're running on diesel. A lot of people now can't even afford to use their boats. It's so expensive based on how much it costs for diesel. So this is an expensive transportation fuel that's used throughout the economy. There are a lot of factories or to the extent that we have many factories left, but there's a lot of machinery that's powered based on diesel. The farmers use a lot of diesel in their equipment. It's a very important cost input into the economy. And of course, the consumer is on the hook for all that. So if you consume any products that are made using diesel, that are transported to you or to whatever store, even if you go to the store, a lot of the stuff that you're buying had to get to the store and diesel was required to transport it there. So the prices are all gonna be passed on just like everything else. And the one thing we know for sure, not that I thought the war was gonna end anytime soon, but Trump just came out with his latest lie that the war is not gonna end until after the midterms. And so now we know we got at a minimum a couple more months of the war. So gas prices and interest rates are gonna keep rising. And of course, the war is not gonna end after the election. That's just like his promise that prices were gonna come crashing down. He was gonna lower costs day one on the job. So this is just election politics. It's an excuse why we don't have to do anything because everything is blamed on the Iranians. They're just holding out because they're trying to make me look bad. Right, it's ridiculous. I mean, it's absurdist at this point. And you brought up a great point about, how can you basically tell if inflation is on the way? Well, just look at diesel prices. I mean, it's like, okay, so it's all gonna be baked into the consumer. We're gonna be paying more. So let's talk about inflation. Where do you see this going for the, maybe you could just, because I think a few months ago, you even talked about like the Big Mac, just the idea of like how much we're paying for just even basic food items. Before the war, you predicted, I remember it because my jaw hit the desk, $30 Big Mac index. I don't know that we were speaking specifically about the Big Mac index, but I know that prices are gonna keep on rising. Look, copper prices just hit a new all-time record high. They're up 60% since Trump took office. But in real terms, in terms of gold, copper is still cheap. So is oil. If you look at a chart of oil or copper in terms of gold, we're getting the best bargains we've ever had. So what that shows you is that prices are not really going up. The value of our money is going down. And so we need a lot more money to buy stuff. And that is gonna accelerate. The budget deficits are exploding. The deficit, right? So that means more deficit spending. That means more money printing. The money supply is growing rapidly. The Fed is creating inflation. That is how we pay for all of this government spending. And government's gonna be a lot more expensive in the future. And that means prices are gonna be a lot higher because a lot of inflation is gonna be created to fund that spending. Inflation is really a tax. It's the way the government pays for the spending that it doesn't finance honestly through taxation, through legitimate taxation, like a payroll tax or an income tax or a sales tax. The government is paying for $3 trillion a year budget deficits with an inflation tax. Did you know that U.S. life expectancy peaked at 78 years in 2014? And for the first time in decades, global life expectancy has declined. But research suggests that we may be able to fight cellular aging at the cellular level rather. Scientists have found that kimchi can help protect human cells and delay cellular aging. And Kimchi One gives you the benefits of kimchi in a simple capsule. Each capsule delivers more than 900 probiotic strains plus antioxidants and enzymes to support digestion, metabolism, skin health, and immunity. 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That's not gonna do anything to slow the increase in inflation. The Fed needs far more significant rate hikes than that to have any impact, and it won't deliver those. Even if it delivers 25 basis points, which it probably won't, because higher interest rates will crush the economy. We have a big bubble economy. And if the Fed were to actually get serious and really fight inflation, instead of just talking about fighting inflation, which is all they've done so far, the stock market could tank, the real estate market could crash, the economy could go into a severe recession, there could be a big spike in unemployment. The Fed doesn't wanna create any of this. And it doesn't wanna incur the wrath of President Trump or the public as well. And so they're probably gonna do nothing while inflation gets worse. Now, as we head into the midterms, I mean, what do you think we're going to see in terms of, well, you already said this war continues for the next few months, it seems. If we're already six months into this, it's gonna continue beyond that for sure, because we have a Uniparty in Washington that loves war. So this will continue. But what do you think that this means for the US economy, maybe, as we head into the end of the year? Well, I think the economy, we think the economy is strong, but all the strength is from all this AI spending. And that spending is not benefiting most people today. I mean, maybe it will have dividends in the future, but as of right now, AI is exacting a cost. The spending is crowding out a lot of other spending and the borrowing is pushing up interest rates. So people are paying higher interest rates, they're paying higher energy costs as we're building out the infrastructure required to eventually get the extra productivity coming from AI. So I think when you pull AI out of the equation and that CapEx boom, the economy is weak. That's why Donald Trump has the lowest approval ratings ever. He would have much higher ratings if the economy wasn't as bad. And his ratings are bad on the economy specifically. Right, it's the economy stupid. I mean, it's worth remembering that the economy was part of the reason he was voted into office because the economy was so painful under Joe Biden. And now it's hard to imagine that it's worse from 2024, but it in fact is. Yeah, we don't have to imagine it. And the biggest factor of the economy was inflation. Inflation was the big issue in 2024 and it's gonna be the big issue in 2026. The difference is in 2024, the voters blamed Biden and the Democrats for the inflation. Now they're gonna blame Trump and the Republicans. So the inflation issue is gonna work against the Republicans in the midterms. That's why not only are they gonna win the house and they're gonna get a lot of seats in the house, but now the betting odds actually favor the Republicans taking the Senate too, which people would have considered almost impossible a year ago given the numbers. And if the Republicans don't take, I mean, if the Democrats don't take the Senate, it's only because some of their candidates are just so bad. These democratic socialists are just so radical that even Democrats can't support them. That is the only shot that the Republicans have is that the Democrats are so much worse that people hold their nose and vote Republican. Where should people put their money right now? I mean, I know we're huge fans of gold and silver here on this desk, as I know you are. I mean, right now you see people saying, well, we get treasuries going up a little bit, so they kind of pull back from gold and they're thinking, oh, the government treasuries. What do you, where should people, how should families be protecting themselves right now? Well, nobody should be buying treasuries. In fact, over the last 10 years, I think the returns on treasuries are like the worst they've been in 100 years. I mean, you've lost money in treasuries and you're gonna keep losing money if you're dumb enough to buy treasuries. That's why so many people are getting rid of their treasuries. That's why the yields today, the yields are the highest they've been since 2007. The 10-year got to 485 and the 30-year got to 530, but these are still low rates. You know, it's only high in the context of where they were after the 2008 financial crisis. But if you look at the type of rates we were paying prior to that crisis, they're low right now, and they're gonna go a lot higher because we have a lot more debt now than we did back then. So this is gonna be a complete disaster because we don't have the resources to service the enormity of the debt that we've taken on over the past 10, 20 years. I just, you know, it's me that does the grocery shopping in this house, and I just noticed prices going up and up and up, and I think, what's gonna happen to us? It's unsustainable for most working families. This is when we see social collapse. I know this is not your area of expertise, but maybe you can just sort of predict how a society functions when this continues to happen. Is it theft? Is it, what do you think? Well, society doesn't function as well. It starts breaking down when you have that kind of hardship. I mean, I think we're gonna see much, much higher prices, and the government is gonna react with price controls, and that's going to result in shortages, and that's going to result in civil unrest. So you're gonna see society breaking down as a result of the economic hardship that I see coming. And again, to finish answering the prior question about where you put your money, I said where you don't put it, which is U.S. Treasuries, you don't do that. But one place is gold and silver. And as I said earlier, you have record high copper prices and record high oil prices in dollars. In real money, they're near record lows. So people holding gold are watching prices coming down in terms of their gold. It's only people who are holding dollars that are seeing their cost of living going up. So you wanna hold your cash in gold. But you also wanna invest abroad. I mean, you wanna invest in stocks that are gonna benefit from high inflation, a weak dollar, stagflation, from a rotation out of U.S. assets into overseas assets, out of dollars, out of treasuries, into gold or other currencies. And those are the strategies that we have been pursuing and continue to pursue at Europe Pacific Asset Management. So people should reach out to my firm if you have a portfolio that needs to be restructured. And if you don't have that big a portfolio and you wanna do it yourself, I manage five mutual funds and you can buy them all no load at any discount broker. You can get information on my mutual funds. I've got a gold fund, an emerging market fund, a foreign dividend fund, a foreign value fund, a foreign bond fund. You can get information on the website at europac.com and then you can buy the funds anywhere. Awesome. Thank you so much. Yeah, it's right there on the screen, europac.com. Peter, great to see you as always. Thank you for this sobering assessment. And I guess, yeah, I guess this war will continue for many, many months as President Trump just alerted us. Peter, great to see you as always. Thank you so much. Take care. Thank you so much for watching Redacted. We'd love for you to subscribe to the channel. It's totally free if you wanna follow us or subscribe. 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