PETER SCHIFF: OIL PRICE CRASH is First of Other Collapses! Find out the Other Markets Set to CRASH...

He keeps the pretense up until they actually get in the car and they’re driving to the Hamptons. He’s telling them about his house and his horses, etc. They both know that they’re lying and they are in this car and they are pushing it to the max. Everybody wants to pretend that there’s this house. 

It reminds me of the Fed. When I first started talking about how I thought the Fed was bluffing with the taper and the rate hike, I didn’t think they would take it this far. I didn’t know that we’d ride, that everybody would sit in this car, pretending that the Fed can end QE, raise interest rates. This car ride has gone on a lot longer, to the point where Janet Yellen is talking about her horses waiting for us in the Hamptons. They are keeping up the pretense that they are going to raise interest rates. 

As a result of the fact that they’ve pushed it this far, we’ve got the oil market succumbing, the dollar rallying, but these other markets are going to go, too. 

It’s not that the problems in the oil market are just going to spill over into these other markets,. All the assets prices have to come down. It just so happens that oil prices came down first.

The Fed is keeping up the pretense that they are going to raise interest rates, that QE is over. As a result, these other markets are going to go too.  People have been living in a delusion, to think that the Fed can normalize rates and all these asset bubbles that have been inflated aren’t going to deflate in the absence of the Fed. 

Just with the oil market, even in isolation, which I think is big enough -

The Fed is juggling “multi-bubbles”. Just because the ‘oil bubble’ dropped doesn’t mean the Fed’s going to be able to successfully juggle the remaining bubbles. 

The rising oil price wasn’t necessarily something the Fed wanted. But the price went up. The Fed wanted real estate and stock prices to go up. But you can’t necessarily just target your inflation and only have it go exactly where you want. It’s going to go all over the place. When you try to take away the money, it’s not just going to go away from oil.