Schiff warns -- this is the biggest bubble ever, not a recovery!

Peter Schiff has spoken up again. This time to challenge the bulls who keep shoving the “strong economy” propaganda down our throats. He challenges the official narrative by making a few important points to help keep people from getting too excited about the recent reports.
    

1. Businesses have been buying into the recovery. As a result, they’re investing in more merchandise, expecting holiday sales to be strong — as a strong economy would predict. But he doesn’t expect the sales to be strong at all. If he’s right, these businesses will be very disappointed. Additionally, despite a supposedly “big” third quarter with 5% growth, if the fourth quarter looks bad, that’s also a bad sign for the first quarter of 2015.
    

2. The third quarter growth was determined by a huge increase in Obamacare spending — something we shouldn’t expect to be repeated in the fourth and following quarters. (While Schiff doesn’t mention it here, I show in this article how the third quarter “growth” was really just data manipulation at its finest.)
 

3. The job growth we’re experiencing is low-paying, part-time jobs that people are taking just to get by. This isn’t the kind of growth you build an economy on.
    

4. Savings rate is down, and the entire recovery is built on bubbles.
    

5. The Fed, despite hinting that it will raise interest rates because the recovery is so strong, still hasn’t increased rates. Schiff points out that if the recovery was legit, they would have raised rates long before now. The fact of the matter is that the Fed isn’t raising rates because they know they’ll prick the bubble we’re in because “it is the biggest one ever.”

Watch the video:

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