PETER SCHIFF: We are Headed for RECESSION!

% of readers think this story is Fact. Add your two cents.

 

A lot of these young people are making a mistake by staying in college and getting an advanced degree or just a degree, thinking that the degree will get them a job. A lot of the people who have degrees still can’t get good jobs.

I believe that a lot of these jobs have to do with a robust Christmas season, that businesses are gearing up for. 

A lot of economic data over the last several months has been bad.  Of the 4 pieces of economic data that came out today, 3 out of 4 were bad. The media grasps onto the one good report and ignores all the bad reports. “

The second report was ‘The Trade Deficit’ which “came in at 43.4 Billion, which is much bigger than the expected number of 41 Billion. At one point in the 1980s the Trade numbers were big news. But no one cares today. This is going to take down the fourth quarter GDP numbers.” 

The third report was the ‘Factory Orders’. “We were looking at a drop of .3 . Instead the drop was .7 . So factory orders declined by more than twice what they were forecasted. This is the 3rd consecutive month we have seen a decline in ‘factory orders’.” 

The fourth report was the ‘October Consumer Credit’. ”People were looking for an expansion of consumer credit to $16.8 Billion. Instead, it dropped all the way down to $13.2 Billion. The prior month was reduced from $15.9 Billion to $15.4. 

Consumers can’t spend unless they have credit because they don’t have the incomes and need to borrow money. This data point explains why the holiday sales were down 11% over the Thanksgiving weekend. 

The cost of living is going way up, and their wages are not.”

“The recent strength of the U.S. economy and the recent weakness of oil prices will soon reverse,” Peter Schiff told Newsmax TV.

“The U.S. economy is headed to a recession, which means we’re going to get more QE   [quantitative easing], not a rate hike;  READ THE REST OF THE STORY HERE….