Debt Interest Is About to Pass Social Security... Here's What Breaks
Episode 54 min 36s

Debt Interest Is About to Pass Social Security... Here's What Breaks

Interest on the debt is about to pass Social Security, and Peter Schiff explains why the Fed is trapped and QE is coming back.


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Next year, interest on the national debt passes Social Security, and the Fed has no way to fight the inflation that follows.


Peter Schiff breaks down Wednesday's Fed decision. Kevin Warsh held rates at 3.75% to 4% while calling the economy strong, admitting inflation is still too high and conceding that policy is accommodative. After one 25 basis point hike against a 125 basis point rise in inflation, Peter calls it what it is: the Kevin Warsh show, tough talk with nothing behind it.


The real constraint is the debt. Interest has already passed defense and is on track to pass Social Security next year, even if rates hold. Hiking enough to beat inflation would push the interest bill toward $3 to $4 trillion against barely $5 trillion in tax revenue, so the Fed is boxed in: the hike cycle gets abandoned and QE comes back. Peter also covers gold below $4,000 and silver below $50 as a buying opportunity, the AI selloff hitting Alphabet, Intel and the Mag 7, and why a Democratic Congress will mean bigger deficits, not gridlock.


Chapters:

00:00 Debt Interest Time Bomb

01:08 Back From New Orleans

02:16 Gold Silver Shock Drop

04:28 Fed Holds Rates Steady

05:50 Tough Talk No Action

11:38 Politics And The Pause

16:47 Warsh As Fed Puppet

21:58 Inflation Worsens Ahead

24:16 Democrats Congress Risks

28:10 No Gridlock Ahead

29:19 Blame Game Strategy

31:22 Voters Blame President

32:26 Federal Aid Threats

34:30 Five Thousand Checks Pitch

36:04 AI CapEx Market Cracks

38:36 Fed Pause Then QE

40:24 Deficits Pressure Bonds

42:38 Oil SPR And Metals

46:10 Warsh Is All Talk

47:10 Why Rates Cant Rise

52:53 Gold Silver Call To Act

54:58 Puerto Rico Tax Angle

56:24 Wrap Up And X Spaces


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