KEEP DOMINATING THIS ECONOMY.
CONNELL: COVERAGE CONTINUES
HERE.
ON A DAY THE DOW IS DOWN 800.
WHETHER A RECESSION IS COMING.
WHAT THE PRESIDENT SHOULD DO AND
THE FED, WHAT HAVE YOU.
YOU I KNOW YOU HAVE A DIFFERENT
AND UNIQUE PERSPECTIVE.
WHAT'S THE PETER SCHIFF TAKE ON
THIS?
>> EVERYTHING THE FEDERAL
RESERVE HAS DONE SINCE THE 2008
FINANCIAL CRISIS WAS A MISTAKE.
ALL THEY DID WAS SUCCEED IN
MAKING ALL THE PROBLEMS THAT
MAKE THAT CRISIS WORSE.
THEYED IT UP BY INFLATING AN
EVEN BIGGER BUBBLE THAN THE ONE
HAT POPPED IN '08.
BY TRYING TO SHRINK THEIR
BALANCE SHEET THEY PRICKED THAT
BUBBLE.
NOW WE'LL COMPLETE ECONOMIC
CRISIS THEY INTERRUPTED IN
TWEET.
IN -- IN
2008.
BUT THE BACK HALF WILL BE WORSE.
WE ARE HEAD FOR A RECESSION.
IT WILL BE WORSE THAN '08, THE
FED IS GOING BACK TO ZERO.
THEY ARE GOING TO DO QE AGAIN.
BUT IT'S NOT GOING TO WORK.
ALL THE INFLATION IS GOING TO
THE SUPER MARKETS AND THE GAS
STATION.
IT WON'T GO INTO THE STOCK
MARKET.
THE DOLLAR WILL GO THROUGH THE
FLOOR, IT WILL TAKE THE BOND
MARKET WITH IT.
THE NEXT CRISIS IS NOT STUBB
PRIME MORT AGES, IT WILL IN THE
TREASURY MARKET.
THIS WILL BE INFLATIONARY WHERE
THERE IS NO WAY OUT.
THE RECESSION WILL START BEFORE
HE FINISHES HIS TERM WHICH MEANS
HE WON'T HAVE A SECOND TERM.
BUT THE WORST PART OF THE
RECESSION WILL TAKE PLACE ON THE
WATCH OF THE NEXT PRESIDENT.
>> IS THIS BILL MAHER?
CONNELL: HOW DO WE GET THERE
FROM HERE?
IF THERE ARE SO MANY PROBLEMS
AROUND THE WORLD WHICH WE KNOW
THERE ARE.
AND THE CAPITAL IS FLOWING INTO
THE UNITED STATES FOR THE TIME
BEING.
THAT SUPPORTS OUR CURRENCY.
SO HOW DOES THAT ALL -- WHAT
HAPPENS?
>> THAT CAPITAL IS GOING TO
FLEE.
PEOPLE MADE THE MISTAKE.
INITIALLY EVERYBODY BELIEVED FED
WAS GOING TO NORMAL SIZE RATES.
I KNEW THEY COULDN'T DO THAT.
THE FEDS FINALLY ABORTED THE
PROCESS.
THE MARKET STILL BELIEVE WE
SOMEHOW HAVE A BETTER ECONOMY
AND OUR RATES WILL BE HIGHER AND
WE'LL AVOID RECESSION BUT WHEN
THEY REALIZE THAT'S NOT TRUE.
WHEN THE FED SLASHES RATES, THEY
WILL FLEE FROM THE DOLLAR.
ESPECIALLY WHEN INFLATION
CONTINUES TO RISE.
AS WE MOVE INTO THIS RECESSION,
CONSUMER PRICES WILL RISE EVEN
FASTER.
EVEN IF THE DOLLAR STARTS TO
FALL, IT WILL PUSH PRICES UP
EVEN MORE.
CONNELL: HOW DO YOU EXPLAIN THE
FACT THAT WE HAVEN'T SEEN WHAT
WE WOULD BY NOW HAVE SEEN ACTUAL
INFLATION, MORE THAN WHAT WE
HAVE SOONER IN GOVERNMENT DATA,
THAT IT HASN'T BEEN MORE THAT
THAN IT IS.
>> YESTERDAY WE GOT THE FIRST
BACK-TO-BACK FIRST 3-POINT GAIN.
SINCE 2001.
BUT A LOT OF THE INFLATION THE
FED CREATED SHOWED UP IN ASSET
PRICES, STOCKS, HE'LL ESTATE
BONDS.
BUT THAT INFLATION IS GOING TO
MOVE FROM ASSETS PRICES TO GOODS
PRICES AS CONFIDENCE IN THE
DOLLAR AND U.S. ECONOMY IS LOST
AND WHEN THE MARKETS PRICE IN A
TRUMP LOSS.
RIGHT NOW EVERYBODY THINKS A
TRUMP VICTORY IS A SURE THING.
JUST LIKE EVERYBODY THOSE
COULDN'T WIN IN 2016, EVERYBODY
THINKS HE CAN'T LOSE IN 2020.
CONNELL: YOU THINK THERE IS AN
INVESTMENT BET ON THE ELECTION.
>> I REMEMBER NOBODY THOUGHT HE
COULD WIN IN REALITY.
PEOPLE THOUGHT IT WAS CRAZY.
I WAS ONE OF THE FEW PEOPLE WHO
CAME ON TELEVISION AND SAID I
THINK HE CAN WIN.
NOW I THINK HE'S GOING TO LOSE.
I THINK THE RECESSION IS GOING
TO START BEFORE THE END OF HIS
TERM AND IT WILL BE BLAMED ON
HIM.
GEORGE BUSH WAS ABLE TO GET
RE-ELECTED.
THE FED BOUGHT BUSH A SECOND
TERM AFTER THE DOT COM BUBBLE
BURST.
WE ELECTED OBAMA.
NOW THE FED WON'T BE ABLE TO
INFLATE ANOTHER BUBBLE TO SAVE
TRUMP.
IT WILL BLOW UP ON HIS FIRST
TERM AND THE DEMOCRATS WHO
FOLLOWS HIM WILL BE A SOCIALIST
AND WILL BE MUCH WORSE FOR THE
ECONOMY THAN OBAMA.
CONNELL: YOUR POINT IS THE
MARKET WILL TRY TO PRICE THAT
IN, IF YOU ARE RIGHT.
WE'LL SEE.
ONE THING YOU ARE RIGHT ABOUT,
THE TIMING OF THESE POLITICAL
EVENTS.
HIS FATHER WOULD HAVE LOVED
BETTER TIMING BEFORE THE '92