The Peter Schiff Show Podcast

* Gold and silver prices continue to march higher * Gold was up another $7 today; it closed at $1363.20 - that is the high for the year * Silver was up .15 at $20.06 * Silver is now going up relative to the price of gold which is very for the precious metals complex * Gold stocks are on fire; the XAU index, a gold stock index was up 3.27% today * It's now up better than 135% on the year and well over 150% from the lows on the third week in January * But do you think that any major players on Wall Street have recommended gold stocks? * Do any of the big hedge funds have positions in gold? * No! They are clueless * What is happening, as I have said before, is that there is a picture, that's kind of blurry, but it's coming into focus, still not clear, but it's a game changer * The perception is that we had this great recovery and that the Fed was going to be able to unwind its balance sheet, normalize interest rates and everything was going to be great * So the whole investment world was preparing for higher rates, a stronger dollar and a stronger U.S. economy * But what is the actual picture? * The actual picture is an economic recovery that is over, if it ever even happened, * The Fed is finished tightening and they're about to start a new easing campaign * We're not done with QE; we're just getting started - QE3 is closer to the beginning than the end * Rather than shrinking the balance sheet, it's about to explode * This picture is getting clearer and now you see the markets re-pricing * Gold is going up every day * Gold stocks are going up * The banks are getting crushed * The European banks hit new lows again today * FOMC minutes came out for June and what did the minutes reveal? * The members were concerned about weakening employment number and they wanted more data before raising rates * They wanted to make sure the weakening numbers were an aberration rather than a new trend * Who didn't see that coming? * Also they wanted to see what happened with the Brexit vote * We knew about the Brexit vote all year - why did the Fed ever pretend that they would raise rates in June? * Because they wanted the market to believe that a rate hike was possible because it validates the phony recovery * So now the instead of raising rates, they spoke about raising them and they are going to cut rates by just talking about reducing them * They can do a lot by adjusting their rhetoric before they actually cut rates * They are already cutting by backtracking their rhetoric, because that's all they've got * Teddy Roosevelt said, "Walk softly but carry a big stick." * The Fed has to speak loudly because it has no stick

* I wish everybody a happy July 4th weekend; U.S. markets will be closed * It's unfortunate that we can't really celebrate all the traditions that we're supposed to be honoring were lost generations ago * The values our founding fathers risked their lives for have all been lost * I wanted to comment on what is going on in the markets particularly today * Today was the capper on the week * You had silver prices up about a dollar an ounce * Gold closed up about $19, so gold closed above $1340 * Maybe by the time the market opens on Tuesday silver will be over $20/ounce * Who knows, maybe gold will be over $1400? * This is a powerful rally - gold finished at three year highs today * GDX was up about 5% on the day * The stock market didn't do that much today, but the real story, other than the gold market is in the bond market * U.S. Treasury yield plunging again - these are the lowest yields ever * Certainly below the crash lows * The yield on the 10-year treasury is below 1.5% * The yield on the 10-year treasury is 2.24% * So yields are plunging, bond prices are surging * What is going on? * The answer is money printing; Quantitative Easing * The most recent catalyst being the Brexit vote, which scared the hell out of everybody because of the collapse, particularly of the European banks * Now the central bankers are rushing to the rescue all around the world

* It was Turnaround Tuesday in the global financial markets as stocks are recovering from 2 days of carnage following the surprise Brexit vote in the U.K. * The Dow was up almost 270 points today, NASDAQ up about 97 * But really the markets got beaten up the last couple days * The smallest bounce was from the banks, which have been beaten up the most * So they had the biggest drop and the smallest bounce * Which really shows you how weak that sector is * It couldn't even manage much of a dead cat bounce * In fact, the carnage in, particularly the European banks is much bigger than it was during the financial crisis of '08 * This really shows you how much more levered up the banking system must be, thanks to all these years of QE and negative interest rates * And of course, how much farther behind can the American banks be from their European cousins? * U.S bank stocks, too, were hitting 52-week lows yesterday * I still think there's a lot of carnage coming * Some banks may be in a position where they are going to have to raise equity, which means they'll have to sell stock * Clearly the market is not going to like that * But again, everybody is blaming this on all the uncertainty surrounding Brexit * To me, if we had a healthy financial system, if the markets were sound, and prices were based on fundamentals * Would it really make that much of a difference if the UK were in the EU or not? * What is being revealed here is the fragility of the whole system that is being propped up artificially by the banks * By cheap money, low interest rates - everybody is speculating * And everybody is assuming that the powers that be, whether it is the politicians, the governments or the central banks have everything under control * It's a big put out there and nothing can go wrong * And then when something does go wrong, then people get nervous * The wake up and say, "Wait a minute! Maybe it's not as safe as we thought!"

* The British actually voted to leave the EU and it wasn't even that close * I think by midnight last night EDT it was obvious that Leave was going to beat Remain * I think it ended up 52% voting to Brexit and 48% voting to remain * Of course, the markets were taken by surprise, in fact, we had a rally in to the close on Thursday as everybody was so confident that the polls would be right, and the online casinos would be right and that it was pretty much a sure thing that the British would vote to remain * All of the experts, the economists and the political elites around the world, including President Obama had lectured the British as to why the smart thing is to stay in the EU and how dangerous it would be, economic Armageddon - if they voted to leave * Of course this may have been reverse psychology * Especially when you've been sold a bill of goods over and over again, with cost of living rising and standard of living going down * The may be reaching for straws in the same manner as the Americans are voting for Donald Trump or Bernie Sanders * The straw that they had was Brexit * I think the markets are overreacting to the implications of the U.K. leaving the EU * After all, think of all the countries that aren't in the EU * Why aren't we all members? * Why doesn't the U.S. join? * They can't even get Switzerland to join the EU and it's located smack in the middle of Europe * One of the reasons why Switzerland is so prosperous is that it had the good sense not to join the EU * I think the markets believed their own hype * For so long, we've been talking about how awful it would be if the British actually voted to leave that when they did so, it was a self-fulfilling prophecy * Everybody is in this for a quick trade * A lot of traders are all levered up and do the minute this thing happened everybody hit the same sell button * This is just about traders having to reverse their bets * Look at what happened in the flight to safety - the dollar was way up against the pound * The pound really got "pounded" - it had its biggest down day in history * It was pounded even harder relative to gold - the price of gold in terms of the British pound rose above 1000 pounds per ounce last night * Gold was the strongest monetary asset of the day, but #2 was the yen * At one point I saw the yen was up 5% against the dollar, which meant it was up about 15% against the pound * Now why is everybody buying the yen, why are they buying the dollar? * People say it's a safe haven - not really. * Does anyone think that the Japanese economy is a bastion of safety? * Why would anybody worried about Europe buy the dollar? * Think about the irony of this: people are so worried about Britain leaving the EU that they're selling the pound to buy the Swiss franc - a country that never entered the Eurozone * It's not about safety.  It's about risk-on and risk-off * What is risk-on? That is when you buy risky assets like stocks * How does the leveraged speculative community fund a risk-on trade? they go to the funding currencies where you can borrow cheaply * The most popular funding currency is the Japanese yen because they pay you to borrow in yen * So it's real cheap, you can lever up, and to a lesser extent the dollar is a funding currency - we've had very low interest rates, especially relative to our rate of inflation

* I'm on vacation this week but I did take a little time out to little time out to listen to Janet Yellen's semi-annual "Humphrey-Hawkins" testimony - she testified first before the Senate, that was yesterday and today she was before the house * It used to be a lot more interesting with Ron Paul was on the house banking committee and you could see Ron Paul asking questions to Ben Bernanke * I really would like to hear Rand Paul questioning Janet Yellen but unfortunately, we don't have that opportunity * Also, the big news, we are on the eve of the Brexit vote in the U.K.; it's going to be on Thursday * Polls of investor sentiment show the remain camp is firmly in the lead * Betting certainly shows that more money is on the remain, but more people are betting on leave * Probably, though the remain camp will carry the day; the forces of big government are very hard to overcome * Nowhere is big government better exemplified than in the case of the Federal Reserve, which is the combination of big government and central banking * Janet Yellen's testimony, I thought, was relatively boring, but I'm going to go over some of the more important tidbits * Yellen keeps referring to the recovery that appears to be on track and the rate hike is just around the corner * All this is nonsense - if the Fed were going to raise rates, they would have already done so * One senator or congressman asked Yellen about the box the Fed might be in because the rates are still so low, what tools does Yellen have to fight off the next recession * Yellen confidently replied that we have all the tools we've always had, which is true * They still have those tools; the problem is that these tools have never worked * They can't cut rates, much, they can print all the money they want, they can do QE4, it can be bigger than QE3, and  it probably will be * Even though Janet Yellen, in response to a direct question about negative interest rates, said that she didn't think the Fed would go there, well we'll see * When push comes to shove they may be more willing to go there than they are right now because they still want to pretend that the recovery is on track, so why even bring up negative rates when you're talking about raising rates * So I think once the conversation turns then negative rates may be a more serious consideration * One of the congressmen asked about Puerto Rico and Janet Yellen said, "No, there's nothing we can do, Puerto Rico is on it's own." * I wish the Fed would have had the same attitude about the mortgage market * The Federal Reserve has no problem buying up toxic mortgages but they wouldn't touch Puerto Rican sovereign debt with ta 10-foot pole * Which leads you to believe how risky that debt much be * I wish the Fed would do the same thing to the U.S. government - force the U.S. government to make those tough choices * In fact, there was a House member, today, who talked to Janet Yellen about the independent central banks and Janet Yellen bluffed, that if interest rates, and that was a problem for Congress, that Congress would have to deal with the problem * I don't believe her for a second * I believe on of the reasons, specifically that Janet Yellen doesn't want to raise rates is that she knows that will complicate the budget situation in Washington because the Federal Government can't afford to pay higher interest rates * If the Federal Reserve already bailed out the government by doing QE and buying all these bonds, why are they going to change course? * I don't believe for a second Janet Yellen's tough talk about how independent the Federal Reserve is and how if the situation warranted it, they would raise interest rates and Congress would have to deal with the consequences * There's no way the Fed is going to do that; she may have fooled some of the people on that sub-committee, but she didn't fool me * Of course, she always gets these questions about jobs,

* Gold closed the week at the highest weekly close since January of 2015 * Not quite above the $1300 benchmark - I think we closed about $1298 - up about $20 on the day * Intra-day yesterday, gold was well above $1300 * Until there was news that a British Member of Parliament was shot and that somehow revised hope for the "stay" vote in the Brexit referendum * As if the price of gold is going up based on the outcome of that vote * As far as I'm concerned next week's vote is a non-event for the gold market * The conventional wisdom seems to believe that if Britain leaves, all hell is going to break loose in Europe * I guess all this chaos is supposed to be bullish for gold * If Britain votes to stay, the euro will go up and that might be bullish for gold, because a weak dollar is generally bullish for gold * I think gold will go up regardless of the British vote * The price of gold is not going up because of what's happening in Europe * It's going up because of what's happening in the United States *  More specifically at the Federal Reserve * The Federal Reserve concluded its June meeting on Wednesday and Janet Yellen - surprise! did not raise interest rates * If you remember, a few months ago, some minutes leaked to the public caused the public to think the Fed would raise rates in June for sure - maybe July, but probably June * And gold tanked and the dollar rallied and I said, "I don't think so." * There's nothing in these minutes that say the Fed is going to do anything * It's the same old Open Mouth Operation * If you read between the lines, they didn't commit to anything * But she cried wolf and everybody came running, and * Not only did the Fed not raise in June but they backtracked on their intentions to raise rates in the future * They toned down their so-called dot plots for this year and next year * Now, instead of announcing the first rate hike of the year, they actually pushed back expectations * There were a lot of articles about the Fed losing credibility, the Fed surrendering * This is what I have been forecasting * None of this is a surprise to faithful listeners to this podcast * Those who have been listening to the talking heads on the major media outlets expect the Fed to raise rates because they actually believe that the Fed's policies have worked and that we have a recovery * They have not figured out that this is a bubble * They never figure it out until after the bubble has burst * If you go back and read the transcript of Janet Yellen's press conference, she's still talking about  a July rate hike * If she had been honest, she would have said,"Why would we raise rates in July? We didn't raise them in June, what is going to change in a month? * But she is still on script:  she said, "I guess it's not impossible that we could raise rates in July" * So that's what it's come to: * It's come to, "We're probably going to raise rates in June or July" and now we're at, "I guess it's not impossible" * There a lot of things that are not impossible. It's not impossible that aliens are going to invade the Earth in July

* This is the week of the June FOMC meeting, although it's really going to be a dud * For a while there was speculation that the Fed was going to pull the trigger and increase interest rates for the second in almost 10 years - for the first time this...

* Janet Yellen spoke yesterday and this was the first time she spoke following the release of the much weaker than expected Non-Farm Payroll report that we got on Friday * Not only was the month of May much weaker than expected but they revised down the prior month which was already weaker than expected and now it is even more weak * This is the first time the Fed had a chance to react, remember Janet Yellen and all her cohorts at the Fed had been talking about how the economy is getting better and how we're getting ready for a summer rate hike * Everybody was thinking, "Will they move in June or will they wait until July? * Of course, I was saying all along that I doubted that they would move in either month * They did make it clear, if you read the FOMC minutes that it was contingent on the labor market improving * I had already pointed out that based on the most recent jobs report the labor market was already not improving, it was getting worse, and now we know it is even worse than the Fed would have understood * By the time the minutes were released we had had all this bad news * While people were jumping to the conclusion that the Fed was about to hike rates, even though the labor market had weakened since they expressed those sentiments and the Fed specifically said that the rate hike was contingent on improvements in the labor market, and we were getting the reverse * I never understood why so many people were so convinced that a rate hike this summer was a fait accomplit * But now all the people who were so convinced have caved in and no longer expect a rate hike in June or July, but they're talking September!  Why? * Well Janet Yellen spoke yesterday and she's still talking about rate hikes * She still said she thinks the economy is improving and at some point rate hikes will be appropriate * Well of course!  That qualifies as a "Duh!" Obviously if the economy was improving, rate hikes would be appropriate, in fact they're appropriate right now * They're appropriate even if the economy is not improving, because interest rates are much too low * I believe one of the reasons the economy is so weak is because interest rates are so low * Now I understand that if we raise interest rates we're going to burst this bubble * If we raise interest rates, the stock market will come down, the real estate market will come down and that's going to be a big problem for a lot of people, in particular the banks * And I know that when interest rates go up, all the people who borrowed so much money when they were so low, including the U.S. government, will be in a lot of trouble * The Federal Reserve itself is going to be in a lot of trouble because it has an enormous portfolio, a balance sheet of long term bonds that will collapse in value when it raises rates * I am not a Pollyanna, thinking if we raise interest rates everything is great - no, it is a disaster * But it is a bigger disaster if we don't raise interest rates and keep waiting because we don't want to deal with the consequences

* It was a few weeks ago, following the release of the FOMC meetings, in which the various governors appeared quite hawkish in their tone * They were talking about the resurgent U.S. economy, the strengthening labor market and that they thought it would be appropriate to raise interest rates in June * As a result of that, the markets reacted, the dollar had a big rise, gold dropped * Gold had risen to almost $1300 when everybody thought the Fed wasn't going to raise rates * Now as soon as the Fed changed the conversation, and they put rate hikes back on the table, gold touched below $1200 * The dollar index got as high as 96 earlier this week * But the catalyst for the rally of the dollar and the decline in gold was the Fed, and the anticipation of rate hikes coming this month * In fact, in the days and weeks that followed the release of the unexpectedly hawkish FOMC minutes various Fed officials were out giving speeches * Every one of them talked about how it was going to be appropriate to raise rates, how we are bouncing back from the unexpected Q1 weakness, and that now the Fed is finally going to resume normalizing rates * The first time they raised rates was December last year; of course they talked about it all year before they finally went up by a quarter point * If they went up by another quarter point in June of this year, it's still, it's still a pace much slower than Greenspan used * He was moving up a quarter every time they met * This would be a quarter every 6 months * Even if the Fed were going to raise rates in June, that would have been the only hike of the year * I didn't even believe that they were going to do it in Juneof * If you listen to one of my recent podcasts at the beginning of the June rate hike talk, I was saying, * "How can they talk about a June rate hike? They haven't seen the May jobs report, which will come out in the first week of June, and if that jobs report is weak, they're not going to raise rates * And even if they did raise rates, it's too little too late * It's not going to be good for the dollar, it's not going to hurt gold because the FOREX markets and the metal exchange markets have priced in far more rate hikes than the Fed could possibly deliver * In fact if they did raise rates, that would be the end of the cycle and by the end of the year they would be cutting rates * The market is anticipating a normalization * And if you remember, too, it wasn't just that the Fed was going to raise rates, they were going to shrink the balance sheet * Janet Yellen was saying she was going to get the balance sheet back down to where it started * I was saying she was lying back then * The balance sheet has not shrunk at all * That is because the proceeds of every maturing bond have been reinvested * Every nickel earned in interest has been reinvested also * So the Fed hasn't even started to unwind the balance sheet, and they've barely raised interest rates * But I did say that if we got a weak jobs report, that would clearly take rate hikes off the table * I believe they were never on the table and that's exactly what we got June 3 * The Labor Department dropped a bombshell on the markets * A relative weak report of 170,000 was expected due to the Verizon strike * The actual number of jobs created in May was 38,000 * That is the lowest number in 6 years * But it gets worse: they revised last month's number, which was also weaker than expected, from 200,000 to 123,000 * The expectation was that this number would be revised up * They even revised down the month before by another 10,000 * You've got 123,000 jobs in April and just 38,000 jobs in May * It gets worse: the labor force participation rate dropped all the way down to 62.6 from 62.8 * About 660,000 Americans threw in the towel * That is why the unemployment rate dropped to 4.7% * It didn't drop because unemployed workers got jobs,

* Well the tone and tenor of the discourse of the various market pundits and Wall Street economists seems to be that this recovery is on track * I guess there were some doubts about the recovery until the Federal Reserve laid all those doubts to rest based on the confidence with which they discussed the likelihood that the Fed would raise interest rates in June or July * The confidence persists despite the drumbeat of consistently weaker than expected numbers * Once in a while, we're getting better than expected numbers, but the beats are in the minority * Sometimes we get a number that superficially appears better than the forecast, but as soon as you actually delve beneath a very thin surface, you see a lot of negative details that don't make the headlines * People overlook a lot of information beneath the surface that is actually quite bad * But before I get into the economic data, I want to talk a little about Janet Yellen * On Friday she gave a monetary policy speech at the Radcliffe Institute for Advanced Studies at Harvard * Yellen studied economics at prestigious institutions, herself * Economics is Janet Yellen's passion; she's dedicated to economics * For someone who has dedicated herself to one subject, it's amazing how little she actually knows, despite going to our nation's best universities * It might be that the upper echelon universities are so deeply wedded to Keynesianism that a student might get a better economics education at a community college * One of the things that Janet Yellen said during her speech was that she she believes in capitalism, but that the government needs to protect the economy because capital is prone to "breakdowns" that cause mass unemployment and that we need government, or central banks to save capitalism from itself * Capitalism is not prone to breakdowns, nor is it prone to mass unemployment - in fact it's just the opposite * Capitalism is stable; it has a cyclical nature much less pronounced absent the Fed * Huge breakdowns and mass unemployment are always the result of government interference

* It really is amazing how short memories are on Wall Street * This seems exactly like December when everybody was convinced that a rate hike wouldn't matter because the economy was improving and the market can handle higher rates * And the stock market rallied right up until the Fed actually raised rates, and then it rallied a little bit, and then it rolled over and we had the worst decline to begin a year in the history of the stock market * Well flash forward to the Fed now saying that they are going to raise rates in June - or at least everybody believing that the Fed is going to raise rates in June and all of a sudden we are having this huge stock market * We had a huge up day yesterday on the idea that the economy is improving and the Fed is going to raise rates * The market is going up on the assumption that the economy can handle higher rates based on the economic data, which is another reason why the Fed might feel comfortable raising rates because the market is not selling off * So the market is giving the Fed the go-ahead to notch rates up another .25 * That was exactly the attitude prior to the last rate hike * The Fed make the mistake of raising rates in spite of weak data * As a matter of fact, if you go back to the minutes of the FOMC meeting, which is what ignited this whole Fed rate hike narrative, the Fed said it all depends on the data * If the economy continues to improve, if the labor market continues to improve, then we'll hike rates * But the reality is that the data tells the opposite story * Ever since the last Fed meeting, the economic data, on balance, has been weaker than expected - not stronger than expected * Including all the data that has come out this week * But,  hey - nobody cares - because the Fed says everything is great, so we can ignore the data because if they think the economy is great, it must be great * Forget about the fact that they have a horrible track record - the economy must be great!

* I wanted to record a short podcast today just to discuss the FOMC (Federal Open Market Committee) minutes that were released at 2:00pm this afternoon ET, which reflect the views of the Fed when they had their April meeting, some 6 weeks ago, when the Fed decided not to raise rates * As a result of the release of these minutes, everybody has now jumped to the conclusion that a June rate hike is not only on the table, but basically a done deal * I heard people talking about it on CNBC, "The Fed had to do this to show they are on a path to normalization - they said they would have a gradual pace, so they had no excuse but to do this." * Do what?  They haven't actually raised rates, they've just talked about it * Let me read you the statement they made about rates: Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee's 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June. * They didn't say they would do it, they said it would LIKELY be appropriate * Likely doesn't mean definitely, and appropriate doesn't mean they're going to do it * Because even if they determine that it is appropriate it doesn't mean they will do it * Before you even get to the likely and appropriate part of the statement, 2 things have to happen, or 3 things if you want to count inflation, but inflation has already happened * The economy has to pick up in Q2 - It doesn't look likely that that's going to happen - it is possible that we could get a second quarter stronger than the horrible Q1 but is 1 - 1.5% economic growth in Q2 picking up? It will still average out to a weak first half of the year * But the Fed also wants to see that labor conditions continue to strengthen

* Another volatile day in the stock market sees the major averages deep in the red * The Dow was down just over 1%; down 180 points, 17,529 * The NASDAQ actually got walloped a little more; down just shy of 60 points, 1.25% * I think the catalyst...

* The markets continue, really, to ignore all of the overwhelming bad news * Bad news on the economy, bad news on the corporate earnings front, retail sales - you name it, the news is bad * But the markets seem to shrug it off * All the markets - the equity markets, the foreign exchange markets, bond markets, the gold and silver markets * Sure, there is usually a knee-jerk reaction - you get some bad news, the gold spikes up, the dollar dumps, but then it recovers what it lost and gold surrenders its gains and we continue to stay the course, because to me the bad news isn't sinking in * Yes, the stock market has been trending down, particularly the NASDAQ * But it really hasn't rolled over * Yes we had the big drop yesterday, the Dow was down about 200 points, but it was up 200 points the day before * So over two days, we didn't go anywhere, despite the fact that we continue to get bad news * I'll start with some of the bad news that came out today and then work back * I think the worse news of the day was the weekly unemployment claims which is now finally started to move higher

* Today I really want to talk more about Donald Trump, in particular, the firestorm that I think I lit with respect to Trump comments with respect to defaulting on the National Debt * Now I really believe that I am the first guy to have picked up on that because, when he originally talked about that on CNBC, and Becky Quick said, "Wait a minute, are you talking about compromising  our credit rating?" * That's when Donald Trump said, "No, no, no, I'm not talking about defaulting I'm talking about refinancing and Becky Quick let it go, she accepted the explanation, and nobody else on CNBC at the time said anything * Later that day, I was contacted by CNBC - I had already agreed to do Futures Now on CNBC.com in reaction to the article I had written at the end of last week on Donald Trump and I said, "Hey, wait a minute, why don't we also talk about his comments today about defaulting on the debt * And the producer said, "What are you talking about?" * I described his comments and said, go get the clip and we'll talk about it on the program * She had no idea that Trump had said anything like that and nobody was talking about it, but I had tweeted about it in real time as soon as I heard Trump say that, as he was still in the studio talking * I heard nothing about it until after my CNBC interview took place and then there were articles about it - even the New York Times wrote a big article about it * In fact, so much was written about it that Donald Trump had to officially respond to the idea that he said he wanted to default on the debt * Which of course he never actually did - he never actually said it, but it's clear to me that that is exactly what he meant - he wasn't just implying it, that's what he was thinking * But Donald Trump is not a career politician, so he's not always thinking about the political ramifications of just speaking off the cuff, and talking honestly, which is what he was doing * All of a sudden, when he put his presidential candidate hat back on, when Becky Quick called him out and all of a sudden he had to process what he let slip, then he back tracked * I think he would have died right there, had it not been for me * Of course Donald Trump doesn't want to be the candidate advocating default * Even though we can't possibly repay this debt, I guess there are some truths that even Donald Trump is afraid to utter when you're running for President, so he immediately started to back track * But I wanted to talk about why his explanation makes no sense at all and it shows that I was 100% right about what he was thinking, and all he's doing now is spin, he doesn't want to deal with the genie that he just let out of the bottle * I think the press, in general will probably accept his explanation, because they don't really know very much, but let's go into it * First of all, he said, "Of course we're not going to default on the debt - why would we default? We print the money! * Now, when he was talking about the debt, he wasn't talking about printing money, not at all * In fact, if anything, he acknowledged that printing money would be a problem, because he said, "We have to keep interest rates low but if inflation picks up we have a real problem *