Polish Central Bank Joins 2015 Rate Cutting Party – Ep. 58

  • Poland became the 21st country to lower interest rates this year
  • New record low to 1.5%
  • Polish economy is strongest in three years
  • Growing faster than the U.S. economy
  • Policy conundrum: what is inflation target?
  • Low inflation stimulating Polish economy
  • Yet Central Bankers look to illogical Keynesian textbooks
  • Where is the evidence that deflation is undermining the economy?
  • There is no magical point where a good thing becomes a bad thing
  • If they overcompensate and weaken the economy, they will be raising interest rates on an already weak economy
  • Poland could afford to raise rates, however, if this policy fails, because their debt is low
  • U.S. debt is so high, we can’t afford to raise rates in order to support the dollar
  • When inflation picks up in the world and other central banks raise rates, the dollar will decline
  • The Fed will be unable to curb inflation because we can’t afford to service our debt
  • Ultimately this will precipitate a currency crisis when it becomes apparent that the Fed has run out of options

Peter Schiff is an economist, financial broker/dealer, author, frequent guest on national news, and host of the Peter Schiff Show Podcast.



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