The 5-Year Just Broke 5%…Peter Schiff Warns The WHOLE CURVE IS NEXT!

Stock people still act like yields are topping. Schiff’s line is the opposite. The curve is not done.
He wants the 10 year to 30 year spread, now under 30 basis points, back toward 50 or more, and he would short the long bond against the 10 year to express it.

The debt math is the clip that travels. Five percent on $40 trillion is $2 trillion a year in interest, about 35 percent of tax revenue and more than Social Security, with the debt still growing more than $3 trillion a year. That is not a rounding error. That is the budget eating itself.

Then he put Donald Trump and Kevin Warsh in the same room. After the quarter point hike, Trump told reporters the board was hostile and political, and that he told Warsh he might as well vote with the board because it would not matter. Schiff’s fork is brutal. “Either Trump is outright lying… or if it is the truth, then it is much worse.”

If the conversation happened, the Fed chair cleared his vote with the president before the announcement. “If the chairman of the Federal Reserve consulted with the president first to get his approval… Trump has given him permission.”

Schiff thinks the story is fake. He still wants Warsh asked, on camera, at the next press conference. Silence from much of the press is, to him, the tell.

McDonald’s did the inflation job the Fed would not. The stock dropped about 5 percent after the CEO said inflation stays elevated for “many more years.” Warsh still talks 2 percent anchored expectations.

Schiff sides with the burger chain on the path and with Warsh on one point only: growth does not print inflation. Loose money does.

Diesel is the real economy’s receipt. An export ban, he says, would cut production, not magic cheaper gallons. Draining the Strategic Petroleum Reserve in a non emergency leaves a dry tank for a real one. “When the oil runs out in the strategic reserve, we will see a huge rise in the price of oil. When we face an actual emergency, we will have nothing left.”

Politics follows the grocery aisle. Democrats are now about 65 percent to take the Senate. Cost of living is the issue. Schiff closed on Plan B, Panama, and his grandparents walking through Ellis Island with no file. The problem is the welfare state, not the immigrant. Get the financial house in order. Gold & silver are the portfolio, not a vibe.

The 5 percent five year is not a curiosity. It is the curve telling you the interest bill is about to own the country.