peter schiff peter thanks for being here. so let's talk about it i mean i. yeah let's talk about what seems to be halting some of this trading is the issue of china and the fact the president appears to be kind of walking back the idea that a deal is about to be reached how do you see it. well i've said from the beginning that there will be no substantive trade deal reached with china in fact we're not even talking about a real trade deal anymore we're just talking about phase one and phase one is basically nothing and i think what the chinese basically want to agree to nothing is for all the terrorists to really be rolled back so that we return to the status quo that existed before the trade war began. meanwhile blog now. this week after reports that private equity giant company has formally approached addressed our group of what could be the biggest leveraged buyout in u.s. corporate history coming in at around $70000000000.00 so it doesn't tie a deal comes together how significant could be the terms of flexing the power of private equity. well you know we were having a lot of private equity deals in the era of cheap money you know even though interest rates have moved up a bit what we have one of the half percent fed funds we have a inflation rate well in excess of 2 percent per year even the way the government measures it so with all this cheap money around there's a lot of deals that are being done but if the fed were to allow interest rates to rise to a normal level a lot of these deals would not be go be done and i think the economy would be restructuring in a much healthier way instead we're continuing to inflate a bubble and we're propping up companies that would be better off going through a bankruptcy so it would actually be the benefit of actually going private here they have been private since about $970.00. but i don't know i mean i'm not involved in this transaction but i know there's a usually a lot of costs that are saved if you're not a public company you don't have to do all of the reporting that is required of public companies. but if they're to finance a transaction by going deeply into debt you know this is something that will ultimately probably be problematic when the fed loses control of interest rates and interest rates ultimately rise in a severe recession which is my forecast. so peter we know you love to talk about gold and silver gold and silver prices have been pretty steady today but late last week the precious metals slumped a little bit to 3 month lows over the weekend we saw more violence in hong kong between police and protesters do you think that will cause the price to start to move again obviously folks looking for a kind of a safe head right now. well the real driver behind the rise in the price of gold is central banks not only the federal reserve but central banks around the world and what happened last week as i think we have some profit taking in gold based on some false optimism of a trade deal which again is not going to happen whatever we get will be not i mean it won't be anything of a deal it won't change any of the dynamics between the united states and china but interest rates also rose rather sharply later last week particularly on the long end of the curve and that also caused some selling in in gold but ultimately i think the reason that in

euro pacific capital ceo and president peter schiff and milliken institute chief economist bill lee. peter, i'll start with you. that make you nervous that he had to admit we're too close to zero to have enough if there were a bad downturn in the economy? >> well, and it's the fed's fault that we're down here. but, of course, whenever the fed cuts interest rates in the face of recession, it's not helping the economy. the recession is what's helping the economy, because the recession is trying to restructure the bubble, right? the fed artificially are, you know, manipulates the economy with cheap money, and then when that cheap money results in a recess, the fed comes to rescue with more cheap money, but all we're really doing is creating a bigger problem. and, you know, the fed chairman said that the u.s. economy is in a good place. well, they always say that no matter how precariously the u.s. economy is perched. you can always count on the fed chairman to say everything is great. liz: well, things are not that bad though economically, bill, when you look at the issues that he articulated

peter schiff of your pacific capital to weigh in on all of this peter thank you so much for being with us let's start off simply here why do you think hong kong in your opinion has become an emphasis in these trade talks. well it's only because maybe the u.s. believes that it has some way to leverage what's happening in hong kong to its advantage and maybe to to for some type of a deal but you know what really bothers me about the united states criticizing china and hong kong if you look at the index of economic freedom that the heritage foundation puts out every year hong kong ranks number one today it's a free of psychotic me in the world the united states ranks 12th on that list so you know i'm all more concerned about the freedom of our own. people so rather than worrying about the phrase people of the world how about of our leaders try to find a way to make americans more free as a very excellent point and being afraid us talk about fairness trump said in an interview tuesday he quote we can't make a deal like this event we have to make a deal where we do much better and so does that sound like he's even trying to make a deal with that type of mentality like how can he expect to hammer out a phase one when he is blatantly saying that he doesn't want a fair deal. well you know every side hopes to get an advantage and that's the whole art of the deal and you go to him but i don't think that trump is trying to make a deal i mean trump just wants the stock market to go up and as long as the stock market is going up he couldn't care less about a deal with china maybe if the stock market really started to tank then he might feel some type of pressure to actually deliver a deal but as long as he can make the market go up by talking about the prospects of a deal that's all trump wants and now it's actually interesting because as you just mentioned you know the markets have been reacting they're hitting an all time high again today and going to your head we generally have this santa rally and a seasonally strong time of year for equities but will another escalation cause the market to crash how should traders position after this when there is so much uncertainty in the near term i mean it seems like this should be causing markets to go down but it's incredibly every time he says something positive traded negotiations markets go to record highs. well look there are a lot of things that should be causing the market to go down but there's really only one thing causing it to go up and that's the fed and so the markets are rising just remember for a while people were worried about rate hikes nobody is worried about rate hikes the fed has taken all rate hikes off the table the fed has made it clear that the only direction that rates can go is down they're going to stay the same or they're going to go down and q.e. 4 is now on auto. pilot you know in perpetuity so that's what the markets want they know that they're never going to have another rate hike and they're going to have money printing as far as the eye can see and so that's what's driving stocks and i guess that's going to continue to drive stocks in till something causes that to change and somebody is going to happen because the us is headed for a worse economic disaster than the one we had in 2008 and there's no way this is good for stocks and we really shouldn't even be here at all time highs i now when everything are nice season this yeah we had continuous a vision down there are present on average equities across the board averaging 2.3 percent downward and now we're going to 4 kids and with passed on board with consumer spending expected to be much much slower much more constricted this year howland stasiak especially in far retail consumer sentiment everything when consumers have been the backbone and been supporting the market this entire ride. of 1st of all i mean bad earnings are not the only negative that the markets are ignoring and in fact in a way the bad news is good news again because it keeps the fed in play even though they've basically. assured the markets that they're not going to do anything to hurt the markets but as far as the consumer is concerned look you know people keep talking about how the consumer has never been in better shape when the opposite is true the consumer is completely levered up he's got record amounts of debt and the only reason he can spend is because the fed is keeping rates low enough so that credit continues to flow despite the lack of legitimate savings to finance it so this whole alison cards is going to come tumbling down the consumer is going to be right in the center of that and peter i do want to ask because you know as we just mentioned you know the year ended where and to say it's a season if you will i mean retail earnings have been kind of up and down depending on what you're looking at department stores down target and best buy kind of moving up but what are we going to see here as we head into the key holiday shopping season. what we're talking about is a lot of concern in the economy i mean are we still going to see people spend that money come this week. well as long as they can borrow it they'll spend it the question is can they pay it back look i think the holiday sales are going to be disappointing again and certainly the brick and mortar companies the vast majority of them kids can you to struggle i mean look what's going on with the vacancy rates and and leases and you know that and the earnings on most of those companies a lot of americans are doing what they can to squeeze every penny out of the dollars they're borrowing and so they're shopping onli

2008 when this all started this is why pundits like peter should going right going back to 2008 when this all started this is why pundits like peter schiff got it wrong because he was calling for inflation yes and people like rick ackerman have got it wrong because he was calling for inflation yes and people like rick ackerman who are on our show were saying no this is deflation and now we see that it is a man or on our show or saying no this is deflation now we see that it is a massive deflation deflationary depression where prices collapse and of deflation deflationary depression where prices collapse and this is what we're facing now that's what they're suggesting of course this is the this is what we're facing now that's what they're suggesting of course this is the jump up you see a massive probably the highest percentage increase in monetary base jump up you see a massive probably the highest percentage increase in monetary base in the entire chart since the beginning of the fed that did happen in 2002009 perhaps in the entire chart since the beginning of the fed that did happen in 200-2009 perhaps they they saw a different outcome

2008 when this all started this is why pundits like peter schiff got it wrong because he was calling for inflation but this is why pundits like peter schiff got it wrong because he was calling for inflation yes and people like us and people. are men who were and. this is if we're saying no this is deflation and. he said it either is it is a. sort of. oppression where prices collapse. this is a lot we're up to and. this was what we're they're facing now that's what they're suggesting of course this is the. problem probably the highest percentage increase and most. in the entire charts chart starts have been going to be in the getting of the fed that that did happen in 200-2009 perhaps they they saw a different outcome that you 100-2009 perhaps they they saw a different outcome that didn't well there was a bail out and it wasn't put into the economy they bailed out the creditors didn't know there was a bailout and it wasn't put into the economy they bailed out the creditors thanks to barack obama who made that $180.00 degree wrong strategic the choice thanks to barack obama who made that $180.00 degree wrong strategic to choice and s

peter rodino. with nixon. peter say i have to do this fair and square and that's what i think is missing in the way adam schiff is conducting himself. >> we're waiting on the vote and they'll come back in the room shortly. >> a quick break and we'll be right back. it is nice. his haircut is "nice." this is the most-awarded minivan three years in a row. the van just talked. sales guy, give 'em the employee price, then gimme your foot. hands-free sliding doors, stow 'n go® seats. can your car do this? man, y'all getting a hook up and you don't even work here. don't act like i'm not doing y'all a favor. y'all should be singing my praises. pacificaaaaa! purchase and get $5,361 below msrp plus 0% financing for 60 months on the 2019 pacifica limited. >> friday morning the first part of this hearing concluded. when we resume the republicans will have their opportunity for cross examination. already some eventful testimony thus far. welcome back to our coverage and i'm bill hemmer on this friday. >> good morning. thank you for being with us. i'm sandra smith. the witness ousted u.s. ambassador to ukraine marie yovanov