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The Peter Schiff Show Podcast

Guns & Butter to the Moon – Ep. 402

The Peter Schiff Show Podcast

Peter Schiff

News, Business, Investing, Business News, Politics

4.65.9K Ratings

🗓️ 24 October 2018

⏱️ 58 minutes

🧾️ Download transcript

Summary

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A Big Constituency of Highly Indebted People
The fact that you have created this big constituency of highly indebted young people - they're like indentured servants. The government now loans them the money and now they are in debt to the government for the rest of their lives. But now the government can say, "Vote for me and we'll let you off the hook!"
You Don't Have to Repay Your Loan as Long as You Keep Re-Electing Me
Or they might have some other program where they do not completely wipe out the debt; maybe if you work for government for a certain number of years - maybe they will try to craft the program in such a way to make sure that these young people constantly vote for whichever politician promises to keep the wolves at bay: "You don't have to repay your loan as long as you keep re-electing me." It is another group of bought voters. Just like Social Security. Why does Trump want to pander to Social Security?  Why does he want to say, "We're never going to cut Social Security."? He wants all the people who are on Social Security to vote for him, or to vote Republican.
At Least the Democrats Say the Rich Are Going to Pay for It
No one wants to take anything from anybody. Nobody wants to give anybody the bad news.  Trump wants to be all things to all people. Everybody gets everything; no one has to sacrifice.  No one has to pay. Everybody eats free lunch - no one has to cook it. At least the Democrats say the rich are going to pay for it.  Trump says nobody's going to pay for it. It's all going to magically appear because of this booming economy which isn't even booming. At least the Democrats' lie seems a little more believable. They are not saying the money's coming from nothing, it's coming from these rich people who are lucky enough to have all this money and we can just take this money from them - they're not going to miss it because they don't need it anyway, and somehow it's enough for everybody to have everything that they want.

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Transcript

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0:00.0

The Peter Schiff Show.

0:07.0

Well, the Dow Jones finished the day down 125 points.

0:12.7

And if you hadn't been paying attention, you might figure it was not a big deal.

0:16.4

It wasn't that much of a decline, but you would be wrong because the Dow finished better

0:22.0

than 400 points off its lows.

0:25.2

I think the Dow was down about 540 points early this morning.

0:30.5

The NASDAQ was down better than 200 points.

0:33.6

It cut its losses to just 31 by the close.

0:38.4

All of the major indexes had recoveries on the day, but still closed in the red.

0:43.4

The transports were down just under 200 points, about 1.9%.

0:48.8

But they were down quite a bit more earlier in the day.

0:51.4

In fact, I think the transports were down about 13.5% now from their highs, making this

0:57.5

an official correction.

0:59.2

The Russell 2000 is actually down about 14% from its highs, so it's now officially in

1:05.2

a correction.

1:06.2

It finished down just 0.84%.

1:09.3

But to me, this looked like a classic reversal Tuesday type rally.

1:14.3

One of the reversal Tuesdays where you gap way down and then just rally throughout the

1:19.4

day.

1:21.0

Did not produce a positive close, so it was not a technically significant rally.

1:26.7

In fact, I think the downtrend is intact.

1:29.7

To me, it looked like a lot of short covering was going on, especially if you look at some

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