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today crypto prices fall for second day as rising inflation worries investors ugly CPI print surprised markets earlier this week signaling that the FED could be even more aggressive in its fights to curb inflation our first guest this morning says that another 75 basis point hike is now a near certainty I think this is just a reaffirmation that inflation is entrenched in the system the FED has a lot of work ahead of itself as do other central banks and the markets need to adjust yields need to adjust and the economy as a consequence of this higher rate environment needs to slow down 2022 has so far been an Investor's nightmare in July Bitcoin rallied to twenty four thousand dollars and everyone who invested in Bitcoin hoped it was the long-awaited turnaround but this Hope was short-lived with Bitcoin consistently testing prices below twenty thousand dollars it's possible that we have not bought them yet Peter David Schiff who's an American stock broker and CEO and chief Global strategist of Euro Pacific Capital Inc in today's episode tackles the fed and the Joe Biden lead government on their policies and schemes that he believes are counterproductive to the economic recovery we're hoping for if you like being updated on market trends and investment analysis then you should subscribe to this Channel and turn on the notification Bell we previously warned about these Market crashes so be sure of getting valuable information here now let's listen to Peter Schiff the Dow Jones plunged by 1276 points today that's a move of just under four percent it's the biggest Point drop in the Dow since June of 2020 so it's been over two years and of course back in June of 2020 the market was getting hammered routinely because of coveted lockdowns but what hammered it today was a higher than expected inflation number which not only sent the Dow Jones tumbling but pretty much everything else the Russell 2000 also fell by about four percent but the S P 500 dropped by 4.3 percent and the NASDAQ plunged 5.4 percent of course the riskier stocks within the NASDAQ did even worse if you look at the Kathy Wood fund down 6.8 percent of course the riskiest asset of all Bitcoin got smoked it dropped about 12 from its intraday High just before the CPI was released when Bitcoin was trading just under 22 800 and by the time the market closed it was barely holding on to a 20 000 handle for a 12 intraday drop the grayscale Bitcoin trust held up a little bit better but fell 10.6 percent on the day the recent CPI report always shows that inflation worsened over the past month even though most reports are focused on the year-on-year rate which dropped to 8.3 percent from its previous 8.5 percent rate the month on month rate grew by 0.1 percent this has alarm fund managers because this is indicative of a failure in the fed's tightening measures which must be compensated for by an increase in rates which is expected to be as high as an additional 75 points and some analysts even predicting a hundred points rate increase this shock saw all markets crash including Bitcoin and other major cryptocurrencies gold prices had initially rallied at point four three percent which is naturally expected in gold and precious metal prices as they're considered a safe store of value but this was all very short-lived because gold prices fell more than one percent within a day with spot gold losing 1.2 percent value to be priced at one thousand seven hundred and three dollars and U.S gold Futures losing 1.55 in valuation to be priced at 1 713 dollars and seven cents depending on interest rates the FED eventually settles for them it is expected that gold prices would fall even further meaning that they would not provide an investment safe haven for now even so Mr Peter Schiff is bullish about gold and still thinks it's safer than Bitcoin or stocks for now the markets were preparing for a softer CPI everybody was under the impression that inflation had peaked and that it was coming down and that when we got validation that inflation was coming down by the August CPI that would take a lot of the pressure off the FED that it wouldn't have to raise rates as much because the inflation problem was solved and so that's one of the reasons that the dollar sold off it's one of the reasons that gold and silver rallied in fact it's one of the reasons that the stock market had been rallying because the Fed was going to be taken out of the game maybe not completely sidelined but at least it was going to tone down its rhetoric and maybe not raise rates as much as people thought but now that we got this hotter than expected number people think the FED is going to raise rates more than they thought in fact not only is the market pricing in a 100 percent certainty that the September rate hike will be 75 basis points but there's now about a 25 probability that the FED is going to hike by a hundred basis points the 1.55 percent loss in gold was actually small when compared to the Dow Jones Industrial Average which slip by 1276.37 points or 3.94 percent which is the most it's come down since June 2020 the S P 500 lost 4.32 percent while the NASDAQ Composite sank 5.16 Bitcoin sank even lower than other assets with 9.66 shed so why is inflation still a headache despite measures to bring it out of control Peter Schiff addresses that next If the Fed is going to win this fight against inflation it needs help from the U.S government the U.S government has to significantly cut government spending but it's actually doing the opposite of that right now the U.S government's most recent bills that were passed were spending bills they weren't spending reduction bills they increased spending including the inappropriately named inflation reduction act which is really a spending bill in Disguise it was the green New Deal light it was a slim down and rebranded version of build back better but the only thing it's going to build is more inflation then look at the chips Act that was a spending bill money is being doled out to these chip companies you also had student loan forgiveness now that wasn't passed by Congress that was unconstitutionally signed into law by executive order but still that is more government spending because people who have student loans instead of repaying their loans are going to go out and spend that money buying stuff so these are new spending bills look I just read a story that because of the Social Security colas the government is going to have to increase social security benefits by an additional 100 billion per year so that's increasing Social Security spending that is again more gasoline on the inflation fire is the government going to have to spend more on Social Security what about the interest on the national debt which is about to Skyrocket the national debt which is almost 31 trillion dollars about a third of that debt matures every year the budget deficits are already about two trillion dollars a year but they are going to get much worse as the recession gets worse U.S gasoline prices have dropped from the five dollar price a gallon to 3.89 cents a gallon in just three months which is very impressive but the secret to this price drop is actually one to be concerned about because it comes at a great cost which should come back to bite soon President Biden was able to bring down gas prices by flooding the market with Supply from the Strategic petroleum reserve and he's done this at such a high rate that the U.S stockpile is at its lowest in 37 years the US has released over 160 million barrels from its Reserve this year alone Peter Schiff thinks that the government's relief programs are counterproductive as they're leading to increase in government spending which is only a recipe for inflation hence reason why results are not forthcoming the million dollar question remains what asset would be the safest investment if the markets crash further let's hear your thoughts in the comments subscribe and 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