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I’m Living in an Economic Twilight Zone – Ep. 52

The Peter Schiff Show

  • China announces a record trade surplus
  • Media reports surplus as bad news for China
  • Because of the strength of the Yuan, Chinese can buy more imports for less
  • Chinese consumers purchasing more
  • Chinese businesses manufacturing more
  • Contrary to press reports these factors point to a strong economy in China
  • U.S. has record deficits along with a strong dollar
  • The short term effect of a strong currency is that trade deficits should go down because imports are cheaper
  • The fact that our trade deficit continues to rise illustrates underlying economic weakness
  • Media double standard: China trade surplus is bad but U.S. trade deficit is good
  • Media reports “low rate of unemployment” among college grads, however:
  • Record number of college graduates are under employed
  • Only 44% of employed Americans work 30 hours or more per week
  • In future, the smarter students will skip low-value degrees in favor of work experience
  • Shake Shack IPO valuation $1.5 billion on $5 million profits
  • Grilled Cheese Truck: valued at $100 million on negative revenues
  • Black is white and white is black: Twilight Zone