US Federal Reserve

Euro Pacific Capital's Peter Schiff sat down with Alex Jones last week to discuss the state of the economy, and where he sees everything going from here.

Here are some notable moments from the interview.

Regarding how bad things are, and what's really going on in the economy, Schiff lays out all of the horrible economic data that has come out recently, as well as making sure to take away the crutch everyone uses to explain any and all data misses, which is weather.

The Fed has backed itself into a corner.

For seven years now we’ve been told the US is in a recovery. However, if this were the case, the Fed would have started raising rates years ago (likely in 2012). No other recovery on record saw the Fed maintaining ZIRP for so long.

There is simply no factually credible argument for why rates should be ZIRP if the economy is expanding. You cannot have claims of a “recovery” or expansion while ZIRP is in place. ZIRP is meant to be an emergency policy meant to pull the economy out of a severe recession, NOT a long-term program.

Submtted by C.Jay Engel via The Austrian View blog,

“Like champagne, bull markets remove inhibitions.” –James Grant

Back in January, when the market was watching in shocked silence as oil prices were crashing to decade lows and as concerns emerged that Saudi Arabia may need to commence selling its vast, if unquantified, USD reserves, we wrote a post titled "Attention Finally Turns To Saudi Arabia's "Secret" US Treasury Holdings" where we noted something very surprising: whereas we do know that Saudi Arabia is the owner of the world's third largest USD reserves...

Two weeks ago we showed something striking: while combing through Janet Yellen's recently disclosed daily diary, we noticed that on February 11 and 12, the Fed chair held two critical phone calls, one with BOE governor Marc Carney and the next day, with BOE president Mario Draghi.

But what was especially shocking, and the reason why we dubbed them "the phone calls that saved the world", is that the first call took place quite literally the very hour that the market hit its 2016 lows.

Zoomed out: