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He goes on: “And so even though the Democrats are going to raise taxes, this is still good for the stock market. Because this analyst realizes that the Fed and the stimulus trumps earnings. Earnings are secondary. The main game is stimulus. It’s the Federal Reserve that is playing the music that everybody on Wall Street is dancing to. And so, what this analyst is saying is we just need more of this music. The party is going to rage on if we get more stimulus.”
Schiff said this proves that they know the entire stock market boom is artificial. He agrees that the Democrat sweep scenario might be good for the stock market, at least in the short-run, but says it’s the worst possible outcome for America and for the dollar.
“The dollar is going to get killed. All that stimulus, all the deficits that are going to be the result of no gridlock – the traffic is going to flow, meaning the red ink is going to flow. And so that is definitely the worst outcome for the dollar.”
According to the economist, “Anything that slows down what government wants to do is a positive. Because government wants to do harm. Government wants to damage the economy. So, to the extent that a divided government minimizes the damage, that’s a positive.”
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