 Well, the Trump economy continues to fire on all cylinders get this US workers now seeing their highest pay increase Since 2008, that's the employment cost index came out today 2.8% for the second quarter this as US consumer confidence continues to roll spending an income big time solid in June Households spend more money on restaurants accommodation Really building that strong base building on what's already been an amazing economy, and I think we've got some strong head Tailwinds going into the rest of the year What's we now to discuss Peter Schiff Euro Pacific Capital CEO and Melissa R. Mow the stock swoosh CEO Peter I got to start with you. You and I went back and forth a few days ago And you discussed the notion that no we all got it wrong and that a recession is right around the corner Yeah, I don't think we have a booming economy at all. There isn't a historic turnaround. We're not firing on all cylinders This is the same bubble economy that President Trump accurately criticized when he was a candidate The only thing Trump's been able to do since he became president is blow a little air back into that bubble But it's all gonna the air is gonna come out this thing is gonna deflate And I think all this cheerleading and all this self Congratulations about victories that haven't been won I think it's gonna come back to bite the president and the Republican Party in 2020 Well, the victory has been won the tax cuts are working That's why consumer spending is up and people are at their jobs and corporations are hiring and now they're able to pay more Why because corporations are saving with the tax cuts. So this is just the beginning. We barely begun. I totally disagree with him I'm sorry. I think that we're in a position now where we're gonna see a great end of 2018 going into 2019 if we continue to see these numbers look at the GDP number that came out on Friday I mean, I just can't see any reason to be negative at all Peter. Well, first of all, you know We had plenty of one off quarters under Obama He had four quarters that were higher than 4.1 and by the way, we're probably gonna revise that down So it's not really gonna hold but sure if you give tax cuts you can get a temporary boost And so people are spending a little bit mouth because the government ran up the deficit And one of the reasons people are spending more is because prices are going up So in many cases, it's just people paying more for the things. They're buying not buying more stuff What's the main the main thing that you're concerned about though, what's the what's the biggest fault line in this economy? Well, well, first of all when when Trump inherited the economy There were a lot of structural problems that still exist and that haven't been addressed One of the big ones was the size of government government was much too big It was spending much too much and unfortunately under President Trump We have increased both welfare spending and warfare spending. We have made this big government even bigger Yet we've reduced the revenues to pay for it, you know in your last segment You were talking about cutting capital gains taxes. Look, I like to eliminate capital gains taxes I like to eliminate the income tax, but to do that we have to eliminate all the government that that money is being Spent on but Trump is not doing that. He's telling up Republicans. They can have a free lunch I Give what you're saying Something that even I think even President Trump regretted but having said that we are seeing a dramatic decline of things like food stamp recipients And and and the economy all the other metrics are looking great Then you know maybe anecdotally, but after the bell apples numbers are out The consumer is out there spending money. I guess the question is is this sustainable Well, I mean that's we're gonna say this Obama Obama Obama's gone. He's out. Okay So Trump is in and he's doing what he can and he just barely begun and I think you got to give him a chance I mean as far as what you want to look for in the metrics where things are increasing up You don't want to see do-do-do. You want to see it going up? So whether it's a small decline or a big decline as long as we're going higher All the things GDP market all the stuff we want to see now We that's what you want to see you want to see that rise That's that's what it looks like before collapse You know the problem was consumers were spending too much. I mean, we don't want consumers borrowing and spending more money We need people saving money. We need capital investment No, they're not they're not People are saving money rates are up But people are not saving they are spending and they're spending it on borrowed money on imports You actually don't believe a good old-fashioned recession could be cathartic and also address the the trade imbalance issue at the same time Well, our recession is coming I think had Hillary Clinton won we would already be in recession so we were able to postpone it for a couple of years But unfortunately, I think it's gonna be worse than the Great Recession of 2008 2009 So we're gonna have to rename that and a recession would be cathartic if the government would let it run its course Unfortunately, the Federal Reserve keeps coming in with artificial stimulants. They print money. They do quantitative easing They they reduce interest rates and they actually make the problems worse But the problem for Trump and for the country is that when it hits the fan, it's gonna be blamed on his rhetoric It's gonna be blamed on the tax cuts. It's gonna be blamed on the free market Sure, that's not how we got into the mess and I think we're gonna lay the foundation This is a big 20-20. This is a big experiment. We're gonna see we've got a chance to see if Reaganomics 2.0 works And listen, we're in the midst of it right now. The growth part is coming. We'll see if they have the revenue Indianism ultimately ultimately I know I know ultimately we've got to cut government spending I think everyone in the White House knows that as well. Thank you both very much Meanwhile sports. Well, let's face it used to be the past time that just brought us all together, right? We go we hug we chaired we would hug strangers as long as our team was winning now It's all about politics and things like racial revision. We'll discuss that next