In a currency war that is escalating, over time there is no doubt the U.S. will eventually come out the winner, in the sense that it will lose more of its value than competing currencies, which will devastate the economy.
Peter Schiff, CEO of Euro Pacific Capital, said this:
"There is a currency war going on," Schiff said at the Inside ETFs conference. "The irony of a currency war which makes it different from other wars is the object is to kill itself. Unfortunately, I think the U.S. is going to win the currency war."
"We're broke. We owe trillions. Look at our budget deficit, look at the debt to GDP (ratio), the unfunded liabilities," Schiff added. "If we were in the euro zone they would kick us out."
Since the Federal Reserve is artificially propping up the U.S. economy, it's only a matter of time before the negative consequences kick in, led by the ongoing debasement of the U.S. dollar.
Schiff also rightly notes the consumer price index isn't made to measure inflation, but rather to hide it through manipulation. He calls the CPI a "total fraud." Schiff says other similar indexes are just as fraudulent as the CPI.
Recommendations from Schiff are to continue to hedge inflation and global uncertainty and unrest with precious metals, especially gold.
Showing posts with label Peter Schiff Gold. Show all posts
Showing posts with label Peter Schiff Gold. Show all posts
Saturday, February 16, 2013
Friday, November 5, 2010
Peter Schiff Is Right on Gold, QE
Peter Schiff has been mocked by the clueless pundits at CNBC and other financial media outlets for his consistent opposition to the Federal Reserve inflating and the need to acquire gold for investors to protect themselves from the Fed's disastrous policies, but he's getting the last laugh.
Although the stated reason by the Federal Reserve to is to jump-start the economy, Schiff believes the motives of the Fed aren't as altruistic as that.
Schiff states, “The true purpose of QE2 is to disguise the decreasing ability of the Treasury to finance its debts. As global demand for dollar-denominated debt falls, the Fed is looking for an excuse to pick up the slack. By announcing QE 2, it can monetize government debt without the markets perceiving a funding problem.”
If that is true, it would make sense as to why the Fed and Bernanke are introducing another round of quantitative easing when their last one failed miserably.
Of course there is absolutely nothing else the Fed can do, as printing money is pretty much their major economic weapon, along with controlling interest rats.
Schiff concludes: “If the truth were known, a real panic would ensue. So, the Fed pretends buying treasuries is simply part of its master plan to boost the economy, even though, in reality, it is simply acting as the buyer of last resort."
For years Schiff has said the Fed doesn't have the will or nerve to raise interest rates, as it would result in the collapse of the stock market, the bond market, and burst the real estate bubble, even though the latter already happened in spite of low interest rates.
He also said bankruptcies would ensure in a big way, even though, again, it happened in a low interest rate environment.
Schiff's conclusion is that easy money policies of the Fed hide the true weakness of the economy, and that has proven correct as the trillion plus in spending has resulted in little effect, and once removed, showed the economy to be in the anemic state it really is.
Although the stated reason by the Federal Reserve to is to jump-start the economy, Schiff believes the motives of the Fed aren't as altruistic as that.
Schiff states, “The true purpose of QE2 is to disguise the decreasing ability of the Treasury to finance its debts. As global demand for dollar-denominated debt falls, the Fed is looking for an excuse to pick up the slack. By announcing QE 2, it can monetize government debt without the markets perceiving a funding problem.”
If that is true, it would make sense as to why the Fed and Bernanke are introducing another round of quantitative easing when their last one failed miserably.
Of course there is absolutely nothing else the Fed can do, as printing money is pretty much their major economic weapon, along with controlling interest rats.
Schiff concludes: “If the truth were known, a real panic would ensue. So, the Fed pretends buying treasuries is simply part of its master plan to boost the economy, even though, in reality, it is simply acting as the buyer of last resort."
For years Schiff has said the Fed doesn't have the will or nerve to raise interest rates, as it would result in the collapse of the stock market, the bond market, and burst the real estate bubble, even though the latter already happened in spite of low interest rates.
He also said bankruptcies would ensure in a big way, even though, again, it happened in a low interest rate environment.
Schiff's conclusion is that easy money policies of the Fed hide the true weakness of the economy, and that has proven correct as the trillion plus in spending has resulted in little effect, and once removed, showed the economy to be in the anemic state it really is.
Friday, October 15, 2010
Peter Schiff On Gold, Dollar, Inflation, Fed and China
Peter Schiff is known for his justified criticism of the Federal Reserve and the disastrous policies they've enacted which is the destroying the economic life of the United States and its citizens, and ultimately affects nations around the world.
Although he sees a disaster coming if they don't change course, there are things people can do to protect themselves against the addictive Federal Reserve policy of printing money, which is another way of saying inflating.
Today they've attempted to change the name to quantitative easing to make it sound like they're doing something different. But it's the same thing.
While Schiff sees hope, he doesn't think the government and the Federal Reserve will do the right thing, and they're going to keep on inflating. Which means they're going to print money to acquire bonds. It's only a matter of how much they're going to buy, not whether or not they're going to do it.
The result of all this will be gold prices and many other commodity prices continuing to rise, the U.S. dollar continuing to collapse, and inflation in other areas soaring.
Schiff says the government will attempt to hide the amount of inflation they're creating, but the ongoing rate of unemployment will force them to continue to print money, which will eventually reveal the monster they've created, as they acquire an enormous amount of bonds with each round of quantitative easing.
Another possible scenario, says Schiff, is he sees the possibility of Treasury yields being held back by the Federal Reserve. At that time corporate and municipal bonds would probably surge, which could woo the Fed into acquiring them too. If that happens, in Schiff's view, he sees the potential complete collapse of the U.S. dollar.
Probably the best hedge against all of this happening, or even part of it happening, is to hold gold.
Schiff says he believes gold and the Dow will eventually move to a 1-to-1 relationship. He has no idea what that number will be, but if the Dow were to move to 10,000, he sees gold moving to $10,000. If the Dow is at 3,000, he sees gold at $3,000 an ounce, etc.
According to Schiff, he sees a correlation between the bear markets of 1930s and the 1970s. In 1932 said Schiff, an ounce of gold equaled the value of the Dow. The same happened in 1980 after the bear market of the 1970s.
When the Dow shrinks in value, it tends to line up with the price of an ounce of gold.
If we end up entering into a period of hyperinflation, all bets are off there as far as the value of the dollar, which could lost almost all its value, according to Schiff.
Besides gold, Schiff likes the agricultural sector, energy, commodities in general, and China.
Everyone should own at least some gold says Schiff.
Although he sees a disaster coming if they don't change course, there are things people can do to protect themselves against the addictive Federal Reserve policy of printing money, which is another way of saying inflating.
Today they've attempted to change the name to quantitative easing to make it sound like they're doing something different. But it's the same thing.
While Schiff sees hope, he doesn't think the government and the Federal Reserve will do the right thing, and they're going to keep on inflating. Which means they're going to print money to acquire bonds. It's only a matter of how much they're going to buy, not whether or not they're going to do it.
The result of all this will be gold prices and many other commodity prices continuing to rise, the U.S. dollar continuing to collapse, and inflation in other areas soaring.
Schiff says the government will attempt to hide the amount of inflation they're creating, but the ongoing rate of unemployment will force them to continue to print money, which will eventually reveal the monster they've created, as they acquire an enormous amount of bonds with each round of quantitative easing.
Another possible scenario, says Schiff, is he sees the possibility of Treasury yields being held back by the Federal Reserve. At that time corporate and municipal bonds would probably surge, which could woo the Fed into acquiring them too. If that happens, in Schiff's view, he sees the potential complete collapse of the U.S. dollar.
Probably the best hedge against all of this happening, or even part of it happening, is to hold gold.
Schiff says he believes gold and the Dow will eventually move to a 1-to-1 relationship. He has no idea what that number will be, but if the Dow were to move to 10,000, he sees gold moving to $10,000. If the Dow is at 3,000, he sees gold at $3,000 an ounce, etc.
According to Schiff, he sees a correlation between the bear markets of 1930s and the 1970s. In 1932 said Schiff, an ounce of gold equaled the value of the Dow. The same happened in 1980 after the bear market of the 1970s.
When the Dow shrinks in value, it tends to line up with the price of an ounce of gold.
If we end up entering into a period of hyperinflation, all bets are off there as far as the value of the dollar, which could lost almost all its value, according to Schiff.
Besides gold, Schiff likes the agricultural sector, energy, commodities in general, and China.
Everyone should own at least some gold says Schiff.
Monday, June 28, 2010
Peter Schiff Bullish on Precious Metals, Oil
Peter Schiff stated recently that while he is heavily invested in gold, he is also bullish on other precious metals, and oil as well.
Specific metals identified by Schiff were platinum and silver, although he added he is also bullish on some industrial metals too.
The Gulf oil accident with BP (NYSP:BP) is particularly noteworthy in Schiff's estimate of oil in general, and he said the costs of offshore drilling will skyrocket, including insurance.
There will also be less oil because of the moratorium in the Gulf, which will decrease production if that isn't changed.
Demand for oil from China is a factor as well. So combining what appears to be increased demand and lower supply, and there is nowhere for oil prices to go but up, in Schiff's view.
Specific metals identified by Schiff were platinum and silver, although he added he is also bullish on some industrial metals too.
The Gulf oil accident with BP (NYSP:BP) is particularly noteworthy in Schiff's estimate of oil in general, and he said the costs of offshore drilling will skyrocket, including insurance.
There will also be less oil because of the moratorium in the Gulf, which will decrease production if that isn't changed.
Demand for oil from China is a factor as well. So combining what appears to be increased demand and lower supply, and there is nowhere for oil prices to go but up, in Schiff's view.
Saturday, February 20, 2010
Peter Schiff Still Likes Gold
Peter Schiff Gold
In a recent interview, Peter Schiff maintains that he still like gold and expected it to go much higher. Schiff added it doesn't matter which currency you look at gold through, it still looks strong going forward.
While liking gold in general, Schiff also mentioned gold miners will do well during the time goes up as well.
The primary impetus of gold says Schiff is fears over inflation from the fiat money being created.
Peter Schiff Gold
In a recent interview, Peter Schiff maintains that he still like gold and expected it to go much higher. Schiff added it doesn't matter which currency you look at gold through, it still looks strong going forward.
While liking gold in general, Schiff also mentioned gold miners will do well during the time goes up as well.
The primary impetus of gold says Schiff is fears over inflation from the fiat money being created.
Peter Schiff Gold
Friday, February 19, 2010
Peter Schiff: Buy, Hold Gold
Peter Schiff on Gold
Most of us know that Peter Schiff has championed buying and holding gold for some time, as the economic circumstances around the world show there needs to be a haven for our money when everything around us has the potential to collapse.
The most recent economic disaster is the PIIGS from Europe, which all are in danger of sovereign default, and which would crush the global economic system before we begin a true economic recovery.
Some seem to think Greece would only have an effect on Europe, rather than the world, but it depends on who is holding the debt and how much. Banks will fall if Greece does, and Greece knows it, and holds the upper hand in that regard.
Either way, gold should be a key player in the years ahead, not only because of this hanging sword over the head of Europe and the euro, but because it would have been a key player based on the decisions of central banks and their futile policies which are causing more harm than good.
As Peter Schiff has said in the past concerning gold, when you own gold, you have something that has lasting value. Most of the currencies is this world can no longer say that.
Peter Schiff on Gold
Most of us know that Peter Schiff has championed buying and holding gold for some time, as the economic circumstances around the world show there needs to be a haven for our money when everything around us has the potential to collapse.
The most recent economic disaster is the PIIGS from Europe, which all are in danger of sovereign default, and which would crush the global economic system before we begin a true economic recovery.
Some seem to think Greece would only have an effect on Europe, rather than the world, but it depends on who is holding the debt and how much. Banks will fall if Greece does, and Greece knows it, and holds the upper hand in that regard.
Either way, gold should be a key player in the years ahead, not only because of this hanging sword over the head of Europe and the euro, but because it would have been a key player based on the decisions of central banks and their futile policies which are causing more harm than good.
As Peter Schiff has said in the past concerning gold, when you own gold, you have something that has lasting value. Most of the currencies is this world can no longer say that.
Peter Schiff on Gold
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