Peter Schiff: ‘There is a major, major crisis coming’
Posted on: Nov 6th, 2008 | By Contrarian Profits | Filed under Financial News
Peter Schiff, president of Euro Pacific Capital Inc. and disciple of Austrian School economics, says “a major, major crisis is coming,” thanks to the government’s attempts to ‘fix’ the economy with giant bailouts.
In fact, Schiff, a well-known dollar bear, says the result of the government bailout packages and an Obama administration will be the total destruction of the dollar.
Watch it below.
…Because our country would rather believe these devious, moronic talking heads – than listen to Peter Schiff or Ron Paul… The American Empire is going to end with the destruction of the dollar. But, it’s a good thing. All empires end. Ours shall be no different. The United States was a nice experiment – maybe humanity will get it right next time.
I’m trying to decide if the two talking heads in this video are stupid and indoctrinated, or bad actors. I can’t think of any other possibilities, because I know they are not right. Schiff doesn’t even blink at their drivel.
The woman seems to insist only the false dichotomy of “it’s either Obama or McCain’s economic plan”. As if it is inherent in Schiff’s criticism of Obamanomics that he is keen on McCainonomics. Then she behaves as if Schiff is a proponent of autocracy because he recognizes that ‘democracy’ does not equate to liberty, and that liberty is what should be treasured above all else, and not democracy. Finally, she claims that gold has no intrinsic value, totally missing the point that no government is declaring a legal value for it, like they do with the dollar and other currencies. It’s value is freely determined by the market…intrinsic.
The man seems to only be there to act flabbergasted and look at his co-host as if he is hearing insanity when Schiff speaks. I wonder how many people actually think what Schiff is saying is silly based on this guy’s expressions.
The best part, the part that really showed the limited perspective of these hosts, is the insinuation that a Republic is the same as a Autocracy.
I will probably not watch much Squawk Box after seeing this.
Completely undermines what vague argument he might have had with:
“The result of the government bailout packages and an Obama administration…”
How could an Obama administration possibly be worse than the incompetent Republicans? It’s like they went out of their way to destroy our economy.
This might be true; nothing here encourages me to believe that you know any better than anyone else.
Complete and utter bullshit. Simply fear. Even the hosts have a hard time buying his crap.
the fed is NOT a government entity….it is a private bank institution….
It does seem like starting from scratch is our only option, doesn’t it? We’ve passed the point of realistically being able to repay this level of debt, which is at historic proportions and growing.
Roubini explained how we won’t be able to inflate our way out of our debt (since the coming inflation would be too obvious ahead of time). Ultimately we might have to simply repudiate our national debt and hope the Chinese don’t come to our shores and try to take payment by running off with our daughters.
The expansion of the Fed’s balance sheet and the continued significant rise in deficits will ultimately impact the value of the dollar detrimentally. Economics 101. After this delevering process deflates asset prices, inflation will take hold, especially in commodity prices. We will print ourselves out of any prospect of depression. Bernake 101 (currently in process). The result of exponential money increases will crater the long bond, as our foreign “investors” will stop propping our lifestyle. Sure, now they think there is cover in the greenback as it is purely a reactive move. Mid term higher rates will be needed to keep them going, but lower dollar will net zero to foreigners. They will retrench to their own individual country economic mess in self preservation. The plug will be pulled.
Schiff, yes the wakeup call may indeed collapse the dollar, as certainly we can not self fund our mess. It truly is fiat money. The psychology of the masses will finally get it and gold as usual in economic upheaval, will moon shoot. Now here come the taxes, budget cuts, mass layoffs. Catching up on a 20+ year bubble, almost overnight is way, way too late. Arrrgh….the rollercoaster ride in the markets continue until they pop.
Until there is full disclosure by banks and our government, this will continue. Let’s get on with it. Trust equals transparency. BK the insolvent institutions. Home prices at 2.5 to 3 times income is reality. Pain now or disaster later.
UNfortunately Peter is right. Sadly, people only hear what they want to hear. Politicians capitalize on the spoken work. What politcian can win under a platform of gloom? It is NOT business as usual in this country!
You cannot explain logic and true economics to a layperson. There is no better blind person than he who does not want to see. Or hear. America is in love with the IDEA of an Obama, and the media has led the way. They were the first. But enough politics. It’s policies we should address. We could argue Wall Street was “drunk” and we could argue that greed created the problem. I see bailouts, but I don’t see repairs to the underlying problems, partly because the solutions have political incorrectness associated with them.
I am a pragmatist. I am less concerned with what a politician says and more concerned with what he does. I don’t get into political love affairs with any candidate unless they PROVE me wrong.
Until we see things clearly and realistically, we will solve nothing.
1. If the talking heads had any credibility to begin with they would have been trying to spread the word about the danger that is upon us from the huge debt the politicians have gotten this county in. The CNBC folks are PART of the problem- trying to get folks to tune in and buy and sell- often to their detriment. They have Jim Cramer as one of their main attractions for goodness sakes. And people think that company has any credibility.. HA!
2. I’m no rocket scientist but enen I can understand that when there is more dollars floating around the worlds financial system than leaves on the ground in the fall- the dollar will be worthless. The Government constantly borrowing hundereds of billions to trillions so they can vainly attempt to keep the US system afloat obviously isn’t going to work. And frankly some politicians should be locked up for treason- IMO.
3. I agree with Peter that the only solution is to cut the entitlements drasticly. What goes up has to come down. It is either that or complete economic doom- IMO. NOBODY can constantly spend money they don’t have forever. IT WILL COME TO AN END AT SOME POINT. I think that time is upon us now and no amount of wishing it away will make it so. Action has to be taken, and I don’t see how spending even MORE money will solve a thing.
4. In 2 years vote AGAINST EVERY INCUMBENT. It is our only hope to get any REALY change in Washington.
FEAR MONGERING BULLSHIT LIES
Peter Schiff seems to like Bush better. Go figure.
He professes investing in foreign markets as a way to escape the dollar collapse.
I don’t understand how he figures that a dollar collapse would cause strong foreign markets. Wouldn’t it cause a global financial collapse first?
I am sorry Mr. Schiff, you are no Roubini.
Peter’s not a bad guy —
1. he called the bubble
2. he’s dead wrong with Goldand already admitted he called the
I’m no Roubini either but maybe I can help Ed (#11) out. Schiff’s entire investment thesis is that the dollar is toast in the future. It’s that simple. He recommends getting out of the dollar anyway you can. Gold is his preferred route, but he does invest in select foreign stocks. High dividend ones I think he has said in the past.
The Bush observation I don’t understand at all. He has been predicting this mess the entire Bush administration.
The real culprit here is CNBC and their constant pumping of the US stock market. It is disgraceful, but what else can you expect of them?
Donna, you’re dead wrong. The Fed IS a government institution. Why do you think it has the name, the “Federal Reserve”? It is a GOVERNMENT organization that has some (but not all) private components. But don’t take my word for it. There’s plenty of info out there – take a look.
The Fed features a “hybrid public-private, centralized-decentralized structure” (Donald L. Kohn, vice chairman of the Board of Governors, 2006). So Steve and Donna – you are both right.
I’m surprised Peter can’t see the bubble in gold. He must own a ton. I love all these popping bubbles! All the government bailouts that have prevented gold from collapsing are just about over. Gold will come down to the price of killer medical grade weed – around $450/ounce…
Move money out of gold and into weed. Check.
Gold has no inherent value? What a stupid woman! Where has she been the last 4000 years?! Gold will always have value. Like Peter said, buy this dip in gold. It can only go up in the future. By the way, Peter was predicting this collapse as early as 2002. Like another economist said last week, this is only the first inning of this collapse. We must retire most of the national debt, but that will take kicking off the lifers from Welfare. You can forget about socialized medicine, we cant afford it !
The biggest bubble here is Schiff's ego. Let's hope it bursts.
oh dear.