November 30, 2009

Comments On Dubai`s Crisis

Latest Peter Schiff`s update on Dubai`s crisis.

"The stock markets have clearly overreacted to the Dubai`s situation in the last few days"

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 27, 2009

The Best Places To Invest

Peter Schiff, president of Euro Pacific Capital, joined the traders on Tuesday's show to talk about the strength in gold. He said gold has a lot of room to the upside because the U.S. is printing too much money to stabilize the bank and housing sectors. He told viewers the best place to be invested in are gold, commodities and overseas stocks.

in The Street.com

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 26, 2009

Stock Picks In The United States

I am long a small number of US stocks. I own Chevron (CVX), Exxon Mobil (XOM), Conoco Phillips (COP), Newmont Mining (NEM). I own some agriculture stocks in the United States. But most of my money is abroad. Most of the value is outside the United States.

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

Peter Schiff On Fast Money: Gold And US Dollar

"Gold is going straight up"

"If there is going to be a flight to safety it will be into gold"

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 25, 2009

Capitalism Is Not The Problem

"Just like during the 1930's, capitalism got a bad rap for all the damage that government did. Every time government policy interferes with capitalism and then creates a problem it's always capitalism that comes under fire not the government interference that led to the problem,".Peter Schiff predicts this behavior will lead to the next calamity, a currency crisis which he claims will be even bigger than the one "we think we've solved."

in LewRockwell.com

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 23, 2009

The Bigger The Boom The Bigger The Bust


Latest Peter Schiff video interview.

"We are setting up a dollar crisis"

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 21, 2009

Obama Has Only Succeeded In Digging America Into An Even Deeper Hole

"This is only the second time since the Great Depression that unemployment is quoted in double digits, at 10.2%. By factoring-in workers who had given up job hunting altogether or have settled for part-time work, the rate would rise to 17.5%. No mention was even made of the quality of what few jobs were being created. By spending trillions of dollars of borrowed money, President Obama hopes to engineer a recovery and create jobs. However, he has only succeeded in digging America into an even deeper hole than the one he inherited from his predecessor.

The President believes that if we can simply push up spending to levels seen during the good times, then those favorable economic conditions will return. The reality, of course, was that those good years came with a heavy price-tag that we have barely begun to pay."

In Business Intelligence Middle East

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 20, 2009

Job Losses Demystified

As the unemployment rate crossed the double digit barrier for the first time since Michael Jackson learned to moonwalk, President Obama announced that he will convene a “jobs summit” to finally bring the problem under control. Using all the analytic skill that his administration can muster, the President is determined to figure out why so many people are losing their jobs and then formulate a solution. That's a relief; for a while there, I thought we were in real trouble! In fact, the absolute last thing our economy needs is more federal government interference. If Obama really wants to know what's behind entrenched joblessness, he should start by looking at the man in the mirror.

Obama is pursuing, with unprecedented vigor, the same policies that have for decades undermined our industrial base and yoked us to an unsustainable consumer/credit driven economy. This doubling down on Washington's past failures is destroying jobs at an alarming rate. Today we learned that the September trade deficit surged by 18.2%, the largest gain in ten years. Much of the deficit resulted from Americans spending Cash-for-Clunkers stimulus money on imported cars – or “American” cars loaded to the sunroof with imported parts. In exchange for more domestic debt, we have succeeded only in creating foreign jobs.

An article in this week's New York Times by veteran writer Louis Uchitelle confirmed a fact that I have been alleging for years. Uchitelle pointed out that foreign outsourcing of component manufacturing has led to consistent overstatement of U.S. GDP and productivity. The connection goes a long way to explain why we keep losing jobs even as GDP is apparently expanding.

As our economy becomes less competitive due to higher taxes, burdensome and uncertain regulations, and capital flight, more manufacturing and services will be outsourced to foreign firms. However, the flaw in GDP calculation allows the output of those foreign workers to be included in our domestic tally. Since we count the output but not the worker responsible for it, government statisticians attribute the gains to rising labor productivity. To them, it looks like companies are producing more goods with fewer workers.

The reality is that we are producing less with fewer workers. The added “productivity” comes from higher unemployment and larger trade deficits. This is a toxic formula that will have lethal economic consequences.

Don't expect the brain trust at the President's job summit to fret much about these details. That public relations stunt will likely ignore the root cause of the economic imbalances and instead stress the need for government spending on training and education, i.e. more public debt. The unemployed do not need government theatrics, they need actual jobs. But as long as the government props up failed companies, soaks up all available investment capital, discourages savings, punishes employers, and chases capital out of the country, jobs will continue to be lost.

To really fix the unemployment problem, the President must look past his peers in government and academia to understand how jobs are actually created. In the private sector, all individuals have a choice to either work for themselves or someone else. Since labor is far more productive when combined with capital (office equipment, machinery, business models, and intellectual capital), those who lack these assets themselves often choose to work for others who have sacrificed to accumulate them. This increased productivity is shared between the worker and the owner of capital, and both are better off.

However, for one person or company to choose to offer a job to another, there must be an incentive to do so, and they must have the necessary capital. In the first place, employers must commit to paying wages and benefits, comply with government mandates and regulations, and subject themselves to potential lawsuits from disgruntled employees. All of these costs must be measured against the extra profits an employer hopes to earn by hiring an additional worker.

If profit opportunities exist, jobs will be created. Otherwise, they will not. Of course, anything the government does to raise the cost of employment, such as a higher minimum wage, mandated heath care, or greater regulatory burdens, not only prevents new jobs from being created but also causes many that already exist to be destroyed. Anything that diminishes the profit potential of extra hiring will diminish the number of job opportunities that are created. Also, since it is after-tax profits against which employers measure risk, the higher the marginal rate of income tax, the less likely employers will be able to hire.

Finally, in order to hire workers, employers must have access to capital to expand operations. Anything the government does to discourage capital formation automatically diminishes job creation. By running the largest federal deficits in history, Barack Obama is diverting all available capital to the Treasury, and is in effect waging a war against private capital formation.

If the President's summit truly intends to find the root cause of unemployment, his advisers don't need Bureau of Labor statistics or complex modeling software, just the courage to drop their dogmatic belief in central planning and embrace the laws of economics.

in Lew Rockwell.com

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 18, 2009

Latest Video Interview On CNBC

Latest video interview on CNBC, November 16th.

"All we do is spend money we do not have on things that we did not make"

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 17, 2009

The Road To Recovery Is A One Way Street

"The road to recovery is a one-way street, and it's paved with savings, capital investment, and production. It's not an easy road, but we must follow it to ensure our future prosperity"

in Business Intelligence Middle East (press release)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

Administration Is Neglecting The Capital Investments Necessary To Improve Our Infrastructure

"By focusing solely on consumer spending, the Administration is neglecting the capital investments necessary to improve our infrastructure and productive capacity"

in Business Intelligence Middle East (press release)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 14, 2009

People Will Walk Away From Some Houses

"A lot of people in California who own $1 million to $3 million homes bought larger and more expensive homes than they really needed. Part of their purchase was for investment purposes, because they assumed values would go up. Now that people have a more realistic outlook on real estate prices, it changes the dynamic. There is very little reason for someone with a million-dollar mortgage on a $700,000 house to struggle to make that payment. More and more people are going to walk away from these homes."

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 13, 2009

We Are Not Going To Solve The Economic Problems

"We're not going to solve the economic problems until we get rid of people like Chris Dodd. As long as Dodd is in there writing regulation, the economy is never going to recover, and more and more people are going to lose their jobs"

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 12, 2009

The Dollar Will Lose Its Status As A Reserve Currency

I don't think we should have a reserve currency. Well, it's led to a lot of problems in the global economy. When the dollar was backed by gold, and was redeemable by gold, it being the reserve currency was OK. But at the moment, there are no currencies backed by gold. So I think that foreign central banks should hold gold as their key reserve, and not another currency. They can also have some foreign currencies as part of their overall reserves, but I think that gold should play a much bigger role in giving value to currency.

Because remember, you can't have a monetary system without money. And money is gold. Just printing paper—there's nothing behind that. There's nothing intrinsic there. It always leads to chaos. If you can just print money at will, it has no scarcity. Then you have inflation; you have these asset bubbles; and you don't have a well-functioning global economy. Hopefully we don't anoint another reserve currency.

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 11, 2009

The Gold Standard

"Well, the gold standard works. What we have now does not. Our founding fathers put us on a gold standard for a good reason, because paper currency existed around that time. It had existed in the past. And they were familiar with how miserably it had failed. So they wanted to set us on a gold standard. And we became the world's wealthiest nation while on the gold standard.

We were on the gold standard for all of the 19th century, which was our fastest-growing century (more so than the 20th century). We had the Industrial Revolution; we built up our arsenals and our democracy—we won World War II on the gold standard. We were actually on the gold standard up until Richard Nixon ended it in 1971. So to say that the gold standard is somehow arcane, or that you can't have economic growth on the gold standard—that's all nonsense.

It's the politicians who don't like gold, because gold imposes discipline on politicians. It keeps them honest, and politicians don't want to be honest. They want to get elected."

in Yahoo TechTicker

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

Peter Schiff On Dateline (Video)

"Obama has performed terribly, he continued the misguided policies of so called economic stimulus. The stimulus is the problem, is toxic."

"If we continue on this course, inflation will keep getting worse ultimately interest rates will skyrocket"



Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 10, 2009

Gold, Silver And Agricultural Commodities

So which commodities do you think will do well in 2010?

Schiff: Gold!

Gold, of course. Anything else, though?

Schiff: I like them all. Agriculture. Silver. Silver will probably do better than gold, actually.

Because of its industrial applications?

Schiff: Yeah, and I think it has some interesting factors. Usually in bull markets for precious metals, you should look at the ratio of gold to silver. At the moment, silver looks cheap to me.

by Hard Assets Investor

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 9, 2009

Inflation Versus Deflation

Earlier today at the "Commodities 2010: The Road Ahead" panel, you said you think the U.S. is headed for runaway inflation, rather than deflation. Why?

Peter Schiff, president, Euro Pacific Capital (Schiff): We're headed that way because we're creating too much money. Interest rates are too low. The Federal Reserve continues to expand its balance sheet. It continues to buy up assets that it shouldn't be buying. That is basically the poison that the government has decided to swallow.

We have a choice between allowing a deflationary bust, allowing asset prices to collapse, allowing businesses to fail and allowing the recession to worsen in the short run; or we can try and postpone some of that pain by creating inflation, and deal with the inflation pain down the line. The latter is what the government has chosen. Unfortunately, they chose wrong, from the point of view of the American consumer, the American worker, the American saver. The American economy is going to pay dearly for the price of re-electing some of these incumbent politicians.

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

Savings And Interest Rates

"In order to have higher savings we need to have higher interest rates. people are paid to save. If we keep rates artificially low, we are going to destroy the currency"

in CNBC

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 8, 2009

Americans Need To Clear The Inventory Of Unsold Homes And Pay Down Auto Debt

"For the sake of long-term economic health, Americans needed to clear the inventory of unsold homes and pay down auto debt by staying in their old cars longer. That did not happen. Instead we just got back on the merry-go-round."

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 6, 2009

CNBC Video Interview


Latest Peter Schiff`s video interview on CNBC.com

"Warren Buffett is looking for inflation hedges" (commenting on the railroad deal by Warren Buffett)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 4, 2009

Live From The Floor Of NYSE

Peter Schiff on Fox Business, live from the floor of the New York Stock Exchange

"Gold will go a lot higher"

"If you don`t own gold you should buy it, don`t think its expensive. Don`t wait till its selling for 2,000 dollars an ounce to buy it"


Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

Fox Business Video Interview: November 4

Peter Schiff video interview on Fox Business.

"In the end, this stimulus, just like prior doses, will only worsen the conditionit is meant to cure. When it wears off, the resulting recession will be even bigger than the one that everyone is assumes has just ended."


Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 3, 2009

Third Quarter "Growth"?

"Third quarter "growth" was largely driven by a 23% increase in residential construction (the largest quarterly increase since 1986) and a 3.1% increase in consumer spending, which included a 22% jump in durable goods purchases – mostly automobiles – and 2.3% gain in government spending.

Since the increase in consumption outpaced the increase in production, the trade deficit expanded, reversing the positive trend for most of 2008 and 2009. Because the increase in spending outpaced the increase in incomes, the savings rate plunged from 4.9% in the prior quarter to 3.3%."


Schiff expects the Fed will soon have to take tough decisions of either having to supply the carry traders with an endless amount of cheap dollars or put a halt to the carry trade and aggressively raise interest rates that could “bring on a much more severe recession than anything we’ve experienced so far,” Shiff said in a recent CNBC interview.

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

Short Term Gain And Long Term Pain

"By pushing up public and private debt, expanding government, deepening trade deficits, and pushing down savings rates, these interventions have succeeded only in putting our economy back on an unsustainable path of borrowing and spending. Accordingly, they have prevented the rebalancing necessary for long-term health.

Could there be a simpler illustration of trading long-term pain for short-term gain?"

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

November 1, 2009

The GDP Growth Is Propped Up By The Stimulus Plans

In his commentary, Mr. Schiff says that to proclaim that the recession is over with just one quarter of positive growth is a little premature. He recalls that during the Great Depression in the 1930's, the depression continued even with four years of consecutive growth. Calling attention to the rising debt levels and plunging savings rate, Mr. Schiff commented the economic growth in the 3rd quarter is mostly propped up by the stimulus plans and therefore, not legitimate.

in iStockAnalyst

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

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