April 30, 2010

Why Good Retail Sales Data Isn`t That Good

"Retail sales being up is not a good thing because people are buying things they cannot afford."

in Yahoo Finance

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.

The Economy Is In Worse Shape Then It Was In 2008

"A lot of people were confused – they thought the market going up was somehow ratifying what the government had done – that the stimulus and bailouts were good and the economy was improving – it's not. The economy is in worse shape than in 2008."

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.

The Economy Is In Worse Shape Then It Was In 2008 (Video)


"The economy is in worse shape then it was in 2008"

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.

April 29, 2010

In The Short Run, Markets Are Typically Wrong

"In the short run, markets are typically wrong – they do the wrong thing. In the long run, the fundamentals win out."

in Benzinga

Related ETF`s: SPDR S&P 500 ETF (Public, NYSE:SPY), ProShares UltraShort S&P500 (ETF) (Public, NYSE:SDS), iShares FTSE/Xinhua China 25 Index (ETF) (Public, NYSE:FXI)

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.

April 28, 2010

It`s A Government Bubble

“The government is simply inflating another bubble, only this time it’s not a stock market bubble or a real estate bubble. It’s a government bubble.”

in Lew Rockwell

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.

April 27, 2010

New Book: How An Economy Grows And Why It Crashes

Perhaps even more frustrating than watching our economy being swallowed by runaway debt and government intervention is trying to explain the danger to friends, co-workers, and family members who are often disinterested, confused, or otherwise brainwashed by the talking heads on TV. I’ve been fighting this battle for years and it never gets any easier.

Unfortunately, most people suffer from the delusion that economics is too difficult to understand. Worse yet, many just consider it too boring, and would rather watch paint dry than read a book on the subject.

In order to get passed these hurdles, I have written a new illustrated book, entitled “How an Economy Grows and Why it Crashes,” that presents these issues in a fun, no-nonsense manner that everyone can enjoy and understand.

Those who have seen me on television know that I rely on analogies to get my points across. This new book, which I co-wrote with my brother Andrew, is a 230 page allegory that imagines the United States as a small island initially inhabited by three people with stone-age skills and a subsistence economy. Using humor, tons of clever illustrations, and parodies of well-known politicians and economists, I use this simple island society to explain how an economy grows through savings, investment, and sound money, and why it crashes through excessive borrowing, spending, government debt, and inflation.

“How an Economy Grows and Why it Crashes” is an updated and re-imagined version of a book my father put out more than 25 years ago that has since become a cult classic among followers of free-market economics.

Unlike my prior books that were written primarily for investors, this book will appeal to a much broader audience. Because of this, I hope it will be a powerful tool for those hoping to educate their friends and family about the current crisis. The hardcover edition, which will be priced at $19.95, will arrive in stores by early May. But it is available now at Amazon for just $13.57. (Click here for more details) If you don’t get it at Amazon, be sure to ask for your local bookseller to order you a copy today.

Over time, we expect this book to be a big hit; but by ordering a few copies today, you can help push it to the top of the bestseller lists, where it will be much more likely to grab the attention of the media, book reviewers, and retail stores. We need to teach as many people as possible what causes these unnecessary crises – and try to prevent the next one from coming to pass.

in Euro Pacific Capital website

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.

Cnbc Video Interview: Schiff And Galbraith Discussing The US Deficit

Peter Schiff and economist James Galbraith were on CNBC yesterday for a debate about the seriousness of the US deficit:











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.

April 26, 2010

We`ve Got Elitists In Washington That Think Thay Can Succeed Where Fidel Castro Failed

“We need another revolution in this country. We’ve got a bunch of elitists in Washington who think they’re better than everybody and smarter than everybody and can succeed where Fidel Castro failed.”

in www.nhregister.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.

April 23, 2010

Low Interest Rates And Government Intervention Will Only Deteriorate The Fundamentals Of Our Economy

As the Fed continues to hold interest rates artificially low and the government continues to guarantee mortgages, real estate prices will remain distorted, credit will be misallocated, moral hazards will increase, and the underlying fundamentals of our economy will continue to deteriorate.

in Europac.net

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.

April 22, 2010

Financial Regulation. Obama`s Reform Proposal Defies Common Sense.

In a speech to Wall Street today, President Obama talked of a "failure of responsibility" in Washington and on Wall Street. But the financial sector is the most regulated part of the economy, so surely responsibility lies mostly with Washington. It was the federal government that created deposit insurance, which removed risk (and therefore caution) from bank deposits. It was also the feds that created "too big to fail," our new system of private profits and socialized losses. Most importantly, it was federal taxes and regulations that undermined our productive capacity, rendering us weak in the face of financial shocks.

In this speech castigating private greed, no mention was made of Fannie, Freddie, or the FHA's role in encouraging sub-prime loans, nor of the Fed's ultra-low interest rates which made the mortgage "teaser rate" possible. The maligned "unregulated derivatives" market was largely based on exposure to these government-backed loans.

Obama claims he wants "common sense rules" to be put in place. Yet, his reform proposal defies common sense.

The new "resolution authority" is an attempt to replace the traditional bankruptcy court system with a bailout bureaucracy that subordinates the rule of law to political expediency. The result of this reform will be to increase uncertainty for any honest market participants - and create a protected sandbox for firms connected to the executive branch.

The "Volcker Rule" to split up large firms runs directly counter to this, and the past, Administration's encouragement of dominant banks to buy their weaker competitors. Ironically, the additional regulations put in place by the bill will create tremendous barriers to entry for new firms, and strongly advantage those firms that can create the largest economies of scale (number of productive employees per compliance officer).

So long as the Fed continues to hold interest rates artificially low and the government continues to guarantee mortgages, real estate prices will remain distorted, credit will be misallocated, moral hazards will increase, and the underlying fundamentals of our economy will continue to deteriorate. Contrary to the President's assertion, government bailouts and stimulus have weakened the underpinnings of our economy, not saved it. As a result, the next economic crisis, likely to hit within a few short years, will be that much worse. Not only will this new regulation do nothing to prevent the second phase of the crisis, it will more than likely increase its severity.

The President seems to insinuate the he saw the crisis coming. Well, I was on national television as far back as 2005 explaining the problem and warning of an impending crash. This was back when Senator Obama was voting for the bills that made it all possible. Since the proof is in the pudding, click here to see my presentation to the Mortgage Bankers Association in 2006.

Related stocks and etf`s: Financial Select Sector SPDR (ETF) (Public, NYSE:XLF), Direxion Daily Finan. Bear 3X Shs(ETF) (Public, NYSE:FAZ), Bank of America Corporation (Public, NYSE:BAC), Citigroup Inc. (Public, NYSE:C), Zions Bancorporation (Public, NASDAQ:ZION), Goldman Sachs Group, Inc. (Public, NYSE:GS)

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.

Video: Latest Market Update. Financial Regulation.

Latest video market update:

Topic: Financial Regulation, Excessive Government Regulation, Goldman Sachs (GS) Fraud Charges, SEC;

Related ETF`s: Financial Select Sector SPDR (ETF) (Public, NYSE:XLF), Direxion Daily Finan. Bear 3X Shs(ETF) (Public, NYSE:FAZ)

Related Stocks: Bank of America Corporation (Public, NYSE:BAC), Goldman Sachs Group, Inc. (Public, NYSE:GS), Morgan Stanley (Public, NYSE:MS), Zions Bancorporation (Public, NASDAQ:ZION), Huntington Bancshares Incorporated (Public, NASDAQ:HBAN)


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.

April 21, 2010

Wall Street Unspun Radio Show (Video)

Peter Schiff on Wall Street Unspan radio show:


Topics: China, chinese stocks, valuation, european stocks, China`s real estate market, US savings rate;

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.

April 17, 2010

Obama And Socialism

Schiff said Obama believes the only reason "socialism hasn't worked in the past is that the wrong people were in charge," as he urged the crowd to back him in his race for the Republican nomination. He said he will cut government spending if he is elected to Congress.

"There is only one way I know of doing it and that is sending me there as your senator," Schiff said.

in Greenwich Time

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.

April 15, 2010

We Need To Limit The Power And The Size Of The Government.

“We need to restore the Constitution, restore individual liberty, restore sound money, limit the power and the size of government, and unleash the powerful forces of free-market capitalism because that’s the only way back to prosperity.”

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.

April 14, 2010

Who Was Right?


"While the earlier booms provided at least the illusion of prosperity - as well as some fun while they lasted - the government bubble will cripple the economy and deliver widespread misery to the vast majority of Americans."

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.

April 13, 2010

The Most Dangerous Bubble: A Bubble In Government

During the 1990s, the inflationary policy of the U.S. Federal Reserve fueled a tech-stock bubble. When that bubble burst, the Fed inflated a larger one in real estate. Now that the real estate bubble has burst, the Fed is inflating the biggest bubble of them all - a bubble in government.

While the earlier booms provided at least the illusion of prosperity - as well as some fun while they lasted - the government bubble will cripple the economy and deliver widespread misery to the vast majority of Americans.

Of course, there will be winners in the government bubble - at least for a while. As was the case with the stock and real-estate bubbles, plenty of money will be made by the well-connected and parasitic classes. Government employees will continue to enjoy pay raises at our expense, as will anyone benefiting from the new wave of subsidies, such as Wall Street investment bankers, financial speculators, and those working in healthcare or education.

in Money Morning

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.

April 12, 2010

Krugman And The Inflation Medicine

"In simple terms, Krugman believes that inflation is the best cure for burdensome debt problems."

in Europac.net

Related ETF`s: PowerShares DB US Dollar Index Bearish (Public, NYSE:UDN) and iShares Lehman 20+ Year Treas.Bond (ETF) (Public, NYSE:TLT)

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.

April 11, 2010

Krugman Revisited

In a commentary two weeks ago, I rebutted dangerously silly arguments put forward by New York Times columnist Paul Krugman about how the United States should pressure China to drop its support for the U.S. dollar (click here to view). Although there is far more happening in the world outside of Mr. Krugman’s brain than within it, fresh drivel from the acclaimed Nobel Prize winner compels me to turn my focus there once again.

In today’s column, Krugman analyzes the Greek debt crisis, arguing that the best solution for Athens would be to simply inflate away its debt burden with printing press money. Krugman laments that this sensible option is being foreclosed by the monetary priggishness of the German heavyweights in the European Union, who are ‘foolishly’ seeking to prevent inflation and impose fiscal discipline.

His theoretical justification is put forward in a familiar Keynesian recipe: deficit spending leads to inflation and growth, which leads to greater employment and rising GDP, which makes debt payments much easier to bear in relative terms. He laments that Greece does not control its own currency and is therefore unable to pursue such a policy on its own accord. He implores U.S. policy makers, who do control their own monetary policy, to take heed of the danger and avoid such a course.

In simple terms, Krugman believes that inflation is the best cure for burdensome debt problems. To prove his arguments, he points to the course followed by the Unites States in the decade after the Second World War. In 1946, due to unprecedented military spending during the war, U.S. public debt as a percentage of GDP came in at a staggering 122 percent – which is even higher than the 113 percent currently weighing on Greece.

Krugman endorses U.S. policy at the time which, he claims, concentrated on fostering growth instead of taking measures to drastically cut the post-war debt. He notes that by the end of 1956, the federal debt had not diminished in nominal terms, but had become much easier to bear because of the decade of GDP growth that inflationary policies had created.

He neglects to mention that during the five years from 1945 to 1949, federal spending dropped by 58% and taxes fell by 12%. Meanwhile, the budget deficit fell by 66% in 1946 and was in surplus from 1947 to 1949. [i] In other words, although we did not pay down our nominal debt in the decade after the war, we did succeed in massively shrinking government and the burden that it places on society. Could it be that this had something to do with the post-war boom, or should we give all the credit to the monetary policy? (It is important to point out that our national debt did initially decline from 1945 to 1949, but the extra spending necessary to finance the Korean War reversed that trend.)

Also, after the war ended, American factories quickly retooled production from military hardware to consumer goods. The products not only created a domestic boom in living standards, but were also in high demand in war-ravaged Europe. The late 1940’s and 1950’s produced some of the largest U.S. trade surpluses (in relative terms) in our history.

Today, government spending is rising at the fastest pace on record (not fast enough for Krugman) and our trade deficit is growing as well. In 2011, the government is forecast to spend $3.8 trillion.[ii] To truly replicate post-war fiscal policy, in the next four years: federal spending would have to be slashed by $2.1 trillion to $1.5 trillion, tax revenues would have to be lowered from $2.4 trillion to $2.1 trillion, and the federal budget would have to record a $650 billion surplus. [iii] [iv] Since Krugman would never support these spending and tax cuts, he must feel that similar success can be achieved solely through the monetary policy of inflation.

In his column, Krugman warns that the biggest danger of the austerity measures necessary for Greece (and the United States) to pay down debt organically is the deflation that would ensue. Like most of his academic peers, Krugman believes that falling prices are the economic equivalent of kryptonite, guaranteed to bring low even the mightiest economy.

He is wrong. We need deflation. As a result of a phony boom in assets, prices levels are still too high relative to the earning power and productivity of American workers. Falling prices will cushion the blow of recession (by allowing people to buy more with their paychecks and savings) and will eventually encourage people to spend when prices fall low enough. Deflation is the only way to save us from the much greater horror of inflation, or hyper-inflation, which Krugman argues is not actually that bad.

Inflation can’t save us from lower real wages and falling living standards, it will simply change the manner in which we are impoverished. With deflation, workers’ wages fall; with inflation, consumer prices rise. Deflation hurts, but inflation can spiral out of control, especially with an Administration addicted to spending.

In Paul Krugman’s world, deep structural problems can be solved simply by printing currency. I wonder whether he thinks all the Americans in debt should be given little basement printing presses to counterfeit away their troubles.

Krugman’s advice will appeal to his fans in government and academia, but won’t help the average American. If we dare to follow his lead, a Greek tragedy will be played out in American garb.

in Europac.net

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.

April 7, 2010

Consumer Spending And The US Economy

“The more money the consumer spends, the worse shape our economy is going to be in.”

in New York Times

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.

April 5, 2010

The Federal Reserve Inflated The Housing Bubble

“I said, in no uncertain terms, that the Federal Reserve, by keeping interest rates too low, was inflating a housing bubble and that, when it burst it, would bankrupt our lending institutions and plunge the economy into the worse recession since the Great Depression.”

in www.bullsource.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.

Videoblog: Alan Greenspan Comments On ABC News


Topics: Alan Greenspan comments on ABC News;

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.

April 4, 2010

Employment Report Analysis

Latest video:

Peter Schiff`s comments on the Employment Report, manufacturing jobs on the US and Census workers.

Other Topics: US dollar strength, emerging markets;

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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