The same thing exists today with respect to sovereign debt with the U.S. economy. People assume that we have a buyable economy, we do not. America is an economy that is based on borrowing for consumption and borrowing to sustain a massive government that is spending a tremendous amount of money.
The reason that all the pieces haven’t collapsed already is because interest rates are very low and they are low because the risk is not properly perceived. - in a recent video interview
Related ETFs: SPDR Gold Trust (ETF), iShares Lehman 20+ Year Treas.Bond ETF (TLT), iShares Lehman 7-10 Yr Treas. Bond ETF (IEF)
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.