September 30, 2012

The Fed Prefers The Illusion Of Growth

Here is the outline of the Fed’s plan: buy hundreds of billions of home mortgages annually in order to push down mortgage rates and push up home prices, thereby encouraging people to build and buy homes and spend the extracted equity on consumer goods. Furthermore, the Fed hopes that ultra-cheap money will push up stock prices so that Wall Street and stock investors feel wealthier and begin to spend more freely.

He won’t admit this directly, but rather than building an economy on increased productivity, production, and wealth accumulation, he is trying to build one on confidence, increased leverage, and rising asset prices. In other words, the Fed prefers the illusion of growth to the restructuring needed to allow for real growth. - excerpt from Operation Screw

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.

September 29, 2012

CNBC Video: The US Dollar Is Going To Collapse



Related: EUR/USD, EUR Futures

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.

September 28, 2012

The Federal Reserve Is Trying To Recreate A Housing Bubble



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.

Food Prices: Without Speculators In The Market, The Prices Could Be Even Higher

If you took all the speculators out of the market, the prices might even be higher. - in Al Jazeera's Inside Story

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.

September 26, 2012

QE Will Create A Lot Of Inflation


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.

September 25, 2012

Federal Reserve Fuels Gold Rally



Related: SPDR Gold Trust ETF (GLD)

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.

September 24, 2012

Federal Reserve Actions Cause More Harm Than Good



A recent CNBC video with Peter Schiff and Ron Insana debating the merits and hazards of Federal Reserve actions.

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.

Kamikaze Monetary Policy

"This is a disastrous monetary policy; it's kamikaze monetary policy." - ETF Daily 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.

September 22, 2012

People Need An Alternative To US Dollars

People need an alternative to dollars, they need an alternative to euros, and they get that with gold and silver. - in News Australia

Related: iShares Silver Trust ETF (SLV), SPDR Gold Trust ETF (GLD)

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.

September 21, 2012

The Geniuses At The Federal Reserve

The geniuses at the Federal Reserve have concocted a bold new plan to revive the U.S. economy - print a bunch of money, loan it to Americans at super low interest rates so they can speculate on rising real estate prices, extract the appreciated equity and spend it on consumer goods. In other words, build an economy of real estate, by real estate, and for real estate.

The only problem is we've been there and done that. The last time it almost destroyed the U.S.economy. I guess almost isn't quite good enough for the Fed, so now it's determined to finish the job. - in Business Insider 

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.

September 20, 2012

Video: Dollar Vulnerable To A Massive Collapse


Video: Dollar Vulnerable To A Massive Collapse

Related: iShares Silver ETF (SLV),  SPDR Gold Trust ETF (GLD)

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.

Currency Crisis & Sovereign Debt Crisis

The stage has been set for a currency crisis and a sovereign debt crisis, and they’re going to come relatively soon. - in USA Watch Dog 

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.

September 19, 2012

QE3 Has Sunk Before It Has Even Left Port

Fortunately, the crude limitations of the Fed’s only policy tool have become more apparent to the markets. If you must stick with the nautical metaphors, QE3 has sunk before it has even left port.

The move was explicitly designed to push down long-term interest rates, but interest rates spiked significantly in the immediate aftermath of the announcement.

Traders realize that an open-ended commitment to buying bonds means that inflation and dollar weakness will likely destroy any nominal gains in the bonds themselves.  - excerpt from the Operation Screw

Related: iShares Barclays 20+ Yr Treasury Bond ETF (TLT), 30 year treasury bond, ProShares UltraShort 20+ Year Treasuries ETF (TBT), 

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.

September 18, 2012

The Federal Reserve Prefers The Illusion Of Growth To The Restructuring Needed To Allow For Real Growth

Here is the outline of the Fed’s plan: buy hundreds of billions of home mortgages annually in order to push down mortgage rates and push up home prices, thereby encouraging people to build and buy homes and spend the extracted equity on consumer goods. Furthermore, the Fed hopes that ultra-cheap money will push up stock prices so that Wall Street and stock investors feel wealthier and begin to spend more freely.

He won’t admit this directly, but rather than building an economy on increased productivity, production, and wealth accumulation, he is trying to build one on confidence, increased leverage, and rising asset prices. In other words, the Fed prefers the illusion of growth to the restructuring needed to allow for real growth. - excerpt from Operation Screw

Related: SPDR Gold Trust ETF (GLD),  SPDR S&P 500 ETF (SPY)

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.

Prior Injections Of Quantitative Easing Have Done Little To Revive Our Economy

Prior injections of quantitative easing have done little to revive our economy or set us on a path for real recovery. We are now in more debt, have more people out of work, and have deeper fiscal problems than we had before the Fed began down this path.

All the supporters can say is things would have been worse absent the stimulus. While counterfactual arguments are hard to prove, I do not doubt that things would have been worse in the short-term if we had simply allowed the imbalances of the old economy to work themselves out. But in exchange for that pain, I believe that we would be on the road to a real recovery. Instead, we have artificially sustained a borrow-and-spend model that puts us farther away from solid ground. - in Market Playground

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.

Bernanke: Binding The American Economy To A Losing Strategy

With Thursday’s Fed decision and press conference, Chairman Ben Bernanke finally and decisively laid his cards on the table. And confirming what I have been saying for many years, all he was holding was more of the same snake oil and bluster. Going further than he has ever gone before, he made it clear that he will be permanently binding the American economy to a losing strategy. - in Market Playground

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.

September 17, 2012

This Is Kamikaze Monetary Policy

This is a disastrous monetary policy; it’s kamikaze monetary policy.  The dollar index is going to go down to 40, it might even go to 20 — I mean this is going to be in free fall at some point… ultimately there’s going to be a currency crisis. - in CNBC Asia’s Cash Flow

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.

Our Recent Era Of Unprecedented Fiscal Irresponsibility

The current national debt is about $16 trillion. This is just the funded portion — the unfunded liabilities of the Treasury, such as Social Security and Medicare, and off-budget items, such as guaranteed mortgages and student loans, loom much larger.

Our recent era of unprecedented fiscal irresponsibility means we are throwing an additional $1 trillion or more on the pile every year. - in Money 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.

September 16, 2012

Nobody Is Going To Want To Trade Their Stuff For Our Rapidly Depreciating Paper

The American economy depends on our ability to print money and trade it for what the rest of the world produces, but as the dollar is falling through the floor, nobody is going to want to trade their stuff for our rapidly depreciating paper. - in CNBC

Related: PowerShares DB US Dollar Index Bearish(NYSEARCA:UDN)

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.

September 15, 2012

We Need Higher Interest Rates

What we actually need is less money printing, we need higher interest rates, more savings, more production, more exports and what the Fed is doing is inhibiting that from happening. - 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.

September 14, 2012

Our Economy Has A Disease That All The Quantitative Easing In The World Can’t Cure

Our economy has a disease that all the quantitative easing in the world can’t cure. And while the wrong medicine may make us appear healthier in the short term, we will continue to deteriorate beneath the surface. - in Market Place 

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.

Operation Screw: The Fed Goes All-In On QE


Video: Operation Screw, The Fed goes all-in on QE

The geniuses at the Federal Reserve have concocted a bold new plan to revive the U.S. economy -- print a bunch of money, loan it to Americans at super low interest rates so they can speculate on rising real estate prices, extract the appreciated equity and spend it on consumer goods.

In other words, build an economy of real estate, by real estate, and for real estate. The only problem is we've been there and done that. The last time it almost destroyed the U.S. economy. I guess almost isn't quite good enough for the Fed, so now it's determined to finish the job. These actions will destroy Americans' savings and hurt people on fixed incomes. To protect yourself, I recommend a strategy of foreign equities, commodities, and gold and silver.

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.

Kamikaze Monetary Policy

This is a disastrous monetary policy; it’s kamikaze monetary policy. The dollar index is going to go down to 40, it might even go to 20 — I mean this is going to be in free fall at some point… ultimately there’s going to be a currency crisis. - in CNBC Asia

Related: SPDR Gold Trust (ETF) (GLD), PowerShares DB US Dollar Index Bearish (UDN), IShares Silver Trust (ETF) (SLV)

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.

September 13, 2012

As Long As The Fed Is Doing QE, The Recession IS Going To Get Worse

As long as the Fed is doing QE, this recession, and I call it a depression, is going to get worse and worse and worse. - 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.

QE3 Is Coming Eventually

QE3 is coming eventually. Whether the economy gets its fix next week or this week or a couple months from now, it is coming. - 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.

September 12, 2012

Video: US is High On 'Monetary Heroin'



Video Summary: Peter Schiff, CEO at Euro Pacific Capital says stimulus is like a drug to the U.S. that if withdrawn, could force the economy back into recession. He thinks that could force the market to restructure which may bring short term pain.

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.

September 11, 2012

The National Debt Likely Will Hit $20 Trillion In A Few Years

On the current trajectory, the national debt likely will hit $20 trillion in a few years. If, by that time, interest rates were to return to 5 percent (a low rate by postwar standards) interest payments on the debt could run around $1 trillion per year. Such a sum would represent almost 40 percent of total current federal revenues and likely would constitute the single largest line item in the federal budget. A balance sheet so constructed would create an immediate fiscal crisis in the United States. - excerpt from The real fiscal cliff - Washington 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.

People Need An Alternative To Dollars

People need an alternative to dollars, they need an alternative to euros, and they get that with gold and silver. - in NEWS.com.au 

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.

September 10, 2012

CNBC Video: Putting A Cap On Corporate Profits?



Short summary: Should the government limit corporate earnings, while unemployment is so high? Peter Schiff, Euro Pacific Capital CEO, weighs in.

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.

September 9, 2012

We Need To Restructure The Economy Into Something Healthier

The recession the Fed is trying so desperately to prevent must be allowed to run its course so that the economy that we have developed over the last decade, the one that is overly reliant on low interest rates, borrowing and consumer spending, can finally restructure itself into something healthier. - in Live Trading 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.

September 8, 2012

Our Economy Has A Disease That All The Quantitative Easing In The World Can’t Cure

The simple truth however, is that our economy has a disease that all the quantitative easing in the world can’t cure. And while the wrong medicine may make us appear healthier in the short term, we will continue to deteriorate beneath the surface. Not only should the Fed not provide additional QE, but it should remove the accommodation currently in place.

Although these moves would most certainly send us back into recession, it would simultaneously provide a needed course correction that would put us finally on the road to a sustainable recovery. - in Market Playground

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.

September 7, 2012

My Warnings About The Real Fiscal Cliff Are Being Ignored

For years, I warned that the bursting of the real estate bubble would trigger a financial crisis. My warnings routinely were ignored based on the near-universal assumption that real estate prices would never fall. That was wrong.

My warnings about the real fiscal cliff also are being ignored because of a similarly false premise that interest rates will never rise. However, if history can be a guide, we should view the current period of ultralow rates as the exception rather than the rule. - in Washington 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.

September 6, 2012

Democrats: Let`s Ban Profits!



Posing as an anti-business crusader, Peter Schiff found a number of DNC delegates and attendees who support explicitly outlawing profitability. We deliberately avoided speaking with the occupy protestors camping outside in tents to get a more "mainstream" Democratic perspective! - in Schiff Report

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.

September 5, 2012

Our Government Is Driving Us Toward This Cliff

By foolishly borrowing so heavily when interest rates are low, our government is driving us toward this cliff with its eyes firmly glued to the rearview mirror. Most economists downplay debt-servicing concerns with assertions that we have entered a new era of permanently low interest rates. This is a dangerously naive idea. - in Washington 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.

America Can Once Again Prosper If We Put Our Trust In First Principles

America can once again prosper if we put our trust in first principles and let the free markets work. Unfortunately, that is not happening. Government is taking an ever greater role in our economy where its efforts will continue to stifle economic growth. - excerpt from The Fed Is Trying To Build Skyscrapers On A Bad Foundation 

Related: SPDR S&P 500 Index ETF (SPY)

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.

As Usual, They All Have It Wrong

There is an ongoing three way debate between those who believe the Fed should do more to strengthen the recovery, those who believe that the recovery is strong enough to continue on its own, and those who believe that the economy has been so fundamentally altered by the recession that no amount of stimulus can succeed in pushing unemployment down to pre-crash levels. As usual, they all have it wrong (although some are more wrong than others). - in Business Insider

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.

September 4, 2012

Videoblog: Jackson Hole, Politics, QE, Debt & 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.

When Interest Rates Return To 5 Percent...

Our recent era of unprecedented fiscal irresponsibility means we are throwing an additional $1 trillion or more on the pile every year. The only reason this staggering debt load hasn’t crushed us already is that the Treasury has been able to service it through historically low interest rates (now below 2 percent).

These easy terms keep debt-service payments to a relatively manageable $300 billion per year. On the current trajectory, the national debt likely will hit $20 trillion in a few years. If, by that time, interest rates were to return to 5 percent (a low rate by postwar standards) interest payments on the debt could run around $1 trillion per year.

Such a sum would represent almost 40 percent of total current federal revenues and likely would constitute the single largest line item in the federal budget. A balance sheet so constructed would create an immediate fiscal crisis in the United States. - in Washington 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.

September 2, 2012

The Most Effective Tax System

The absolute worst type of tax is an income tax because, in effect, it's a tax on people for working, producing and investing, based not on what they take out of an economy, but what they put into it.

The problem with this is twofold: Firstly, taxes levied against a particular behavior end up discouraging that behavior, in this case, working, producing and investing. Secondly, because an income tax makes no distinction between, for example, income used to buy luxury goods and income saved and invested in starting or growing a business, it naturally reduces the amount of money which is available to be invested.

The best alternative is to tax people based on what they spend, in the form of sales taxes which are levied against goods that individuals consume. Not only is this better for an economy, it's easy to implement because businesses - who already keep records - can simply pass on the cost directly to consumers.  - in Eristical

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.

September 1, 2012

Until the Federal Reserve Lets Us Have A Real Recession, We Are Never Going To Have A Real Recovery

You know we’ve got a phony recovery, so it’s going to fail. So we are going to get more QE. It’s not that we need it, but if we don’t have QE3, then we are back in recession. The Fed is going to try to stop that, even though the recession is part of the cure. We have a lot of problems, and if we cure them it’s going to mean a short-term recession as we repair the damage.

Until the Fed lets us have a real recession, as painful as that may be, we are never going to have a recovery. We’re just going to have these artificial, stimulus induced highs that are going to result in relapse to recession as the stimulus wears off. - in Revolution Radio

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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