Latest Market Commentary:
- U.S. Dollar: The Reason Why Goldman Sachs Is Bullish
- Inflation Is Bullish For Gold
- How Long Before A Currency Crisis?
- U.S. Economy: Breaking Records
- Market Update: Stock Market, Federal Reserve and Socialism
- Gold Stocks Are The Perfect Hedge
- Gold Is One Of The Best Bargains One Can Buy
- All The Government Is Doing Is Printing Money
March 30, 2013
Valcambi CombiBar - The New Gold Standard in 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.
March 29, 2013
Video: Cyprus Is Small But The Problem Is Enormous
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.
March 28, 2013
Video: The End Game Is A Major Crisis
Related stocks and ETFs: Bank Of America (BAC), Wells Fargo (WFC), Citigroup (C), JP Morgan (JPM)
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.
March 27, 2013
The Dollar Is Going To Collapse If Ben Bernanke Doesn’t Reverse Course
“The dollar is going to collapse if Ben Bernanke doesn’t reverse course. And if he does, the whole phony economy that has been built on the foundation of stimulus is going to collapse as well.” - in Money News
Related: SPDR Gold Trust ETF (GLD), SPDR SP 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.
Related: SPDR Gold Trust ETF (GLD), SPDR SP 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.
Video: How a US Depression Can Cause a Global 'Death Spiral'
Related: SPDR SP 500 Index ETF (SPY), 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.
March 26, 2013
The Federal Reserve Is Going To Print Money Indefinitely
“People are going to realize, or call the Fed's bluff, that our economy is stimulus-based. There is not a real exit strategy. The Fed is going to print money indefinitely.” - in Money News
Related ETFs: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA), SPDR Gold Trust ETF (GLD), 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.
Related ETFs: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA), SPDR Gold Trust ETF (GLD), 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.
Monetary Stimulus
“Ben Bernanke believes that somehow he can withdraw the stimulus and the economy will keep on expanding. It’s impossible because we have an economy that’s of stimulus, by stimulus and for stimulus." - in Money News
Related ETFs: Financial Select Sector SPDR (XLF), SPDR Gold Trust ETF (GLD), SPDR SP 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.
Related ETFs: Financial Select Sector SPDR (XLF), SPDR Gold Trust ETF (GLD), SPDR SP 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.
March 25, 2013
Reckless Monetary Policy Is Causing Our Resources To Be Malinvested
"What he is doing with his reckless monetary policy is causing our resources to be malinvested. We’re spending too much on housing right now because of what Ben Bernanke is doing. He's bragging about the fact that we’re building more houses and home prices are up, but they’re only up because of the artificially manipulated prices thanks to the Fed, and all of this is a mistake and is going to be unwound in a very painful way." - an excerpt from The Dollar’s Collapse Is (Still) Coming
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`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.
There’s Certainly A Bubble In Certain Types Of Stocks
“In fact, Ben Bernanke himself said there was no real estate bubble even after the real estate bubble burst. I don’t think there’s necessarily a bubble in the stock market. There’s certainly a bubble in certain types of stocks that are way overvalued as a result of all the cheap money Ben Bernanke has been creating." - in Advisor One
Related: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA)
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.
Related: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA)
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.
March 24, 2013
The FDIC Lacks The Resources To Cover Major Losses In A Systemic Failure
"While the FDIC currently has about $25 billion available to bail out failing banks in the event of isolated events (mainly held in U.S. treasuries that would need to be sold), it insures more than $10 trillion in deposits. Clearly it lacks the resources to cover major losses in a systemic failure. A failure of just one of the nation’s forty largest banks could swamp the resources of the FDIC. I believe that a significant spike in Treasury yields, to say 6%, would result in the failure of several major banks. Bank of America and Citibank for example each have over $1 trillion in deposits. Where would the FDIC get the money to make the depositors whole in such a situation? The government would be unlikely to pass a major tax increase to fund an FDIC bailout. More likely the Fed would print the money. In that event, depositors may not lose their money, but their money will lose much of its purchasing power." - an excerpt from Cyprus Lifts the Curtain
Related stocks and ETFs: Financial Select Sector SPDR (XLF), Bank Of America (BAC), Wells Fargo (WFC), Citigroup (C), JP Morgan (JPM)
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.
Related stocks and ETFs: Financial Select Sector SPDR (XLF), Bank Of America (BAC), Wells Fargo (WFC), Citigroup (C), JP Morgan (JPM)
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.
March 23, 2013
The Fed Knows That Major Banks Would Fail If The Bond Market Crashed
"Given our past experience with bursting bubbles, would it not have been wise for the Fed to consider whether banks could withstand the bursting of the Treasury bond bubble, which many suggest is the biggest bubble of them all? But since the Fed did not recognize the smaller bubbles until after they burst, it is not surprising that they are equally blind to this one? The Fed, after all, does not have a history of learning from its mistakes. However, I believe the oversight is no accident. The Fed knows that major banks would fail if the bond market crashed, but it does not want to shake the confidence that is essential to the current economy." - in MarketPlayground
Related stocks and ETFs: iShares Lehman 7-10 Year Treasury Bond ETF (IEF), iShares Barclays 20+ Year Treasury Bond ETF (TLT), Bank Of America (BAC), JP Morgan (JPM), Citigroup (C), Wells Fargo (WFC)
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.
Related stocks and ETFs: iShares Lehman 7-10 Year Treasury Bond ETF (IEF), iShares Barclays 20+ Year Treasury Bond ETF (TLT), Bank Of America (BAC), JP Morgan (JPM), Citigroup (C), Wells Fargo (WFC)
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.
March 22, 2013
Taking Actual Losses On Deposits Is No Different Than Taking Losses Through Devaluation And Inflation
"Many are lamenting that Cyprus’ membership in the EU prevents it from devaluing its own currency to get out of the jam. How would such a course be morally superior? Taking actual losses on deposits is no different than taking losses through devaluation and inflation. Both result in the loss of purchasing power. Asking for a depositor haircut at least deals with the problem honestly and immediately. Although it’s not quite as honest, devaluation can also be effective." - 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.
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.
March 21, 2013
Cypriots Will Bear The Burden Of Past Profligacy
"The decision to inflict pain on both large and small depositors was almost universally described as a historic blunder. But the mistake was to do so in a manner that was not camouflaged by financial smoke and mirrors. In truth, rank and file depositors have been paying, and will continue to pay, for all manner of bailouts and stimulus. Whether it’s through lower interest payments on deposits, inflation, higher taxes, higher borrowing costs, or the accumulation of unsustainable sovereign debt, Cypriots will bear the burden of past profligacy. But the new plan for Cyprus was far too transparent, simple, and direct to survive in a world dependent on deceit and obfuscation. It was dead on arrival." - 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.
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 Stimulus Trap
"The Keynesians have overlooked a much more dangerous and demonstrable pitfall of their own creation: something that I call "The Stimulus Trap." This condition occurs when an economy becomes addicted to the monetary stimulus provided by a central bank, and as a result fails to restructure itself in a manner that will allow for robust, and sustainable, growth. The trap redirects capital into non-productive sectors and starves those areas of the economy that could lead an economic rebirth. The condition is characterized by anemic growth (masked by the delivery of perpetual stimulus) and deteriorating underlying economic fundamentals." - an excerpt from The Global Investor Newsletter, March 2013
Related: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA)
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.
Related: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA)
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.
March 20, 2013
Video: US Banks Are A Few Interest Rate Hikes From Insolvency
Related stocks: Bank Of America (BAC), Wells Fargo (WFC), Citigroup (C), JP Morgan (JPM), Financial Select Sector SPDR (XLF)
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.
March 19, 2013
Deposit Insurance Makes The Banking Sector Much Riskier
"I think government insured deposits is the reason, the primary reason that banks are so reckless. The depositors know that they are going to get their money back no matter what the banks do with it, so the depositors don`t care how much risk the banks take. In fact they love when the bank takes risk because they can earn more interest or get free services. The banks know that their costumers don`t give a damn how much risk they take, so they take plenty of risk. And so, because of deposit insurance the banking sector is much riskier than what it would be absent that insurance." - an excerpt from Insured Bank Deposits At Risk, America Burns While Obama Golfs
Related stocks and ETFs: Bank Of America (BAC), Wells Fargo (WFC), Citigroup (C), JP Morgan (JPM), Financial Select Sector SPDR (XLF)
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.
Related stocks and ETFs: Bank Of America (BAC), Wells Fargo (WFC), Citigroup (C), JP Morgan (JPM), Financial Select Sector SPDR (XLF)
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: Checking Market Pulse
Related ETFs: Financial Select Sector SPDR (XLF), SPDR Gold Trust ETF (GLD), SPDR SP 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.
March 18, 2013
Insured Bank Deposits At Risk, America Burns While Obama Golfs
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.
What Happens In Cyprus Doesn't Necessarily Stay In Cyprus
"What happens in Cyprus doesn't necessarily stay in Cyprus. The media says it can't happen here but it can. If several major U.S. banks failed, trillions of deposits would be at risk, including hundreds of billions insured by the FDIC. However, the FDIC barely has any reserves to cover the potential losses. A bigger bailout than TARP would be required to bailout depositors. Where would the government get the money? If the Fed prints it, deposits would lose a much more larger percentage of their value to inflation than Cyprus depositors are paying in deposit taxes!" - in Youtube`s Schiff Report
Related stocks and ETFs: Financial Select Sector SPDR (XLF), Bank Of America (BAC), JP Morgan (JPM), Citigroup (C), Wells Fargo (WFC)
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.
Related stocks and ETFs: Financial Select Sector SPDR (XLF), Bank Of America (BAC), JP Morgan (JPM), Citigroup (C), Wells Fargo (WFC)
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: Newt Gingrich Stands With Rand Paul at CPAC
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.
March 17, 2013
If You Have A Devalued Currency, The Price Of Everything Goes Up
"It's not that the stock market is gaining value... it's that our money is losing value. And so if you have a debased currency... a devalued currency, the price of everything goes up. Stocks are no exception." - in Money Morning
Related ETFs: SPDR Dow Jones Industrials ETF (DIA), SPDR Gold Trust ETF (GLD), SPDR SP 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.
Related ETFs: SPDR Dow Jones Industrials ETF (DIA), SPDR Gold Trust ETF (GLD), SPDR SP 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.
March 16, 2013
Anybody Who Believes There Is No Inflation Isn't Shopping
"Anybody who believes there is no inflation isn't shopping." - 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.
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.
March 15, 2013
There Is A Currency War Going On
"There is a currency war going on. The irony of a currency war, which makes it different from other wars, is the object is to kill itself. Unfortunately, I think the U.S. is going to win the currency war." - 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.
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.
March 13, 2013
Video: Interview With Rand Paul
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.
March 12, 2013
The Age Of Truly Easy Money May Be Just Getting Started
"Many have dubbed the last decade or so to be an era of easy money. As it turns out, that characterization may have been premature. Based on the new crop of central bankers who are primed to take control of the world's financial system, the age of truly easy money may be just getting started." - in Town Hall
Related ETFs: SPDR Gold Trust ETF (GLD), iShares Silver Trust ETF (SLV), SPDR SP 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.
Related ETFs: SPDR Gold Trust ETF (GLD), iShares Silver Trust ETF (SLV), SPDR SP 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.
The Majority Of Jobs Being Created Now Will Disappear
"The majority of jobs being created now will disappear when either the stimulus ends or rising interest rates bring back recession. When the time comes to pay the piper for all this stimulus, the bill will be large, and the collapse much worse than the financial crisis of 2008." - an excerpt from "Goldilocks and the Bear Jobs Report"
Related ETFs: SPDR Gold Trust ETF (GLD), SPDR SP 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.
Related ETFs: SPDR Gold Trust ETF (GLD), SPDR SP 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.
March 11, 2013
Job Market: Disturbing Trends
"More importantly, the number of people who are no longer even counted in the labor force rose by nearly 300,000 from January to February. This is greater than the number of jobs created. Analysts simply can't look past the headlines to see these disturbing trends." - in Townhall
Related ETFs: SPDR Dow Jones Industrials ETF (DIA), SPDR SP 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.
Related ETFs: SPDR Dow Jones Industrials ETF (DIA), SPDR SP 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.
A Jobs Report That Is Not Nearly As Positive As The Headlines Suggest
"As is typical, Wall Street and the media are celebrating a jobs report that is not nearly as positive as the headlines suggest. The continuing decline in the labor force participation rate was at least as important a factor as the new jobs created in bringing down the official unemployment rate to 7.7 percent.
The participation rate has now dropped to 63.5 percent, the lowest level since 1981 when the rate had plunged due to a terrible recession." - in Finance Townhall
Related ETFs: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA)
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 participation rate has now dropped to 63.5 percent, the lowest level since 1981 when the rate had plunged due to a terrible recession." - in Finance Townhall
Related ETFs: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA)
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.
March 10, 2013
Cartoon: Dumb & Dumber 3 - Fooled Again
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.
March 8, 2013
Serial Money Printers
"Many expect that when Bernanke's term expires in January 2014, he will be succeeded by the dovish Yellen. But that's just the beginning. In short order, a host of serial money printers will take up the reins at the world's most important central banks." - in Town Hall
Related ETFs: 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.
Related ETFs: 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.
March 7, 2013
We Don`t Have A Secretary of The Treasury, We Have A Secretary of The Debt
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.
March 6, 2013
The Federal Reserve Is Expected To Buy Nearly 90% Of New Treasury Bonds In 2013
"There is no exit strategy because the results of the Fed withdrawing its artificial support would be disastrous for the US Treasury and in the short-term, the US economy.
The Fed is expected to buy nearly 90% of new Treasury bonds in 2013, according to Bloomberg. This is a tremendous subsidy that has kept 10-year Treasury yields below 1.95% on average this year so far. Last year, with 10-year yields averaging 1.8%, the Treasury spent $360 billion on interest payments alone. That represented nearly 10% of all expenditures.
Let's assume a Fed tightening causes these rates to triple - not unreasonable for a government facing over 100% debt-to-GDP. If these rates triple by 2015, and another $2 trillion or so is added to the debt, then interest would make up over 30% of annual federal expenditures. Just interest." - in Town Hall
Related ETFs: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA), iShares Lehman 7-10 Year Treasury Bond ETF (IEF), iShares Barclays 20+ Year Treasury Bond ETF (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.
The Fed is expected to buy nearly 90% of new Treasury bonds in 2013, according to Bloomberg. This is a tremendous subsidy that has kept 10-year Treasury yields below 1.95% on average this year so far. Last year, with 10-year yields averaging 1.8%, the Treasury spent $360 billion on interest payments alone. That represented nearly 10% of all expenditures.
Let's assume a Fed tightening causes these rates to triple - not unreasonable for a government facing over 100% debt-to-GDP. If these rates triple by 2015, and another $2 trillion or so is added to the debt, then interest would make up over 30% of annual federal expenditures. Just interest." - in Town Hall
Related ETFs: SPDR SP 500 Index ETF (SPY), SPDR Dow Jones Industrials ETF (DIA), iShares Lehman 7-10 Year Treasury Bond ETF (IEF), iShares Barclays 20+ Year Treasury Bond ETF (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.
Federal Reserve: There Is No Exit Strategy
"Testifying before the US Senate this past Tuesday, Fed Chairman Ben Bernanke made an extraordinary claim about its bloated balance sheet: "We could exit without ever selling by letting it run off." What Bernanke means here is that the Fed could simply hold its Treasuries and agency bonds until they mature, at which point the government would then be forced to pay the Fed back the principal amount. Through this process, the Fed's unprecedented and inflationary position will be gradually and placidly unwound.
Growing rumors last month of a potential "tightening" of monetary policy - seemingly confirmed by the Fed minutes released on Feb. 20th - have spooked the precious metals markets, leading to a 5.8% correction in gold and 10.2% in silver.
However, these fears are preposterous on two counts.
First, the Fed just spent the past year and a half extending the maturities of its entire portfolio. That was the entire purpose of Operation Twist. The average maturity of the entire portfolio is now over 10 years. That means any wind-down using the strategy Bernanke outlined would play out over the course of decades - not months or years.
Fortunately for hard asset investors, it is unlikely to play out at all.
The second reason these fears are unfounded is that there is no exit strategy. Listening to Bernanke's testimony, it was clear that here was a man simply speculating about when an exit might be undertaken - or perhaps if it would ever be taken. Senator Corker from Tennessee accused Bernanke during the hearing of being "the biggest dove since World War II." "I think it's something you're rather proud of," the Senator continued. The Chairman's response to the charge of recklessly endangering the nation's currency? "In some respects, I am." "- in Town Hall
Related ETFs: SPDR Gold Trust ETF (GLD), iShares Silver Trust ETF (SLV), SPDR SP 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.
Growing rumors last month of a potential "tightening" of monetary policy - seemingly confirmed by the Fed minutes released on Feb. 20th - have spooked the precious metals markets, leading to a 5.8% correction in gold and 10.2% in silver.
However, these fears are preposterous on two counts.
First, the Fed just spent the past year and a half extending the maturities of its entire portfolio. That was the entire purpose of Operation Twist. The average maturity of the entire portfolio is now over 10 years. That means any wind-down using the strategy Bernanke outlined would play out over the course of decades - not months or years.
Fortunately for hard asset investors, it is unlikely to play out at all.
The second reason these fears are unfounded is that there is no exit strategy. Listening to Bernanke's testimony, it was clear that here was a man simply speculating about when an exit might be undertaken - or perhaps if it would ever be taken. Senator Corker from Tennessee accused Bernanke during the hearing of being "the biggest dove since World War II." "I think it's something you're rather proud of," the Senator continued. The Chairman's response to the charge of recklessly endangering the nation's currency? "In some respects, I am." "- in Town Hall
Related ETFs: SPDR Gold Trust ETF (GLD), iShares Silver Trust ETF (SLV), SPDR SP 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.
March 5, 2013
Video: Obama Won`t Finish His Second Term Without The Bottom Dropping Out
Related ETFs: SPDR SP 500 Index ETF (SPY), SPDR Gold Trust ETF (GLD), SPDR Dow Jones Industrials ETF (DIA), 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.
March 4, 2013
The Federal Reserve Has No Credible Exit Strategy
"As I have said many times before, the Fed has no credible exit strategy. Its portfolio is far too large, and the economy, the housing market, the banks, and the government, are far too dependent on ultra-low interest rates to allow Bernanke any real options. In truth, his only exit strategy is to just talk about an exit strategy." - in IB Times
Related ETFs: SPDR Gold Trust ETF (GLD), 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.
Related ETFs: SPDR Gold Trust ETF (GLD), 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.
March 3, 2013
The Reason It Does Not Feel Like A Recovery For Most People Is Because It`s Not
"People think the economy is expanding. We just got the GDP number, the revised fourth quarter, and it showed a slight expansion, +0.1%. But that`s because the government assumes there`s no inflation. They want us to believe that inflation is about 1.50%. Inflation in my opinion is at least 5%, if not quite a bit more.
But even if inflation is only 3% that means the U.S. economy is contracting, which makes a lot of sense to me. The reason it does not feel like a recovery for most people is because it`s not. It`s still a recession." - in a recent RT TV interview
Related ETFs: SPDR S&P 500 Index ETF (SPY), 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.
But even if inflation is only 3% that means the U.S. economy is contracting, which makes a lot of sense to me. The reason it does not feel like a recovery for most people is because it`s not. It`s still a recession." - in a recent RT TV interview
Related ETFs: SPDR S&P 500 Index ETF (SPY), 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.
March 2, 2013
The Fed Is Propping Up A Parasitic Economy That Is Completely Dependent On Stimulus
"As I have said many times before, the Fed has no credible exit strategy. Its portfolio is far too large, and the economy, the housing market, the banks, and the government, are far too dependent on ultra-low interest rates to allow Bernanke any real options. In truth, his only exit strategy is to just talk about an exit strategy. Bernanke’s contention that the Fed need not sell any of its bonds is the closest thing yet to an official admission of this fact. Not too long ago Bernanke made the absurd claim that his intention to sell the bonds on the Fed’s balance sheet meant that he was not monetizing debt. How times have changed.
Bernanke is banking on the hope that his policies will jump start the economy which will then be able to motor along on its own. However, the current era of cheap money and fiscal stimulus will never create an economy that is capable of standing on its own legs. Instead, it is propping up a parasitic economy that is completely dependent on the very supports the Fed believes it can one day remove. But if the Fed does not remove them on its own, the markets eventually will." - in Market Playground
Related ETFs: SPDR Dow Jones Industrials ETF (DIA), SPDR SP 500 Index ETF (SPY), 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.
Bernanke is banking on the hope that his policies will jump start the economy which will then be able to motor along on its own. However, the current era of cheap money and fiscal stimulus will never create an economy that is capable of standing on its own legs. Instead, it is propping up a parasitic economy that is completely dependent on the very supports the Fed believes it can one day remove. But if the Fed does not remove them on its own, the markets eventually will." - in Market Playground
Related ETFs: SPDR Dow Jones Industrials ETF (DIA), SPDR SP 500 Index ETF (SPY), 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.
The Banks Are Doing Really Well But The U.S. Economy Is Not
"It`s good to be a banker, especially if you have Ben Bernanke at the Federal Reserve. The Fed`s policy is to try to revive the economy by inflating the markets. That`s great if you are a banker because you benefit on several fronts, the markets are more vibrant, so you can make more money speculating but also its cheaper to borrow and that`s a lot of the source of the speculation.
So, the banks are doing really well under this environment but the U.S. economy is not doing well at all." - in a recent interview with RT TV
Related: Bank of America (BAC), Citigroup (C), Wells Fargo (WFC), JP Morgan (JPM)
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.
So, the banks are doing really well under this environment but the U.S. economy is not doing well at all." - in a recent interview with RT TV
Related: Bank of America (BAC), Citigroup (C), Wells Fargo (WFC), JP Morgan (JPM)
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.
March 1, 2013
Video: Fed`s Exit Strategy
Related ETFs: SPDR Gold Trust ETF (GLD), 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.
Video: Banking Profits, Government Salaries, U.S. Economy
Related: Bank Of America (BAC), JP Morgan (JPM), Citigroup (C), Wells Fargo (WFC), 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.
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