Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > Fiat Ponzi

Like Tree12Likes
  • 5 Post By vox
  • 1 Post By mmerlinn
  • 2 Post By bushi
  • 1 Post By BigJim
  • 1 Post By mmerlinn
  • 2 Post By benjamen

Reply
 
LinkBack Thread Tools
Old 07-17-2012, 05:26 PM   #1
vox
Predaceous stink bug
 
vox's Avatar
 
Join Date: Oct 2011
Posts: 126
Liked: 65 times
America Heading Towards a Collapse Worse Than 2008 AND Europe! Says Peter Schiff

http://finance.yahoo.com/blogs/break...155504860.html

Video on the link above.

His view on PM's is notable. See item #3 below.

Text follows:

Quote :
According to author and investor Peter Schiff, the U.S. economy is heading for an economic crash that will make 2008 look like a walk in the park. Stimulus programs can delay this day of reckoning, but only for so long and only at the expense of making the eventual meltdown much, much worse.

Schiff, who famously warned investors about the housing and financial crisis in his 2007 book Crash Proof, says the Fed's palliative efforts during the housing meltdown have made the next crisis inevitable.

"We've got a much bigger collapse coming, and not just of the markets but of the economy," Schiff says in the attached clip. "It's like what you're seeing in Europe right now, only worse."

In this nightmare scenario detailed in The Real Crash: America's Coming Bankruptcy, the current economic pause is actually the beginning of a material slowdown or recession into year end. At that point, the Federal Reserve will unleash a third round of Quantitative Easing — weakening the dollar without jump-starting the economy. As a result of dollar weakness, import prices rise, pressing the margins of corporate America. Lower margins lead to heavy layoffs, sending millions of workers into unemployment during a time when they can least afford it. Banks fail, housing collapses, and taxes are raised in a futile effort to give the tapped-out government the capital to try yet more futile stimulus.

"That's when it really is going to get interesting, because that's when we hit our real fiscal cliff, when we're going to have to slash — and I mean slash — government spending," says Schiff.

Those cuts will not be at all unlike the draconian austerity measures in Greece, with programs like Social Security and Medicare being dramatically cut or possibly disappearing entirely. The easiest way to put it, is that everything you don't think could possibly happen in America will come to be.
"Alternatively, we can bail everybody out, pretend we can print our way out of a crisis, and, instead, we have runaway inflation, or hyper-inflation, which is going to be far worse than the collapse we would have if we did the right thing and just let everything implode," he offers.

So what should investors do to protect themselves? Schiff has three suggestions:

1. Get Out of Treasuries
The U.S. dollar is going to get trashed in Schiff's scenario. Locking in a yield on a government 10-year bond of 1.5% is a paltry return in the first place. Should inflation tick up to even 5%, a level much lower than that seen in the early 1980s, bond owners would have 3.5% less buying power at the end of every year. If they go to sell the bond, they'll only find buyers at a much lower price than what they paid.

2. Own the Right Stocks
With bonds and the dollar bearing the brunt of the pain, Schiff says stocks will outperform dramatically, provided you own the right ones. Exporters and multi-national corporations will benefit from a weak dollar. Better still would be to buy foreign stocks and avoid the U.S. entirely.

3. Buy Silver and Gold
Schiff says the recent weakness in these precious metals is just a pause as we wait for the other shoe to drop. Most of those on Main Street haven't even taken positions yet in gold or silver. Once they start dropping bonds and looking for a place to hide, the price of these metals will soar.
vox is offline   Reply With Quote
Old 07-17-2012, 06:04 PM   #2
Predaceous stink bug
 
HCA1961's Avatar
 
Join Date: May 2012
Location: Kentucky
Posts: 143
Liked: 68 times
Very, very scary!
I wish I had started accumulating PMs many years ago.
HCA1961 is offline   Reply With Quote
Old 07-17-2012, 07:44 PM   #3
Ground Beetle
 
Join Date: Oct 2011
Location: Here, There, and Everywhere
Posts: 633
Liked: 388 times
Makes a lot of sense, especially when you look at Europe and when you compare today with 1933. Then compare 1929 and 1934 with 2008 and 2013. The 1934 dump was far worse than the 1929 dump, but no one remembers it. Those who do not learn from history are DOOMED to repeat history.

And Ocare mandates coming online in 2014 will only make it worse, much worse.

The one "positive" thing for stackers is that many people will be dumping hard assets at any price thereby pushing the price of PMs TEMPORARILY down. 2014 or 2015 should see the housing market finally bottom. Anyone with money should be able to buy property dirt cheap, a lot cheaper (in real terms) than today.

There are areas around here that a person can buy a decent older house on a city lot for 50 grand or so, mostly because the econuts have shut down all industry in those areas. Then the housing crisis hit, and what value that was left vanished. Example, in Powers, Oregon there are dozens of vacant houses scattered all over town, many even abandoned by the bank because there are no buyers.

My guess is that PMs and similar hard assets will skyrocket a year or two ahead of the housing market. Anyone with PMs, or other liquid assets, should have no problem buying really decent property for cash.
ancona likes this.
__________________
If you keep doing what you are doing, You will keep getting what you are getting.
If you don't like what you are getting, You must change what you are doing.


http://mmerlinn.com

GOLD is the money of KINGS.
SILVER is the money of GENTLEMEN.
BARTER is the money of PEASANTS.
DEBT is the money of SLAVES.
- Norm Franz
mmerlinn is offline   Reply With Quote
Old 07-17-2012, 08:55 PM   #4
Predaceous stink bug
 
Join Date: Nov 2011
Posts: 130
Liked: 95 times
I like Schiff. I think he pats himself on the back a lot about his 2008 predictions, but....he was right. He's a credible guy. Crashproof 2.0 is worth the read for you guys that haven't looked at it yet.
dali lambone is offline   Reply With Quote
Old 07-18-2012, 04:21 AM   #5
Ground Beetle
 
bushi's Avatar
 
Join Date: Nov 2011
Posts: 971
Liked: 554 times
Originally Posted by mmerlinn View Post:
My guess is that PMs and similar hard assets will skyrocket a year or two ahead of the housing market
what makes you think that housing will skyrocket again, in any predictable timeframe? In US, there's huge glut of oversupply in houses, demographics is not favorable (population flat/declining), people are more & more on shitty jobs/minimal wages, that would not pay for a flat's mortgage, let alone "skyrocketing" housing prices?

I've came across some quite interesting point of view, in my internet endeavors (on one of NZ financial forums):

Our great debt-based, Ponzi monetary system, was able to continue for decades only for so long, because there were new players entering at the bottom of the pyramid, willing & able to get on more debt, to service previous debts & create some liquidity in the system). Eventually, it all boiled down to rising housing prices - people need to live somewhere. So that poster said, that our monetary system lives and dies by rising housing prices - as the most reliable source of new money lent into existence, against some (very much overvalued) collateral. Which makes me think, that if minions are not able anymore (realistically speaking, even if idiots are still willing) to perpetuate the nonsense of rising housing prices, we might very well be witnessing the end of our monetary system - with all the recent "crises", ever more frequent and violent, being it just kicking the dust.

Last edited by bushi; 07-18-2012 at 04:51 AM.
bushi is offline   Reply With Quote
Old 07-18-2012, 08:15 AM   #6
Moderator
 
Join Date: Oct 2011
Posts: 1,059
Liked: 459 times
Originally Posted by dali lambone View Post:
I like Schiff. I think he pats himself on the back a lot about his 2008 predictions, but....he was right. He's a credible guy. Crashproof 2.0 is worth the read for you guys that haven't looked at it yet.
I think he's more than a little frustrated with how those who correctly predicted the crisis are being ignored today. I remember the interviews they had with Schiff and the hordes or realtors/housing reps prior to 07 and all they did was arrogantly bash his views. Imagine being called an idiot for 6-7 years, being right on the money and people aren't willing to give you credit for it.

So yeah.. He kind of does need to mention he was right.. Does he need to do it all the time? Probably not.

Let's also remember that he's all in on the gold trade. He runs Euro pacific capital and it's in his best financial interest to get as many clients with him as possible before crash 2.0. I don't mean that in a negative way either. He's putting his money where his mouth is.
DSAbug is offline   Reply With Quote
Old 07-18-2012, 08:35 AM   #7
Golden Cockroach
 
PMBug's Avatar
 
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 7,309
Liked: 2502 times
Quote :
... At that point, the Federal Reserve will unleash a third round of Quantitative Easing — weakening the dollar without jump-starting the economy. As a result of dollar weakness, import prices rise, pressing the margins of corporate America. Lower margins lead to heavy layoffs, sending millions of workers into unemployment during a time when they can least afford it. ...
This is pretty much what we saw during previous QE periods. Only it wasn't just import prices that rose, but the whole commodity complex (although oil is definitely the most important one with respect to corporate margins).
__________________
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 07-18-2012, 10:14 AM   #8
Ground Beetle
 
bushi's Avatar
 
Join Date: Nov 2011
Posts: 971
Liked: 554 times
...also consider that Schiff might be taking into account, that each of his interviews might be someone's FIRST time he/she came across him, thus he might want to break through the initial "who the hell this joker thinks he is" attitude of his first-time viewers, by quoting his fulfilled predictions.
mmerlinn and benjamen like this.
bushi is offline   Reply With Quote
Old 07-18-2012, 11:31 AM   #9
Predaceous stink bug
 
Join Date: Apr 2012
Posts: 196
Liked: 135 times
Schiff is very good.
The only way housing will start to recover & I mean minimaly will be if there's JOBS!!!


GOD BLESS OUR TROOPS!!!
rblong2us likes this.
BigJim is offline   Reply With Quote
Old 07-18-2012, 11:40 AM   #10
Ground Beetle
 
Join Date: Oct 2011
Location: Here, There, and Everywhere
Posts: 633
Liked: 388 times
Originally Posted by bushi View Post:
...also consider that Schiff might be taking into account, that each of his interviews might be someone's FIRST time he/she came across him, thus he might want to break through the initial "who the hell this joker thinks he is" attitude of his first-time viewers, by quoting his fulfilled predictions.
Very good point.

The point that Schiff is tooting his own horn repeatedly in order to educate his new readers is probably the main reason he does it. One cannot assume that everyone knows his history when he is constantly getting new readers. So, it makes perfect sense for him to toot his own horn to bring all new readers up to speed. In the past, I had always assumed that doing so was to pump up his ego, but now I see the validity of constantly reiterating that past to inform new readers.

Based on that, I decided to toot my own horn.
rblong2us likes this.
__________________
If you keep doing what you are doing, You will keep getting what you are getting.
If you don't like what you are getting, You must change what you are doing.


http://mmerlinn.com

GOLD is the money of KINGS.
SILVER is the money of GENTLEMEN.
BARTER is the money of PEASANTS.
DEBT is the money of SLAVES.
- Norm Franz

Last edited by mmerlinn; 07-18-2012 at 12:18 PM.
mmerlinn is offline   Reply With Quote
Old 07-18-2012, 07:37 PM   #11
Predaceous stink bug
 
Join Date: Nov 2011
Posts: 130
Liked: 95 times
Originally Posted by dereksatkinson View Post:
I remember the interviews they had with Schiff and the hordes or realtors/housing reps prior to 07 and all they did was arrogantly bash his views. Imagine being called an idiot for 6-7 years, being right on the money and people aren't willing to give you credit for it.
Vindication is sweet indeed.
dali lambone is offline   Reply With Quote
Old 07-19-2012, 08:46 AM   #12
Super Moderator
 
benjamen's Avatar
 
Join Date: Mar 2012
Location: Migratory
Posts: 1,620
Liked: 685 times
It is bad when the UBS is telling clients that the biggest risk to global investors is the risk of U.S. and/or U.K. currency hyperinflation:
http://www.silverdoctors.com/ubs-lar...-the-us-or-uk/

PMBug and ancona like this.
__________________
I drive men mad
For love of me,
Easily beaten,
Never free.

PMBug 101 *** Forum Rules
benjamen is offline   Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Ann Barnhardt interviewed by Peter Schiff Island_Dweller Fiat Ponzi 13 07-27-2012 12:53 PM
Peter Schiff On The Dollar vox Fiat Ponzi 1 12-01-2011 05:57 AM
100% Chance of Crisis, Worse Than 2008: Jim Rogers vox Fiat Ponzi 5 11-09-2011 04:18 PM
Guess who is going to bail out Bank of America PMBug Fiat Ponzi 12 11-08-2011 08:48 AM
Peter Schiff Speaks for 1 Percent at Occupy Wall Street PMBug STS 4 11-05-2011 08:03 PM


All times are GMT -5. The time now is 03:29 AM.


Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of PMBug.com copyright © 2011 - 2020 Measuring Up. All Rights Reserved.