Monthly Archives: December 2012

Schiff on CNBC: Other Cliffs Await the US Economy (Video)

Posted on December 6, 2012 by admin

CNBC Asia had Peter Schiff on for the second time in a week to discuss the true implications of the fiscal cliff, and what is really needed to keep the US economy from facing even worse predicament. Are you prepared if the dollar plunges?

“Government spending isn’t stimulative, it’s a sedative…So we need real cuts in government spending…But nobody wants to talk about that…because, unfortunately, what is good politics is lousy economics…What’s going to happen is the dollar is going to plunge eventually, and interest rates are going to go up and we’re going to be in the same situation as Greece, and what are we going to do?”

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China Understands the Safety of Gold – Do You?

Posted on December 5, 2012 by admin

The media has stirred up a lot of fear about the possibility of actually going over the fiscal cliff in the new year. However, Peter Schiff maintains that the cliff is an essential step in repairing the economy. He also continues to stress how much safer gold is than dollar-denominated assets, especially Treasuries:

“There is no question that the Treasury market is a classic bubble. The prices make no sense, fundamentally. The US government is able to borrow at much lower rates today than it could five…[to] thirty years ago, despite the fact that it is less credit worthy today than it was back than…It’s a mania. People are buying because they expect a greater fool to pay an even higher price. And eventually it’s going to burst. And when it does burst, it’s going to have a much greater impact on the global economy, and particularly on the US economy and the average American, than did the bursting of the real estate bubble or the internet stock bubble.”

Some news from China in the past several weeks drives home just how out of touch Americans are when it comes to understanding the value of gold. Check out the following articles and commentary. In China, the demand for gold is rising and the government seems to officially recognize it as real money. The last piece, by Jeff Clark at Casey Research, is a fascinating examination of the Chinese mindset towards gold.

China eyes 450 T gold output in 2015, consumption to rise 

China Moves Forward in Opening Gold Market

Casey Research: How Do the Chinese View the Gold Market?

 

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Ponnuru vs. Peter on Fed Monetary Policy (Video)

Posted on December 4, 2012 by admin

Peter Schiff had a lively discussion yesterday with Ramesh Ponnuru, senior editor at National Review, about whether or not the Fed’s loose monetary policy can be blamed for low interest rates and the stagnant economy. Who do you agree with, and are you prepared to protect your wealth if Peter is right?

“Aren’t the loose policies encouraging more of the very activity that created the problem? Aren’t we awarding people for spending, consuming, gambling? Aren’t we discouraging people from saving and investing? Aren’t we enabling the government to get larger, instead of forcing it to confront the enormity of the imbalances and shrink government spending? They don’t have to do that, because the Fed gives them an easy way out!”

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Debt Ceiling & the Fiscal Cliff (Video)

Posted on December 4, 2012 by admin

In the latest post of The Schiff Report, Peter talks about Obama’s attempt to eliminate the need for Congressional approval to raise the debt ceiling. If the President gets his way, the time has never been better to get out of US dollars and into hard assets like gold.

“Borrowing money to pay off maturing obligations is the exact definition of a Ponzi scheme. We need to continue to borrow more money so that we can continue to pretend to pay back the money we’ve already borrowed. In the guise of paying our bills, the President wants to make sure that we never have to pay our bills.” 

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