Calls to Action
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- November 2011
- September 2011
Monthly Archives: March 2013
The Financial Times published a story on Friday featuring Peter Schiff’s new offshore investment bank, Euro Pacific Bank, which has seen a 150% increase in new customer interest since the news of deposit confiscations in Cyprus. The article examines new ways for investors to protect their wealth from irresponsible central banks.
“‘Banks in Cyprus took deposits and lent them to the Greek government by buying Greek government bonds,’ [Peter Schiff] notes.
Under bailout plans hammered out this week, large depositors in Cyprus’s two biggest banks will pay the price for those loans; they could see their money wiped out entirely.
‘What’s going on now is a wake-up call from Cyprus. People are thinking about these things more and doing more research,’ says Mr Schiff.”
Could the Cypriot crisis be the beginning of the end for the modern fractional-reserve banking system? Joseph Salerno’s commentary at the Ludwig von Mises Institute considers to the possibility. One thing is certain: trusting your savings to a bank is no longer a wise plan for wealth preservation.
“Getting back to the Cyprus deal, admittedly it is hardly ideal from a free-market point of view. The solution in accord with free markets would not involve restricting deposit withdrawals, imposing fascistic capital controls on domestic residents and foreign investors, and dragooning taxpayers in the rest of the Eurozone into contributing to the bailout to the tune of 10 billion euros.
Nonetheless, the deal does convey a salutary message to bank depositors and creditors the world over. It does so by forcing previously untouchable senior bondholders and uninsured depositors in the Cypriot banks to bear part of the cost of the bailout. The bondholders of the two largest banks will be wiped out and it is reported that large depositors (i.e., those holding uninsured accounts exceeding 100,000 euros) at the Laiki Bank may also be completely wiped out, losing up to 4.2 billion euros, while large depositors at the Bank of Cyprus will lose between 30 and 60 percent of their deposits. Small depositors in both banks, who hold insured accounts of up to 100,000 euros, would retain the full value of their deposits.
The happy result will be that depositors, both insured and uninsured, in Europe and throughout the world will become much more cautious or even suspicious in dealing with fractional-reserve banks. They will be poised to grab their money and run at the slightest sign or rumor of instability. This will induce banks to radically alter the sources of the funds they raise to finance loans and investments, moving away from deposit and toward equity and bond financing. As was reported Tuesday, March 26, this is already expected by many analysts…”
Ron Paul appeared on Fox Business last week to talk about Cyprus, the devastating quantitative easing of the Federal Reserve, and gold as a standard for real money.
“What we’re witnessing now is the result of this wild quantitate easing, pumping all the money into the bonds and the stocks. At the same time we have 50,000 people in New York City that are homeless. We have 8 million people on food stamps… And the real unemployment rate is probably closer to 22%. So this pumping and quantitative easing has not solved our problem.”
Peter Schiff’s latest appearance on Fox Business puts him alongside another investment advisor who agrees that the Cypriot bailout is a signal for investors to move their savings out of banks and into hard assets, like precious metals.
“Why leave your money in the bank, especially in today’s environment where interest rates in general are so low? Why take a chance? And you know, it’s not just on that side of the Atlantic. We’ve got 0% interest rates here in America. Why leave your money on deposit in a bank to get 0% when there’s inflation?”
- Cypriot Bank Crisis Boosts Demand for Gold, The Telegraph
- Russia, South Africa Seek to Create OPEC-Style Platinum Bloc, Bloomberg
- Insider Buying of Gold Stocks Surges to Multi-Year Highs, The Globe and Mail
In this special video, Peter Schiff demonstrates a new and exciting gold product manufactured by the prestigious Valcambi Suisse refinery. This 50-gram “chocolate bar” of gold can be broken into individual 1-gram gold bars – perfect for barter transactions! Euro Pacific Precious Metals has some of the most competitive rates on this exciting new product.
Call 1-800-GOLD-160 to talk to a Precious Metals Specialist today and order your own Valcambi CombiBar.
Yesterday, Peter Schiff appeared on Russia Today America to talk about America’s phony economy, and what we can learn from the Cyprus bailout.
“We are definitely headed for a real economic crisis in the United States. What happened in 2008 was just the opening act… We have created a phony economy that is completely dependent on the ability to keep borrowing more money we can’t pay back. We have this phony economy that can’t create productive jobs, that is dependent on the Fed printing, on borrowing, on trade deficits. But we can’t do this forever, and the longer we do it, the bigger the disaster when it ends.”
Peter Schiff appeared on TheBlaze TV’s Wilkow last week to speak about the new housing bubble, the Fed’s stimulus efforts, and the phony inflation and employment numbers.
“The Federal Government is more involved now in the housing market than it was when the last bubble was inflating, and the Fed’s monetary policy is even more reckless. And the Fed’s specifically saying that it’s goal is to artificially prop up real estate, to get people building houses we don’t need, to get people buying houses they can’t afford… The Fed has created an economy that is completely dependent on this monetary heroin. They can never stop, of course, until we die of an overdose.”