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Monthly Archives: March 2013
In his last appearance on Yahoo! Finance with Laura Lyster, Peter Schiff counters the claims of Ben Bernanke that there is no bubble in the stock market and that inflation is still under control. He went on to defend his bearish long-term forecast for the US dollar.
“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. See, 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 is of stimulus, by stimulus, and for stimulus.”
- Mongolia Increases Gold Reserves to Highest Since August 2008, Bloomberg
- Silver’s Industrial Versatility Adds to Its Attractions, Financial Times
Peter Schiff was interviewed on The Wall Street Shuffle radio show last week. He spoke about protecting your savings by buying gold, the implications of the Cyprus bailout, gold legislation in Arizona, and an exciting new gold product designed for bartering.
“In America…we pretend we’re protecting the depositor, as we’re basically robbing them blind with quantitive easing. The Fed is printing money and that’s really just a deposit tax. Quantitative easing is just a tax on deposits, just like what was going to happen in Cyprus, except the Cyprus approach is much more honest. Ours is dishonest.”
On Friday, Peter Schiff appeared on The Willis Report on Fox Business to talk about the crisis in Cyprus. Afterwards, Lou Dobbs suggested Peter’s bearish analysis of the European and American economies was simply an attempt to attract more clients. Peter’s rebuttal to Lou Dobbs appears below the video.
“I think in those other countries, they’re going to resort to a more insidious deposit tax: inflation. I think you’re going to see money printing all around the world, and that is going to destroy the value of bank deposits. I think savers need to realize that no matter what form it comes, savers are going to be sacrificed on the altar of stimulus… I think inflation is going to take much more than 10% of the purchasing power out of bank accounts all around the world, not just in Europe, but here in the United States.”
“Following an interview on Fox Business during which I discussed the situation in Cyprus and the potential broader implications of the crisis, Lou Dobbs, apparently now more optimistic about the U.S. economy, was very dismissive of my comments. But instead of just countering my arguments, he also impugned my character. He effectively accused me of being a charlatan, stating that my real objective was to scare people into opening accounts at my offshore bank. As I am often the bearer of bad economic news, I understand the tendency to shoot the messenger. Of course, Mr. Dobbs had no way of knowing that my offshore bank does not accept accounts from U.S. citizens or residents (Fox Business does not have an international audience yet) and therefore for this particular interview the only purpose for my bringing up my bank was to illustrate how the crisis was affecting the offshore banking industry; from the unique perspective of the owner of such an institution.”
On Friday, Chris Waltzek interviewed Peter Schiff on GoldSeek Radio. They spoke about the intricacies of the Cyprus bailout, gold products designed for barter transactions, and the general long- and short-term trends in the gold market.
“I think that what’s happened is that we had some of the speculative money…liquidating their positions… I think you’ve got a lot of people operating under the delusion that the problems are over, that the economies are growing. You’ve got the stock market at a new nominal high. So people are jumping to the wrong conclusion that, A: there’s a real recovery, and B: there’s no reason to own gold… So they’re trying to position themselves for a big fall in the gold market, which I don’t think is going to happen.”
Peter’s Interview Begins at 37 Minutes:
Gary McNamara interviewed Peter Schiff on Red Eye Radio last night. They spoke about Cyprus, the danger of saving fiat money in banks, and the general mismanagement of the American economy paving the way for the real crash that is yet to come.
“Savers are losing due to quantitative easing. We’ve got 0% interest rates, we’ve got inflation that’s destroying the value of bank deposits. What is happening in Cyprus is a more honest way for the government to steal your money. I think it is a much better way than the way everyone else is doing it. It certainly is a wake up call in the respect that people need to worry about the safety of their bank deposits. Because one way or another, people who have fiat currencies deposited in banks are going to lose.”
In his latest commentary, Peter Schiff explains how the Cypriot banking crisis reveals the precariousness of the entire international banking system.
This week financial analysts, economists, politicians, and bank depositors from around the world were outraged that European leaders, more specifically the Germans, currently calling many of the shots in Brussels and Frankfurt, could be so politically reckless, economically ignorant, and emotionally callous as to violate the sanctity of bank deposits in order to fund a bailout of Cyprus. The chorus of condemnation may have been the deciding factor in giving the Cypriot parliament the confidence to unanimously vote down the measures in hopes that Berlin will cave or Russia will swoop in with a bailout.
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. (Read about the Stimulus Trap in my just released newsletter). 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.
Jim Rickards, author of Currency Wars, appeared on Yahoo! Finance to talk about proposed legislation in Texas that would allow state pensions to invest in physical gold and would also open a sovereign gold depository where Texans could store their gold. He went on to talk about gold’s long-term prospects in the face of an international currency war and fiat money inflation.
“Gold is actually up 20% in yen. This is where the currency wars and the gold situation come together. Gold is always on the move, but the question is which currency. Whichever currency is devaluing the fastest, that’s where gold’s going up. There’s actually a gold frenzy in Japan right now…This will come around, and eventually it will be the dollar’s turn, and then it will go up in dollars again. So gold is on the move.”