Monthly Archives: November 2012

Peter Schiff had a lengthy conversation with Lauren Lyster on Russia Today earlier this week. They discussed hidden inflation, the realities of our consumer economy, and the dollar as a reserve currency.

“People are underestimating around the world just how important cheap money is to our borrow and spend economy. And they’re overestimating the ability of the Fed to withdraw that liquidity and have the economy continue to grow on its own. It can’t. The growth that we’re having now is not legitimate growth. It is simply borrowed money that we’re spending and we’re counting that as economic growth.”

His interview begins at 2:45 in the video below.

Peter spoke on CNBC Asia yesterday about the US economy’s unhealthy dependence on foreign production:

“To the extent that the government gets more revenue, it should be consumption based. It should be taxing people for spending money, not earning money, not saving and investing their money…Right now the government is an enormous drain on the private sector…They’re preventing the private sector from producing the types of output that we need, so that we can produce goods to satisfy the demands of Americans and not rely on the rest of the world to supply us with that stuff on credit.”

Peter Schiff appeared today on CNBC’s Futures Now and spoke about how a deal to avoid the fiscal cliff will affect the gold price. He also discusses how since there is no limit to how low the value of fiat currencies can go, there is no predictable ceiling on the value of gold :

“…if we avoid the cliff, that is very bullish for the gold market, because it means that trillion dollar plus deficits will perpetuate. And these big deficits are what are undermining the dollar, because the Fed has to print money to finance them, and the more money they create…the higher the price of gold is going to go up.”

Peter Schiff tells Fox Business why the fiscal cliff scheduled for the new year is essential for real economic recovery. Not only that, but tax hikes need to be bigger if Obama wants to continue with his big government programs.

“Taxes are less damaging to the economy than the deficits that replace them. But the real problem is the spending…We’re going to pay the tax one way or another. Either we are going to pay it legitimately, or we are going to pay it through inflation…The increase in the price of everything you have to buy is simply going to be another tax in disguise.”

Peter explains to some British CNBC hosts the reality of a dollar crisis.

“[The U.S.] economy is inherently more unstable. We depend on the charity of the rest of the world…the world has to keep lending us money despite the fact there is no way we can pay it back with legitimate money. We either have to default or we have to inflate. The real fiscal cliff is going to come when we run out of credit and we do face that crisis…Inflation is the number one concern of the average American…Inflation is already much higher than any reasonable central bank would tolerate…Buy gold, buy silver, buy something a central banker can’t create out of thin air!”