Monthly Archives: January 2013

Greg Hunter’s USAWatchdog had Peter Schiff explain his latest Gold Letter commentary addressing the Japanese government’s policy of debt monetization. Any way you slice it, the US government cannot rely on foreign banks buying US Treasuries forever.

“You gotta buy any dip [in gold]. Look, we’ve been in a bull market in gold for twelve years. This is not the first time gold’s gone down. Gold keeps going down, but every time it goes down, if you would’ve bought it, you would’ve done well.”

Peter Schiff appeared on Fox Business last night to discuss the impracticality of solving the US debt crisis with taxation. Everyone agreed – the government needs to cut spending if there is any hope of restructuring the economy.

“You’ve got the government trying to run these giant Ponzi schemes like social security. It’s not about tinkering with it. It can’t work. It is impossible to reform these programs in a way that is going to work. We have to acknowledge that. We’re never going to get the type of economic growth you’re talking about – 4 or 5 percent a year – unless we let the economy restructure. That means the Fed has to stop printing money. They have to let interest rates go up, because they’re much too low to encourage savings and investment.”

CNBC spoke with Peter Schiff on Friday about his positive outlook for gold. Peter emphasized that if you understand dollar debasement, gold is an obvious store of value no matter what the short-term trends look like:

“Take a look at how well gold has done relative to the stock market. The stock market has gone no where during a time period when gold has gone up several fold. I don’t care what happens day-to-day, month-to-month. You’re talking about long-term. Look, gold was up in 2012. It was up twelve consecutive years. The stock market hasn’t done that…I think we’re going to have two-trillion dollar deficits before Obama’s term is over…What is going to happen to the value of the dollar? They’re not mining that much gold, but they’re printing a lot of dollars.”

Earlier this week on CNBC’s Closing Bell, Peter Schiff talked about how confused people are about the fundamentals of the floundering US economy. CNBC’s Steve Liesman is among the skeptics, and was eager to exchange critiques with Peter about the strength of the US dollar.

“There is no good alternative [reserve currency]. What you want to do is go back to real money. Gold is the best alternative, because none of these fiat currencies are any good. But certainly, compared to the dollar, other currencies are not nearly as bad. And the world does not come down to the dollar or the euro or the yen. There are a lot of other currencies out there where the centrals banks are not being nearly as reckless…”

Peter Schiff appeared on CNBC yesterday evening and was asked about his long-term investment approach in the context of a weakening dollar and unchecked government spending:

“Remember, we created the fiscal cliff by promising to deal with the deficit in the future. Well, now the future is now, and we’re not going to deal with it, we’re going to kick the can down the road again and hope nobody notices what we’re doing. But the world is going to wake up to this. Just like the housing bubble burst, the NASDAQ bubble burst. We’ve got a much bigger bubble that is the entirety of the US economy. You can see it in the Treasury market, in the dollar market…This whole thing is going to pop and we’re going to deal with it right now. This is not a problem for the future, it’s a problem for the here and now.”