Peter Schiff, economic pundit and president of Euro Pacific Capital, advises investors to stick with gold despite a recent downturn in bullion prices.
In an interview with CNBC Schiff says there are no currencies which provide a safe harbour investment at present, and that investors who just want to save their money should instead purchase precious metals, which possess intrinsic value and have long played a historic role as sound forms of money.
Schiff also notes that bullion prices will receive a boost from the surging operating costs of mining companies.
"As I wrote when the Fed first embarked on this ill-fated journey, it has no exit strategy. The Fed adopted what amounts to "the roach motel" of monetary policy. If the Fed actually raised rates as a result of one of its movable goal posts being hit, the result could be a much greater financial crisis than the one we lived through in 2008. The bond bubble would burst, interest rates and unemployment would soar, housing prices would collapse, banks would fail, borrowers would default, budget deficits would swell, and there would be no way to finance another round of bailouts for anyone, including the Federal Government itself.
In order to generate phony economic growth and to "pay" our country's debts in the most dishonest manner possible, the Federal Reserve is 100% committed to the destruction of the dollar. Anyone with wealth in the U.S. dollar should be concerned that economic leadership is firmly in the hands of irresponsible bureaucrats who are committed to an ivory tower version of reality that bears no resemblance to the world as it really is."
- Peter Schiff in a recent article he wrote, read the full article here:
"In 1958, approximately 28,600 filers (0.06% of all taxpayers) earned the $93,168 or more needed to face marginal rates as high as 30%. These Americans—genuinely wealthy by the standards of the day—paid 5.9% of all income taxes. And now? In 2010, 3.9 million taxpayers (2.75% of all taxpayers) were subjected to rates that were 33% or higher. These Americans—many of whom would hardly call themselves wealthy—reported an adjusted gross income of $209,000 or higher, and they paid 49.7% of all income taxes.
In contrast, the share of taxes paid by the bottom two-thirds of taxpayers has fallen dramatically over the same period. In 1958, these Americans accounted for 41.3% of adjusted gross income and paid 29% of all federal taxes. By 2010, their share of adjusted gross income had fallen to 22.5%. But their share of taxes paid fell far more dramatically—to 6.7%. The 77% decline represents the single biggest difference in the way the tax burden is shared in this country since the late 1950s.
The changes came about not so much by movements in rates but by the addition of tax credits for the poor and the elimination of exemptions for the wealthy. In 1958, even the lowest-tier filers, which included everyone making up to $5,000 annually, were subjected to an effective 20% rate. Today, almost half of all tax filers have no income-tax liability whatsoever, and many "taxpayers" actually get a net refund from the government. Those nostalgic for 1950s-era "tax fairness" should bear this in mind."
- From a recent article in the Wall Street Journal by Peter Schiff:
"GoldMoney's Andy Duncan talks to Peter Schiff about the upcoming fiscal cliff in the United States, and how precious metals investors should manage their way through it. They also talk about Peter's view on gold stock investments, China, as well as both the short-term and long-term outlooks for gold."
"Ultimately because of what the Fed has done, we’re going to have to go over a much bigger cliff. If we avoid the cliff, that is very bullish for the gold market because that means that trillion dollar-plus deficits will perpetuate, and these big deficits are what’s undermining the dollar because the Fed has to print money to finance them. The more money they create to buy up the bonds that nobody wants, the higher the price of gold will go."
- Peter Schiff via a recent CNBC interview, read more here:
"Your best fiscal cliff play could be gold, says Euro Pacitic Capital's Peter Schiff, who adds that falling off the "Cliff" would benefit America over the long term. With CNBC's Jackie DeAngelis and the Futures Now Traders."
"President Obama promotes the myth that everyone must go to college. That if you don't go, your life will be ruined -- that you will end up waiting tables, or trapped in some other mundane occupation. The truth is, even with a college degree, you may still end up waiting tables, you'll just begin your "career" four or five years later, tens of thousands of dollars in debt.
Here is an example of some of the plumb jobs college grads were able to land during the Obama administration. Not just liberal arts majors mind you, but graduates with degrees in mathematics, robotics, neuroscience, engineering, accounting, business administration, economics, biology, communications, graphic design, marketing, and linguistics.
Of course when it comes to education, it's not just the Obama administration that deserves a failing grade. For years, politicians of both parties have pandered to students by promising more aid in the form of direct or subsidized student loans. As a result, colleges and universities are freed from competitive forces that would otherwise keep tuition low. Easy access to cheap credit enables students to bid up tuition, benefiting the educational establishment at their expense. Politicians secure student's votes by promising relief from skyrocketing tuition by providing even more loans. Ironically, the loans themselves are the very reason tuition is so high in the first place.
Before the Federal Government got involved, college degrees were much more affordable, and ambitious students from poorer families could easily work their way through. In addition, as fewer high school graduates actually went on to college, not only were college degrees much less expensive to obtain, they were far more valuable to have. With so many high school grads now going on to college, a college degree is actually less valuable in today's job market, despite its inflated price tag, than was a high school diploma in the 1950s. The only solution is to get the Federal Government completely out of higher education, and let the free market fix what the government broke!
For those of you who feel a college degree is essential to financial success consider John D Rockefeller and Andrew Carnegie. Rockefeller dropped out of high school and began working full-time at age 16. Carnegie didn't even go to high school and began working full-time at age 13. Both men were born poor and became self-made billionaires, with estimated net worths at their deaths (in today's dollars) of $670 and $300 billion respectively. To put those numbers into perspective, the richest living American, Bill Gates, who dropped out of Harvard during his sophomore year, has an estimated net worth of just $65 billion."
"The founding fathers warned us years ago about the dangers inherent in democracy. They considered democracy to be tyranny of the majority. In fact, they actually referred to democracy as "mobocracry." That is why they established the United States as a Republic. The Constitution guarantees to each state in the union a Republican form of government, and contains all sorts of safeguards to protect us from the evils of democracy. Unfortunately over the years, little by little, those safeguards have been torn down. The result has been every bit as disastrous as the founders feared."
Peter Schiff explains to viewers how Keynes economist think. The reference that he provides is the destruction caused by the recent hurricane Sandy. Keynes economist think that these types of natural disasters, although tragic, are good for the economy. Peter easily explains how this is completely flawed and "dumb" thinking.
This is a fantastic interview in which Peter Schiff of Schiff Radio interviews the great Marc Faber, author of the Gloom, Boom and Doom report. They talk about the coming inflation that the world is going to face and how to protect yourself when this time comes.
Peter Schiff appeared recently on CNBC where he talks about how a weakening US dollar will continue to push the DOW higher. But only in nominal terms, not real terms. Also he discusses how the biggest losses will be in the bond market in coming years.
Peter Schiff of Euro Pacific Capital appeared recently on CNBC where he discusses the unintended consequences of QE3. He is quoted as saying at one point "The Whole US Economy Is Going To Implode!".
Welcome to the Peter Schiff Blog! What better way is there to start off this blog than showing the great video, "peter schiff was right". This video shows how peter was openly laughed at while he was calling the current economic crash. Well we all know that Peter turned out to be 100% correct.