Peter Schiff

Peter Schiff – Delay Only Increases the Suffering

Noted investment advisor and precious metals guru, Peter Schiff is giving a talk today in Scottsdale, AZ. There he is expected to share his dire outlook on the US economy. With the spiraling debt concerns in both the US and Europe and the increased likelihood of a hard landing for China, Schiff implores politicians to snap out of their indecisiveness. He says that if the US continues to delay getting their fiscal house in order then the suffering of the general population will be that much greater. Sign Up For Our Free Weekly Newsletter

In previous talks he talks about the inability of the freshman tea party congressmen to reign in spending. I think he misses the point on the tea party members in Congress. While the tea party started out as fiscal based platform for citizens it quickly got co-opted by the establishment GOP PACs and was morphed into a more social conservative cause versus a fiscal conservative platform. This can be seen as their unwillingness to actually address fiscal issues such as social security and defense spending. Social Security is a third rail and lobbyists ensure no one touches the defense area of the budget. And the of course they trumpet these huge savings in bills and then kind of mumble ‘over ten years.’ Plus this is deficit reduction, not debt reduction. That is a major distinction that is lost on the mainstream.

His prescription for people that want to prepare for an economic collapse is to buy gold and silver while stockpiling ammunition and food. Basically act like you are living a real-life version of Red Dawn but have time to prepare. Schiff says the only way for America to return to economic prominence is by using free-market capitalism. Though one would think that pure free-market capitalism on wall street is what has us in this mess. Yes, people will make the argument that it was the government’s fault that somehow made the banks give out home loans. In the next sentence they will also tell you how much government restricts free enterprise.

The end result is no matter what the party there is a refusal on the hill to address the systemic issues facing the country. This will almost certainly lead to some form of correction in the next few years.

Peter Schiff On U.S. Led Global Bailout Of Banks

The market saw a massive rally today due to the coordinated action by central banks all over the world. Central banks from the U.S., Canada, Britain, Japan and Switzerland all jointly lowered borrowing rates so European banks have easier access to cash.

Peter Schiff, global strategist of Euro Pacific Capital Inc., gave his take of today’s actions. In the video below Peter Schiff says, “Well I think the world’s central banks rung a pretty loud bell today to buy precious metals, you had the Federal Reserve along with many central banks around the world reducing their rates by 50 basis points that they charge for dollar swaps.” This allows banks access to cheap dollars.

Schiff maintains the cheap access to dollars will in effect lower the value of the dollar index against other currencies. Schiff believes that everyone who has been waiting to buy precious metals should do so now. He’s also bullish on platinum which is trading at a discount to current gold prices.

Schiff also believes that the bailout was for U.S. banks as well and points to the S&P downgrades Tuesday night of more than 20 major financial institutions.

“This is not about economic growth its about propping up insolvent financial institutions by creating inflation.” Schiff added.

Schiff also talks about the recent credit easing in China after nearly 3 years of credit tightening to combat inflation. You can watch the full video below.

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