Posts tagged Peter Schiff
Posts tagged Peter Schiff
Peter Schiff addresses the need for higher interest rates, the coming American day of reckoning, and the reason our government wants more poverty.
By: Peter Schiff
Friday, September 23, 2011
From my perspective, the Twist really amounts to another Fed “Hail Mary” pass that will fall short of the end zone. But, by putting the squeeze on banks and further restricting credit availability to small business the move will likely do more harm than good.
The policy rests on the false premise moving already historically low interest rates even lower will stimulate the economy into recovery. But low interest rates are part of the problem, not part of the solution.
By: Peter Schiff, Euro Pacific Capital
— Posted Tuesday, 27 September 2011
[The] latest gold sell off was sparked by Fed Chairman Bernanke’s admission last week that Washington’s Keynesian stimulus has failed. He admitted that despite trillion-dollar deficits and a gross devaluation of the dollar, the economic picture remains bleak. As such, he outlined the Fed’s “Operation Twist” his latest stimulus effort. Taking the Chairman’s distress to heart, investors dumped “risk assets” like gold and silver. But stimulus is the very reason why we have been buying precious metals in the first place.
While the Fed has been careful to avoid describing the Twist as new stimulus, this is exactly what it is. It is a policy that was first tried, and failed, in the early ’60s. I’m sure that it will fail again. Instead of expanding the Fed’s balance sheet with fresh money printing, it tries to encourage more borrowing and lending by lowering long term interest rates. Right now, the move has restored confidence. But I don’t believe that it can last. When it fails, more quantitative easing will be unleashed.
In the meantime herd instincts seem to have taken over and many people are making bad decisions. They’re betting that the Fed has turned off the monetary spigot for good, forcing investors to “get defensive.” Losses from the recent broad stock market sell-off are likely generating margin calls, and many investors may be taking profits from their gold and silver investments to cover.
It’s my belief that they are as wrong now as they were when this happened back in 2008. The reality is that the US economy is most likely in the midst of a depression. I believe the Fed and the Administration are going to do whatever it takes to mask that fact - and their only tools are spending and printing. If the economy fails to revive, I believe many more banks will start failing. To prevent another highly unpopular round of bank bailouts (possibly termed TARP II), the Fed will likely launch its next round of quantitative easing (QE III). If I’m correct, the prospects for gold and silver should be bright.
Given the gains we have seen thus far in 2011, many people may have felt this bull market had gotten ahead of them. They may be lamenting a train that had left the station. Well, perhaps the train just stopped, and even backed up a bit. I don’t expect it to idle for long.
Damn they kicked the can down the road again! They are destroying our economy and our nation.
END THE FED.
Refuse to swallow its blue pill anymore. Choose the red pill. Wake up sheeple!
The 22-minute video described below is must-view fare if you want to understand why government cannot produce jobs regardless of what it does in terms of stimulus but can only do so by pulling back and not doing. Unfortunately, not doing is not in the vocabulary of most politicians nor, for that matter, in the vocabulary of most Americans.
Dear Friends and Supporters,
As many of you know, last week I was invited to Washington to testify in front of the House of Representatives Subcommittee on Government Reform and Stimulus Oversight. For that, we can thank Subcommittee Chairman Jim Jordan (R-OH).
The subject of the hearing was job creation in the United States – specifically, what the government can and can’t do to boost employment. While many people have asked me in the last few days why I even bothered to participate, I think it was a valuable experience. I don’t expect that anything I said will make an immediate impact on policy, but at least some of my opinions got a fair hearing in the halls of power.
After the testimony, I did have a few one-on-one meetings with open-minded Congressmen from both sides of the aisle. Maybe they were just being polite, but they had no obligation to talk to me, or even invite me, in the first place. So, I thank them for the opportunity.
Still, I don’t think those few open minds in the Capitol are going to be enough to keep this ship from sinking. There just isn’t enough time or a strong enough will for reform from the American people.
That is why it is so important for you to act individually to protect yourself and your family from the new age of stagflation. Please take the time to view my testimony, understand the problems we face, and align your investments accordingly.
CLICK HERE for a 22-minute version with just the highlights of my remarks and exchanges with the Committee.
CLICK HERE for the entire Committee Meeting, which runs for 2 hours and 12 minutes.
If you have questions about my testimony or would like to order physical gold & silver, here’s how to reach us:
Call 1-888-GOLD-160 (1-888-465-3160).
Talk to a Euro Pacific Precious Metals Specialist right now.
Request a Callback. CLICK HERE and a Specialist
will call you back at your convenience.
Or, for more information about EPPM, visit our website,www.europacmetals.com.
Chief Executive Officer
Euro Pacific Precious Metals
On Tuesday, September 13, Peter Schiff, the CEO of Euro Pacific Capital testified before the House of Representatives Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending. The hearing entitled, “Take Two: The President’s Proposal to Stimulate the Economy and Create Jobs” examined federal job creation efforts.
How the Government Can Create Jobs | September 13, 2011
Mr. Chairman, Mr. Ranking member, and all distinguished members of this panel. Thank you for inviting me here today to offer my opinions as to how the government can help the American economy recover from the worst crisis in living memory.
by Peter Schiff
September 3, 2011
. . . as we wait with eager anticipation as to what the President may reveal in his jobs speech next week, you can be sure that it’s not going to help America regain its competitive edge. The sooner we regard the government as a job killer rather than a job creator, the sooner we can all get back to work.
Read entire editorial here.
Just suppose Japan were to pull out of its investment in U.S. Treasuries.
Tuesday, Aug. 16, 2011
Thinking the unthinkable: Sell U.S. Treasuries
The idea that Japan would ever dump the $900 billion it holds in U.S. Treasuries, the second-largest foreign ownership after China, has long been just that — an idea never seriously entertained.
The long-standing argument paints a horrific picture of the consequences: The dollar would crash, world markets would be sent into a tailspin and the postwar military and political alliance between the U.S. and Japan would be shaken.
But after Washington’s credit rating was downgraded for the first time ever earlier this month — from AAA to AA+ by Standard & Poor’s — some daring advocates are voicing that taboo idea: Why not sell Treasuries?
Those playing devil’s advocate aren’t Japan’s mainstream policymakers by any means.
But they aren’t totally fringe either.
The government and ruling party officials have repeatedly said Japan won’t sell U.S. bonds, and instead will keep buying them.
The common wisdom is that a weak dollar would prove devastating to the Japanese economy by making it more difficult for Toyota Motor Corp., Sony Corp. and other pillars of corporate Japan to sell their goods overseas.
Peter Schiff, chief executive of Euro Pacific Capital, a New York-based investment company, said the current accumulation of debt by the U.S. government is unsustainable.
“The more money the world lends to America today, the more money they’re going to have to lend tomorrow,” he said in a telephone interview.
“It’s a giant Ponzi scheme. Nobody is ever going to get their money back.”