[Video] Peter Schiff: We're Headed for Economic Crisis Worse Than in '07

[TokenLibertarianGuy]

Peter Schiff: We're Headed for Economic Crisis Worse Than in '07

[thoughtomator]

Also, I have a high level of confidence that the sun will rise in the east tomorrow.

[Zippyjuan]

Peter is ALWAYS calling for the next crisis.

[TokenLibertarianGuy]

Peter is ALWAYS calling for the next crisis.

Actually he's been talking about the exact same one. The housing bubble was just one small part of it, the culmination of the crisis will be when the dollar collapses.

[libertyjam]

If anyone is interested, Where they are getting sequestration numbers from:
http://cra.gmu.edu/pdfs/Economic_Imp...ontrol_Act.pdf

[ronpaulfollower999]

Thanks Token! Great videos as usual!

[oyarde]

Peter is ALWAYS calling for the next crisis.

Yes, but where else could this end long term ?

[RickyJ]

Is this guy related to the Rothchilds?

[Seraphim]

Do you consider that as an argument against what he is saying?

"Peter Schiff was right."


That actually happened.

Peter is ALWAYS calling for the next crisis.

[Seraphim]

He's right, again.

[misean]

Druckenmiller was just on Bloomberg on Friday. There are a lot of similarities to what he says and Schiff. He's is a little more credible and nuanced than Peter, so if you are starting to doubt Schiff, watch this video.

http://www.bloomberg.com/video/druck...YznJm41IQ.html

[No Free Beer]

Peter is ALWAYS calling for the next crisis.

and he's ALWAYS right.

[Zippyjuan]

and he's ALWAYS right.

Like this? Article from 2009.

Peter Schiff predicts gold at $2000, $3000, and $4000. He says China is telling all citizens to buy gold, because they know what is going to happen.

“Initially people expressed their fears by buying US dollars, but that was a mistake. Now people are getting rid of their dollars and buying gold and foreign currencies. This is going to end in a real crisis. ”

http://recessionreadyamerica.com/200...-gold-at-4000/

Hasn't hit $2000 yet- four years later.

[torchbearer]

Peter is ALWAYS calling for the next crisis.

you don't see the bubble forming in real-estate again?

[Seraphim]

Always is incorrect, his timing and short term calls have been off...but the macro/long term stuff is dead on.

and he's ALWAYS right.

[Zippyjuan]

you don't see the bubble forming in real-estate again?

Not yet.

And I would certainly not say that Schiff is always wrong either. Just that he always seems to be negative about everything.

Bad data on things- Schiff says he was right. Good data on things- suddenly it is being manipulated and he will still be right.

Take price inflation. If one month shows prices rise, he says "see- hyperinflation is coming!" If prices don't rise, he calls the CPI a bad figure to use- that it is manipulated and misleading. (he has backed of his calls for hyperinflation).

[No Free Beer]

Like this? Article from 2009.


http://recessionreadyamerica.com/200...-gold-at-4000/

Hasn't hit $2000 yet- four years later.

What's happening is that Goldman Sachs keeps declaring its a bull market for so long, that apparently, people believe it.

Goldman Sachs has been saying this for four years now!

Are you doubting the manipulation?

[No Free Beer]

Not yet.

And I would certainly not say that Schiff is always wrong either. Just that he always seems to be negative about everything.

Bad data on things- Schiff says he was right. Good data on things- suddenly it is being manipulated and he will still be right.

Take price inflation. If one month shows prices rise, he says "see- hyperinflation is coming!" If prices don't rise, he calls the CPI a bad figure to use- that it is manipulated and misleading. (he has backed of his calls for hyperinflation).

Supposedly the housing market is growing.

Tehre has been a slow down in the foreclosures and its because people who are underwater in their mortgage are refinancing due to artificial low interest rates.

Rent is rising because of inflation.

So, for people who are underwater in their mortgage payments, there is incentive for them (right now) to stay in their homes, regardless if they are underwater in their payments or not. However, these houses will eventually go on the market and interest rates will eventually rise.

Once the speculators start to put all these homes on the market, some people may decide to instead make rental payments instead, because the people who are underwater will realize their homes need a lot of repair and they may not want to have to pay for all of it, therefore they end up just going back to renting. So, they walk out of their homes.

It's all due to excess spending and excess borrowing, which is being fueled, once again, by LOW ARTIFICIAL INTEREST RATES.

The only way the Fed can get away with this is by continuing to keep interest rates low, but if thats the case, they will eventually destroy the dollar. Then what? What do you propose?

No one will be able to afford ANYTHING.

[misean]

What's happening is that Goldman Sachs keeps declaring its a bull market for so long, that apparently, people believe it.

Goldman Sachs has been saying this for four years now!

Are you doubting the manipulation?

I'm just curious what you mean by this.

First of all, Schiff was on Napolitano's internet show said stocks were extremely overvalued two days after the market bottomed in March of 2009. Wouldn't you want to be long a rising market?

If Goldman Sachs has been saying buy the market for 4 years (which I don't even know what that means), wouldn't that be good on them? It seems like they kind of got that right. The market is up over 100 percent. What does Goldman Sachs have to do with this btw? Are you saying the market is going up because they have a Buy recommendation on it?

Also, I don't think anyone is saying heavy fed intervention isn't the reason for the rise in equities.

[Zippyjuan]

Actually the Fed actions have helped stocks by lowering returns on other investments like bonds and securities. When Treasuries are paying less than one percent (even with their perceived high safety), money will seek out higher returns elsewhere- and for many, that is stocks. But interest rates have been very low for a long time now so that effect is now minimal having been factored in at least a couple years back. While the rates were falling there was money to be made in bonds but once they stabilized and quit falling, the returns went away. The rises in stock prices have been due to optimistic reports like consumer confidence rising, new unemployment claims falling and profits and sales rising for businesses. The Fed can't claim all of the credit (so to speak) for higher stock prices but they are a part of the reason why.

And if the Fed were to change their policy and let interest rates rise, that would cause even more money to at least temporarily leave bonds and into other investments like stocks. Why? Bond prices move inversely to interest rates. If interest rates rise, the value of bonds fall. When interest rates are rising, people want to get rid of bonds (unless they intend to hold them to maturity)- not invest more in them. Once rates stablized, then money would move back into bonds again.

[cubical]

Actually the Fed actions have helped stocks by lowering returns on other investments like bonds and securities. When Treasuries are paying less than one percent (even with their perceived high safety), money will seek out higher returns elsewhere- and for many, that is stocks. But interest rates have been very low for a long time now so that effect is now minimal having been factored in at least a couple years back. While the rates were falling there was money to be made in bonds but once they stabilized and quit falling, the returns went away. The rises in stock prices have been due to optimistic reports like consumer confidence rising, new unemployment claims falling and profits and sales rising for businesses. The Fed can't claim all of the credit (so to speak) for higher stock prices but they are a part of the reason why.

And if the Fed were to change their policy and let interest rates rise, that would cause even more money to at least temporarily leave bonds and into other investments like stocks. Why? Bond prices move inversely to interest rates. If interest rates rise, the value of bonds fall. When interest rates are rising, people want to get rid of bonds (unless they intend to hold them to maturity)- not invest more in them. Once rates stablized, then money would move back into bonds again.

Interest rates don't just sit at 0 because the fed says so. They have to print up money and buy bonds. The money supply growth has continued to grow larger and larger over the last 4 years and that is all due to the federal reserve. Rates are still at 0, so the fed is still printing money and buying bonds. More money in the economy, more money chasing stocks.

[oyarde]

And when all the money comes into play ? And when realization around 2016 that the debt is 21 -24 Trillion, cannot be paid, except interest , that there are untold trillions in unaccounted for entitlements and no cuts have been made ? Where does it go ?

[Athan]

you don't see the bubble forming in real-estate again?

The real bubble Schiff and a lot of people are worried about are in T-bills. Around 2016, the BRICS trade union has stated that a lot of its contracts will be finalized. My guess would be that investors will be fleeing T-bills to get in a gold backed world reserve currency on the ground floor. This can cause the collapse Peter Schiff is talking about. And yes, it may happen before the end of the second Obama term. The ONLY real holder of US treasury bills will be the FED which essentially is the death toll for the US.

[Zippyjuan]

The FED currently holds about eleven percent of total US debt.