No one has a crystal ball to give us all the answers but im sure you will agree this system has run its course,and so what if schiff is wrong !.............get over it!
peter schiff still insists he is right, when he has been wrong about most everything including this - and has been infecting some members of the public with his ignorance and stupidity - consider this channel a public service for debunking such nonsense
I haven't seen Ed Harrison before and I'm impressed. He makes good sense and sticks to his guns when Keiser trots out the same old nonsense as Peter Schiff.
Schittreport and Dr Kevin do you think gold and silver are a wise place to keep your savings? Is gold going to 5k an ounce like Max Keiser states? Or is it just part of the Gold Bug propaganda? I do value your opinions.
if you look objectively at market data, almost ALL hard assets have recorded spectacular rises in the past decade, and particularly over the past 2 years. within the hard asset class, gold is actually a laggard. there are numerous other hard assets classes which have outperformed gold considerably.
1) physical demand for ALL hard assets, including gold and silver have spiked dramatically over the past decade mainly because of the coming of age of the Chinese economy. steel, coal, palladium, copper, concrete - everything that is used in production / construction is in roaring demand in China. can this demand be sustained? - well, the Chinese economy is starting to mature and growth will slow. plus industrial demand for gold is not significant (but ok for silver).
2) w/in the past 2 or 3 years, to couple with the physical demand, there is a lot of cash sloshing around due to increases in the money supply - and since this is concentrated in the hands of the banks, they are allocating it into hard assets, which has further fueled price rises. as said, within hard asset classes, gold is a laggard in terms of gains.
3) derivative instruments (ETFs etc.) are augmenting prices on the way up - but take note, the situation can sharply reverse once
the speculative money is taken out e.g. another financial / credit crisis. if that happens, gold prices may sharply reverse w/in a short term period e.g. oil in 2008
in summary, my own view is that gold will do its job for you as a store of value but don't expect any spectacular gains. even after this confluence of very MAJOR events a) advent of China market / physical demand increase b) excess liquidity in world markets c) sov. debt crisises, gold's performance is still mediocre.
@SchittReport That was the best advice I have heard. I am heavily invested in P metals. I just don't know whether to get out or stay in. I know you are not a genie but where do you the the price going and how soon can we see a collapse? Thanks a million for your in depth answers, you are very knowledgeable!!!
i think the FT article i sent you on the price outlook is pretty sound. however, a collapse will be event driven (an event which causes the speculative money to pull out e.g. credit crisis etc.) - the timing of which is difficult to predict - but my personal opinion would be a 2 year window in which this happens - and believe me, there are a lot of funds standing by to 'skin' retail investors if this happens.
Peter Schiff only looks at the price side of the economy and totally ignores the money contraction side. He is much like many newsletter promoters using inflation scare tactics to build his client list. Hilarious that people fall for this inflation baloney. Fed does not print money. Fed issues reserves to banks who must lend it out in order to increase the money supply. Time to learn economics 101 folks.
@drkevincampbell Let's say interests rates spike up, sends major banks underwater, what would happen to this liquidity? Plus, this is probably not the only place money is sloshing around, let's not forget about the dollar reserve status may be lost, what is this going to do to confidence?
We also have the FDIC problem. POMO, the mortgage crisis is still not over. Much of the real costs of the banks are still unknown, there is potential for infinite bailout.
you obviously can't read as the title of this clip is obvious. you obviously don't understand the content of the video or what ed harrison is talking about - not to mention that the structure of the bond market and that the issuer sets rates.
note that i only let your inane, ignorant comment through so that dr. campbell can respond to you himself - all such other nonsense from you will be rejected.
nothing taken personally at all. and no power trip required - my enjoyment comes from stiffing schiff. now that you are talking sense, your comment was approved - now that wasn't very hard, was it?
he explained the dynamics of hyperinflation: it has nothing to do w/ interest rates, its mostly due to external debt in FOREIGN currency and other socio-political issues. none of these issues apply to the US.
@SchittReport So if i get this straight, to get hyperinflation, foreign currencies have to be far more attractive than the US dollar in a relatively short time span + political problems within the country.
My question would be, aren't negative rates the requirement for this to occur in the first place? Seems to me low rates encourage the bigger banks to lever up . Also encourages politicians and gov institutions to spend like there's no tomorow.
no thats not what ed said. he said if the US's external debt is nominated in a foreign currency. all of the US's debt is nominated in USD. couple that with A) political issues e.g. Mugabe's unstable government, default on foreign debt, anarchy etc. B) massive loss of productive assets e.g. country's production or economy takes a major hit and revenue stream effectively stops and C) a host of other socio-political issues e.g. massive corruption etc.
You are correct, it has nothing to do with interest rates, however you are wrong in saying it's mostly due to external debt in FOREIGN currency and other socio-political issues. Hyperinflation is mostly related to the CONFIDENCE in the currency. If you don't think Chinas slowing of treasury purchases and many countries publicly stating their intent on moving away from the US dollar for transactions between countries and the massive QE Bernanke did won't have an effect... WOW
The closely watched figure of net long-term securities transactions showed total buying of US$51.5 billion in long term US securities in January, following purchases of US$62.5 billion the month before.
More broadly, net purchases of long-term US securities, including transactions not occurring on the open market, totaled US$32.1 billion following net buying of US$38.4 billion the month before.
those are just minor events. they will contribute to the long term decline of the dollar, but it will be a multi-year process not have any substantive impact any time soon. not to mention the threat of extreme scenarios such as hyperinflation, which are totally idiotic. his example re. japan holds.
by that time, the US will already have moved on to a new monetary system.
Among all foreign investors, net purchases of US Treasury notes and bonds totaled US$46.5 billion, compared with net buying of US$54.6 billion in December. Private foreign investors bought a net US$30.1 billion Treasury notes and bonds, after buying net holdings of US$43 billion the previous month.
Schiff is in such a tiff that it looks like he's constipated.
NGinuity 6 months ago
No one has a crystal ball to give us all the answers but im sure you will agree this system has run its course,and so what if schiff is wrong !.............get over it!
jc44848 8 months ago
@jc44848
peter schiff still insists he is right, when he has been wrong about most everything including this - and has been infecting some members of the public with his ignorance and stupidity - consider this channel a public service for debunking such nonsense
SchittReport 8 months ago
@SchittReport
Thanks you and keep posting. All your videos are very good. Its nice to see both sides of the board for once.
Blazen1212 8 months ago in playlist 1
Bill Gross has been talking his book, that's all Bill Gross is doing ...
AirelonTrading 10 months ago
Max Keiser is such a baffoon
AirelonTrading 10 months ago
Ed Harrison writes some outstanding stuff ...
AirelonTrading 10 months ago
Oh yea, before i forget, what do you think of autrian economics? What would be your major concern with it?
ExquisiteDoom 11 months ago
@ExquisiteDoom
one word sums up austrian economics - kookery.
SchittReport 11 months ago
I haven't seen Ed Harrison before and I'm impressed. He makes good sense and sticks to his guns when Keiser trots out the same old nonsense as Peter Schiff.
707hoser 11 months ago
Comment removed
atcholakian 11 months ago
Schittreport and Dr Kevin do you think gold and silver are a wise place to keep your savings? Is gold going to 5k an ounce like Max Keiser states? Or is it just part of the Gold Bug propaganda? I do value your opinions.
atcholakian 11 months ago
@atcholakian
if you look objectively at market data, almost ALL hard assets have recorded spectacular rises in the past decade, and particularly over the past 2 years. within the hard asset class, gold is actually a laggard. there are numerous other hard assets classes which have outperformed gold considerably.
these are the things you need to consider:
SchittReport 11 months ago
@atcholakian
1) physical demand for ALL hard assets, including gold and silver have spiked dramatically over the past decade mainly because of the coming of age of the Chinese economy. steel, coal, palladium, copper, concrete - everything that is used in production / construction is in roaring demand in China. can this demand be sustained? - well, the Chinese economy is starting to mature and growth will slow. plus industrial demand for gold is not significant (but ok for silver).
SchittReport 11 months ago
@atcholakian
2) w/in the past 2 or 3 years, to couple with the physical demand, there is a lot of cash sloshing around due to increases in the money supply - and since this is concentrated in the hands of the banks, they are allocating it into hard assets, which has further fueled price rises. as said, within hard asset classes, gold is a laggard in terms of gains.
3) derivative instruments (ETFs etc.) are augmenting prices on the way up - but take note, the situation can sharply reverse once
SchittReport 11 months ago
@atcholakian
the speculative money is taken out e.g. another financial / credit crisis. if that happens, gold prices may sharply reverse w/in a short term period e.g. oil in 2008
in summary, my own view is that gold will do its job for you as a store of value but don't expect any spectacular gains. even after this confluence of very MAJOR events a) advent of China market / physical demand increase b) excess liquidity in world markets c) sov. debt crisises, gold's performance is still mediocre.
SchittReport 11 months ago
@SchittReport That was the best advice I have heard. I am heavily invested in P metals. I just don't know whether to get out or stay in. I know you are not a genie but where do you the the price going and how soon can we see a collapse? Thanks a million for your in depth answers, you are very knowledgeable!!!
atcholakian 11 months ago
@atcholakian
i think the FT article i sent you on the price outlook is pretty sound. however, a collapse will be event driven (an event which causes the speculative money to pull out e.g. credit crisis etc.) - the timing of which is difficult to predict - but my personal opinion would be a 2 year window in which this happens - and believe me, there are a lot of funds standing by to 'skin' retail investors if this happens.
SchittReport 11 months ago
Wow... Keiser doesn't understand how central banking works.
Either that or he's trying to play the fool.
I suspect the former.
And is he now implying that hyper-inflation is in the works?
Wasn't he in the deflation camp last week?
He's gone over the edge... maybe he should rename his show on PressTV
heckler73 11 months ago
Peter Schiff only looks at the price side of the economy and totally ignores the money contraction side. He is much like many newsletter promoters using inflation scare tactics to build his client list. Hilarious that people fall for this inflation baloney. Fed does not print money. Fed issues reserves to banks who must lend it out in order to increase the money supply. Time to learn economics 101 folks.
drkevincampbell 11 months ago
@drkevincampbell Let's say interests rates spike up, sends major banks underwater, what would happen to this liquidity? Plus, this is probably not the only place money is sloshing around, let's not forget about the dollar reserve status may be lost, what is this going to do to confidence?
We also have the FDIC problem. POMO, the mortgage crisis is still not over. Much of the real costs of the banks are still unknown, there is potential for infinite bailout.
ExquisiteDoom 11 months ago
@ExquisiteDoom
you obviously can't read as the title of this clip is obvious. you obviously don't understand the content of the video or what ed harrison is talking about - not to mention that the structure of the bond market and that the issuer sets rates.
note that i only let your inane, ignorant comment through so that dr. campbell can respond to you himself - all such other nonsense from you will be rejected.
SchittReport 11 months ago
Guilty, when i saw the interview with schiff and Shilling i figured i had already seen this so i skipped to comments and asked a couple questions.
No need to take this personal i'll forgive you since this channel seems to give you a big power trip over the big red ban button.
I actually agree with Ed on this.
The only thing i don't get is what prevents inflation from becoming hyper at zero or negative rates
ExquisiteDoom 11 months ago
@ExquisiteDoom
nothing taken personally at all. and no power trip required - my enjoyment comes from stiffing schiff. now that you are talking sense, your comment was approved - now that wasn't very hard, was it?
he explained the dynamics of hyperinflation: it has nothing to do w/ interest rates, its mostly due to external debt in FOREIGN currency and other socio-political issues. none of these issues apply to the US.
SchittReport 11 months ago
@SchittReport So if i get this straight, to get hyperinflation, foreign currencies have to be far more attractive than the US dollar in a relatively short time span + political problems within the country.
My question would be, aren't negative rates the requirement for this to occur in the first place? Seems to me low rates encourage the bigger banks to lever up . Also encourages politicians and gov institutions to spend like there's no tomorow.
ExquisiteDoom 11 months ago
@ExquisiteDoom
no thats not what ed said. he said if the US's external debt is nominated in a foreign currency. all of the US's debt is nominated in USD. couple that with A) political issues e.g. Mugabe's unstable government, default on foreign debt, anarchy etc. B) massive loss of productive assets e.g. country's production or economy takes a major hit and revenue stream effectively stops and C) a host of other socio-political issues e.g. massive corruption etc.
SchittReport 11 months ago
@SchittReport Oh okay, that's helpful, didn't think i'd say this, but thanks for the info, appreciate any help i get.
ExquisiteDoom 11 months ago
@SchittReport
You are correct, it has nothing to do with interest rates, however you are wrong in saying it's mostly due to external debt in FOREIGN currency and other socio-political issues. Hyperinflation is mostly related to the CONFIDENCE in the currency. If you don't think Chinas slowing of treasury purchases and many countries publicly stating their intent on moving away from the US dollar for transactions between countries and the massive QE Bernanke did won't have an effect... WOW
commonsensinwohio 11 months ago
@commonsensinwohio
The closely watched figure of net long-term securities transactions showed total buying of US$51.5 billion in long term US securities in January, following purchases of US$62.5 billion the month before.
More broadly, net purchases of long-term US securities, including transactions not occurring on the open market, totaled US$32.1 billion following net buying of US$38.4 billion the month before.
SchittReport 11 months ago
@commonsensinwohio
those are just minor events. they will contribute to the long term decline of the dollar, but it will be a multi-year process not have any substantive impact any time soon. not to mention the threat of extreme scenarios such as hyperinflation, which are totally idiotic. his example re. japan holds.
by that time, the US will already have moved on to a new monetary system.
SchittReport 11 months ago
@commonsensinwohio
Among all foreign investors, net purchases of US Treasury notes and bonds totaled US$46.5 billion, compared with net buying of US$54.6 billion in December. Private foreign investors bought a net US$30.1 billion Treasury notes and bonds, after buying net holdings of US$43 billion the previous month.
SchittReport 11 months ago