Peter Schiff Vlog 21 July there is no exit strategy

[brianpez]

forget about infation deflation. your govt is stealing money. We have been the reserve currency because countries believed in our system and our ability to pay it back. no more, Once they catch on and loose faith ..recess back to a protectionist way of doing things were screwed. they will build from within with their cheap labor. their "indutrial revolution" we will build nothing with inflated salaries. international companies might fair well "stock holders" joe six pack will get screwwd

[Choros22]

There are essentially two kinds of inflation, cost push i.e a drought will push up the price of food or rises in the cost of oil will generally increase price levels, or inflation caused by an increase in money supply. In the second case it is not so much that prices are rising but rather the value of the currency is falling. The second case is far more common and is the type of inflation inevitably created by the monetary policy of the fed.

[eyewitness043]

Check!!!

[TadRapidly]

All this talk about "what should the FED do"... is RIDICULOUS. They are a private, criminal, corrupt corporation and they need to wiped off the face of the earth and soon.

[grraadd]

need to be wiped off.... you are talking about civil war - they'll use all means to conserve the status quo, and they can use as much money as they wish....... Empire can counter attack and hard.

[crispymidget]

So can retired veterans. :)

[grraadd]

good to know :-)

[Nuanceqwest]

I don't forsee serious inflation in the US for at least another 2 years.

People dont understand what damage has been done to the economy depressing demand.

The economy lost trillions in demand and even though money ahs been printed there is plenty of room to absorb.

Although I do believe all the other stuff this guy is saying

[sujajajjaakakajjs]

I agree that inflation wont be a problem in short-term, but with the debt skyrocketing in the medium-term I see either higher taxes or higher inflation. the current spending is not sustainable and there will be a continuing drop of American purchasing power

[crabtrap]

you're confusing "price inflation/deflation" with "monetary inflation/deflation"

sometimes they interact but not always

[Nuanceqwest]

2 flaws:

1. Oil which can become a self-fulfilling prophecy caused by speculators buying oil without the fundamentals to warrant it.

2. A run on the $ making imports more expensive ... only problem is where are they going to go, if no the $ what other currency?

As for your play on Gold, it was more of a fear play than inflation.Think about the uncertainties since 2001: Terrorism, war and recently a threat to the global economy through the financial system.

[Nuanceqwest]

2.  60-70% of the US economy is consumption (household) expenditure. They have gone from dissaving (credit) for years to saving in way not seen in decades.

3. People talk about the deficit spending, well the national debt and budget as a percentage of GDP is much lower than just after WW2 and that was when we experienced the highest level of inflation since records began.

[Nuanceqwest]

People are acting like we will see hyperinflation next week.

I do not think inflation is on the cards in the short term for the following reasons:

1. We have lost more then 2 trillion in GDP in the last couple of years. The fiscal stimulus is not even half that to reflate the economy.

[crabtrap]

i agree with you but for a differant reason .

the stimulis and tarb money has not even hit the streets yet so basicly it's printed but sitting in some warehouse/vault . when it does make it's way to circulation we will see the inflation mixed with the already low price deflation,a term called hyper-stag-flation coined by Alex Jones

[jdepps13]

what about all the money that is being created by the Fed as their balance sheet goes up to completely unprecedented levels? i think that is at least 2 trillion.... but it's a moot point. the government can't recreate lost wealth. it's lost and gone. pumping money after it through government channels is just a way to lose more wealth as legitimate interests are forced to compete with government-backed illegitimate ones, which holds prices higher when they should be falling.

[Nuanceqwest]

If the collapse of Leman brothers was only felt in the first 3 months of this year how much worse would it have gotten without intervention.

Ask Soros, Buffet whether a decent job has been done. They know a thing or two about how the economy works and they have been around for a while.

[Nuanceqwest]

It cannot recreate lost wealth but it can plug the deficiency of demand and create demand until the economy is strong enough to create it on it;'s own.

I think that the Obama, Bernanke and Geithner have done really well for the 6 months they have been in charge people are upset about currency unemployment but think about it.

[jdepps13]

wrong. this is a misnomer. money inflates and deflates. prices rise and fall and do so in part as a result of monetary inflation. but if you speak of inflation as a price phenomenon, you are mistaken. it is purely a monetary phenomenon, but one which has a very clear impact on prices.

[crabtrap]

you're wrong . what i explained is exactly what you chirped out in your comment. you just worded it up to try and impress me (fail!)

[jdepps13]

i am saying something different than you are. i'm saying the inflation is what is taking place now. creating money when there is no economic growth IS inflation.

prices increasing is a symptom of inflation--but inflation is an increase in the monetary supply, pure and simple. even if prices haven't risen at this point, that doesn't mean the inflation has not occurred. In fact, it has already happened, and continues to happen, though not all effects have yet been felt.

[crabtrap]

i agree with your point here that is monetary inflation and it well/is happening now . but it is rare to see PRICE deflation while monetary inflation is happening (it's being called hyper stag-flation) . as you know ,prices usually rise with monetary inflation,the rarity is people are hoarding cash so prices are felling . another way to but it; the fed is overprinting cash while "joe 6 pack" is keeping it from circulating and inflating .

i think we're on the same page

[jdepps13]

not exactly. monetary inflation is the only kind of inflation there is. there is no such thing as price inflation/deflation. prices go up and down, and one major factor can be inflation/deflation... but that doesn't mean the word inflation, or deflation, can be correctly applied to prices as if there are two kinds of inflation.

people are only hoarding cash because the bottom hasn't dropped out of it yet--it's been considered "stable" for so long that the myth is still alive. not for long

[crabtrap]

jdepp;that is incorrrect . price inflation is a very real phenom

[jdepps13]

no it isn't. prices may go up and down, but it is not price inflation.

what i'm saying is that the idea economically that there are 2 forms of inflation is nonsense. there is only one. if prices go up it may or may not be related to inflation, but it is incorrect to differentiate two forms of inflation. the one is correctly called inflation and the other is simply rising and falling prices, which is a separate issue.

[crabtrap]

you can call price inflation a moon pie if you want it doesn't change the fact that you can have price deflation based on market availablity of raw goods and other factors . this gives you falling prices . in the current case we have limited consumer spending based on cash savings(or cash hoarding)because of a caustic econ enviroment ,coupled with a mega printing machine spiting out funny money (a cause of monetary inflation) . monetary inflation is NOT falling

[thomasnolanearnshaw]

Come on, people. I'm a poor college student in GA and gave $25 quarterly. Please donate! We need this man to run!

[shaunzane]

go to peter's official blog: username = schiffreport

[hidasmuttakankea]

Go Peter you´re absolutely right about that what you´re saying!

You´re brave and intellect man so was/is your father!

Greetings from Finland!

[louis12346]

They need to TAX California more & more until the people cry

[jdepps13]

no they should cut their outrageous spending so they don't have to tax them so much.

[DillonX]

Still waiting to see how your prediction turns out that gold would be over $2000 by Dec 31, 2009, and possibly over $5000.

Let's see how that works out.

[PreciousMetalsStore]

I think it was James Turk that said something like... it's impossible to pick a price and date for gold and silver, you will always be wrong The market's going to do what it's going to do.

The bottom line is that gold will go to $2000 and then to $5000... whether it's this year, next year or in 5 years we will just have to wait and see. While your waiting... just keep accumulating more.

[crabtrap]

that what the guys said to me when i bought gold at $300 (they laughed at gold at $1000)

[RealTalkification]

I really hope you are run for senate. You, Deniger, Celente, Ron Paul. You are modern day revolutionaries

[needbailout]

California needs to start FEMA campaign load her up ship "cattle ready" theirs no way to resolve the budget might as well do kissenger favor and get sheeple on those trains to concentration camps. Send the illegals back to shitville or beanerville.

USA= broke maggots, welfare recipents, tent city livin, world beggars, and mid-e mass murders/rapist filth

We diserve to be nuked and turned into glass parking lot for rich saudia arabs and their friend netyanhau or israel the land of holy pedophile

[narutofan1108]

Good commentary . I can't wait for your radio show tomorrow.

[eztradin]

Good stuff. CNBC, the FED, and the US government are all in bed to create this mirage of fantasy, and how things are so much better over the past week since Obama came back from his tour of the never never lands.  That is, these countries probably never want him back, and by his declining approval ratings here in the USA, neither do we.

The USA is nothing but a ponzi scheme run by power hungry monkeys.

[stoneeh]

question: if there is a new reserve currency, which consists of a basket of currencies and commodities (oil and gold were named specifically), wouldnt that somehow stabilize the price of oil and gold and prevent it from high rises or falls?

[goodinohio]

Greenspan, "cheap money and arm's for everyone"

Bernanke, "triple down on the Greenspan plan"

[syncro16se]

Good comments as usual Peter ! I follow the developments and your comments, as well as Ron Paul, G Edward Griffin, Marc Faber and Max Keiser, here from where I live, in Sweden.

I'll make a donation for your campaign.

And I can't even vote ! (being a Swedish citizen)

I wish you all the best.

[Marleyites]

@syncro16se: Thank you! A true "global" citizen - you can see that freedom, common sense & fiscal/monetary responsibility benefits everyone, not just in U.S. You're a good example of how we can all be good neighbors & global citizens without having the government abolish borders, tax or force us into submission. As soon as more people realize, like you, that if everyone listens to & acts on the TRUTH, we'll have strong economy, clean environment and FREEDOM for the people. All world's people.

[insertthissideup]

Thanks Peter ...

[dx11101]

when I logged into my Community college website in California I got a notice that my tuition was going from 20 to 26 dollars per unit

[eztradin]

I pay 2k per qtr for my son so it doesn't matter how many classes he takes, it's the same cost. However, with the lay-offs, some classes may not be offered, or if they're, it may be only one class for maybe 30 students. Point is, it may take longer to graduate, because of the inadequacies of the system, now. And, they don't offer on-line alternatives. Just another way to milk the system, and get your money for a longer period of time.

[jdepps13]

you may be wasting all of that money depending on what he's taking. community college is cheap, sure, but keep in mind you might just get exactly what you're paying for.

now at many expensive universities, you may get the same inferior education, but you get a nice shiny name of the school to go with it, which impresses some people enough that it could end up paying for itself.

[eztradin]

It's not a community college, but it's what you do with your education that counts. Yes, jobs are tough, That is why you need to diversify. My son is a communications major which covers business, teaching, consulting, web designing, etc.

He's bilingual. He works 30 hrs. a week, but I pay for his education.

[tiborszekeres]

Peter, nice job!!!! I like your way of thinking! I am not an economist or business expert but my personal view is that you are "sometimes" to negative. If you run for a senate you should deliver some positive messages, solutions, some motivation for the voters... anyway Best from Germany

[WA4RRN]

tiborszekeres...How more "positive" could Schiff be? He reminds me of my parents 50 years ago...urging us boys to save 50% of whatever we made...never45 borrow money to buy junk that will be worthless in 3 years...pay off your home in 15 or less years & NEVER borrow aginst its equity... Seems Schiff is very positive.

[johnintx1]

Thank you Mr. S