12/16/2008 Part 3/4 Peter Schiff On Kudlow & Co: FED & The Markets

[deltapunk21]

Deflation is wealth creation and economic growth, Schiff is correct we were on the gold standard and had sound money plus silver and metal coins for change REAL vaulabe assets in our hands. The silver dollar powered the industrial revolution finacially.

[nthought]

Inflation? Everything is cheap as dirt right now.  And the gold standard was sound? It was sound until the speculators crushed Great Britain in 1931, and attempted the same in the U.S. Sounds like Schiff wantss to crucify the debtor American public on a cross of gold!

[kickittome70]

Why is this crisis, deluded rich guys with grey hair are just talking shit? The only ones talking straight are the younger ones. The "old liars club" are trying to con the public to give them enough time so they can get out of their precarious positions. The big guys get out first and the little guys will be walking around next US summer, saying "What Happened, I had $250K in my 401K and now I cannot afford to live" Get used to it - Keiser and Schiff are the only honests guys out there. Listen

[iali00]

Peter is full of shit too!!

[john5246]

Keep in mind those guys on the top that disagree with Peter Schiff are "Central Bankers" so of course they are going to promote the current corrupt system. Even when Schiff pointed out that "Mark-to-Market" is not the problem but the assets are Steve Lisman agreed but the old guy disagreed. He is a corrupt Central Banker.

[ftorresgamez]

Some economists base their thinking on the canard that deflation is "bad", whatever its origin. This assumption tends to cloud their judgment and trust the FED to stand like a knight in shining armor stemming the forces of deflation, when in fact market-driven deflation is GOOD (who doesn't want lower prices?). Instead, monetary-driven inflation creates the boom and bust cycles that lead to these crisis by fooling people into thinking there's prosperity.

[ftorresgamez]

Probably the most important economist of the 1920s was Irving Fisher. He was a believer in cheap credit, in government interventionism, and believed the 1928 stock market fall was a temporary problem. von Mises saw the 1920s bubble for what it was and warned everybody. Fisher saw only abundance. In 1932, he already had lost all his and his sister-in-law's fortunes to the stock market. The guys above are like Fisher. Better listen to von Mises . . .

[indusrtial]

your correct on that. Peter Schiff believes in the austrian theories with von mises. I do believe just like you that inflation is a mask of prosperity, just like the over-inflated housing market; it was all fake. Now suddenly people realize that they aren't worth half of what they thought they had.

[marky1333]

I agree. "Fiat" currencies produce an illusion of wealth.

That illusion is about to disappear.

Everything goes back to its 'mean' value in the end.

[marky1333]

The 1929 stock market fall was a temporary problem, from 1932 to 2007 it went up 29000%.

but having said that i predict the Dow will fall below 400 in the coming years.

[ftorresgamez]

marky1333, remember to adjust for inflation. The stock market is valued in dollars, and even if it has risen 29000% since 1932, you have to adjust for inflation to know the "true" return. Or compare the returns to gold, see which outperformed the other.

[marky1333]

If you bought an oz of gold (at bottom) in 1932 for $20.67 at the peak this year you'd have had $1062.

If you bought $20.67 of the Dow index at the bottom in 1932 you'd have had $7,140 at the peak last year? Fisher was correct, any chart in any measure proves 1929 was a temporary set back. He is also correct about the causes of the depression.

The worlds going head long into a Keynesian disaster which will take decades to recover from.

[marky1333]

thats true but it isnt going to equate to inflation for commodites, its going to equate to shortages of food and other essential commodites.Been stocked up with tinned food for a while now.

[Vnntbls]

Same thing, a shortage corresponds to inflation, this is basic supply demand.

[marky1333]

The guy on the bottom is going to be right, Peter Schiff will be wrong.

[indusrtial]

I hope you know a the background of Peter Schiff, because he just happened to predict this entire mess about two years ago. Everything he said is happening the way he said it.

[marky1333]

Gotta lot of respect for Peter Schiff. But i just think he is wrong on the hyper-inflation.

Also everything isn't going as he said it would, if you invested with him a year ago you are sitting on a huge loss.

Most of the bailout has gone on paying of bad debts from the CDS's thats not new money its just monetizing the debts that people spent years ago. World wide bailout is $8Trillion worldwide credit deletion this year is $60 trillon so thats net $52 trillion in dollar deletion.

[marky1333]

Where is the inflation in that?

Next year its estimated at $100 Trillion dollar deletion.

Hyper inflation? I think not

America is not the whole world, if you had hyper inflation the rest of the world would have Hyper deflation because everything's priced in Dollars.

[Vnntbls]

Neither of them are entirely correct in my estimation.

[marky1333]

"savings rates in the United States are about to go sky rocketing"=DEFLATION!!!!

[ShilgenVens]

Can the stock value of commodities increase due to the devaluation of the dollar even in a recession where less oil for example is being consumed? Would there be a "flight to safety" away from the US dollar, as we saw earlier this year, into commodities despite the lower demands in this recessionary period?

[experimentsingeekdom]

The other two guys (besides Peter) are completely clueless. They are probably gonna end up on the street when hyperinflation hits the USA.

[Utreadnotonme]

Thank you for posting... please keep doing so.

My money, literally, is on Peter Schiff

[chais875]

'I Live in Dollars' XD

[jesuslover037]

someone needs to tell Kent the party's over.

[IntoEternity0329]

Hahah I love peter's smart ass comments..crack me up

[stevecci]

we'll break through the Nov lows in Jan '09. it'll be a replay of Oct '08. watch all asset prices fall.

[blakcguy]

another dip in gold you think??

what about oil, below 50 a barrel???

[kikkoman1231]

two different commodities.. that's the oil companies' problem

[joneselius]

Dip in gold. NOOOOOOOO.

Gold will be fixed again to make the assets look good.

Thing is mate, all this money means NOTHING. In fact 95% of it isn't there. the other 4% is worthless. Money in America now doesn't exist, literally. It's ALL a lie.

[stevecci]

everything but the yen, the dollar and t-bills will sell off early next year. precious metals and agricultural commodities won't take off until H2 of 2009, leaving all other asset classes behind.

expect even more volatility while the deleveraging process continues in '09.

this is a great trader's market.

[infopatriot]

Peter Schiff is a voice in the wilderness! I am amazed he is on this show. CNBC will always be bullish no matter what. It is a piss poor place to look at what is going on in the economy.

[Nickelodeon2002]

hmmm....it's always interesting to me to listen to opinions on deflation...especially in relation to recession/depression. I find the notion that deflation actually made the great depression easier for people survive to be a logical one...which means gov't induced inflation during our current recession/depression is like putting a knife in the heart of average Joe...

[jaychins]

larry kudlow talked too much

[itubeutude]

Someone needs to tell larry those blue shirts with the white collar went out in the 80's. Then he adds a pink tie and brown jacket....WORST dresser!

[internate]

Peter needs his own show. What's taking them so long?

[joneselius]

Umm, karmabanque radio....

Max keiser, it's 100 times better. Seriously try max keiser.

[nowayjose470]

Schiff is right. Commodities are on the rise again according to the latest government inflation figures. Even though crude oil has dropped below $40.00 a barrel, gas prices jumped 15% this week in my town and all around the state.

[joneselius]

I don't disagree. Not one bit.

You can tell when people are lying it's easy.

Ummmmm, errrrrr, uhhhhhh, ummmmm. It's al there. People never question why gas isn't coming back.

[Desnoxvu]

haha.Schiff just pwns them so hard!

[goldstockbull]

Foreign stocks? The economy is global. Do you really thing foreign stocks will do well if the U.S. stock market crashes? I agree with you on gold, but not foreign stocks or real estate (yet).

[Jbr5042]

great to see Peter off Fox Business and on prime-time with the boys at CNBC.

Peter offers realistic advice and he sees things better than the average joe.

[VegasBD]

Idiot: "I live in dollars"

Schiff: "not for long!"

hahahahah that was the best part of this vid

[OliverGerard]

LOL amazing line!

[marcosxag]

NOTE TO THE TARD AT THE BOTTOM OF THE SCREEN!how can retailers do well when there is NO JOBS!

[SIERRAHPBT]

except for Schiff and Santelli the rest so called "educated" academics are as stupid as a rock!

[magichandpuppet]

Hey Phil - thanks for putting the "Click here for Video 3" link inside the video itself.  This is a great help :) I wish everyone did that! And, as always, thanks for all you do.

[puppetjaw]

agree

[InTheSticks1881]

Schiff is not only offering his analysis, but also providing a service to his country.

We desperately need to face the music. The Pollyanna's have thoroughly been discredited by their failure to have predicted this crash, yet most are still in denial, happily ignoring the facts and gleefully accepting the 'hope' and the 'grasping at straws' of fellow optimists.

[tinko1]

i noticed that peter has become such an asshole over the years

but i like it

[julianhpike]

You would to if you were him; telling people the truth time and time again while they laugh, belittle, and ridicule you. Then they continue to do so when you're proven right again and again.

I'd have a chip on my shoulder...

[cyalaterthan]

I live in dollars, Not for long... I love peter sciff you tell that fat bastard

[davincij15]

"I live in dollars!"

Because the point of dollar is to collect a lot of them and not buy anything with them.

If I have a million dollar and I can only buy gum am I rich?

[Paetaor]

How can these idiots still 'Like Financials'?

They have no savings and no earnings and only survive from getting money via the govt from the wage earners.

Maybe they can ressurect Bear Sterns so the public can pile into it.

If the govt counted severely 'under-employed' people the rate would double.

[davincij15]

Shadowstats has unemployment at 17%.

[CBound]

It also shows real deflation.

Deflation, no doubt, because of our fractional reserve banking working in reverse as banks increase there reserves and decrease their lending.

Once they start lending again, watch out! It could explode to the inflationary side like never before.

[justingaylor]

The real danger is when our foreign creditors (China, Japan, Saudi Arabia, etc) start redeeming their IOUs (dollar reserves) for valuable US wealth and assets. When those dollars come home to roost, we'll be in trouble as prices skyrocket.

[70road]

Exactly right, the US owns NOTHING.

[CBound]

Oops, not deflation yet. Just a drastic decrease in the rate of inflation. Sorry.

[wreagfe]

Everytime when I see Peter Schiff I'm getting deja-vu's of the pile of books I've read on Austrian Economics. He really is the brilliant academic quoter on television with the excellent debating skills and sharpness of speech. Every remark he makes can be accompanied with sound economic theory and the literature thereof, while most of the rest of the commentators are only based in the here and now without any sound analysis body. They're analysing the symptoms and misinterpreting aggregates...

[intrepidLFS]

ditto. So true!

[JiveDadson]

"Perhaps... there could be an element of truth in what the mainstream economists say?"

There's a first time for everything, but I wouldn't bet on it.

[jrjrg]

hmm who should we believe? you tubers stand by peter, but I feel uneasy that peter and friends are an isolated group. Perhaps... there could be an element of truth in what the mainstream economists say?

[madhuradi]

what? how can there be surplus commodities when mining companies shutting down

when things go up nobody will sell commodities abroad when there will be shortages domestically

so forget the globalisation of raw materials happening for past 2 deacdes

so there will be severe shortage of commodities especially in US

thase guys should go back to school

They are a disgrace for all those degrees they've got

[simply2ghetto]

Peter should play a mob boss in a film with that wit and gangsterness

[b1muas22]

Checkout Zeitgeist!

[holomage]

Only if you're knowledgable enough to identify the titbits of dis/mis-information.

[bho84]

im actually about to watch it. you referring there is bits of misinformation in the movie?

[StillSmallVoices]

Part 1 is disinfo, parts 2 and 3 are solid.

[wreagfe]

You mean that part 1 can cause some cognitive dissonance with the faint of psyche and mentally traumatized and abused (i.e. the religious).

[StillSmallVoices]

No I mean that it is based on the beliefs of the mystery schools in 150 AD and their interpretations.

Look up on here

"Bill Cooper Debunks Jordan Maxwell"

He does it while talking to Maxwell in whom this part 1 was based on his research.

Prepare for your own sir.

[bho84]

thanks for the heads up

[justingaylor]

Just remember to always be skeptical. :) There are wackjobs everywhere, but sometimes they are right too.

[bdc03]

they should play zeigeist on the msm cuz it's BS

[puffyDK]

gotta love this stuff -

- "I live in dollars!"

- "not for long..."

IMO Team Paul/Schiff is the truth, the more I research, the more convinced I the US NEEDS these guys. Somebody needs to tell America what they dont wanna hear!

and thanks for the speedy uploads to Phil!

gives us foreigners a chance to stay current! much gratitude!

[jdawgwelling]

You said it. Peter Schiff is the real deal. The rest of these guys are jokers.

[b1muas22]

"not a chance" LOL... a great economist and a comedian!

[belloOo]

" i live in dollars"

"not for longgg"

[5K2aM]

hahaha..classic!

[MrMP81]

On Usage of Gasoline being another 5% less being used.

" I guess when you have no job you don't use that much gas because you don't have to go back and forth to work anymore. "

- Peter Schiff

[b1muas22]

me too! thanks bro. schiff speaks truth!

[EdMan2012]

hey, phill, thanks for these vids. i get a lot of my schiff highlights from you.