@TheAttackRat I am a creationist, I believe there exists a higher force which made the universe and created life on Earth, but I also am a devout follower of Austrian Economics and a huge Peter Schiff fan, whom I greatly admire and appreciate for his spreading the truth about economics. I believe Keynesianism is the root source of our economic problems. This being said, I feel slightly offended that you likened socialism with creationism, as if only stupid believe in it.
I'd say for NOW...Prechter is dead on regards to deflation. Now one might point out that it cost more to buy food, but asset prices, housing prices..hell even OIL can't seem to reflate
He argues Americans spend to much and invest not enough. So far I agree. :)
To solve that he suggests a gold standard which will sharply increase interest rates for lending (this strongly harms investment) and decrease prices???
If something will help than the opposite! The USA inflate more than China in order to devalue the Dollar, so that imports from China get more expensive and exports to China (and the rest of the world) will get more competitive.
Budget deficit is at such a high point that it wouldn't be in no way possible to payback the debt accumulated at this stage, unless the keynesian way of thinking is interrupted. Stop election thinking but be realistic and face the burden of debt which this country has become so accustomed to without realizing that china is gaining strength while the us is being bought by china through debt. Gaining a tighter grip on world control as us losses its credibility stop printing your way out!
@PunjabiSikhRajput1 I think it's false to say that atheists have no morals. You're assuming that a person can only derive a morality from a religion. It's simply not true. A person can construct a morality based on their own personal logic. They don't need a holy book. In fact, it's usually religions who are inconsistent and morally conflicted. For example, they preach peace, and then support endless war and killing of innocents in a foreign country alleged to be an enemy.
@TimothyADonaghue well that was biased to say the least... have you ever heard of the just war theory in christianity, look it up... children who are raised without being taught morals, values and principles from an early age will be confused when they grow older, it will be harder for them to differentiate between right and wrong... religion from an early age instills the priniciples of the love of your fellow man and above all god.
Wow, I had never even thought about paying more taxes as a result of inflation pushing prices up. Guess I should add that to my list of invisible taxes.
i find it strange that schiff points to our lack of production etc... and points to our regulations etc.. germany,japan have more regulation than we do and manage to still increase domestic production, and that protectionist policies are why they have not fallen victim to our fate.
The etc. after regulations is corporate taxes, the US has the highest corporate tax rate in the world, that coupled with regulations makes it difficult to start a new business and makes existing business less profitable and efficient, so much so that some businesses choose to leave the US and manufacture elsewhere. The countries you mention are much more business friendly than the US and their increase in domestic production is in spite of regulations, not because of.regulations
@jjrglobal actually lots of major coprorations pay no taxes and get rebates from the gov to the sum of multimillions of dollars. and the real reason that US companies wanted to move production over sea's is simple economics, it is much more profitable to make $15 jeans in over sea's because you can sell them for well over $50+ in america after you have racked up transport. and your point on regulations isn't a point at all its a big "na huh" or " i know you are but what am i"
@TheEvolver311 and I don't blame them at all for moving overseas.
I gotta imagine its real hard to start or maintain a business in this country with taxes and regulation as it is. you can't compete with other countries cause they are more capitalist than we are.
@HandyMan101 so you think american manufactures fled to china because they are more "capitalist" then we are? the fact is just as is often stated, we are not competitive in the eyes of captialist. so by looking at the qualities and traits that the US lacks when compared to nations that are favored by manufactures. they generally all have child labor/debt bondage labor, labor willing to work 12+hrs at less than substainence level wages,authoritarian gov's willing to institute corporatist laws
once were considered the greatest center of capitalism not because we didn't have regulations but because we had strict regulations. our markets were preceived as open and fair with strong mechanisms for combating fraud,insider trading, and various other market skewing actions. now corporatist have convinced many that these regulations are unhealthy and have lobbied for over 40yrs to revoke various regulations. Usery has been made legal due to deregulation.
@TheEvolver311 You are absolutely and utterly wrong about regulation. America quickly grew into the most powerful nation, BECAUSE it had FEWER regulations and SMALLER government than it does today. Free market causes growth, because it is FREE- meaning, NO REGULATION by an interfering government. My friend, you sadly misunderstand capitalism.
@TimothyADonaghue well you obviously never heard of the "Report on Manufactures" by Alexander Hamiltion and that the Congress of the United States took his advice in instituted Tariffs aswell as direct subsidies to Industry. you obviously don't know a thing about american history beyond what you hear on TV.
the fact is that you cannot expand and contract the money supply and not expect consequences, it's not possible. the Fed isn't the only one that loses if inflation is out of control. we all lose, through skyrocketing prices in food, energy, you name it. inflation is a real issue, and I wouldn't be suprised if in 5-6 years if we started talking about hyperinflation.
@howtogetwell you employ much of the fallacious thinking that got our economy to where it is today. first, in defense of peter, he's been dead on about the dot com bust, the housing market bust, as well as how the devaluation of our currency by the federal reserve since its inception is lowering our standard of living, even as I type these words. you blame other countries for manipulating their currency, yet the Fed is doing the same exact thing
I go further and state that a perpetual-growth society based on production and consumption is unsustainable. Standards of living based on quantity of produced goods alone is a superficial standard. There are physical limits to how much superfluous goods can be produced and held by people around the world, so one can't base economic strength on perpetuating the accumulation of goods. Peter also doesn't recognize that government is a tool for the banking elite to continue the growth-ponzi scheme.
Rising costs in health care, insurance and taxes are indicative, not of an explosion in money supply, but an explosion of greed manipulating an ignorant society.
Practically everything in life is COUNTER INTUITIVE. This is not a "Deflation vs. Inflation Argument". It is an error riddled diatribe by someone who thinks we will have inflation.
THE STRONG DOLLAR OF THE PAST 30 YEARS HAS KILLED OUR INDUSTRIAL BASE AND SMALL BUSINESS!!!!!!!!!!!!!!!!
Perhaps the Federal Reserve is aiding the USA by fighting intentional currency devaluations by nations that keep their currencies low to maintain exports to the usa?
His argument for inflation is flawed because the government does not own the currency. The currency is owned by the Federal Reserve. True, the government gains by inflation in all the way he says, but, if inflation gets out of hand, the Federal Reserve loses. Do you really think the Federal Reserve will devalue the dollar, its only asset?? Remember, the Federal Reserve is no more a part of the governmeny that Federal Express!!
@TheAttackRat Hilarious! Thanks. Skewering with humor can be just as powerful as taking that crap seriously. The Keynesians and socialists are a bit religious aren't they? Dogma here dogma there. One trick pony - spend, spend, spend.
so then inflation benefits all people who are in debt (not just indebted governments)!! and hurts savers. It sure appears to be beneficial to be in debt !!!
But perhaps peter could explain what happens when the only one's bidding are the only one's buying? I thought we all learned this in the recent housing situation? apparently not.
@LivingAboveCloud9 CPI data; they don't measure half the prices, leaving out housing and other stuff (If i remember correctly).
Employment data; they have 3 classes "employed, not looking for work, unemployed", not looking for work are really just unemployed. Also they don't account for part time workers.
Khanacademy has a youtube video for how the government counts employment if you want to know the exact details.
if govt induces inflation, the money they receive from increased wages, tax collections etc would be the same if there wasn't any inflation - the real value of money would be he same - so i am not sure what he was talking about there. I understand the benefits for being a debtor, but not the tax collections part
@econom1cs He is referring to the tax brackets. Since the brackets remain at the same numbers (they are not adjusted continuously for inflation), as the wages move up they enter higher brackets, so a greater percentage of the wage is taken as tax.
I like Peters passion and I like the idea if him running for senate. We need someone with his knowledge in the senate. If you want to learn about Silver, check out my channel.
Defaulting loans are replaced by new CREDIT (not cash) creating a larger credit bubble. Credit cannot expand forever because it requires actual borrowers to take on loans and actual lenders to loan it out.
Credit cannot continue to expansion forever. That's why you're seeing every state have to cut budget, austerity measures around the world, government debt is 96% of GDP. They can't even make payments, yet we're supposed to believe that they will continue to inflate the currency indefinately?
I'm suprised Peter believes "helicopter Ben's" stance that he'll print money like crazy when he knows what a liar he is. The fed won't jepordize it's balance sheet. As production declines our ability to pay for it declines, but thats not always inflation. Production/material available declines. Thus in relationship to the dow, gold will go higher. BUT dow&gold could both go to $1000 as credit contracts (deflates) and our ability to pay for things (credit) decreases as dow/gld heads towards 1.
according to the US Constitution, my dollar is worth 371.25 grams of silver on any given day. Now if I just had dollars and not these spooky Fed notes.
The US dollar was designed after the Spanish Pieces of Eight silver medallion and that was to be permanent, so what happened? If a dollar were worth that much these days we'd be filthy rich with 20 bucks.
One problem it is not "privately" owned its its a state monopoly that bankrupts banks and that 5% pile of crap doesn't account for the massive inflation remember if the inflationrate is higher than the interest rate its always a loss.
Actually in terms of price deflation it would continue in the prosperous oh wait another capital good invention and massive production lower prices events.
Deflation in reality never occurs I mean serious raising interest rates would cause the delfation the only course of action to take in reality it merely gives value to the money and the money does nto exit the supply ah contraie it enters the hands investor on the wings of an interest rate
And as for 'honesty and discipline' in expanding credit, have you never considered that the honest way is to allow the market to select money of stable value, as it perennially has, in the form of gold?
Oh, but Friedman doesn't like the gold-standard? No, Friedman prefers central-banking and fiat currency-and thinks the money supply can be extended centrally without too-great an increase, by use of a computer! But how would Commissar Intel know the correct rate? Through tyrannous means perhaps!
Ugh Attacking friedman is like attacking your brother that likes Jeff Gordon he still likes Nascar thank the good lord but he chose a horrible driver.
Sorry, I don't know anything about Nascar, I'm British!
The only way to make banks responsible and rational is surely to abolish the institutions that are expressly intended to induce credit expansion, by the mass fraud of the control of interest rates-to understand what damage central banking does to banks, just think what happens in a mini boom-and-bust scenario if I countefeit $1 billion, give it to a few entrepeneurs, they invest in production goods and bam prices go up-they're bankrupt.
And regarding jdbrown371's comments, I think somebody needs to learn a little bit of the ugly history of central-banking before they blame financial crises made inevitable by central-banks, on the free market.
Ask WHY banks pursued reckless sub-prime lending and securitised bad assets thus intoxicating the whole financial industry.
That question's answer is the mass-fraud of low interest rates and the moral hazard of the 'lender of last resort' among myriad other interventions.
Right on, Jaffijoe, you can't fertilise an economy with credit expansion because it simply leads to sudden binges which, when ended by price corrections, would end if not for meddling government keeping the credit-expansion constant. And the bigger the boom (the longer I mean) the bigger the bust.
And as for banks having reserve requirements, the only sound way to manage them is to let them be free and therefore more responsible, as well as being free from the fraud of central-banking.
Since we all have too much debt, we all need to spend lots more to solve this problem. Big government needs to grow a lot bigger, we need much higher taxes on the productive, much more money needs to be printed, failures need to be bailed out, needs must all be met and finally the debt must be increased exponentially.
That law doesn't matter because it applies to checking accounts. Other account types had their reserve requirements lowered to practically zero in the early 90s. The banks operate as though they have no checking accounts and daily sweep deposits into savings and money market funds. This understates checking account balances which allows banks to meet reserve requirements. This allows banks to nominally meet their checking account reserve requirements without actually having the money.
Lastly, creating money out of debt is a good idea but it requires honesty and discipline. The derivatives used to control risk CDOs and CDSs have been steadily debauched creating the false sense of a riskless mortgage industry. When you buy a corn or soytbean contract, it represents something. The CDOs didn't contain actual mortgages. Banks cooked up a phony portfolio and sold it! . When these CDOs looked great it lowered the perceived risk and banks went on overdrive selling mortgages
The Fed no longer sets reserve requirements so there is no legal controlling authority to enforce this. Show me a single law that ENFORCES reserve requirements. There is none. Although very difficult for you to accept, the Fed does not control the economy. It can supply discipline or grant favors but it cannot change the larger trend. I'm going to make a lot of money going long on the US dollar then years later I'll ride the short side. I know what I'm doing.
@jdbrown371 You wrote one year ago, " I'm going to make a lot of money going long on the US dollar then years later I'll ride the short side. I know what I'm doing." Do you still maintan this position despite exploding silver and gold prices? Or, are you now "riding the short side"?
@jjrglobal I employ very disciplined trading tactics so I don't lose much when I'm wrong. Nobody who makes a living at this game sits on a losing position. The recent downdraft in the dollar was nothing like the later half of 2009 or later half of 2010. Both times I was short. I've been long the dollar three times since 2009. My sole source of income is trading. I have zero debt and buy basically anything I want. I'm not an oracle and don't need to be to earn a living or make a killing.
@jjrglobal No position presently, waiting for a good entry point, long or short. Forex "trends" the best and is easier to trade than most other contracts. I use CME futures products to trade Forex.
Anyone that doesn't is either to broke to meet the margin requirements and shouldnt be trading anyway or their just ignorant. What platform do you use?
We don't even have fractional reserve banking anymore. Banks have NO reserve requirements whatsoever after Volcker. The Fed gave up its power to enforce reserve requirements. The Fed was initially created as a compromise between banks and government. Slowly but surely the private banks have been taking it over as they no doubt intended all along. Anyway, fractional reserve would add at least some discipline to banking and would be superior to what we have now. Banks hate it.
obama just another wall st. partner. nothing he's doing will get any better. he's selling us all out. has nothing to do with race,party,dreams,hope,change. welcome to the new world order! it's time to arm yourselves. it's time to revolt against this corrupted gov't. over throw these crooks. getthem all out. we need a newparty, we the people. new branch for the people. by the people.
Inflation is inevitable but it's a matter of timing. People aren't borrowing much anymore, saving at record rates, defaulting on mortgages, getting foreclosed and defaulting. All of which are deflationary. Deflation first, then inflation. Inflation will begin only after 99% of experts and your non trading friends become firmly convinced of the reality of deflation and consider you crazy to think otherwise.
Peter you are so right!...i just dont understand why a average american is not able to understand this basic things!!!..I have really become a huge fan of yours over the past few months..i mean when you talk it makes so much sense..I have heard other experts who have the opposite point of viewthan yours and it just ridicules me as to the bs reasons they give for their beliefs..i meanany person who has studied basic economics in school will understand what you trying to explain!!!wake up usa
Peter is dead on. I am a staunch supporter of Peter and find myself repeating verbatim many of his ideas. The result... people think I'm paranoid. Infuriating. People don't want to believe.
@Deutsche22 I agree with you let others may think ur paranoid, yet those who don't know what is going on will only see bad times when everything goes down.
@Deutsche22 I know how you feel. I agree with peter, but I find that my logic is similar to his, this debt spending, and stimulus crap. People always look at you like your crazy, stupid, or just paranoid like you said. I love love love watching people laugh at peter though just to be proven completely wrong 2 years later! It happens over and over. He was right about housing, gold, foreign investment and more. Its common sense!!! but not for everyone. Peace
@Deutsche22 Hanlon's razor states that you should never attribute to malice that which is adequately explained by stupidity. You may want to familiarize yourself with the works of Milton Friedman. He always assumed the good intentions of policy makers even when the results of those policies were wholly bad. This approach may help you from sounding like a "conspiracy nut" to the uninformed.
@studentofsmith Stupidity can not explain the fraud in our nation in everything from the scam of the health care system to the energy scam. Just like all peoples throughout history, we are being exploited by the greedy at the top. The pyramid structure of wealth exists, and it does not stop with the CEO.
@Deutsche22 that's so awesome you said that, same thing here. I use his analogies all day long and my listeners have some crazy reactions. Ha! They'll believe once it's too late. That's what I love about the easy to understand Austrian economics--you can predict the future! I just listen to Peter's show every day.
@special1740 When the optionjs pyramide collapses not much will happen. We'll just have to start over and not from scratch but with a new, sound money system that will promote honest saving people.
I get what he is saying about the gov. printing money to control deflation but when inflation starts they will stop printing and raise intrest rates to controll it. He seems to think the gov. will not stop printing money? I dont get that.
One more thing. No gold standard? No deflation spiral.
The only deflation spiral to occur was 40 consecutive months of CPI deflation - 1929 to 1933. Once we delinked from gold, no more deflation spiral - 72% dollar depreciation. No country since has ever had a deflation spiral. It won't happen this time, either.
I am on the deflation side and Peter is right I dont see how gold is intrinsically more valuable than paper money. At times paper could be more usefull to you than gold. The prices of both move up and down with the market. What am I missing?
Well for one, you're missing the point that you can't print gold. And zero interest rates, quantitative easing, and dollar depreciation do not make inflation. The CPI and PPI are now on the rise, indicating inflation. And inflation is not a rise in prices, but an expansion of the money supply, which causes the dollar to depreciate. Inflation and deflation can also occur simultaneously, in different assets. Think falling house prices in 2006 - 2007 and rising commodity prices ($147 oil).
Yes you cant print gold lol but you can find new gold mines and when it is used in industry it is taken out of circulation i still dont see how a gold standard is any better than basing values on anything else at one time people traded shells. Ok i see how you define inflation now an expansion of the money supply yes that is definitely happening lol. Wikipedia sez "inflation is a rise in the general level of prices of goods and services in an economy over a period of time". Which one is right?
I think commodity money is the key - something that can't be debased as easily as paper money - because it is real. Gold, silver, oil - immaterial which one it is.
Both definitions are probably appropriate depending on context. I'm saying that you can have both rising prices in some areas and falling in other areas.
Ask me in 6 months, and we'll whether prices are rising or falling where it matters. I will go with the former and protect myself accordingly.
Peter Schiff is wrong about inflation. He is overestimating the intelligence of economist and politicians again. He is right in the long term but he thinks it will correct itself faster than reason will come to people. He is right about the past of Japan but wrong about the future of the USA and china. He is a conservative and against government spending, taxiation and regulation, all of which are needed to overcome the crisis.
the crisis. So if the head accountant for the white house thought we were headed for massive inflation before the stimulus then what do you think the state of the nation is now?
there will be inflation in some areas because of the low dollar, but many things are getting less expensive. the oil is still low because of missing spekulation and less need.
2. (I wrote more but could not post it. Links seem do be disallowed)
h°tt°p :/°/tin yurl.c°om/yh6hscv |-. I had to disguise the link
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Nice point,but that's why gold is a better buy than investing in the shrinking u.s. dollar.One can only hope that the "powers to be in washington",realize that thier spending is killing the dollar,though I doubt it.
I don't know though, I dont see how we can keep borrowing and printing money without some countries saying. OK no more dollarss, they are worthless. It might hurt them for a while, but it is also hurting them to be invested with dollars.
I trust Peter Schiff a great deal becasue he saw this current economic collapse before anyone.
I agree, gold and silver seem to be going up right now and will continue to do so.
Look at Obama he says healthcare for everybody, dont worry about the price!!!
Other economies will drop but they will recover faster without America. America loses in the long term more if they drop the dollar. China/Europe/Russia are better off without the dollar.
The reason I say that other countries can not not do business with America is Noam Chomskys statement that other countries need America and if the US goes bust the entire world economy goes bust.
I dont know if he is correct, but he is smart, and thats where I got the info..
Hi I agree with lots of you posts but Noam Chomsky lol..
Even if the dollar was replaced the same people would control it also the dollar is based on somthing its called the U S military. Just think if a country that we owe money to wants to wage war against us will we pay them back? lol
Owing you enemy money is a brilliant military strategy imo.
1. The most important thing to remember about the inflation vs. deflation debate is that this is about the expansion and contraction of credit. So what we have going on right now is a contraction of credit which is an effect of deflation. As mentioned in a comment above, "we've a debt laden economy." And when people on the edge of their financial crisis are strapped for cash, they will sell everything to stay afloat and maintain their standard of living. If they don't, then their creditors will.
2. But during deflation practically no one buys so debtors remain on the margin of survival or default. To add insult to injury, due to the contraction of credit, these debtors can't get any more credit and the vicious cycle continues. So as of late, it is not just people that are on the edge. Creditors are on the edge because the debtors can not pay their debts; corporations are on the edge because their sales have collapsed and they can not pay their debts nor get lines of credit extended;
3. and now governments are on the edge because this is a SYSTEM-WIDE collapse and there is nothing they can do about it.
Some are saying that we've hit bottom and the worst is over. Don't believe it. The worst is not over yet. We're just at the start of a dive into a deflationary spiral, towards a new great (global) depression.
1. The Fed's primary function, for more than 90 years, has been to foster the expansion of credit and credit is another matter entirely. Credit is not money and Faber is confusing credit creation with money creation. U.S. bonds are the reserves of the Fed and U.S. bonds are the source of its power. Therefore, the U.S. government does not want its bonds to attain (official) junk status, because its borrowing power is one of the only two powers over money that it has, the other being taxation.
2. By flooding the market with money, the Fed would cause a panic among U.S. bond-holders, and their selling would depress the value of the Fed's own reserves. So the ivory-tower theory of unlimited cash creation to combat credit implosion would meet cold, harsh reality resulting in the Fed committing suicide by doing just that. As Ludwig von Mises said in Human Action (p.572), "There is NO MEANS of avoiding the final collapse of a boom brought about by credit expansion."
1. Look a Prechter's track record, from 1979 (when he left Merrill Lynch) to today, and you'll change your mind about him: Using the Elliott Wave Principle ('his "waves") he forecasted a long-term reversal lower in gold (February 1980) and a long-term "super bull market underway" in stocks (October 1982). These forecasts proved correct—especially for the stock indexes. He won the U.S. Trading Championship in 1984, with a then-record 444% return in a monitored options trading account.
2. He was named "Guru of the Decade" by the Financial News Network (now CNBC) for the 1980s. AND, he forecasted a large-scale bear market, as explained in his book Conquer the Crash (published in 2002), which was his platform to forecast and explain every chapter of today's financial crisis, years before it happened!!
Does that sound flaky to you? So you should listen to what he has to say and follow his lead. Don't listen and follow Bernanke and Congress. It is them who are flaky.
People in other countries buy gold here in U.S. because my understanding is most reasonably priced here. In order to do so they must convert their currency to U.S. dollars. Gold sales are up, so yes temporarily $ is strong, but no for long. When gold prices go up, strength of dollar will go down. Gold is the dollars enemy. There is an inverse relationship btwn the two. If you truly understand then you will understand that you, in fact, were standing by your pipe dream. Dollar will collapse
You mean the dollar that bought a corvette for $8000 in 1980? If by reign you mean lose value at the pace of money creation you would be correct. Do you believe the trillions of dollars in reserves on the accounts of foreign central banks will never be transferred into other assets? Right now those dollars are only buying US bonds, which have an infinite supply. Wait until they buy those other assets and bid the price up of the input used to manufacture the every good we consume.
We got off the gold standard so the U S could have complete controll of the dollar and we do. Control the dollar and you control the economy of the world and we do. The fed will print money to drive down the dollar till we see inflation then stop. The gov has no debt because it can print as much money as it wants. As the dollar goes down other countries must follow or be priced out of the market. Its a win win for the u s. The fed is right print more money.
when I was around the age of 6 I remember looking at a dollar bill and wondering, "what makes this piece of paper so valuable?" I asked my mother and she could not answer. However, I feel that if it was in turn a gold nugget I held in my hand things would have seemed a bit more logical..amazing what an unaltered mind with untainted logic and reason can conclude or ponder..because back then I did not know anything, but yet something didn't seem to add up
The way I see it is all the powers that be are for inflation, from the Fed, central banks, governments & the BIS for reasons too numerous to list. Prechter thinks that the natural economic laws including destroyed credit will overwhelm all of them and still lead to deflation.
I'm no so sure. I think the odds are better for inflation, especially when the world economies heat up down the road.
One thing I forgot to mention. Schiff's new catchphrase seems to be that we will experience deflation...BUT IN GOLD! HAHAHAHAH Schiff you paranoid schizophrenic you truly are the skunk of skunks!
We are going to experience deflation in USD because DEBTS ARE DENOMINATED IN USD NOT GOLD. Is your credit card line denominated in USD or gold? Is your mortgage in USD or gold? Is your student loan in USD or gold?
Thanks for inspiring me to listen to this. I was an eliot wave guy but now I'm with Peter and your insulting, non sensical woefully childlike foolishness confirms this.
Price movement is not the definition of inflation/deflation. Rising prices can be a symptom of inflation and falling prices can be a symptom of deflation. Demand changes an capital flow have a varying and sometimes dominant effect on prices. Even if inflation occurs, which can accurately be described as an increase in the money supply, certain asset price can still fall if capital moves into other assets at a fast enough pace. It is disingenuous to describe inflation/deflation as a price change.
If any of you insane kooks have a cent to your name DO NOT LISTEN TO SCHIFF. Look at what happened in the fall of 08 and then compare him with the likes of Prechter.
We are headed for a massive deflationary depression and CASH WILL BE KING. Buy T-Bills and wait out the storm and you will be able to buy assets very cheap in a few years.
Good advice! I have a printing press at home. I write my own money... 1000 000 bills at a pace of about 10 a minute. Can I buy your gold? I give you 2 trillion of my own currency. I just printed it on fresch green paper!
Tell me, when in history has the supply of a monetary unit been increased at a relatively fast pace without an eventual and comparable rise in prices?
If you say never, you are correct. Monetary inflation will always lead to a general price appreciation of assets denominated in the respective currency.
If somebody defaults on a loan, does the money created to provide that loan disappear? If gold was use for a monetary unit in a loan, and the loan was defaulted on, does the gold disappear?
Cunt schiff fails to comprehend that this is a CREDIT CRISIS. Credit is digital and disappears and goes POOF when debts default. If a credit card gets cancelled the $5k credit limit no longer exists. This is DEFLATIONARY. This is going to take place on a MASSIVE SCALE. Private debt makes public debt look insignificant.
USD is the most inflated currency on earth. It is inflated not in physical currency but CREDIT. Thus when credit defaults USD stands to DEFLATE THE MOST.
His stocks were the beneficiary of the "bubble" he babbled about so lustily.
Prechter on the other hand reaped huge profits in the collapse of 08 and then called the exact short term bottom in March of this year.
Anyone with a rudimentary understanding of the economic science knows that hyperinflation is impossible and deflation is the only logical conclusion of this credit bubble.
OMG you Schiff minions are braindead. How many of you actually have an account with him? Let me rephrase: how many of you HAD an account with him? Because surely if you did you were VICIOUSLY and SAVAGELY RAPED in the fall of 2008 and your account was liquidated. Schiff for all his "calling the collapse" suffered by FAR and AWAY the worst. His portfolio was down 80-90%. How is it possible that someone who predicts something correctly can lose so much money????
Carter took over Jessie Jackson old job of using race card,people were protesting high taxes, no jobs Ponzi Scheme Health care $4000.00 Fine TAX & Global warming TAX $1800.00 per family.,Animal ID ACT ,clean food act clean water act all to take away small farmers land & make it illegal to buy or sell without Govt permit if you violate you loose your property & Home plus jail & Fines but if you say anything about any of these you are RACIST? where is the JOBS ?? welcome to GLOBALISM UN Control
Impeccable timing on the inflation-deflation debate, gold and silver are finally breaking out.
There's a positive correlation between the prices of metals/currency and how much ass Peter kicks in his commentary. Too late is coming fast for many deflationist portfolios, and nobody explains it better than Schiff.
Derivatives and hyperinflations will get us in the end. We've stopped producing. Gold and Silver to perserve your wealth. China won't keep funding our dept much longer. This is crony capitalism today. Socialize the losses and privatize the profits. Who did this to us!!
The entire U.S. is just a storefront for the rest of the world's products. We only employ salesmen, we don't make much of anything ourselves. A 'manufacturer' in the U.S. may merely be an 'assembler'. For example.. computer companies. Sure they employ people to build the PCs, but where are all the parts made? China. Singapore. Japan. Malaysia. India. Mexico. Thailand. Vietnam.
This comment has received too many negative votesshow
Mr. Schiff, the problem with your way of thinking is that a government like the United States is NOT like you or me. It is a power in the world. It provides military and food stuffs to the world. If the US is put into a position that its economy is going to collapse because of the lack of those loaning us money or whatnot then the world itself collapses. Gold is not the answer.
Do you know what's going to happen? The Bank Holiday is in sight and be prepared to lose 30-40% of your USD's value the moment they launch a Bank Holiday.
Do you know that all the US embassies in the world has already been given instructions to exchange their USD to other currencies that could last them for at least 1 year?
How naive you guys are. Look out for the weaponized Ebola Strain Flu Virus that will trigger the Collapse of the World's Economy and wipe out most American's assets.
You are correct, but gold and silver copper is better then the dollar. Its my guess that no currency will be worth any thing. because they ( the rulers of the world dont want people making more money etc... food water clean living is better then anything,
The US spreads death and destruction around the world. Gold is the answer to little people like you being able to preserve your wealth "when" the government attempts to screw you over. But don't get me wrong. I don't want you to purchase gold. I want you to lose everything you've got, and leave the gold you could have owned for someone else that does understand it.
@TheAttackRat I am a creationist, I believe there exists a higher force which made the universe and created life on Earth, but I also am a devout follower of Austrian Economics and a huge Peter Schiff fan, whom I greatly admire and appreciate for his spreading the truth about economics. I believe Keynesianism is the root source of our economic problems. This being said, I feel slightly offended that you likened socialism with creationism, as if only stupid believe in it.
adipredescu1990 1 month ago
@TheAttackRat More like un-intelligent design! Oh snap lol
YaHuWaHservant 3 months ago 3
I'd say for NOW...Prechter is dead on regards to deflation. Now one might point out that it cost more to buy food, but asset prices, housing prices..hell even OIL can't seem to reflate
Sempertacsil 6 months ago
keynesian = make up sh!t as you go
GusBariga 6 months ago 8
oh god we have so much deflation now....
idiot
Staatsmacht12 7 months ago
He argues Americans spend to much and invest not enough. So far I agree. :)
To solve that he suggests a gold standard which will sharply increase interest rates for lending (this strongly harms investment) and decrease prices???
If something will help than the opposite! The USA inflate more than China in order to devalue the Dollar, so that imports from China get more expensive and exports to China (and the rest of the world) will get more competitive.
SmartPappnase 8 months ago
Budget deficit is at such a high point that it wouldn't be in no way possible to payback the debt accumulated at this stage, unless the keynesian way of thinking is interrupted. Stop election thinking but be realistic and face the burden of debt which this country has become so accustomed to without realizing that china is gaining strength while the us is being bought by china through debt. Gaining a tighter grip on world control as us losses its credibility stop printing your way out!
weeman4lifeok 8 months ago
Austrain economics = christianity (high morals, strict principles and values)
Keynesian = Atheists (few morals, do what you feel like and what feels good)
Capitalism = common sense
PunjabiSikhRajput1 9 months ago
@PunjabiSikhRajput1 I think it's false to say that atheists have no morals. You're assuming that a person can only derive a morality from a religion. It's simply not true. A person can construct a morality based on their own personal logic. They don't need a holy book. In fact, it's usually religions who are inconsistent and morally conflicted. For example, they preach peace, and then support endless war and killing of innocents in a foreign country alleged to be an enemy.
TimothyADonaghue 6 months ago
@TimothyADonaghue well that was biased to say the least... have you ever heard of the just war theory in christianity, look it up... children who are raised without being taught morals, values and principles from an early age will be confused when they grow older, it will be harder for them to differentiate between right and wrong... religion from an early age instills the priniciples of the love of your fellow man and above all god.
PunjabiSikhRajput1 6 months ago
@TheAttackRat socialism = creationism
Austrian economics = evolution
Keynesian theory = euginics
AndrewLLFrazier 10 months ago
Wow, I had never even thought about paying more taxes as a result of inflation pushing prices up. Guess I should add that to my list of invisible taxes.
TheDestroyerCrom 10 months ago
@TheAttackRat What?? Oh right creationist are socialist give me a break.
Pdrum2 11 months ago
Where would be without people like peter schiff, alex jones, david icke,
sheeple waiting to get slaughtered
MrNCize 1 year ago
@MrNCize I agree someone needs to bring the bullhorn.
Pdrum2 11 months ago
@TheAttackRat Not exactly. I can find a lot more validity in Creationism or Intelligent design than those economic blunders.
Rensune 1 year ago
i find it strange that schiff points to our lack of production etc... and points to our regulations etc.. germany,japan have more regulation than we do and manage to still increase domestic production, and that protectionist policies are why they have not fallen victim to our fate.
TheEvolver311 1 year ago
@TheEvolver311
The etc. after regulations is corporate taxes, the US has the highest corporate tax rate in the world, that coupled with regulations makes it difficult to start a new business and makes existing business less profitable and efficient, so much so that some businesses choose to leave the US and manufacture elsewhere. The countries you mention are much more business friendly than the US and their increase in domestic production is in spite of regulations, not because of.regulations
jjrglobal 11 months ago
@jjrglobal actually lots of major coprorations pay no taxes and get rebates from the gov to the sum of multimillions of dollars. and the real reason that US companies wanted to move production over sea's is simple economics, it is much more profitable to make $15 jeans in over sea's because you can sell them for well over $50+ in america after you have racked up transport. and your point on regulations isn't a point at all its a big "na huh" or " i know you are but what am i"
TheEvolver311 11 months ago
@TheEvolver311 and I don't blame them at all for moving overseas.
I gotta imagine its real hard to start or maintain a business in this country with taxes and regulation as it is. you can't compete with other countries cause they are more capitalist than we are.
HandyMan101 11 months ago
@HandyMan101 so you think american manufactures fled to china because they are more "capitalist" then we are? the fact is just as is often stated, we are not competitive in the eyes of captialist. so by looking at the qualities and traits that the US lacks when compared to nations that are favored by manufactures. they generally all have child labor/debt bondage labor, labor willing to work 12+hrs at less than substainence level wages,authoritarian gov's willing to institute corporatist laws
TheEvolver311 11 months ago
once were considered the greatest center of capitalism not because we didn't have regulations but because we had strict regulations. our markets were preceived as open and fair with strong mechanisms for combating fraud,insider trading, and various other market skewing actions. now corporatist have convinced many that these regulations are unhealthy and have lobbied for over 40yrs to revoke various regulations. Usery has been made legal due to deregulation.
TheEvolver311 11 months ago
@TheEvolver311 You are absolutely and utterly wrong about regulation. America quickly grew into the most powerful nation, BECAUSE it had FEWER regulations and SMALLER government than it does today. Free market causes growth, because it is FREE- meaning, NO REGULATION by an interfering government. My friend, you sadly misunderstand capitalism.
TimothyADonaghue 6 months ago
@TimothyADonaghue well you obviously never heard of the "Report on Manufactures" by Alexander Hamiltion and that the Congress of the United States took his advice in instituted Tariffs aswell as direct subsidies to Industry. you obviously don't know a thing about american history beyond what you hear on TV.
TheEvolver311 6 months ago
the fact is that you cannot expand and contract the money supply and not expect consequences, it's not possible. the Fed isn't the only one that loses if inflation is out of control. we all lose, through skyrocketing prices in food, energy, you name it. inflation is a real issue, and I wouldn't be suprised if in 5-6 years if we started talking about hyperinflation.
grassroots025 1 year ago
@howtogetwell you employ much of the fallacious thinking that got our economy to where it is today. first, in defense of peter, he's been dead on about the dot com bust, the housing market bust, as well as how the devaluation of our currency by the federal reserve since its inception is lowering our standard of living, even as I type these words. you blame other countries for manipulating their currency, yet the Fed is doing the same exact thing
grassroots025 1 year ago
I go further and state that a perpetual-growth society based on production and consumption is unsustainable. Standards of living based on quantity of produced goods alone is a superficial standard. There are physical limits to how much superfluous goods can be produced and held by people around the world, so one can't base economic strength on perpetuating the accumulation of goods. Peter also doesn't recognize that government is a tool for the banking elite to continue the growth-ponzi scheme.
postrealitysyndrome 1 year ago
Rising costs in health care, insurance and taxes are indicative, not of an explosion in money supply, but an explosion of greed manipulating an ignorant society.
howtogetwell 1 year ago
Practically everything in life is COUNTER INTUITIVE. This is not a "Deflation vs. Inflation Argument". It is an error riddled diatribe by someone who thinks we will have inflation.
howtogetwell 1 year ago
THE STRONG DOLLAR OF THE PAST 30 YEARS HAS KILLED OUR INDUSTRIAL BASE AND SMALL BUSINESS!!!!!!!!!!!!!!!!
Perhaps the Federal Reserve is aiding the USA by fighting intentional currency devaluations by nations that keep their currencies low to maintain exports to the usa?
howtogetwell 1 year ago
His argument for inflation is flawed because the government does not own the currency. The currency is owned by the Federal Reserve. True, the government gains by inflation in all the way he says, but, if inflation gets out of hand, the Federal Reserve loses. Do you really think the Federal Reserve will devalue the dollar, its only asset?? Remember, the Federal Reserve is no more a part of the governmeny that Federal Express!!
howtogetwell 1 year ago
Both of 'em are right. Peter's forecast of inflation is near term. Bob's conclusion is that the ultimate outcome has to be deflation.
What both of them have a problem with is getting the timing right. And that's quite understandable because they are not God.
Fiat currency is doomed but so is gold, which is no more than a hedging tool. A gold standard in the hands of politicians wont get far either.
marginaluser 1 year ago
Both of 'em are right. Peter's forecast of inflation is near term. Bob's conclusion is the ultimate outcome is deflation.
What both of them have a problem with is getting the timing right. And that's quite understandable because they are not God.
Fiat currency is doomed but so is gold, which is no more than a hedging tool. A gold standard in the hands of politicians wont get far either.
marginaluser 1 year ago
@TheAttackRat Hilarious! Thanks. Skewering with humor can be just as powerful as taking that crap seriously. The Keynesians and socialists are a bit religious aren't they? Dogma here dogma there. One trick pony - spend, spend, spend.
equsnarnd 1 year ago
POKEHER
Yamakashi1 1 year ago
so then inflation benefits all people who are in debt (not just indebted governments)!! and hurts savers. It sure appears to be beneficial to be in debt !!!
quadcatfly 1 year ago
But perhaps peter could explain what happens when the only one's bidding are the only one's buying? I thought we all learned this in the recent housing situation? apparently not.
fedtheend 1 year ago
I am not disagreeing at all but how do they "cook" the CPI data, employment data..etc?
Who does the research, how is the research collected?
LivingAboveCloud9 1 year ago
@LivingAboveCloud9 CPI data; they don't measure half the prices, leaving out housing and other stuff (If i remember correctly).
Employment data; they have 3 classes "employed, not looking for work, unemployed", not looking for work are really just unemployed. Also they don't account for part time workers.
Khanacademy has a youtube video for how the government counts employment if you want to know the exact details.
Keyguya 1 year ago
if govt induces inflation, the money they receive from increased wages, tax collections etc would be the same if there wasn't any inflation - the real value of money would be he same - so i am not sure what he was talking about there. I understand the benefits for being a debtor, but not the tax collections part
econom1cs 1 year ago
@econom1cs He is referring to the tax brackets. Since the brackets remain at the same numbers (they are not adjusted continuously for inflation), as the wages move up they enter higher brackets, so a greater percentage of the wage is taken as tax.
tothemax01 1 year ago
2 people missed the "like" button...
Sam26100 1 year ago
Peter Schiff has taught me so much and I never get tired of listening to him. Everytime I listen to him I learn something new.
Ana1106 1 year ago
I like Peters passion and I like the idea if him running for senate. We need someone with his knowledge in the senate. If you want to learn about Silver, check out my channel.
Silverbuzzsuccess 1 year ago
Defaulting loans are replaced by new CREDIT (not cash) creating a larger credit bubble. Credit cannot expand forever because it requires actual borrowers to take on loans and actual lenders to loan it out.
Credit cannot continue to expansion forever. That's why you're seeing every state have to cut budget, austerity measures around the world, government debt is 96% of GDP. They can't even make payments, yet we're supposed to believe that they will continue to inflate the currency indefinately?
secretbonus 1 year ago
I'm suprised Peter believes "helicopter Ben's" stance that he'll print money like crazy when he knows what a liar he is. The fed won't jepordize it's balance sheet. As production declines our ability to pay for it declines, but thats not always inflation. Production/material available declines. Thus in relationship to the dow, gold will go higher. BUT dow&gold could both go to $1000 as credit contracts (deflates) and our ability to pay for things (credit) decreases as dow/gld heads towards 1.
secretbonus 1 year ago
according to the US Constitution, my dollar is worth 371.25 grams of silver on any given day. Now if I just had dollars and not these spooky Fed notes.
The US dollar was designed after the Spanish Pieces of Eight silver medallion and that was to be permanent, so what happened? If a dollar were worth that much these days we'd be filthy rich with 20 bucks.
uturniaphobic 1 year ago
the reds the whites and abused, hell is truly on its way...
misslovely2882 1 year ago
One problem it is not "privately" owned its its a state monopoly that bankrupts banks and that 5% pile of crap doesn't account for the massive inflation remember if the inflationrate is higher than the interest rate its always a loss.
deltapunk21 2 years ago
Actually in terms of price deflation it would continue in the prosperous oh wait another capital good invention and massive production lower prices events.
Deflation in reality never occurs I mean serious raising interest rates would cause the delfation the only course of action to take in reality it merely gives value to the money and the money does nto exit the supply ah contraie it enters the hands investor on the wings of an interest rate
deltapunk21 2 years ago
And as for 'honesty and discipline' in expanding credit, have you never considered that the honest way is to allow the market to select money of stable value, as it perennially has, in the form of gold?
Oh, but Friedman doesn't like the gold-standard? No, Friedman prefers central-banking and fiat currency-and thinks the money supply can be extended centrally without too-great an increase, by use of a computer! But how would Commissar Intel know the correct rate? Through tyrannous means perhaps!
Nintendomanwill 2 years ago
Ugh Attacking friedman is like attacking your brother that likes Jeff Gordon he still likes Nascar thank the good lord but he chose a horrible driver.
deltapunk21 2 years ago
Sorry, I don't know anything about Nascar, I'm British!
The only way to make banks responsible and rational is surely to abolish the institutions that are expressly intended to induce credit expansion, by the mass fraud of the control of interest rates-to understand what damage central banking does to banks, just think what happens in a mini boom-and-bust scenario if I countefeit $1 billion, give it to a few entrepeneurs, they invest in production goods and bam prices go up-they're bankrupt.
Nintendomanwill 2 years ago
And regarding jdbrown371's comments, I think somebody needs to learn a little bit of the ugly history of central-banking before they blame financial crises made inevitable by central-banks, on the free market.
Ask WHY banks pursued reckless sub-prime lending and securitised bad assets thus intoxicating the whole financial industry.
That question's answer is the mass-fraud of low interest rates and the moral hazard of the 'lender of last resort' among myriad other interventions.
Market be free!
Nintendomanwill 2 years ago
Right on, Jaffijoe, you can't fertilise an economy with credit expansion because it simply leads to sudden binges which, when ended by price corrections, would end if not for meddling government keeping the credit-expansion constant. And the bigger the boom (the longer I mean) the bigger the bust.
And as for banks having reserve requirements, the only sound way to manage them is to let them be free and therefore more responsible, as well as being free from the fraud of central-banking.
Nintendomanwill 2 years ago
The socialist plan:
Since we all have too much debt, we all need to spend lots more to solve this problem. Big government needs to grow a lot bigger, we need much higher taxes on the productive, much more money needs to be printed, failures need to be bailed out, needs must all be met and finally the debt must be increased exponentially.
mustang607 2 years ago
"Lastly, creating money out of debt is a good idea"
are you fking kidding me?
soundzero 2 years ago
Creting money of debt destroys the real economy and causes massive inflation multplying it by a factor of ten is even more absurd..
deltapunk21 2 years ago
That law doesn't matter because it applies to checking accounts. Other account types had their reserve requirements lowered to practically zero in the early 90s. The banks operate as though they have no checking accounts and daily sweep deposits into savings and money market funds. This understates checking account balances which allows banks to meet reserve requirements. This allows banks to nominally meet their checking account reserve requirements without actually having the money.
jdbrown371 2 years ago
Lastly, creating money out of debt is a good idea but it requires honesty and discipline. The derivatives used to control risk CDOs and CDSs have been steadily debauched creating the false sense of a riskless mortgage industry. When you buy a corn or soytbean contract, it represents something. The CDOs didn't contain actual mortgages. Banks cooked up a phony portfolio and sold it! . When these CDOs looked great it lowered the perceived risk and banks went on overdrive selling mortgages
jdbrown371 2 years ago
@jaffijoe
The Fed no longer sets reserve requirements so there is no legal controlling authority to enforce this. Show me a single law that ENFORCES reserve requirements. There is none. Although very difficult for you to accept, the Fed does not control the economy. It can supply discipline or grant favors but it cannot change the larger trend. I'm going to make a lot of money going long on the US dollar then years later I'll ride the short side. I know what I'm doing.
jdbrown371 2 years ago
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@jdbrown371 You wrote one year ago, " I'm going to make a lot of money going long on the US dollar then years later I'll ride the short side. I know what I'm doing." Do you still maintan this position despite exploding silver and gold prices? Or, are you now "riding the short side"?
howtogetwell 1 year ago
@jdbrown371
Wow, you've really taken a beating on that dollar prediction huh? If you dont respond I'll assume they repo'd your PC.
jjrglobal 11 months ago
@jjrglobal I employ very disciplined trading tactics so I don't lose much when I'm wrong. Nobody who makes a living at this game sits on a losing position. The recent downdraft in the dollar was nothing like the later half of 2009 or later half of 2010. Both times I was short. I've been long the dollar three times since 2009. My sole source of income is trading. I have zero debt and buy basically anything I want. I'm not an oracle and don't need to be to earn a living or make a killing.
jdbrown371 11 months ago
@jdbrown371
So where are you now on the dollar? Why are you trading forex anyway? Or are you playing the index?
jjrglobal 11 months ago
@jjrglobal No position presently, waiting for a good entry point, long or short. Forex "trends" the best and is easier to trade than most other contracts. I use CME futures products to trade Forex.
jdbrown371 11 months ago
@jdbrown371
Anyone that doesn't is either to broke to meet the margin requirements and shouldnt be trading anyway or their just ignorant. What platform do you use?
jjrglobal 11 months ago
@jjrglobal eSignal, nothing special.
jdbrown371 11 months ago
@jaffijoe
We don't even have fractional reserve banking anymore. Banks have NO reserve requirements whatsoever after Volcker. The Fed gave up its power to enforce reserve requirements. The Fed was initially created as a compromise between banks and government. Slowly but surely the private banks have been taking it over as they no doubt intended all along. Anyway, fractional reserve would add at least some discipline to banking and would be superior to what we have now. Banks hate it.
jdbrown371 2 years ago
You are downright wrong.
deltapunk21 2 years ago
obama just another wall st. partner. nothing he's doing will get any better. he's selling us all out. has nothing to do with race,party,dreams,hope,change. welcome to the new world order! it's time to arm yourselves. it's time to revolt against this corrupted gov't. over throw these crooks. getthem all out. we need a newparty, we the people. new branch for the people. by the people.
omapps 2 years ago
Inflation is inevitable but it's a matter of timing. People aren't borrowing much anymore, saving at record rates, defaulting on mortgages, getting foreclosed and defaulting. All of which are deflationary. Deflation first, then inflation. Inflation will begin only after 99% of experts and your non trading friends become firmly convinced of the reality of deflation and consider you crazy to think otherwise.
jdbrown371 2 years ago
I think he is giving the Govt a bit too much credit.
Govt is not that smart.
Nuanceqwest 2 years ago
Peter you are so right!...i just dont understand why a average american is not able to understand this basic things!!!..I have really become a huge fan of yours over the past few months..i mean when you talk it makes so much sense..I have heard other experts who have the opposite point of viewthan yours and it just ridicules me as to the bs reasons they give for their beliefs..i meanany person who has studied basic economics in school will understand what you trying to explain!!!wake up usa
kc075086 2 years ago
Peter is dead on. I am a staunch supporter of Peter and find myself repeating verbatim many of his ideas. The result... people think I'm paranoid. Infuriating. People don't want to believe.
Deutsche22 2 years ago 58
@Deutsche22 I agree with you let others may think ur paranoid, yet those who don't know what is going on will only see bad times when everything goes down.
Alucardthedeadone 1 year ago
@Deutsche22 I know how you feel. I agree with peter, but I find that my logic is similar to his, this debt spending, and stimulus crap. People always look at you like your crazy, stupid, or just paranoid like you said. I love love love watching people laugh at peter though just to be proven completely wrong 2 years later! It happens over and over. He was right about housing, gold, foreign investment and more. Its common sense!!! but not for everyone. Peace
kickndave21 1 year ago
@Deutsche22 Hanlon's razor states that you should never attribute to malice that which is adequately explained by stupidity. You may want to familiarize yourself with the works of Milton Friedman. He always assumed the good intentions of policy makers even when the results of those policies were wholly bad. This approach may help you from sounding like a "conspiracy nut" to the uninformed.
studentofsmith 1 year ago
@studentofsmith Stupidity can not explain the fraud in our nation in everything from the scam of the health care system to the energy scam. Just like all peoples throughout history, we are being exploited by the greedy at the top. The pyramid structure of wealth exists, and it does not stop with the CEO.
howtogetwell 1 year ago
@Deutsche22 It's not about belief, but logic. Most deny it.
Rensune 1 year ago
@Deutsche22 Amen
Pdrum2 11 months ago
@Deutsche22 I guess peope think i'm a lunatic,that's the price you pay for being smart.
Pdrum2 11 months ago
@Deutsche22 you'll be glad you were "paranoid" when Peter turns out to be right again!! :-)
AllyGuirado 11 months ago
@Deutsche22 that's so awesome you said that, same thing here. I use his analogies all day long and my listeners have some crazy reactions. Ha! They'll believe once it's too late. That's what I love about the easy to understand Austrian economics--you can predict the future! I just listen to Peter's show every day.
beeskneesruiz 9 months ago
There are 600 trillion dollars of outstanding derivatives.
The world's GDP is 60 trillion.
What happens when the options pyramid collapses???????
special1740 2 years ago 19
@special1740 options naturally expire worthless, its constantly losing that value
ricochetVendetta 1 year ago
@special1740 When the optionjs pyramide collapses not much will happen. We'll just have to start over and not from scratch but with a new, sound money system that will promote honest saving people.
WayAboveYou700 1 year ago
The GDP calcs are a hoax. hedonistics, among toher things, make the inflation look less than half of what it is.
Nuker1337 2 years ago
do you know what lol means.
eeen85 2 years ago
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IWashMyOwnBrain 2 years ago
I get what he is saying about the gov. printing money to control deflation but when inflation starts they will stop printing and raise intrest rates to controll it. He seems to think the gov. will not stop printing money? I dont get that.
IWashMyOwnBrain 2 years ago
One more thing. No gold standard? No deflation spiral.
The only deflation spiral to occur was 40 consecutive months of CPI deflation - 1929 to 1933. Once we delinked from gold, no more deflation spiral - 72% dollar depreciation. No country since has ever had a deflation spiral. It won't happen this time, either.
CPI down 4 months, now back up again....
lsa420 2 years ago
I am on the deflation side and Peter is right I dont see how gold is intrinsically more valuable than paper money. At times paper could be more usefull to you than gold. The prices of both move up and down with the market. What am I missing?
IWashMyOwnBrain 2 years ago
Well for one, you're missing the point that you can't print gold. And zero interest rates, quantitative easing, and dollar depreciation do not make inflation. The CPI and PPI are now on the rise, indicating inflation. And inflation is not a rise in prices, but an expansion of the money supply, which causes the dollar to depreciate. Inflation and deflation can also occur simultaneously, in different assets. Think falling house prices in 2006 - 2007 and rising commodity prices ($147 oil).
lsa420 2 years ago
Yes you cant print gold lol but you can find new gold mines and when it is used in industry it is taken out of circulation i still dont see how a gold standard is any better than basing values on anything else at one time people traded shells. Ok i see how you define inflation now an expansion of the money supply yes that is definitely happening lol. Wikipedia sez "inflation is a rise in the general level of prices of goods and services in an economy over a period of time". Which one is right?
IWashMyOwnBrain 2 years ago
I think commodity money is the key - something that can't be debased as easily as paper money - because it is real. Gold, silver, oil - immaterial which one it is.
Both definitions are probably appropriate depending on context. I'm saying that you can have both rising prices in some areas and falling in other areas.
Ask me in 6 months, and we'll whether prices are rising or falling where it matters. I will go with the former and protect myself accordingly.
lsa420 2 years ago
Yes I agree I see prices falling and im selling anyting I have of value that I dont need. i know I will be able to buy back anything I want later.
IWashMyOwnBrain 2 years ago
not all prices will fall.
Imports will not get cheaper.
I am not sure about Oil, but it is very important for the prices of any non service product.
read more at "tin°yurl.c°om/yh6hscv" without the °
It is important to understand what Mr.Schiff means by Inflation: /watch?v=uD64owa6xh4
0MoTheG 2 years ago
Good point on the inports that is why the other currancys around the world will follow the dollar down ( when it lets them lol)
IWashMyOwnBrain 2 years ago
1.
Peter Schiff is wrong about inflation. He is overestimating the intelligence of economist and politicians again. He is right in the long term but he thinks it will correct itself faster than reason will come to people. He is right about the past of Japan but wrong about the future of the USA and china. He is a conservative and against government spending, taxiation and regulation, all of which are needed to overcome the crisis.
0MoTheG 2 years ago
0MoTheG: Do you work for the government?--I didn't understand what you are saying.
Anyway, Peter is right about the inflation.
BlueSkies360 2 years ago
Search comptroller general David Walker.
Watch those videos. They were made way before
the crisis. So if the head accountant for the white house thought we were headed for massive inflation before the stimulus then what do you think the state of the nation is now?
MrDarwind 2 years ago 3
@ MrDarwind
I can tell that there will be a major earthquake in LA in the next 30 years, but I can not tell on what day, so it is worthless.
Sure there will be inflation one day but when?
David Walker has been wrong until now, why does that make him credible?
/watch?v=GK-ysT4R5nQ
/watch?v=uD64owa6xh4
both these vids are important to discuss inflation with Mr. Schiff, he has a very literal understanding of the term.
0MoTheG 2 years ago
there will be inflation in some areas because of the low dollar, but many things are getting less expensive. the oil is still low because of missing spekulation and less need.
2. (I wrote more but could not post it. Links seem do be disallowed)
h°tt°p :/°/tin yurl.c°om/yh6hscv |-. I had to disguise the link
0MoTheG 2 years ago
Dump the Federal Reserve Bank they cause all this stuff
cecgm938 2 years ago 5
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usrevolution2 2 years ago
Just wait until the dollar is dumped as the worlds reserve currency!
f01863 2 years ago 2
that by nature can not possibly happen, don't worry!!
tonybonez 2 years ago
I don't know,the chinese,japanese, india,so-called arab allies,also agree it's time to replace the dollar.
f01863 2 years ago
If the dollar goes bust those economies collapse completely, and I dont just mean a recession, I mean total destruction.
THe whole world is ties to Americas econony.
tonybonez 2 years ago 3
Nice point,but that's why gold is a better buy than investing in the shrinking u.s. dollar.One can only hope that the "powers to be in washington",realize that thier spending is killing the dollar,though I doubt it.
f01863 2 years ago
I don't know though, I dont see how we can keep borrowing and printing money without some countries saying. OK no more dollarss, they are worthless. It might hurt them for a while, but it is also hurting them to be invested with dollars.
I trust Peter Schiff a great deal becasue he saw this current economic collapse before anyone.
I agree, gold and silver seem to be going up right now and will continue to do so.
Look at Obama he says healthcare for everybody, dont worry about the price!!!
tonybonez 2 years ago
I wholeheartly agree,ESPECIALLY WITH YOUR LAST SENTENCE!
f01863 2 years ago
Oh, they know... It's more like "part of the plan".
CyanicVolition 2 years ago
@Tonybonez
Other economies will drop but they will recover faster without America. America loses in the long term more if they drop the dollar. China/Europe/Russia are better off without the dollar.
ezze902 2 years ago
I also think its unavoidable. Even if they wanted to keep the dollar its not gonna be worth anything.
ezze902 2 years ago
Do you really think other countries can function without America, I personally am not sure!
tonybonez 2 years ago
Explain your logic then. Don't just make a statement without proof. Are you saying "Don't worry" so you feel better about your situation?
amolayem 2 years ago
The reason I say that other countries can not not do business with America is Noam Chomskys statement that other countries need America and if the US goes bust the entire world economy goes bust.
I dont know if he is correct, but he is smart, and thats where I got the info..
tonybonez 2 years ago
Hi I agree with lots of you posts but Noam Chomsky lol..
Even if the dollar was replaced the same people would control it also the dollar is based on somthing its called the U S military. Just think if a country that we owe money to wants to wage war against us will we pay them back? lol
Owing you enemy money is a brilliant military strategy imo.
IWashMyOwnBrain 2 years ago
1. The most important thing to remember about the inflation vs. deflation debate is that this is about the expansion and contraction of credit. So what we have going on right now is a contraction of credit which is an effect of deflation. As mentioned in a comment above, "we've a debt laden economy." And when people on the edge of their financial crisis are strapped for cash, they will sell everything to stay afloat and maintain their standard of living. If they don't, then their creditors will.
deflationtimes 2 years ago
2. But during deflation practically no one buys so debtors remain on the margin of survival or default. To add insult to injury, due to the contraction of credit, these debtors can't get any more credit and the vicious cycle continues. So as of late, it is not just people that are on the edge. Creditors are on the edge because the debtors can not pay their debts; corporations are on the edge because their sales have collapsed and they can not pay their debts nor get lines of credit extended;
deflationtimes 2 years ago
3. and now governments are on the edge because this is a SYSTEM-WIDE collapse and there is nothing they can do about it.
Some are saying that we've hit bottom and the worst is over. Don't believe it. The worst is not over yet. We're just at the start of a dive into a deflationary spiral, towards a new great (global) depression.
deflationtimes 2 years ago
1. The Fed's primary function, for more than 90 years, has been to foster the expansion of credit and credit is another matter entirely. Credit is not money and Faber is confusing credit creation with money creation. U.S. bonds are the reserves of the Fed and U.S. bonds are the source of its power. Therefore, the U.S. government does not want its bonds to attain (official) junk status, because its borrowing power is one of the only two powers over money that it has, the other being taxation.
deflationtimes 2 years ago
2. By flooding the market with money, the Fed would cause a panic among U.S. bond-holders, and their selling would depress the value of the Fed's own reserves. So the ivory-tower theory of unlimited cash creation to combat credit implosion would meet cold, harsh reality resulting in the Fed committing suicide by doing just that. As Ludwig von Mises said in Human Action (p.572), "There is NO MEANS of avoiding the final collapse of a boom brought about by credit expansion."
deflationtimes 2 years ago
1. Look a Prechter's track record, from 1979 (when he left Merrill Lynch) to today, and you'll change your mind about him: Using the Elliott Wave Principle ('his "waves") he forecasted a long-term reversal lower in gold (February 1980) and a long-term "super bull market underway" in stocks (October 1982). These forecasts proved correct—especially for the stock indexes. He won the U.S. Trading Championship in 1984, with a then-record 444% return in a monitored options trading account.
deflationtimes 2 years ago
2. He was named "Guru of the Decade" by the Financial News Network (now CNBC) for the 1980s. AND, he forecasted a large-scale bear market, as explained in his book Conquer the Crash (published in 2002), which was his platform to forecast and explain every chapter of today's financial crisis, years before it happened!!
Does that sound flaky to you? So you should listen to what he has to say and follow his lead. Don't listen and follow Bernanke and Congress. It is them who are flaky.
deflationtimes 2 years ago
oh schiff, how long shall you stand by your pipe dream? i used to believe you, but reality shows that the dollar STILL reigns.
komericon 2 years ago
People in other countries buy gold here in U.S. because my understanding is most reasonably priced here. In order to do so they must convert their currency to U.S. dollars. Gold sales are up, so yes temporarily $ is strong, but no for long. When gold prices go up, strength of dollar will go down. Gold is the dollars enemy. There is an inverse relationship btwn the two. If you truly understand then you will understand that you, in fact, were standing by your pipe dream. Dollar will collapse
lindabebe835 2 years ago
You mean the dollar that bought a corvette for $8000 in 1980? If by reign you mean lose value at the pace of money creation you would be correct. Do you believe the trillions of dollars in reserves on the accounts of foreign central banks will never be transferred into other assets? Right now those dollars are only buying US bonds, which have an infinite supply. Wait until they buy those other assets and bid the price up of the input used to manufacture the every good we consume.
jeruon 2 years ago
yeah it just hit a one year low against the euro, which is competing heavily for the spot of global standard currency.
JAROSLAVAGINA 2 years ago
Yes they must to keep in line with the dollar.
ARMSTRONGBLUES 2 years ago
Vote for Schiff, donate funds. He alone is worth a dozen other senators. Give him what that 12 would receive.
focus21x 2 years ago
We got off the gold standard so the U S could have complete controll of the dollar and we do. Control the dollar and you control the economy of the world and we do. The fed will print money to drive down the dollar till we see inflation then stop. The gov has no debt because it can print as much money as it wants. As the dollar goes down other countries must follow or be priced out of the market. Its a win win for the u s. The fed is right print more money.
ARMSTRONGBLUES 2 years ago
you call what we are in a win-win ?
gooseCha 2 years ago
Everyone forgets......or fail to mention it......most other countries are printing money "Stimulus" also.....It is not just the USA
Jacobrester 2 years ago
I can say this in all honesty;
when I was around the age of 6 I remember looking at a dollar bill and wondering, "what makes this piece of paper so valuable?" I asked my mother and she could not answer. However, I feel that if it was in turn a gold nugget I held in my hand things would have seemed a bit more logical..amazing what an unaltered mind with untainted logic and reason can conclude or ponder..because back then I did not know anything, but yet something didn't seem to add up
gooseCha 2 years ago
When I was 6, I was trying to figure out how to pop a wheely on my Schwin bike
Drav1212 2 years ago
lol
gooseCha 2 years ago
The way I see it is all the powers that be are for inflation, from the Fed, central banks, governments & the BIS for reasons too numerous to list. Prechter thinks that the natural economic laws including destroyed credit will overwhelm all of them and still lead to deflation.
I'm no so sure. I think the odds are better for inflation, especially when the world economies heat up down the road.
familybc146 2 years ago
One thing I forgot to mention. Schiff's new catchphrase seems to be that we will experience deflation...BUT IN GOLD! HAHAHAHAH Schiff you paranoid schizophrenic you truly are the skunk of skunks!
We are going to experience deflation in USD because DEBTS ARE DENOMINATED IN USD NOT GOLD. Is your credit card line denominated in USD or gold? Is your mortgage in USD or gold? Is your student loan in USD or gold?
EXACTLY!
ojmoss 2 years ago
Thanks for inspiring me to listen to this. I was an eliot wave guy but now I'm with Peter and your insulting, non sensical woefully childlike foolishness confirms this.
Motoicon 2 years ago
Price movement is not the definition of inflation/deflation. Rising prices can be a symptom of inflation and falling prices can be a symptom of deflation. Demand changes an capital flow have a varying and sometimes dominant effect on prices. Even if inflation occurs, which can accurately be described as an increase in the money supply, certain asset price can still fall if capital moves into other assets at a fast enough pace. It is disingenuous to describe inflation/deflation as a price change.
jeruon 2 years ago
If any of you insane kooks have a cent to your name DO NOT LISTEN TO SCHIFF. Look at what happened in the fall of 08 and then compare him with the likes of Prechter.
We are headed for a massive deflationary depression and CASH WILL BE KING. Buy T-Bills and wait out the storm and you will be able to buy assets very cheap in a few years.
ojmoss 2 years ago
Good advice! I have a printing press at home. I write my own money... 1000 000 bills at a pace of about 10 a minute. Can I buy your gold? I give you 2 trillion of my own currency. I just printed it on fresch green paper!
outsidethebox47 2 years ago
Tell me, when in history has the supply of a monetary unit been increased at a relatively fast pace without an eventual and comparable rise in prices?
If you say never, you are correct. Monetary inflation will always lead to a general price appreciation of assets denominated in the respective currency.
If somebody defaults on a loan, does the money created to provide that loan disappear? If gold was use for a monetary unit in a loan, and the loan was defaulted on, does the gold disappear?
jeruon 2 years ago
continued...
Cunt schiff fails to comprehend that this is a CREDIT CRISIS. Credit is digital and disappears and goes POOF when debts default. If a credit card gets cancelled the $5k credit limit no longer exists. This is DEFLATIONARY. This is going to take place on a MASSIVE SCALE. Private debt makes public debt look insignificant.
USD is the most inflated currency on earth. It is inflated not in physical currency but CREDIT. Thus when credit defaults USD stands to DEFLATE THE MOST.
ojmoss 2 years ago
continued...
His stocks were the beneficiary of the "bubble" he babbled about so lustily.
Prechter on the other hand reaped huge profits in the collapse of 08 and then called the exact short term bottom in March of this year.
Anyone with a rudimentary understanding of the economic science knows that hyperinflation is impossible and deflation is the only logical conclusion of this credit bubble.
continued...
ojmoss 2 years ago
OMG you Schiff minions are braindead. How many of you actually have an account with him? Let me rephrase: how many of you HAD an account with him? Because surely if you did you were VICIOUSLY and SAVAGELY RAPED in the fall of 2008 and your account was liquidated. Schiff for all his "calling the collapse" suffered by FAR and AWAY the worst. His portfolio was down 80-90%. How is it possible that someone who predicts something correctly can lose so much money????
continued...
ojmoss 2 years ago
this is fantastic, schiff if brilliant \
Does anyone know where to find the link or thread to the first part with prechter: conquer the crash
kotash2 2 years ago
Carter took over Jessie Jackson old job of using race card,people were protesting high taxes, no jobs Ponzi Scheme Health care $4000.00 Fine TAX & Global warming TAX $1800.00 per family.,Animal ID ACT ,clean food act clean water act all to take away small farmers land & make it illegal to buy or sell without Govt permit if you violate you loose your property & Home plus jail & Fines but if you say anything about any of these you are RACIST? where is the JOBS ?? welcome to GLOBALISM UN Control
louis12346 2 years ago 2
SCHIFF in 2010!!
69QuIzAcK69 2 years ago 2
Impeccable timing on the inflation-deflation debate, gold and silver are finally breaking out.
There's a positive correlation between the prices of metals/currency and how much ass Peter kicks in his commentary. Too late is coming fast for many deflationist portfolios, and nobody explains it better than Schiff.
trent2429 2 years ago
Derivatives and hyperinflations will get us in the end. We've stopped producing. Gold and Silver to perserve your wealth. China won't keep funding our dept much longer. This is crony capitalism today. Socialize the losses and privatize the profits. Who did this to us!!
FINANCIALCOMBAT 2 years ago
The entire U.S. is just a storefront for the rest of the world's products. We only employ salesmen, we don't make much of anything ourselves. A 'manufacturer' in the U.S. may merely be an 'assembler'. For example.. computer companies. Sure they employ people to build the PCs, but where are all the parts made? China. Singapore. Japan. Malaysia. India. Mexico. Thailand. Vietnam.
redxii1234 2 years ago 3
Comment removed
redxii1234 2 years ago
That would be my idea of deflation too as interest rates will have to raise to flight Inflation in food (for example) and commodity prices.
Deflation high priced assets, inflation of low priced ones.
Ineedtoshortenmyname 2 years ago
This comment has received too many negative votes show
Mr. Schiff, the problem with your way of thinking is that a government like the United States is NOT like you or me. It is a power in the world. It provides military and food stuffs to the world. If the US is put into a position that its economy is going to collapse because of the lack of those loaning us money or whatnot then the world itself collapses. Gold is not the answer.
KiheiLawyer 2 years ago
Do you know what's going to happen? The Bank Holiday is in sight and be prepared to lose 30-40% of your USD's value the moment they launch a Bank Holiday.
Do you know that all the US embassies in the world has already been given instructions to exchange their USD to other currencies that could last them for at least 1 year?
How naive you guys are. Look out for the weaponized Ebola Strain Flu Virus that will trigger the Collapse of the World's Economy and wipe out most American's assets.
look4edmund 2 years ago
On what day can I officially tell you that you were wrong?
KiheiLawyer 2 years ago
wrong kiheil. there's so many fallacies in what you just said
tmac9938 2 years ago
you are a fool to think the government is good.
they caused this mess!
hyylo 2 years ago 3
You are correct, but gold and silver copper is better then the dollar. Its my guess that no currency will be worth any thing. because they ( the rulers of the world dont want people making more money etc... food water clean living is better then anything,
comebigarestayathome 2 years ago
The US spreads death and destruction around the world. Gold is the answer to little people like you being able to preserve your wealth "when" the government attempts to screw you over. But don't get me wrong. I don't want you to purchase gold. I want you to lose everything you've got, and leave the gold you could have owned for someone else that does understand it.
RedDelPaPa 2 years ago 2