Andrew Schiff 6/18/09 - Fox Business

[Tenatiouz]

Almost 2 years later, and yes GOLD HIT 2K an OUNCE. The Schiff Brothers are right again!!!

[agent1up]

how is this cody chump on any business channel? oh thats right its fox.....

[wagoneeraz]

Gold was around $900 an ounce during this interview; recently it hit new highs over $1,400. Cody was dead wrong. He seems much nicer than the other douches that laughed at Andrew's brother Peter. I hope Cody is buying gold or silver now. People, a bubble is only a bubble when every mullet and his brother are buying it. Gold and silver total around 1% of peoples' investments.

[Tracywithafacey]

@wagoneeraz "A bubble is only a bubble when every mullet and his brother are buying it." Awesome line!

[zimple007]

who is andrew sciff ? is he peters brother ?

[escapeout]

@zimple007 yea they're brothers

[dpla5762]

I thought cody said interest rates would be much higher by now. I guess he didn't figure on QE2 either.

[93msinclair]

Gold 1390 mr Cody

[Vexed34]

Cody needs a nap... and a haircut.... . and a smaller jacket.

[gus196666]

gold 1372 and going up go SCHIFF

[blabblab1212]

In a year when its at $500 dollars an ounce.........................­.. Sorry, goofball, it's at $1350. Get a haircut and straighten your tie!

[Sivels]

haha he's like Peter!

[2237lemon]

so QE1 let the banks take up cash and sounds like QE2 ( if that happens) will be the overun Bernanke will use to fight what they call 'not enough inflation'. Depending on how much that amount is ,will determine how much inflation there will be in the near future. Since banks took up cash needed to shore up their books isn't it possible that a small rate hike could happen at the same time that QE2 hits the credit market. There's no reason to give free money now that their books are adjusted?

[Exus11]

Haha, well gold looks like it did pretty well and as interest rates look very low for some time I hope he never was able to make his bets or he would of gotten tanked!

[Sentinel4truth]

Now that time has elapsed, it is crystal clear that Cody was as wrong as could be on every account. Today is August 17, 2010 and spot gold is trading at $1225/oz. and interest rates are still at "life support" levels at or near zero. I can only imagine how many people sold their gold after seeing this video and are fuming today that they took the advice of this moronic douchebag. And of course, just as Peter was right, it's also clear that Andrew Schiff was Right!

[liveforever72]

with the tripling of the money supply in 2008, that is inflation. Higher prices are the result of the increase in money supply. Cody got this wrong big time. Gold has risen $300 an ounce since his collapse prediction.

[josephlathus]

WOW OF COURSE THEYRE RIGHT! GEORGE SOROS IS GIVING HIM THE INFO!!! SCHIFF IS GORE'S RELATIVE!!!!!!!!!!!!!!! BEWARE!!!!!!!!!!!!!!!!!! DONT VOTE SCHIFF

[macichitte]

Wow economic astuteness runs in the Schiff family. Andrew is just as sharp as his brother Peter!

[brothermikefan]

Schiff should have come back with: "People will be selling their gold to buy the things they need when prices go up so that's why they need to buy gold now."

[6GUNSOUTH]

Wow....where has the young kid been? I have been debt free for about 5 years. My friends have already sold off their "GOODS" to try to balance their debt and have purchasing power for the things they need! Even for June 2009, he was way behind the curve.

[tastyshake]

Why do people insist to argue with the Schiff's? Debating Peter or his brother is like getting into the ring with Mike Tyson in the 80's...You ain't lasting long. Ya know, I kinda thought this Cody dude was kinda dumb...this video seals the deal.

[spernoadversa]

Gold is now over $1100 an ounce. Cody was only $ 650 off.

[Talodus]

Well if he has any money left he can still buy silver like us poor folk.

[thebruno44]

should have bought gold young Cody!

[thebruno44]

I had no idea Schiff had a brother???

[mx4life82]

Cody's logic: People will be selling their gold to pay for the things that they need because the price of those things will be going up.

Well Cody, why will the prices be going up? Inflation?

What is the best hedge against inflation? Gold and Silver!

[akaee]

yes, yes cody

gold right now about 1150

[smokinranger8]

maybe he meant 500$/oz silver ;)

[Jaycephus01]

I'm not sure that I agree with Cody that Gold is going to actually crash to $500, but his statement:

"...the Government has DESTOYED MY ABILITY TO SAVE MY MONEY, THAT'S ALL I WANT TO DO!!"

is just priceless.

This is exactly what has happened, and it takes an investment specialist to even have a shot at 'saving' money these days!!

[meldramir]

damn peter and his brother really look alike

[AFRIKTODAY]

What strikes me a lot is that most people have a short term insight and expect inflation to hit them days or even weeks after the policies of quantitatives easing as put in place. But it does not work that way in the real world and it takes time when you aggregate all the components of the markets for the inflationary cycle to take place. If you doubt inflation, just follow the allays of any food store or shoe store. Price are going up, exponentially and many business are forced to sell to lost

[Sniper2008009]

This I agree upon, these events won't likely to come within days or weeks, hell we might even get to experience these in the years ahead. But despite that fact it won't change a thing, hyperinflation is coming and the world should be prepared by it. However it's not too late, the United States of America could just dump the current fractional reserve system and base their monetary system on a sound policy.

However that won't happen. The powers that be want profit as much as possible

[AFRIKTODAY]

The inflationary policies were not established out of sudden in America. It has been a long continual construction in which the central bankers have accumulated power and influence over time. We have been living, most of us in that system and our society is established in that realm whether we like it or not. However, I truly believe that the "cancer" need to be removed slowly and carefully if we do not want to break the entire societal body. Stopping money printing would be a first step!

[3andurfree]

agreed - it was a great debate!

[tinko1]

this was actually a really good debate wow and not a bashfest too

[icechicken69]

The outdated monetary system holds the world back. Too many people can't figure that out. It's a joke.

[MonteCristoRecords]

Imre1000 makes a very good point. We need to have a serious sit down with our lender friends. Let's work it out starting with labor cooperation and cost savings.

[imre1000]

Both of them didnt explain that hyperinflation wont come from within the USA, it will come from foreign countries looking to dump their dollars and bonds.

[flagship21]

This are not falling because the government is printing money, We need entraperenuers to pick up the pieces

[sony8877]

do origami or play bongos, poetic

[Sniper2008009]

Unbelievable really that Andrew Schiff was better at explaining the fundamentals on why the United States is going to go through a hyperinflationary period. I even thought this was going to be another bashfest by FOX.

I like Peter, but unfortunately he cannot explain well in layman's terms on why the United States will go through a hyperinflationary depression. While he accurately predicted the housing bubble crash, its full of technical terms and only economists and financial analysts know

[AFRIKTODAY]

Come on dude! How hard is it to realize that in the long term, when a Nation print phantom money without any intrinsic value to fix it's problem, it is basically debasing the value of that currency and running the risk of destroying that currency. Historically, all paper currencies have more or less been destroyed and the dollar has already lost close to 93% of its value since the inception of the FED. How much longer for it's disapearrance, just ask Obama and Bernanke!

[Sniper2008009]

You did not get my point, the reason many people do not believe in Peter and happily whistle away thinking that they will never experience this is because Peter is all gloomy and pessimistic. Of course he has every right to be as the fundamentals state the government is doing the opposite in maintaining the value of the dollar.

I'm not saying Peter is lousy or that the average American is a moron, just saying that Andrew did better in explaining this to the average Joe.

[Sniper2008009]

Even though I understand the fundamentals on what Peter is saying, the average American sadly does not. They're too busy working to provide a better life for their families. Not everyone knows the fundamental basis of the Austrian concept on why the FED's actions will lead to hyperinflation.

Ask the average Joe on what they think about the FED's actions, I'd bet they'll just give you a stare and have that confused look..

[601373]

I am not an economist or a financial analyst and I understand what Peter is saying. Sure he says some things in regard to the world of the stock market which I don't understand, but if you have done a good job of educating yourself about the current economic crisis - which everybody with a working brain should be doing - then what Peter is saying is not hard to understand.

"The Creature from Jekyll Island" by G. Edward Griffin is a great way to really understand capitalism.

[AFRIKTODAY]

Peter schiff is a student of the Austrian school of economics which, in the US and most of the world, is seen as an heterodox school of thought! The real issue is the "Mainstream" keynesian approach toward markets and economics. The average person has been miseducated as far as economics is concerned and people have been led to believe that only "specialists" like the Bern Bernanke or Kurgman truly know what is going on. It is the system that is messed up and need to be revamped!

[Sniper2008009]

Which is especially my point, the majority of people DO NOT UNDERSTAND the inner workings of Austrian Economics which Peter is an adherent to so the natural course of the majority is to dismiss him. If they didn't then the majority of the US populace would've hanged Obama and Ben Bernanke by now..

The whole state of affairs of the United States is sad actually. While many foreigners such as myself clearly see what is happening to your country, your very own countrymen sadly does not.

[rayme4raw]

Most Americans do not know how fractual reserve banking works or what a fiat currency is, however unlike during the Great Depression when people wanted answers as to what happened almost nobody understood banking. Today's it's estimated that between 9 to 12 percent of Americans have a good understanding of banking & that's why we've been able to push 254 house members to cosponsor Audit the Fed bill. The Federal Reserve is running scared right now & they are very defensive.

[rayme4raw]

Peter is like a breath of fresh air. I always thought that economics was complicated, then I realized after listening to Peter that these Keynesian economists are like religious nuts that follow a bizarre form of economic theory that only makes sense to their followers. Austrian economics is just common sense and the average person that has not been brainwashed can follow it quite easily.

[Sniper2008009]

This is my point 601373, the majority of Americans do not have an understanding on the fundamentals of the Austrian Concept. Read my reply to AFRIKTODAY, since many Americans are ignorant, then Peter should relay the information as if he was talking to somebody who is ignorant and discuss the basic fundamentals as much as possible like Andrew did.

[rmcc0002]

Is this guy retarded? The money will eventually return to the market. That's the entire point of the phony stimulus. Bottom line = More money = higher inflation.

[kryogenikz]

They keep cutting off Schiff!!! Bring his brother and they wouldnt even get a word...LOL

[MaverickCentricity]

wow, i really like andrew schiff

[Jerrycheng2009]

Cody did not understand, in the morden ecnomic, money creation is in the format of debt! The huge losses of banks are the the money that've been already injected in the economy. It did not disappear at all! Bank's huge losses are other people's gain!

[Edgrot]

Actually he holds a degree in Kainzian economics or economics as it is called in the US. He knows no other answer then he gave because he isn't educated in real economics. Nor is over 80% of the American population. He is still a moron but his education bairs some of the blame.

[banjojambo9]

gold is money- oil is not

[EdMan2012]

kill cody the idiot... ha ha. He'lls be in the next schiff video. traiot. He should know better.

[hc167]

With the current situation, the only possible way that gold will go to $500 is if IMF or US government start selling gold. Well, if that happen, we should buy more and more.

[condorito29]

amen to that.

people may seld gold in the short run, but the problems that caused this sell off will cause those with any disposable income to buy as much gold as possible.

some people may sell off gold and never be able to buy it back. but those who can afford to, will be investing in it rather than ANY other thing.

[brokerdavelhr]

1- the Gold Reserve Act of 1930 makes it illegal for a US citizen to hoard any decent amount of gold. Yet to be repealed as far as i know.

2- Out of the 640+ million ounces of gold collected in the 1930's, only 140 million ounces are left according to the US mint. If sold at a measly 500/ounce, that would only come to 70 billion dollars. Besides, that would be less then an ounce of gold per person in the US. It would not go lower to 500, but actually higher due to lack of supply.

[treboomboom]

wow, some real debate on fox business.

[prescottbill]

Imports (oil, food, crap at Walmart, etc)will rise at a faster than domestic items (not many left) and investments (stocks, real estate, gold). However, as the dollar looses value gold will go up. Will it or any investment alternative go up faster than import items, I don't think so. Both Cody and Andrew are right, stuff is going to cost more, the bet is on what is the best way to play it.

I am buying the three B's: beans, bullets and bullion. I like oil and gas MLPs, too.

[twotwocharlie]

..quick ..somebody phone the police..there's a homeless person in the building !!........oohhh ...wait .!....that's just Cody Willard !

[wcarlpdrysdale]

cody = hair fail @5:00 lol ,,, hope shiff had a can of raid

[Sentinel4truth]

lol His ear piece fell out from all the wild head shaking like some ranting schizoid. $500 gold will be a Godsend for everybody.

[601373]

Why would gold @ 500 dollars an ounce be good? The only rational way that this would happen would be if the U.S. stopped it's current course, quit printing money, reintroduced legal tender laws and the price of gold fell as a result of the market place.

Otherwise gold @ 500 dollars an ounce would represent it losing half of it's value if it were to suddenly happen over night.

[mark7996]

1:16 I think he confused just about everybody.

[chris24sj]

Willard is smoking laced herbs....

[marcosxag]

cody willard says we will have double digit inflation than says gold will not perform wel?l it makes no sense.

[Edgrot]

That's because he is a mouth peace. Right now banks and countries are scrambling to buy gold. If the open public does the same they get less and the population will actually have some wealth. He must do all he can to make people cling to something other then gold. Don't be fooled.

[marcosxag]

cody has a good point the money hasnt made its way into the economy yet and that is true to an extent so far but what happens when all the gazillion dollars overseas get repatriated? which has been happening.the scenario i see is a halfass rebound in the economy based on government created jobs along with inflation.funny thing in african countries before they go bust the government is the #1 supplier of jobs.loks like obama is importing that same system over here.

[marcosxag]

but any crappy rebound will be accompanied with inflation so i guess its not really gonna be much of a rebound if anything.

[Edgrot]

Cody is a fucking shill. The money produced did not eliminate the debt. It's created more and shit the original debt to the fed. Ergo we are just digging a deeper hole behind a gov smoke screen. He is a moron and misleading people.

[Sentinel4truth]

So Cody says inflation may go close to double digits by the end of 2009 yet gold will drop in half?! There's only one way that could possibly happen and that's with massive central bank manipulation in the gold futures market. Oh yeah, just wait until his "complicated futures things" make him broke, then it won't matter who was right or wrong. Gold is money, it's as simple as that. Anyone saving in gold for the past decade has done just fine.

[Edgrot]

mmmmmm gold is great but another precious metal and the reality behind it has caught my eye for years. I hold gold mind you but I personally feel there is another brake out coming for a dif metal............

[Pumpersniff]

And that would be which metal?

[Xasew]

Central banks will buy, not sell.

The situation will force them to see the light, because the last guy holding paper is going go down. You think other paper currencies will retain all of their confidence when the dollar goes down? Especially since the USD is the reserve currency, there's no way that that could happen.

[JessicaBelle81]

Cody is way off base here. You can't double the money supply and keep intrests rates at 0 and not expect serious inflation...ofcourse Austrian Economist define inflation as an increase in the money supply.

You can't create capital from a printing press. Kody sounds like a damn Keyensian.

[puffyDK]

Ok..so lets follow the deflation guy's logic...if the new money created is simply filling the banks' deficits...lets just create money for every failing business with a deficit...and no business will ever fail?? Makes sense right?...wait...nope, not really

[4rcane]

I don't understand the argument. Bank has alot of debt. So if you create new money to fill that debt. Theres a receiver of the other side of the debt. Thats extra money he could use in the economy to drive up prices

[MattyS54]

i think the chances of gold going to $500 are minimal but you best believe i'll be buying it like crazy at that price!

[tianya1389]

man the brothers do look alike.

[ronpaulspanish]

I want to see Peter debate here... He is just sharper

[Tasadaru]

There will be a huge deflation before hyperinflation comes. That's how the bankers role n*gga!

[4rcane]

Can anyone answer this question

When you default on the house loan, that decrease the money supply

When you default on a bond, will that decrease the money supply

[sonofaglitch2]

Cody's just talking about deflation/inflation in terms of prices. He's missing the point; real inflation is just an expansion in currency & credit. Whatever that money chases is what will show the price inflation first. That will probably be necessities like energy, food, commodities, tangible goods. Then dollars will rush into perceived safe havens in hard assets like gold, silver, etc.

Andrew Schiff is correct about price deflation of propped-up assets (like houses, stocks, bonds, etc.).

[devilmirror1]

IMO, Cody's logic did not make sense. With all these Obama's plans, the Fed and Banks cannot just hold fiat money in their vaults. Even if the banks won't let people use money, the government will spend it like crazy. For example, we are currently send troops to Iraq and Afghanistan. Where does government get the money?

[Panpiper]

Technically the banks 'could' just sit on the extra currency. And Cody is correct that given just how extremely insolvent they are, it may never actually be used as reserve with which to issue credit. However Schiff's point is that the government is spending trillions of dollars in stimulus which IS new currency in circulation. The Gov gets the money buy issuing treasury bonds, usually purchased by foreigners. However they have run out of currency they are willing to loan to the US. Continued...

[Panpiper]

And so what is happening now is that the Federal Reserve is buying those Treasury Bonds (Treasury bonds are IOUs from the government, national debt the people have to pay interest on.) Where does the Federal Reserve get the money? I doesn't, it invents it out of thin air. Some economists like to refer to this as 'Quantitative Easing', so as to hide the fact that money is simply being printed. Argentina especially uses this a lot. Note they have gone through three hyperinflations in 33 years!

[LenovoFightsPoverty]

central banks will sell gold too.

[billsaintkilda]

A lot of central banks have already sole the bulk of their gold reserves.

[sonofaglitch2]

And if/when the IMF sells theirs, then MAYBE gold will fall significantly (like $500/oz). But if anyone really thinks people aren't going to bite at that and buy tons of gold (literally), they're delusional. Then precious metals will shoot to the moon, and the dollar will plunge into the abyss.

[Sentinel4truth]

In the 70's, when the IMF sold 1,600 tons of gold, the price went up eight fold. Defies rational market logic but that's gold for you.

[Thrice13]

Is Andrew big, or is Cody small. It looks like Andrew towers over Cody.

[rockman22]

Maybe a bit of both

[4rcane]

Cody is trying to look for a place to preserve his wealth, yet he fail to see the very thing right in front him, gold. Everything he is looking at are USD assets, future promise to pay, yet if dollar falls by 20%, inflation raise 10% from money printing, thats almost 30% lost.

[Panpiper]

Actually that would be 1.2 times 1.1 equaling a 32% loss. ;-)

I could not figure out from what Cody said 'why' he thinks gold will drop. He cannot possibly believe that US citizens have so much gold to sell (and would dump it at the very time that it is the only asset of theirs holding value) that it would knock the price in half in the world market. As the world's reserve currency (the US dollar) drops, the world will need to shift their reserves into gold, and that will drive the price.

[4rcane]

could you explain me how you work that out. I'm a bit confused on the math bit. I see sometimes on tv, ppl work it out so quickly somehow. To me. I just saw it as 20% + 10% = 30%. Apparently thats incorrect

[billsaintkilda]

As an example.

$100 + 20% = 120 plus 10% = 132

So 20% plus 10% actually = 32 % of the original amount.

[4rcane]

ah, so basically difference is compound vs simple

[szol2005]

Go Peter!

Euhm, Andrew ;)

[LenovoFightsPoverty]

I also think gold will go to 500$.

The US shall have to sell their gold for food.

[4rcane]

so invest in food

[LenovoFightsPoverty]

I only invest in stocks from the Hang Seng or China.

[Panpiper]

Here is the thing, the quantity of gold held by US citizens is minuscule compared to the quantity of gold held by the rest of the world. If the US economy existed in total isolation, I could see some logic to the idea that the price of gold might drop as people needed to spend it in order to eat. But in the real world economy, and selling of US gold will be bought up by international buyers. As the US economy and investments tank, the world will be looking for security, and that is gold.

[Sentinel4truth]

People who expect gold to halve in price forget there are these things called government central banks that will gladly buy all the gold they can get. I believe 2010 will be a spectacular year for gold juniors.

[dumbworld]

Andrew is Peter but with more hair. :)

[4rcane]

Andrew seem a bit more timid vs Peter

[mattgeb84]

go to the bank and exchange your dollars for some Chinese yuan

[ricochetVendetta]

yuan isnt available?