Peter Schiff on Gold, Geitner, Roubini, the Fed and housing

[drkshad0]

@doomz78 "but this will be the time to buy it." -- THAT's the idea! Investing in commodities and precious metals isn't a way to 'make a buck' - it's a fairly decent hedge against government spending and incompetence.

When prices on commodities drop - you buy! :-)

[petesasauce]

CT needs Peter!

[bweazel]

Ugh. It's speculation people. That is the only thing that pushes the price of gold. Period. The fundamentals may sway a speculator one way or another, but it's still speculation. Get real, Schiff. It's a bubble. If gold drops below 1,000 twice. It's gone.

[drkshad0]

@bweazel

"Gold is probably the most irrational of all financial assets. It serves essentially no useful purpose beyond its ability to demand higher prices from someone else. It generates no cash flow. It pays no dividends. Its main commercial purpose is to serve as decoration."

Nice quote. Bet you don't own any stock in gold/silver or commodities, eh? ;-)

Sure it's a 'bubble'! Everyone knows that the USD is worth every cent it represents! Who cares about mundane items like 'deficits'or 'debt'?

[bweazel]

@drkshad0 I do not, but I do own some DZZ though ;) It's not that people don't or should not care about deficits or debt, but people need to understand they're behaving as though they're still living in the 1800s. While at the same time their government, and the financial leaders (over the last 200 years) have invented new forms of accounting, new financial instruments, a new central bank, a fiat currency, etc.. It's time the people woke up to how their economy works.

[pretorious700]

Geithner is a complete and utter buffoon.

[quirkjerks]

So I should buy gold.  Point taken.

[drkshad0]

@quirkjerks : Not just gold. Silver. Oil. Rice.

In other words - commodities.

[bootleg909]

FUNDERMENTALS tell you the market is going 50% higher at the top, its a fact! FUNDERMENTALS tell you the market is going 50% lower at the bottom, its a fact. Keep dreaming man!!

[NUCLEARDOLPHIN]

What I don't understand is why don't the politicians start understanding the truth, Schiffy is the man! Gold will hit 2000$ its a dead cert!!

[bootleg909]

what i dont understand is that you cant see you are wrong

[schwarzblatt]

I hope Peter delivers a KO punch to that corrupt fool Chris Dodd.

[slvrserfr]

Obama should be taking advice from Peter Schiff rather than Warren Buffett. The government also knew about Fannie and Freddie's systemic risk as early as 2001 and the Congressional Budget office was warned many times before the collapse finally occurred. This guy and Don Harold offer tremendous insight on the reality of our economy.

[bakabusu3]

PETER SCHIFF 2010!

[bootleg909]

keep dreaming. Whats the mind set at the top of a cycle? do you know? whats the mind set at the bottom, do you know?

[jasy221]

new money wont disappear just because assets have beeen wrote down, those assets or debts still have to be repaid to the lenders at the price they were at the high price, so the new money still increases the money supply if printed, and if borrowed not printed that will be inflated away eventually, because the economy can only grow through inflation in the state that were in.

[diezeled]

Gold will top around the $2500 level, when is the big question. It is following asset inflation bubbles like every other class, albeit delayed. Sometimes the simplest theory is the correct one...look at this...power of 10...The Dow started its rally in approx 1983 around 1400..peaked around 14,000 ...Oil started its rally at about $15...bubble popped at $147...Gold started its rally at around $255 at the turn of this century...(target) $2500 area....

[lsdnotlbj]

It's impossible for anyone to predict with any degree of confidence, in my opinion, what will result from central banks current policy. Peter you could be right, all that money could get out into the system and cause the dollar to vaporize rapidly. But the deflationists also have a good argument that this new money will merely be poured down a pit of bad debt. I think it's just too convoluted and unprecedented a situation to analyze with any degree of certainty. I don't think it will end well.

[panther9mm]

Peter is the only one who got it right. You are being brainwashed by the media.

[roddiero]

No, you're missing something subtle. You don't have extra money. Do you? Have you gotten more cash from the stimulus? Probably not...most people are not. And the people with extra cash are buying gold because they fear a crash of the dollar. Inflation has not hit yet. Job losses, people working for less, loss of production: all deflation, not inflation.

People are reacting to the fear of inflation early, and they will be right or wrong down the road: That's speculation by definition.

[panther9mm]

I don't have a job anymore, so I don't have any money at all. I pay close attention to food prices and they keep going up at a rate of 10 cents a week per can of food.

The point you are missing is that gold is money, so there can be no bubble in gold.

[lsdnotlbj]

Actually I pay little if any attention to "The Media." They have no clue. I'm an accountant who looks at balance sheets and sees piles of worthless "assets" which will evntally have to be written down. This will create a strong deflationary undertow. The central banks are desparately trying to re-inflate a balloon which has a huge hole in it. Whether they succeed is questionable. Please don't assume everyone who disagrees with you has been brainwashed.

[panther9mm]

Why do they need to be written down at all? You say they are worthless, and in the market they are worthless, but they can put in a number, and it has value. Then they can use that asset as leverage, and borrow more money to stay solvent.

Obama is all for transparancy, and his record shows. Marking to market is history. We on the transparent system now.

[lsdnotlbj]

"Mark to market" has not been completely abandoned, so the banks cannot just "put in a number" although the rules for valuation have been eased. Not to mention that starting next year they may have to take all their off balance sheet items onto their balance sheets and a lot of that stuff will end up being over valued.

[panther9mm]

They won't bring it back if they don't want to or if they lose too much money. They still have to pay bonuses.

[chromedreamz]

peter got what right,its not over yet? i believe in peter and inflation,but an arguement for deflation is valid..we are not zimbabwae.. in 2-4 years, you can say whether peter got it right, 3-6 yrs ago peter had been right, look at this time last yr, peter got it very wrong,and now he is right, we will see

[panther9mm]

Peter has always gotten it right. Gold will probably hit $2000 by the end of the year. Peter has been right since the beginning. You have to understand that Peter is a long term investor. Even if we wait 10-20 years, Peter will eventually be right. The dollar will fall.

[nolan067]

peter wasn't "very wrong" last year, just that everything he said was happening in a timely manner. He never said that anything would happen over night.

[roddiero]

Yeah. I do agree. If you haven't gotten a pay raise or gotten a flood of stimulus cash, and you're buying gold with money you would have spent elsewhere, then it's a bubble.

If you got a bunch of stimulus money--they were just handing out checks--and you used it to buy gold, then peter would be right. But people are pouring their money into gold because they're afraid the dollar will crash: that's a bubble.

But we'll see.

But I do agree, the housing ponzi scheme continues!

[dankeewolnir4042]

but you have to look at who is buying the gold & what the are doing with it.... China, india, etc. the are purchasing with real growth and wealth... and the dollar DID loose value, so it does take more to by per ounce along with the demand increase. In the end, you are right...we will see, because the control prices any way. its so twisted, we will never know even when they bring in the new "system" of mass slavery.

[dankeewolnir4042]

"new money merely be poured down a pit of bad debt"... not really true considering it was created out of debt, so pouring debt down debt, is not the same as paying off debt. If it were worked for and produced genuinely then yes, the "newly created money/debt" would go away as it is payed off, but it has to be borrowed first. Borrowing money to pay of loans will still put the money out into circulation, and that is inflation. But true in this conundrum we kind of have deflation and inflation.

[lsdnotlbj]

"will still put the money into circulation" :Not necessarily. If the banks have to write off the bad assets on their balance sheets they may use their fed credits to offset the write off and poof, the "new money" disappears. I'm not saying Schiffs scenario won't happen, I'm saying that it is possible things will go differently.

[dankeewolnir4042]

you are exactly right, it could go much different than what Schiff says... I think Schiff is totally missing the conspiracy aspect, and lumps it all off as negligence, and ignorance, but these guys have thought ahead. And they have had the gold and silver market cornered for thousands of years now...its no different now, except they dont have to shave off pieces or set prices legally anymore. But if they "poof" away money like you say...we are in the same shape because debts cant be paid.

[panther9mm]

It is not possible Schiff will be wrong. You aren't thinking things through.

[bweazel]

Pull your head out of your ass. Do you actually think you're going to make money? Has a group as large as you gold pushers all made money at once, ever, in the history of the market? No. You all have been used as cheerleaders and pawns each and every time and you end up getting your money taken by people who control the system. Schiff may have saw what they were setting up, but he has no idea where they're going. You most likely bought gold at the top of a bubble. Get over it.

[davenetdog]

hehehe not long to wait to see the effects of inflation...its a 2 year lag after currency flooding..and commodity markets usually look ahead 6 months, I suspect you'll see a steep incline of commodity prices right...about...NOW! Gold up!

[jetmanrun]

The only thing Geithner is a professional at is LYING....