canada raised their rates 3 times. I remember reading a news article that to paraphrase went something as follows.
"the banks have raised their rates 3 times in the last year and are not changing their rates, housing prices have fallen 3% this year and may fall as much as 15% over the next 5 years. If you are looking to buy your first house in the next few years, we suggest to rent. If you are upside down from house flipping TOO BAD
There will be no inflation, all money piddeled into the economy at the bottom is funneled right back into the top at the current "market" structure. The only way inflation could happen is if the bottom 95% somehow had huge piles of excess "inflation dollars" to chase or "demand" goods or services, they don't and never will in this "system". Nobody has wheelbarrows full of money to buy a loaf of bread. Controlled deflation is their goal. They've made you poor and want to keep you poor.
No banks borrow money from the FED using the discount rate, if they did there would be a run on the bank. Thats why this whole video is retarded, because its factually incorrect
Wow!Haven't we(USA) learned from history.Fiat money, unbacked currency, always fails. Let me get this straight when the FED loans cheap money to the banks, the banks make rake loads of money.At the same time the poor and middle class see a rising of prices over time, given that production of goods doesn't increase to lower the cost of goods.I think i should read that book by RON PAUL called END THE FED, it would make a nice christmas present to my family and friends. Also Meltdown by T.Woods Jr.
The banks borrow from the Fed at 0%, then lend that money at 5% (let's say). The banks earn profit from the rate spread. The banks *also* pledged the mortgage as collateral for the loan from the Fed. When the Fed raises interest rates and the banks cannot pay, they will assign the mortgage to the Fed as payment in full. Then the Fed is stuck with these long term amortizing loans that secured by devalued property. Property value varies inversely to interest rates.
I agree with Schiff the big U.S. crash won't be like Japan. When the U.S. economy does collapse it will hit with a big thud. Like nothing ever felt before. But with restructure and market self-correction it can build a stable functioning economy.
The United States holds the largest gold reserve in the world. With 8,133.5 tonnes. Way more than any other nation. The USA is making the most money in the gold trade, a great hedge to own.
Wait a minute, you're telling me banks in US are issuing 30yr fixed rate mortgages!!!!??? Hard to believe but if that be the case, they deserve to go bankrupt for stupidity
Makes perfect sense. But, before I convert all my money into gold, I'd like an explanation for why gold prices inflated so much 5 + years before the credit crisis was revealed; this, after not moving anywhere for the preceding 20 years. Reason I ask, is that, like the stock market in the past 16 months, looks like an "insider job." Maybe 1200 IS actually the 2000 or 5000 that you and others are predicting - it just got there already. But then...why is there such a backlog of gold lately?
and this is why you won't win the Senate race. And the dollar is higher now than it was when you started your run for the Senate. Gold has held steady...hummm...there is no inflation right now. interest rates are fine.
Peter, when will you speak about the price of gold falling, it's fallen a huge amount in these last few weeks. It just doesn't make sense, the dollar is falling no one seems to be selling gold yet the price is falling off a cliff what's happening?
@Unkn0wnGuy I believe as you do on this about the one world currency. I am a christian though and propehcy seems to indicate a one world currency in the last days. Also to be realistic it just seems like we are headed that way. It seems like the U.S Dollar is deliberately being destroyed. These people that run america such as Obama and his cronies have harvard and Ivy league educations. Does anyone else see that our economy is being deliberately destroyed are am I just out there.
Peter, could you link to an explanation of how the mortgage industry works? I though that the banks borrow at X%, and loan at a higher %, so they make money through the term of the loan. So how does it change in interest rates are raised by the fed later? Are these bank loans adjustable?
The feds wont raise taxes because NObama is a communist. Hes a dirty communist. The communists were against taxes in the first place, so it makes since that NObama would be againts them. HUSSEIN is also a closet racist. I hate racists. He is no good. Good thing we only have 2 more years with this mistake!
It is the communist and social types of governments that have high taxes. It has the mentality of high taxes so the government takes care of everything. I mean for crying out loud, it is because of the new healthcare (government funded which comes from your taxes) that Obama is called a communist and socialist pig in a first place. Stop making ignorant claims if you have absolutely no clue what you're talking about.
@c0nv1ct1337 Ok, wow, youre such a damn Republican conservative bible thumper. You sound really confused so I will spell it out for you real easy-like. Obama is a communist, OK? He wont raise taxes because he wants us to be communists. Communist countries have no taxes in the first place and that is what obama wants.
If we want to save americas capitalism, we need to raise taxes like they do in REAL CAPITALIST countries like Canada and Italy etc.
I'm gonna split everything you said here cause its plain lies, garbage, and hypocrisy.
1. I'm a Libertarian Atheist.
2. Obama is a socialist democrat. NOT a communist. Stalin, Mao Zedong, Lenin, Karl Marx are considered communist.
3. Communism and socialism leaves the welfare of others in government hands. To do this, high taxes are placed. Look at history you moron. Republicans (Reagan especially, even Bush CREATED TAX CUTS!)
I completely agree but I'm arguing that it is the Left/Socialist/Communist/Liberal/Democratic is (USUALLY) the side to increase taxes unlike the Right/Conservative/Capitalist/Republican side.
Again, not always the case but it is usually this is true.
@c0nv1ct1337 Please don't call these people liberal. Mises was a classical liberal, Ron Paul, Peter and the founding fathers can be called liberal but the dems and socialists have nothing to do with the principals of liberalism. American conservatism used to be about preserving values of classical liberalism. Until the neocon era ofc.
I don't even have to argue as you pretty much answered yourself why I called the left liberals. Modern liberalism is considered social liberalism (at least in the states). Now classic liberalism is pretty much considered to be Libertarianism here.
I could be mistaken but I'm almost certain that's the condition.
@c0nv1ct1337 Since when is youtube full of communists? Get out of america and take Comrade Obama with you. Im tired of his communist anti-tax point of view.
THIS IS AMERICA, WE ARE A FREE CAPITALIST COUNTRY. We dont need protection from taxes like some 3rd world socialist country like canada is turning into because of their socialist BS"
@c0nv1ct1337 But that's not correct. They're not social liberals. They're just for killing babies and promoting homosexuality and these were no issues back in the days when a liberal thought was being formed. They're all for putting RFID microchips in your hand, national ID, gun control, they love to play race card, and what the guy does with his money is pretty much a part of social life as well. Calling them liberal is a distortion out of Orwell's 1984. They're social libertines not liberals.
You really do seem like a fellow that would know about this but I can almost bet my arm and leg that what you described are modern liberals. If you wiki Ron Paul you can see they call him a libertarian and Obama is a liberal.
@dslcobra Just like he missed the big picture in 2004 when he predicted the housing collapse of 2008? And the Fed is not the "government." It is as "federal" as federal express is. It is a privately held corporation that centrally plans our interest rates (i.e. monetary policy). The fed shot itself in the foot with Zero Interest Rate Policy, because even though it is a private banking cartel, it still wants to be paid back at interest, preferably with paper that has some value.
@dslcobra No he did not miss anything, you did. 1) Home values are bound to fall anyway 2) States are already broke and property taxes won't help at all, you don't really think that states financed their expenditures via PT only? All you're really insinuating is a pro band-aid approach which covers up fundamentally weak points. It's plain stupid. I've been in mortgage industry for 7 years, housing, trust me, I do know.
first the banks are not loaning much money out, they are riding this out protecting themselves. secondly the one thing this money give away has proven? we'll be better off if the fed let's weak preformers fail/ fold. and finally, the fed can want and not want to do whatever they feel. however, you neglected to bring into the picture the global pressure that now more than ever will carry a much greater voice in the feds decision making. lot of very bad medicine on the way, relax...it's coming.
@trilegdog Zeitgeist is full of mistakes, cookery about socialistic utopia and conspiracy theories about Jesus. Better watch 'money banking and the federal reserve'.
He's right. At some point, the fed is going to have to raise rates (contract monetary supply) to combat runaway inflation. Once the economy gets better, the banks will start using the money they've been hoarding which will cause massive inflation. When the Fed finally contracts the monetary supply, the aggregate demand will contract causing a recession like the one in the 1980s. This will only occur once our economy starts getting back on its feet. It'll be a while before we're back on top.
@blacksabbathgnr098 The economy will not get better. The fed will be forced to lower the interest that it pays to banks that hold their reserves with the fed, in order to stimulate the economy.This will fail, because it will not go into savings and production, but rather spending and more debt.It is also highly inflationary. The velocity of money will skyrocket, people will not want to hold cash. The government will institute price and capital controls, stores get empty.Then you are screwed.
Majority of you people have no idea how banks make money. Essentially it is loan*interest minus deposits*interest. Look at petro-dollars for instance for a reference point. If a bank is sitting on a 30yr old mortgage where borrower pays 4-5% then it's bound to fail when it has to pay a depositor 7-8% in future with higher rates. There is nothing wrong with Peter's statements. But then again reading huffingtonpost everyday can brainwash everybody to point of Shutter Island scenario.
@RGT88 That is a very simplistic view of banking. Deposits do not simply cover loans. Would be too much interest rate exposure/risk. They often match off their loans with matched borrowing and keep the spread or too frequently, they package loans and sell them off 10 minutes after closing the mortgage. Banks constantly tweak their fund short/lend long term and vice versa to manage their rate exposure based of future views of rates. Govt cant raise rates because it is all short term financed.
@RGT88 In what century? Banks' loans have almost nothing to do with deposits and have not for many many years. I mean, maybe if it's Mom & Pop's Hayseed County Savings & Loan, but the "real" banks create new money. New money is what they loan, not deposits. While it is true the amount of money a bank may create is a function of the deposits on the books, the deposits are generally an inconsequential portion of the capital structure they create loans from.
Right towards the end, but in the first part? Come on Peter you know the banks CREATE money when they write a mortgage, thru the miracle of fractional reserve banking, they don't just borrow it from the Fed. That money they loan you comes out of thin air.
Peter, what do you think will happen to gold since mao-bama is going to start taxing all transactions over $600.00? What was once the only safe haven is now going to be monitored. Do you still like gold and do you foresee prices dropping as a result?
@TheNRA4ever those taxes do not apply outside the USA. That means gold prices will spike through the roof outside the USA as demand peaks up globally, while demand in the USA will lead to people a) getting it via blackmarket b) melting jewelry on their own c) panning for gold and d) leaving the USA. This can only drive prices up massively. If $2000/oz was coming before this change, $20,000/oz is within sight after the change
Yes he is 100% correct , and i agree the government should bite the bullet , raise interest rates let people dump the houses and start over.If someone went into bankruptcy they could buy a new home in 2 years out of the bankruptcy and not have the artificially inflated home.The US would be free and clear in two years but at the rate it is going its going to take allot longer.In the meantime rents have also doubled this is going to be worse for the economy > Just Bend Over and Take It like a Man.
The fake govt run economy will continue for as much as another generation as long as other govts continue to lend money to the Statist/Totalitarians. So, unless there`s a military coup and a dictatorship that FORCES the USA back to strict Constitutional values and ther eare quick summary trials ala Ceausescu then USA is basically F***ed ! F***ed because the USA has been on this same trajectory since Wilson,maybe even Lincoln.
"What happens to the banks that are sitting on 30-year mortgages when they're collecting 4, 5%? Well, they go bankrupt." WHY? Are banks no longer practicing fractional reserve banking?
@BorderlineNOS If inflation is 7% and the bank is only getting 5% they are losing money in real terms. Remember real estate prices as well, banks are praying that home prices will go up since they are sitting on so many foreclosed homes and don't want to put them on the market until the market improves.
@petiemac24 china is not in the GLUE factory. they are on the race tract. WE are in the GLUE factory along with Europe. please try to comprehend. there is a difference between a glue factory and a race tract.
China, India, Europe, Austria, Canada and other country... tighten monetary policy. The world trend is interest rate going up, cut back deficit, and tighten rule in housing market. It is matter time United States have to follow the world trend. The interest rate 6%, the U.S economy will go down. 71% US economy is base on BUY STUFF, each point interest rate go up, the US economy go down. The question who is right about inflation and interest rate.
Aaah, the end game is explained. It is an unsustainable Ponzi scheme, but Peter I hate to say it, but this is not a hard call. Unfortunately, the government will run the Ponzi scheme as long as the rest of the world allows us.
But it is not the Fed. It is the FEDERAL government and the American people that are the addicts. The Fed is THE ENABLER.
We are the lazy, morbidly obese, bedridden bum that is insatiable. The Fed is merely the mother/spouse shovelling the food in our mouth.
"But it is not the Fed. It is the FEDERAL government and the American people that are the addicts. The Fed is THE ENABLER."
I probably would place the American people first, then the Federal government. Still I agree with you but politicians including Peter don't put it in those terms because it will not aide their cause in any way. If he was to speak the truth he would have no followers at all.
I think it is a bit of the chicken and the egg. But it is a symbiotic relationship with the politician living off the voter.
Quite frankly, I still give Reagan credit. I think he truly believe in what he said, although his handlers had other ideas. It is nowhere near as bad as the pack of lies from Bush I, Clinton, Bush II and Obama. i even give Carter credit s bad as he was. And JFK was probably offed by the miitary industrial complex.
hahahahahaha, million dollar donation.... hurry and announce the results, schiff - we are all waiting to see how much was actually donated. hahahahahahahahahahaha.
Peter you have to think about your health, we don't want your genius jeopardized, firstly you have too many emf emitting electronics devices positioned around your body at your computer work station.
Secondly don't use wifi, especially that cordless phone, a small inconvenience could prevent cancer or other illness and disease in the future.
Lastly diet is probably the most important, but too long to write about...
@leone20012 not every transmitting device is dangerous to living things, much less to people. Most of those devices are such low-emission you wouldn't be able to power anything off the emissions, and at a distance of 2 feet or more, likely get nothing at all from it. Keep in mind, just like with microwave ovens, only specific tuned frequencies AND a higher level of power will actually do anything. The rest will do nothing to us. wi-fi can not cause cancer, wrong freq.band
What if the World nations went to a one world currency. No dollar, No Euro Just simply one world currency. Isnt this where we are headed. What is your take on this
What if the World nations went to a one world currency. No dollar, No Euro Just simply one world currency. Isnt this where we are headed. What is your take on this.
@anjelicknight1 My take on it - from Canada - is if governments accept a world currency they will have destroyed any sovereignty their country once had. As such, I firmly believe that forcing citizens to use a world currency is treason and gives us the right to hang them from the nearest tree.
When people really understand how the monetary system works, they will realize that a world currency will make us all slaves. No joke, I encourage everyone to see "Money as Debt" on youtube.
@Unkn0wnGuy I believe as you do on this about the one world currency. I am a christian though and propehcy seems to indicate a one world currency in the last days. Also to be realistic it just seems like we are headed that way. It seems like the U.S Dollar is deliberately being destroyed. These people that run america such as Obama and his cronies have harvard and Ivy league educations. Does anyone else see that our economy is being deliberately destroyed are am I just out there.
@anjelicknight1 I see it too, but it's critical that we do not allow them to do it without a fight ... I'm talking 1776 style. This may be the opportunity of our lifetime to make a difference and fight for what's right.
Peter, you are obviously right in the long-term, but in the short term there are tricks that can be used to keep the gold price down without raising rates. How else do you think the price was around $300 for almost 20 years? Do you think there was zero inflation during that time? Of course not - there was central bank manipulation. I know you like to avoid conspiracy talk and stick to fundamentals, but its pretty obviously they work to keep gold and silver down.
@RikaKazak The Fed could actually keep nearly anything artificially low. For example, the Fed could purchase oil barrels, monetize the debt by printing money, then sell the oil to American distributors for $1/barrel. This would be a disastrous way to manage oil, but this is similar to them keeping interest rates low and hurting savers. Plus, naked short selling has been banned by the SEC, (a bad call). I don't know if that restricts the FED as well, but certainly for private investors.
@SomeUsefulIdiot banning naked short selling is a good call, not a bad call. Naked short selling is fraud. You can't just sell something you do not ever intend to cover, nor have ever had. It means you get to steal and fraud. If you have money to cover back the loss on a short to buy back the equity it's not a naked short sell.
It's not fraud because you do intend to pay it back. If the price per share falls, you profit, but if it rises, losses are incurred. It's an important market tool, because if short sellers are hovering over a particular company, it's a good sign that the institution isn't finanancially sound and can help cause the bankruptcy to occur earlier, rather than let them further distort the market making the inevitable crash worse.
@SomeUsefulIdiot you disagree? On the DEFINITION of naked shortselling?! If you can cover your short it's not a naked short-sell, it's covered. Be it a buy-back or cash-reserve to cover a mistake, it's not naked. Naked means by definition no intention and no requirement to cover or repay ANYTHING. NAKED SHORT SELLS ARE FRAUD. Any other kind of covered short-sell is NOT FRAUD and is the 'market tool' you are talking about. 'intending' is only wishful thinking + fraud
@RikaKazak naked short-selling of gold and leveraging gold certificates has already been happening. There's a limit to how far it can go before people's demand for physical gold and silver exceeds the game's parameters and the game is over. The so-called CFTC & 'financial reform' allegedly will have intra-day and end-of-day limits too which means physically impossible conditions would be barred, leading to fines or banning from the market, but we'll see.
@dukee155 that's exactly right, proving my point to a few other people there is no such thing as a deflation-waiting spiral or inflation-wage spiral. People's wages are not rising with inflation and people's spending is not going down with deflation. people do not (brainwashing) wait for prices to keep going down. People are wanting to buy RIGHT NOW and due to inflation & taxes CAN NOT but will buy what they need if prices drop. That's the real world.
@ytgv3fc7 Well the reason why he was able to afford stuff now is because he saved money. Also I do not want to sound stupid but what is a inflation wage spiral?
@dukee155 ah, no worries. The spiral is an old myth that with rising wages (first) you get rising prices after (inflated prices). This doesn't happen but a long time ago it was possible. Inflated prices really have to do with money velocity and money supply both being up, but inflated wages can go to savings and flat out losses, neither of which inflate prices. NOW we have global trade: if your wages are paid by corporate profits of shipping FROM China to elsewhere, your spending has no effect
@dukee155 so effectively it doesn't matter if your wages go up or down, shipping from China goes all over the world, not just to your city, state/province and country. ALL those shipping (consuming / trading) markets would have to suffer for certain corporations to suffer and then cut jobs. Typically now you'll see jobs cut before wages because wages were forced down very quickly to bottom-level in almost all cases while productivity has been forced up on the back of poverty & desperation
@dukee155 here's how the capitalist trick works short-term: increasing poverty causes a fear wave-front, so some are done for, some people are nearly done for, and skills have not been lost from schooling or prior jobs yet, and a generation of poverty has not yet destroyed hope in a large demographic. This means people will do really high quality, high speed work for next to nothing just to keep a job, or to get one. LONG-TERM this destroys society.
@dukee155 long-term the reason this destroys society is because education drops and so do wages: people aren't smart enough to be efficient & productive workers after 15-20 years of this economic bashing and wages are so low there is no way to be a consumer, only a survivor. Certainly people exist at both extremes - not getting beat down, or never being able to get up no matter the conditions - but this is a small minority in any generation.
@dukee155 OK, that's quite a few replies and I'm sorry to say that only covers HALF the answer. That's the inflation-spiral side but not the deflation-wait allegation many have made who are stupid inflationary-capitalists. As prices go down (deflating prices, but with money velocity may not be full on deflation) people do not wait to get things they need. Even with inflating prices people don't wait. People buy what they need as soon as possible and the only reason more is bought ...
@dukee155 with a deflating price vs cash-holding is you can get more right then & there. People wait with inflation because prices are too high, despite high need. Can't buy what there is no money for. The ALLEGATION is the precise opposite: that people will some how buy with inflation (wrong) in excess and WAIT to buy with deflation (wrong). People CAN NOT WAIT because NEEDS are in play not DESIRES. Someone's got their market-directions all backwards. But not your dad: buys now that ...
@dukee155 now that savings are up above despite some inflation in some things like gasoline and food. The reason even 'mild inflation' (of prices) of commonly NEEDED goods (no choice: you die or suffer without those goods) is hurting people so badly is because of massive debt. For those not in massive debt, the inflation hurts ability to save but it's not nearly so painful.
schiff this is happening on purpose, they cant be this stupid. we're gonna be using SDR's or Amero's and they are doing everything they can to force that to happen. Remember when Geithner said that the US was very open to an international currency? it's all related.
@tirmen8er The Euro is a step towards one world currency don't count on the dollar being replaced till the Euro is successful......and that wont be anytime soon...imo
Pete, I agree the fed won't raise rates but if the dollar continues to weaken against the other currencies won't that at least put some restraint on the fed? For example wouldn't this prevent the fed from easing again if the slump gets worse?
The fed would be crazy to raise rates now.....they even need to go further and print more money.....We need inflation now....not deflation...no need for the fed to fight inflation when we are deflating!!!!!!!! Pushing the dollar down is the right thing for the fed to do now and they are doing a good job of it. Let other countries raise interest rates that also helps the U S.
@IWashMyOwnBrain there is no deflation. Deflation is temporary and good for lower incomes. Incomes do not drop with deflation just as incomes do not rise with inflation. The history of recent economics proves that. Global markets enforce this brutally. Inflation is poison and is needed NEVER. Not for one day is inflation good - inflation is robbery and theft and hidden taxation and is most damaging to those with lower incomes. Inflation should be rid of FOREVER. Not one more day. Ever.
you are wrong about hyperinflation Peter. Hopefully you will realize it soon. leave the gold bugs - even the shoe shine boys are buying gold (at least the ones who have money).
@zeusvalentine hyperinflation is the only mathematical outcome - the alternative is to destroy massive amounts of global currency, dollars and yen and sterling pounds. It's not about being a gold bug, it's about adding up the math. Too much money in the system, too few goods - too much inflation. You can't pretend the numbers aren't there and the math doesn't lie.
It sounds like he WANTS the dollar to go down. While that may make him a few bucks, it reduces the wealth of the nation and the purchasing power of our salaries. It's essentially a pay cut for every American, especially given how much we import.
@petiemac24 I am just saying how it sounded. As a general rule, I am a "fan" (for lack of a better word), it's just the way he came off in this video.
hmm this guys solution is to raise interest rates so the banks can own even more public wealth... this guys sounding dodgy. The fed introduced low interest rates so they could suck people in and then raise them again so the banks can take even more assets... this is not a solution, it was the intention all along.
@jamesarongray Why should it matter to you which way interest rates go? Be prepared for higher since they can't get any lower, and stop worrying about it.
1979 was glorious for those ready for it. I am looking forward to a redux.
@mcdonaldscalling21 I'm looking forward to the collapse and beyond it as well... I'm just pointing out the banks intentions for people who are interested in hearing
@jamesarongray agreed. There should be no central interest rate, no central bank, and no one should be suckered into this kind of lending, nor their kind of 'savings' which do not even work compared with inflation which is THEIR CREATION.
@ytgv3fc7 Yeah... i can't believe this guy... maybe when this crisis began it was a good idea to keep the rates up but now that there down... raising them is only going to benefit the banks... a new banking system is called for... so i agree with u.
@jamesarongray In a free market, the market sets the rate. When the rate is set by the fed it causes malinvestment. If we have any inflation the Fed will start to raise rates. The fed is worried about deflation right now so they keep rates low. Sooner or later all that extra credit in the system will cause inflation. Inflation causes the % rate to go up. Then when all the federal debt is rolled over at the new higher % rate the whole house of cards comes crashing down.
How long and how right does Peter have to be before knuckleheads get it?
My wife and I are savers and we are discusted in the returns we get. 3% on term deposits? the central banks are preaching to the collective in debt choirs while they screw the people who underconsumed, saved and did the right thing.
I understand the deflation argument and for real-estate, sure. Inflation is real for other goods such as foods and energy. Have you grocery shopped lately? there is massive inflation.
@justgetsome Dude, if all you're making is 3%/annum, you need to start worrying about why you're not making more, and worry less about the inflation/deflation argument along with all the other garbage that means absolutely nothing about making money. Being 'right' or 'wrong' has nothing to do with making a return. Who gives a shit what Peter, Tom Dick or Harry is saying or doing. It doesn't matter, and it won't make you bank anyway, that's for sure....
@justgetsome Look, if you're following someone who's investment philosophy included getting their asses kicked 30, 40, 50% in 2008, then you will follow anybody to hell evidently, and I am certain that even if they were the smartest guy in the room, they STILL don't know how to make money in the markets. That's OK though, because most can't.
There's a reason why brokers have clients, it's because they need the money they bring in for them. It's got shit to do with making a return for you.
i have a collegue at work who is all ways on-line looking at his stocks.
He's the kind of guy who, like a typical gambler, only tells you when he's
winning and never losing.
I had enough one day and i asked him' well how much to you have in stocks?'
He said about $60,000. i started to laugh, hysterically. He said why are you laughing? i said well if that's all you have you are better off puting it in the stock market.
@justgetsome ...it isn't enough money to do shit with anyway. I also proceeded to tell him it all ways guys like you that have advice about money but you don't have the kind of money i do in the first place. I didn't get an inheritance my friend. This savings we have is due to due diligence and for years. I'm still a young man(38). I finished the conversation with; when you get $300,000 in cash and have your house, 2rentals and a new car paid for come talk to me, not before then.
@justgetsome ...i didn't want to turn this into a pissing contest but he left
me little choice. It's easy for him to say put the money into the stock market because it's not his money nor does he have the means to save such. When people achieve a certain level of savings they care more to protect this money than make so called higher returns.
$60,000? What a joke! he's better off going to the casino and playing it on black. This guy will be making his millions on Amway next right?
@justgetsome Fortunately I qualify to talk to you then since, other than the rentals (which I sold 6 years or so ago) I have the pre-requisites.
I now run other peoples money (illegally of course as I have no accreditation) because they realize there are people out there that have proven the market can be gamed well enough, and 3% a year is a dog-s breakfast and a waste of the best opportunity (in the form of the market) to make returns that would knock the doors off of most people.
I sleep well at night making $1000 in interest a month on that lousy 3%, $2500 from my group home which is leased by the gov't of Canada. $800 from our first apt.
The thing is i call people out, and often and no one has even been able to show me wealth without some kind of catch. All they can show is bullshit loan payments, that's not wealth that's dirtbag territory. I tell them such. Loans equal loser and tell them such.
Acknowledging that some people and companies have to buy new builds...ceterus paribus, pretend you had just won the lottery for just enough to buy that new house you've always wanted...you probably won't because it's throwing money away...until the majority of potential home buyers can conduct that simple thought exercise and say "yes, I can afford the risk of purchase", economist will continue to "be surprised" and too big to fails will have to pay interest on the trillions of CDO's they hold..
The main reason why some people cannot refinance, is that they are shocked when the bank tells them they have to come up with 20% down because they have no equity in their house due to the collapse of the value of the house and the outstanding mortgage is too high.
@justgetsome, that is the point exactly. In my case I put 20% down when I bought my house in 2006. My rate at the time was 6.375%. Now I am trying to refinance at 4.75 % and I cannot do it because of my mortgage balance to house value. In order to do it I have to come up with 20% again. I don't have that money. I cannot walk away because I have no where else to go. I am stuck.
@olh1152 ...I understand what you are going through. Banks only foreclose on people in your situation. People that have a vested interest; ie...you put your own money into it, the 20%.
People that put nothing down, had arms or negative amor. all of the gimmicks are sitting pretty because they have nothing to lose and the bank knows it.
This is the moral hazard I talked about. You did the right thing, saved 20%, made all your payments and now you are the one who gets the shaft.
the government owns almost all the mortgages made over the last couple of years in order to promote real estate landing, the banks sell them once the mortgages are made
@TheUSVET Interestingly enough, after the Iceland banks collapses in 2008, everyone wanted to know how long it would take for them to recover. I read last week that Iceland is almost near full employment and everyone seems to be doing fine. Look at Zimbabwe, they are doing better as well even though their dictator is still in power. I suspect that the recovery would happen faster than most people would predict when the Fed Govt and the Fed Reserve collapses for good.
@TheUSVET It is impossible to predict time frames. If the Fed hiked interest rates and let all the bad loans, bad banks and bad companies collapse, if the US Gov. ended its foreign wars and took the troops home, if the US went back to sound money and constitutional government...it'd probably be a few years of misery followed by a great and real economic boom.
nice clip .. i like it .. thanks for sahring
michaelpousti 4 months ago
canada raised their rates 3 times. I remember reading a news article that to paraphrase went something as follows.
"the banks have raised their rates 3 times in the last year and are not changing their rates, housing prices have fallen 3% this year and may fall as much as 15% over the next 5 years. If you are looking to buy your first house in the next few years, we suggest to rent. If you are upside down from house flipping TOO BAD
no bull, that was what the article had to say.
rustyscrapper 1 year ago
Im going to punch the next mexican that i see...
ibelucky1 1 year ago
iM NOT SURE BUT IF ANOTHER MEXICAN CONFRONTS ME ..;ITS GOING TO BE A ROCKY MARCIANOOO. AND ITS GOING TO BE a KO
ibelucky1 1 year ago
iTS ALL UP TO THE MEXICANS...
ibelucky1 1 year ago
LA RAZA
ibelucky1 1 year ago
There will be no inflation, all money piddeled into the economy at the bottom is funneled right back into the top at the current "market" structure. The only way inflation could happen is if the bottom 95% somehow had huge piles of excess "inflation dollars" to chase or "demand" goods or services, they don't and never will in this "system". Nobody has wheelbarrows full of money to buy a loaf of bread. Controlled deflation is their goal. They've made you poor and want to keep you poor.
Bezz80 1 year ago
No banks borrow money from the FED using the discount rate, if they did there would be a run on the bank. Thats why this whole video is retarded, because its factually incorrect
halpyman 1 year ago
Wow!Haven't we(USA) learned from history.Fiat money, unbacked currency, always fails. Let me get this straight when the FED loans cheap money to the banks, the banks make rake loads of money.At the same time the poor and middle class see a rising of prices over time, given that production of goods doesn't increase to lower the cost of goods.I think i should read that book by RON PAUL called END THE FED, it would make a nice christmas present to my family and friends. Also Meltdown by T.Woods Jr.
MsBusiness101 1 year ago
The banks borrow from the Fed at 0%, then lend that money at 5% (let's say). The banks earn profit from the rate spread. The banks *also* pledged the mortgage as collateral for the loan from the Fed. When the Fed raises interest rates and the banks cannot pay, they will assign the mortgage to the Fed as payment in full. Then the Fed is stuck with these long term amortizing loans that secured by devalued property. Property value varies inversely to interest rates.
xtarka 1 year ago
i like that shirt man... i gotta get me one :P
ott0Kitam 1 year ago
I agree with Schiff the big U.S. crash won't be like Japan. When the U.S. economy does collapse it will hit with a big thud. Like nothing ever felt before. But with restructure and market self-correction it can build a stable functioning economy.
jibbi4one 1 year ago
yo pete my dawg thas a flamin old vid yall see
ivar197 1 year ago
U look enough to Bill Mahrs for me to be leery of whatever you say.
tictocq 1 year ago
We need to end the FED.... Watch my music Video on just this. Dontcha Know on my youtube page. thanks.
Deeman2323 1 year ago
The United States holds the largest gold reserve in the world. With 8,133.5 tonnes. Way more than any other nation. The USA is making the most money in the gold trade, a great hedge to own.
halpyman 1 year ago
Government just have to give everyone 30,000 dollars one time to clear all debt.
Civsuccess2 1 year ago
Wait a minute, you're telling me banks in US are issuing 30yr fixed rate mortgages!!!!??? Hard to believe but if that be the case, they deserve to go bankrupt for stupidity
JesusisLord85 1 year ago
Makes perfect sense. But, before I convert all my money into gold, I'd like an explanation for why gold prices inflated so much 5 + years before the credit crisis was revealed; this, after not moving anywhere for the preceding 20 years. Reason I ask, is that, like the stock market in the past 16 months, looks like an "insider job." Maybe 1200 IS actually the 2000 or 5000 that you and others are predicting - it just got there already. But then...why is there such a backlog of gold lately?
ellesstee 1 year ago
and this is why you won't win the Senate race. And the dollar is higher now than it was when you started your run for the Senate. Gold has held steady...hummm...there is no inflation right now. interest rates are fine.
KiheiLawyer 1 year ago
learn more of what Peter and others have to say at totalinvestor com
hhefner2000 1 year ago
learn the truth
libertypoet(dot)com
campaign4liberty 1 year ago
Hi Peter,
Any comment on the recent fall in the price of gold?
Best wishes,
Aiden
aidengregg 1 year ago
Peter, when will you speak about the price of gold falling, it's fallen a huge amount in these last few weeks. It just doesn't make sense, the dollar is falling no one seems to be selling gold yet the price is falling off a cliff what's happening?
cyclinglive 1 year ago
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@Unkn0wnGuy I believe as you do on this about the one world currency. I am a christian though and propehcy seems to indicate a one world currency in the last days. Also to be realistic it just seems like we are headed that way. It seems like the U.S Dollar is deliberately being destroyed. These people that run america such as Obama and his cronies have harvard and Ivy league educations. Does anyone else see that our economy is being deliberately destroyed are am I just out there.
anjelicknight1 1 year ago
Peter, could you link to an explanation of how the mortgage industry works? I though that the banks borrow at X%, and loan at a higher %, so they make money through the term of the loan. So how does it change in interest rates are raised by the fed later? Are these bank loans adjustable?
knau1234 1 year ago
The feds wont raise taxes because NObama is a communist. Hes a dirty communist. The communists were against taxes in the first place, so it makes since that NObama would be againts them. HUSSEIN is also a closet racist. I hate racists. He is no good. Good thing we only have 2 more years with this mistake!
HalfricanItalian 1 year ago
@HalfricanItalian lolumad?
Firefox4747 1 year ago
@HalfricanItalian
Do you have ANY idea what you're talking about?
It is the communist and social types of governments that have high taxes. It has the mentality of high taxes so the government takes care of everything. I mean for crying out loud, it is because of the new healthcare (government funded which comes from your taxes) that Obama is called a communist and socialist pig in a first place. Stop making ignorant claims if you have absolutely no clue what you're talking about.
c0nv1ct1337 1 year ago
@c0nv1ct1337 Ok, wow, youre such a damn Republican conservative bible thumper. You sound really confused so I will spell it out for you real easy-like. Obama is a communist, OK? He wont raise taxes because he wants us to be communists. Communist countries have no taxes in the first place and that is what obama wants.
If we want to save americas capitalism, we need to raise taxes like they do in REAL CAPITALIST countries like Canada and Italy etc.
Its funny that idiots are so quick to talk.
HalfricanItalian 1 year ago
@HalfricanItalian
I'm gonna split everything you said here cause its plain lies, garbage, and hypocrisy.
1. I'm a Libertarian Atheist.
2. Obama is a socialist democrat. NOT a communist. Stalin, Mao Zedong, Lenin, Karl Marx are considered communist.
3. Communism and socialism leaves the welfare of others in government hands. To do this, high taxes are placed. Look at history you moron. Republicans (Reagan especially, even Bush CREATED TAX CUTS!)
c0nv1ct1337 1 year ago
@HalfricanItalian
4. You have no idea wtf capitalism even means.
Let me pull out a dictionary for you.
Capitalism-An economic system based on a free market, open competition, profit motive and private ownership of the means of production.
Did you get that? FREE MARKET, also knows as Laissez-faire. This mean limited to no government involvement. In other words, little to NO TAXES.
Look at a fcken political spectrum chart you moron. I swear imbeciles like you are too stubborn to look at facts
c0nv1ct1337 1 year ago
@c0nv1ct1337 Capitalism, Free market. Growth based on capital.
Socialism, Central planning/bank. Growth based on credit.
It's that simple. Socialism is cookery.
GompCelticPL 1 year ago
@GompCelticPL
I completely agree but I'm arguing that it is the Left/Socialist/Communist/Liberal/Democratic is (USUALLY) the side to increase taxes unlike the Right/Conservative/Capitalist/Republican side.
Again, not always the case but it is usually this is true.
c0nv1ct1337 1 year ago
@c0nv1ct1337 Please don't call these people liberal. Mises was a classical liberal, Ron Paul, Peter and the founding fathers can be called liberal but the dems and socialists have nothing to do with the principals of liberalism. American conservatism used to be about preserving values of classical liberalism. Until the neocon era ofc.
GompCelticPL 1 year ago
@GompCelticPL
I don't even have to argue as you pretty much answered yourself why I called the left liberals. Modern liberalism is considered social liberalism (at least in the states). Now classic liberalism is pretty much considered to be Libertarianism here.
I could be mistaken but I'm almost certain that's the condition.
c0nv1ct1337 1 year ago
@c0nv1ct1337 Since when is youtube full of communists? Get out of america and take Comrade Obama with you. Im tired of his communist anti-tax point of view.
THIS IS AMERICA, WE ARE A FREE CAPITALIST COUNTRY. We dont need protection from taxes like some 3rd world socialist country like canada is turning into because of their socialist BS"
HalfricanItalian 1 year ago
@HalfricanItalian
You're not even speaking sense anymore.
Get out of the internet you troll.
c0nv1ct1337 1 year ago
@c0nv1ct1337 But that's not correct. They're not social liberals. They're just for killing babies and promoting homosexuality and these were no issues back in the days when a liberal thought was being formed. They're all for putting RFID microchips in your hand, national ID, gun control, they love to play race card, and what the guy does with his money is pretty much a part of social life as well. Calling them liberal is a distortion out of Orwell's 1984. They're social libertines not liberals.
GompCelticPL 1 year ago
@GompCelticPL
You really do seem like a fellow that would know about this but I can almost bet my arm and leg that what you described are modern liberals. If you wiki Ron Paul you can see they call him a libertarian and Obama is a liberal.
c0nv1ct1337 1 year ago
@c0nv1ct1337 Well that's my point. The term liberal has been so distorted that you had to come up with another name for real liberalism.
GompCelticPL 1 year ago
Econ down interest rates low.
Econ up interest rates high.
Blah blah blah you made a whole video about this?
burntonion05 1 year ago
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themadninjaskillzz 1 year ago
@dslcobra Just like he missed the big picture in 2004 when he predicted the housing collapse of 2008? And the Fed is not the "government." It is as "federal" as federal express is. It is a privately held corporation that centrally plans our interest rates (i.e. monetary policy). The fed shot itself in the foot with Zero Interest Rate Policy, because even though it is a private banking cartel, it still wants to be paid back at interest, preferably with paper that has some value.
snarbywrx 1 year ago 2
@dslcobra No he did not miss anything, you did. 1) Home values are bound to fall anyway 2) States are already broke and property taxes won't help at all, you don't really think that states financed their expenditures via PT only? All you're really insinuating is a pro band-aid approach which covers up fundamentally weak points. It's plain stupid. I've been in mortgage industry for 7 years, housing, trust me, I do know.
RGT88 1 year ago
first the banks are not loaning much money out, they are riding this out protecting themselves. secondly the one thing this money give away has proven? we'll be better off if the fed let's weak preformers fail/ fold. and finally, the fed can want and not want to do whatever they feel. however, you neglected to bring into the picture the global pressure that now more than ever will carry a much greater voice in the feds decision making. lot of very bad medicine on the way, relax...it's coming.
endlsskn1 1 year ago
What's a Fed? Who fed who?
ExtremeIySorry 1 year ago
watch the "Zeitgeist Movie" on YouTube
trilegdog 1 year ago 2
@trilegdog Zeitgeist is full of mistakes, cookery about socialistic utopia and conspiracy theories about Jesus. Better watch 'money banking and the federal reserve'.
GompCelticPL 1 year ago
He's right. At some point, the fed is going to have to raise rates (contract monetary supply) to combat runaway inflation. Once the economy gets better, the banks will start using the money they've been hoarding which will cause massive inflation. When the Fed finally contracts the monetary supply, the aggregate demand will contract causing a recession like the one in the 1980s. This will only occur once our economy starts getting back on its feet. It'll be a while before we're back on top.
blacksabbathgnr098 1 year ago
@blacksabbathgnr098 The economy will not get better. The fed will be forced to lower the interest that it pays to banks that hold their reserves with the fed, in order to stimulate the economy.This will fail, because it will not go into savings and production, but rather spending and more debt.It is also highly inflationary. The velocity of money will skyrocket, people will not want to hold cash. The government will institute price and capital controls, stores get empty.Then you are screwed.
snarbywrx 1 year ago 4
Majority of you people have no idea how banks make money. Essentially it is loan*interest minus deposits*interest. Look at petro-dollars for instance for a reference point. If a bank is sitting on a 30yr old mortgage where borrower pays 4-5% then it's bound to fail when it has to pay a depositor 7-8% in future with higher rates. There is nothing wrong with Peter's statements. But then again reading huffingtonpost everyday can brainwash everybody to point of Shutter Island scenario.
RGT88 1 year ago 8
@RGT88 That is a very simplistic view of banking. Deposits do not simply cover loans. Would be too much interest rate exposure/risk. They often match off their loans with matched borrowing and keep the spread or too frequently, they package loans and sell them off 10 minutes after closing the mortgage. Banks constantly tweak their fund short/lend long term and vice versa to manage their rate exposure based of future views of rates. Govt cant raise rates because it is all short term financed.
pismo10 1 year ago
@RGT88 In what century? Banks' loans have almost nothing to do with deposits and have not for many many years. I mean, maybe if it's Mom & Pop's Hayseed County Savings & Loan, but the "real" banks create new money. New money is what they loan, not deposits. While it is true the amount of money a bank may create is a function of the deposits on the books, the deposits are generally an inconsequential portion of the capital structure they create loans from.
WGS669 1 year ago
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dudebud007 1 year ago
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elpadroney 1 year ago
@elpadroney Nobody cares.
jawayetti 1 year ago
put a moocher limit on housing.
each renter charges and more for houses that are getting older and older.
thats the FKN problem.
and it chains into 75 percent of everyones budget.
RobCardIV 1 year ago
homes shouldnt be a business.
building homes is one thing.
but buying old homes and jacking up the price should not be a business.
RobCardIV 1 year ago 2
@RobCardIV why
cobracarg 1 year ago
@RobCardIV They should fail.
dukee155 1 year ago
Right towards the end, but in the first part? Come on Peter you know the banks CREATE money when they write a mortgage, thru the miracle of fractional reserve banking, they don't just borrow it from the Fed. That money they loan you comes out of thin air.
javabarbarian 1 year ago
The Fed is running a huge pponzie scheme, that's why ... did deeper, Peter.
Writinit 1 year ago
Another great video. he is so awesome, I really hope he wins and becomes senator
a4finger 1 year ago
So the corrupt Fed bank raise interest rates and kills the poor and thats good ????
I thought it was 'abolish the fed'. Ged rid of the corruption.
BLynchCAN 1 year ago
Peter, what do you think will happen to gold since mao-bama is going to start taxing all transactions over $600.00? What was once the only safe haven is now going to be monitored. Do you still like gold and do you foresee prices dropping as a result?
TheNRA4ever 1 year ago
@TheNRA4ever those taxes do not apply outside the USA. That means gold prices will spike through the roof outside the USA as demand peaks up globally, while demand in the USA will lead to people a) getting it via blackmarket b) melting jewelry on their own c) panning for gold and d) leaving the USA. This can only drive prices up massively. If $2000/oz was coming before this change, $20,000/oz is within sight after the change
ytgv3fc7 1 year ago
Yes its now a" bend over economy " and Welcome !
Get ready to grab your ankles for uncle SAM >
ibelucky1 1 year ago
Yes he is 100% correct , and i agree the government should bite the bullet , raise interest rates let people dump the houses and start over.If someone went into bankruptcy they could buy a new home in 2 years out of the bankruptcy and not have the artificially inflated home.The US would be free and clear in two years but at the rate it is going its going to take allot longer.In the meantime rents have also doubled this is going to be worse for the economy > Just Bend Over and Take It like a Man.
ibelucky1 1 year ago
END THE FED....These pigs have robbed as way too long!
petiemac24 1 year ago 2
And that's exactly the reason you're not going to achieve anything if you were elected
TheWBAH 1 year ago
What does peter think about naked short selling?
dukee155 1 year ago
The fake govt run economy will continue for as much as another generation as long as other govts continue to lend money to the Statist/Totalitarians. So, unless there`s a military coup and a dictatorship that FORCES the USA back to strict Constitutional values and ther eare quick summary trials ala Ceausescu then USA is basically F***ed ! F***ed because the USA has been on this same trajectory since Wilson,maybe even Lincoln.
classic7890 1 year ago
This has been flagged as spam show
You can watch last nights radio show on my channel. Thumbs up if you watch it.
CHo0ZE 1 year ago 13
"What happens to the banks that are sitting on 30-year mortgages when they're collecting 4, 5%? Well, they go bankrupt." WHY? Are banks no longer practicing fractional reserve banking?
BorderlineNOS 1 year ago
@BorderlineNOS If inflation is 7% and the bank is only getting 5% they are losing money in real terms. Remember real estate prices as well, banks are praying that home prices will go up since they are sitting on so many foreclosed homes and don't want to put them on the market until the market improves.
residentzombie 1 year ago
right now on the global market we are the best looking horse in the glue factory.
ivebeenburned 1 year ago
@ivebeenburned ...WRONG....China is the fastest horse.
petiemac24 1 year ago
@petiemac24 china is not in the GLUE factory. they are on the race tract. WE are in the GLUE factory along with Europe. please try to comprehend. there is a difference between a glue factory and a race tract.
this is called a joke.
ivebeenburned 1 year ago 2
China, India, Europe, Austria, Canada and other country... tighten monetary policy. The world trend is interest rate going up, cut back deficit, and tighten rule in housing market. It is matter time United States have to follow the world trend. The interest rate 6%, the U.S economy will go down. 71% US economy is base on BUY STUFF, each point interest rate go up, the US economy go down. The question who is right about inflation and interest rate.
tomabc2003 1 year ago 2
Bernanke wants interest rates to go into the negative.
mja2035 1 year ago
@mja2035 ..Japan tried that, it didn't work. I think the minister incharge of that
brainfart was Benjamiko Bernakashima.
justgetsome 1 year ago 6
@justgetsome Thanks for that info
That must be Ben's Japanese cousin.
mja2035 1 year ago
@justgetsome but this was quite some time ago, are you sure it wasn't Greenaspanshumo ?
ytgv3fc7 1 year ago
@ytgv3fc7 ...you are correct. How silly of me!! It was in the early
90s wasn't it? I know it wasn't Paulmomo Vokashima.
You got me! 1000 pardons my sensai.....
justgetsome 1 year ago
Aaah, the end game is explained. It is an unsustainable Ponzi scheme, but Peter I hate to say it, but this is not a hard call. Unfortunately, the government will run the Ponzi scheme as long as the rest of the world allows us.
But it is not the Fed. It is the FEDERAL government and the American people that are the addicts. The Fed is THE ENABLER.
We are the lazy, morbidly obese, bedridden bum that is insatiable. The Fed is merely the mother/spouse shovelling the food in our mouth.
666sigma 1 year ago
@666sigma
"But it is not the Fed. It is the FEDERAL government and the American people that are the addicts. The Fed is THE ENABLER."
I probably would place the American people first, then the Federal government. Still I agree with you but politicians including Peter don't put it in those terms because it will not aide their cause in any way. If he was to speak the truth he would have no followers at all.
TheWBAH 1 year ago
@TheWBAH
I think it is a bit of the chicken and the egg. But it is a symbiotic relationship with the politician living off the voter.
Quite frankly, I still give Reagan credit. I think he truly believe in what he said, although his handlers had other ideas. It is nowhere near as bad as the pack of lies from Bush I, Clinton, Bush II and Obama. i even give Carter credit s bad as he was. And JFK was probably offed by the miitary industrial complex.
666sigma 1 year ago 3
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CHo0ZE 1 year ago
hahahahahaha, million dollar donation.... hurry and announce the results, schiff - we are all waiting to see how much was actually donated. hahahahahahahahahahaha.
trinomialtree 1 year ago
@trinomialtree scared? :)
stoneeh 1 year ago
I know this may sound nutty but....
Peter you have to think about your health, we don't want your genius jeopardized, firstly you have too many emf emitting electronics devices positioned around your body at your computer work station.
Secondly don't use wifi, especially that cordless phone, a small inconvenience could prevent cancer or other illness and disease in the future.
Lastly diet is probably the most important, but too long to write about...
leone20012 1 year ago
@leone20012 not every transmitting device is dangerous to living things, much less to people. Most of those devices are such low-emission you wouldn't be able to power anything off the emissions, and at a distance of 2 feet or more, likely get nothing at all from it. Keep in mind, just like with microwave ovens, only specific tuned frequencies AND a higher level of power will actually do anything. The rest will do nothing to us. wi-fi can not cause cancer, wrong freq.band
ytgv3fc7 1 year ago
Go Peter. Spot on.
Intervene 1 year ago 3
The flow of the river is speeding up there might be a waterfall.
adb024 1 year ago
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What if the World nations went to a one world currency. No dollar, No Euro Just simply one world currency. Isnt this where we are headed. What is your take on this
anjelicknight1 1 year ago
What if the World nations went to a one world currency. No dollar, No Euro Just simply one world currency. Isnt this where we are headed. What is your take on this.
anjelicknight1 1 year ago 2
@anjelicknight1 My take on it - from Canada - is if governments accept a world currency they will have destroyed any sovereignty their country once had. As such, I firmly believe that forcing citizens to use a world currency is treason and gives us the right to hang them from the nearest tree.
When people really understand how the monetary system works, they will realize that a world currency will make us all slaves. No joke, I encourage everyone to see "Money as Debt" on youtube.
Unkn0wnGuy 1 year ago 2
@Unkn0wnGuy I believe as you do on this about the one world currency. I am a christian though and propehcy seems to indicate a one world currency in the last days. Also to be realistic it just seems like we are headed that way. It seems like the U.S Dollar is deliberately being destroyed. These people that run america such as Obama and his cronies have harvard and Ivy league educations. Does anyone else see that our economy is being deliberately destroyed are am I just out there.
anjelicknight1 1 year ago
@anjelicknight1 I see it too, but it's critical that we do not allow them to do it without a fight ... I'm talking 1776 style. This may be the opportunity of our lifetime to make a difference and fight for what's right.
Unkn0wnGuy 1 year ago
Peter, you are obviously right in the long-term, but in the short term there are tricks that can be used to keep the gold price down without raising rates. How else do you think the price was around $300 for almost 20 years? Do you think there was zero inflation during that time? Of course not - there was central bank manipulation. I know you like to avoid conspiracy talk and stick to fundamentals, but its pretty obviously they work to keep gold and silver down.
TheBullionBull 1 year ago 2
What about naked short selling of the silver market? Couldn't they do that to gold to keep the price artifically low?
RikaKazak 1 year ago
@RikaKazak The Fed could actually keep nearly anything artificially low. For example, the Fed could purchase oil barrels, monetize the debt by printing money, then sell the oil to American distributors for $1/barrel. This would be a disastrous way to manage oil, but this is similar to them keeping interest rates low and hurting savers. Plus, naked short selling has been banned by the SEC, (a bad call). I don't know if that restricts the FED as well, but certainly for private investors.
SomeUsefulIdiot 1 year ago
@SomeUsefulIdiot banning naked short selling is a good call, not a bad call. Naked short selling is fraud. You can't just sell something you do not ever intend to cover, nor have ever had. It means you get to steal and fraud. If you have money to cover back the loss on a short to buy back the equity it's not a naked short sell.
ytgv3fc7 1 year ago
@ytgv3fc7 I disagree.
It's not fraud because you do intend to pay it back. If the price per share falls, you profit, but if it rises, losses are incurred. It's an important market tool, because if short sellers are hovering over a particular company, it's a good sign that the institution isn't finanancially sound and can help cause the bankruptcy to occur earlier, rather than let them further distort the market making the inevitable crash worse.
SomeUsefulIdiot 1 year ago
@SomeUsefulIdiot you disagree? On the DEFINITION of naked shortselling?! If you can cover your short it's not a naked short-sell, it's covered. Be it a buy-back or cash-reserve to cover a mistake, it's not naked. Naked means by definition no intention and no requirement to cover or repay ANYTHING. NAKED SHORT SELLS ARE FRAUD. Any other kind of covered short-sell is NOT FRAUD and is the 'market tool' you are talking about. 'intending' is only wishful thinking + fraud
ytgv3fc7 1 year ago
@RikaKazak naked short-selling of gold and leveraging gold certificates has already been happening. There's a limit to how far it can go before people's demand for physical gold and silver exceeds the game's parameters and the game is over. The so-called CFTC & 'financial reform' allegedly will have intra-day and end-of-day limits too which means physically impossible conditions would be barred, leading to fines or banning from the market, but we'll see.
ytgv3fc7 1 year ago
My dad saved money during the boom years (except for buying a house) we called him cheap and now since prices went down he spends a lot more.
dukee155 1 year ago
@dukee155 that's exactly right, proving my point to a few other people there is no such thing as a deflation-waiting spiral or inflation-wage spiral. People's wages are not rising with inflation and people's spending is not going down with deflation. people do not (brainwashing) wait for prices to keep going down. People are wanting to buy RIGHT NOW and due to inflation & taxes CAN NOT but will buy what they need if prices drop. That's the real world.
ytgv3fc7 1 year ago
@ytgv3fc7 Well the reason why he was able to afford stuff now is because he saved money. Also I do not want to sound stupid but what is a inflation wage spiral?
dukee155 1 year ago
@dukee155 ah, no worries. The spiral is an old myth that with rising wages (first) you get rising prices after (inflated prices). This doesn't happen but a long time ago it was possible. Inflated prices really have to do with money velocity and money supply both being up, but inflated wages can go to savings and flat out losses, neither of which inflate prices. NOW we have global trade: if your wages are paid by corporate profits of shipping FROM China to elsewhere, your spending has no effect
ytgv3fc7 1 year ago
@dukee155 so effectively it doesn't matter if your wages go up or down, shipping from China goes all over the world, not just to your city, state/province and country. ALL those shipping (consuming / trading) markets would have to suffer for certain corporations to suffer and then cut jobs. Typically now you'll see jobs cut before wages because wages were forced down very quickly to bottom-level in almost all cases while productivity has been forced up on the back of poverty & desperation
ytgv3fc7 1 year ago
@dukee155 here's how the capitalist trick works short-term: increasing poverty causes a fear wave-front, so some are done for, some people are nearly done for, and skills have not been lost from schooling or prior jobs yet, and a generation of poverty has not yet destroyed hope in a large demographic. This means people will do really high quality, high speed work for next to nothing just to keep a job, or to get one. LONG-TERM this destroys society.
ytgv3fc7 1 year ago
@dukee155 long-term the reason this destroys society is because education drops and so do wages: people aren't smart enough to be efficient & productive workers after 15-20 years of this economic bashing and wages are so low there is no way to be a consumer, only a survivor. Certainly people exist at both extremes - not getting beat down, or never being able to get up no matter the conditions - but this is a small minority in any generation.
ytgv3fc7 1 year ago
@dukee155 OK, that's quite a few replies and I'm sorry to say that only covers HALF the answer. That's the inflation-spiral side but not the deflation-wait allegation many have made who are stupid inflationary-capitalists. As prices go down (deflating prices, but with money velocity may not be full on deflation) people do not wait to get things they need. Even with inflating prices people don't wait. People buy what they need as soon as possible and the only reason more is bought ...
ytgv3fc7 1 year ago
@dukee155 with a deflating price vs cash-holding is you can get more right then & there. People wait with inflation because prices are too high, despite high need. Can't buy what there is no money for. The ALLEGATION is the precise opposite: that people will some how buy with inflation (wrong) in excess and WAIT to buy with deflation (wrong). People CAN NOT WAIT because NEEDS are in play not DESIRES. Someone's got their market-directions all backwards. But not your dad: buys now that ...
ytgv3fc7 1 year ago
@dukee155 now that savings are up above despite some inflation in some things like gasoline and food. The reason even 'mild inflation' (of prices) of commonly NEEDED goods (no choice: you die or suffer without those goods) is hurting people so badly is because of massive debt. For those not in massive debt, the inflation hurts ability to save but it's not nearly so painful.
ytgv3fc7 1 year ago
"Ben Bernanke is a man that belongs on a barbosol shaving ad on the side of a road… not in charge of the federal reserve."
-- Michael Savage
ColdRainyNights 1 year ago 2
@ColdRainyNights
I love SAVAGE! Do you have audio of him saying that?
truthislibertyus 1 year ago
@truthislibertyus
Yes I do.
youtube com/watch?v=hdE7Q_NIj70
Fast forward to the 5:40 mark. :)
ColdRainyNights 1 year ago
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ScrollAndKeyBeatz 1 year ago
schiff this is happening on purpose, they cant be this stupid. we're gonna be using SDR's or Amero's and they are doing everything they can to force that to happen. Remember when Geithner said that the US was very open to an international currency? it's all related.
tirmen8er 1 year ago 3
@tirmen8er The Euro is a step towards one world currency don't count on the dollar being replaced till the Euro is successful......and that wont be anytime soon...imo
IWashMyOwnBrain 1 year ago
Pete, I agree the fed won't raise rates but if the dollar continues to weaken against the other currencies won't that at least put some restraint on the fed? For example wouldn't this prevent the fed from easing again if the slump gets worse?
burntout84 1 year ago
The fed would be crazy to raise rates now.....they even need to go further and print more money.....We need inflation now....not deflation...no need for the fed to fight inflation when we are deflating!!!!!!!! Pushing the dollar down is the right thing for the fed to do now and they are doing a good job of it. Let other countries raise interest rates that also helps the U S.
IWashMyOwnBrain 1 year ago
@IWashMyOwnBrain there is no deflation. Deflation is temporary and good for lower incomes. Incomes do not drop with deflation just as incomes do not rise with inflation. The history of recent economics proves that. Global markets enforce this brutally. Inflation is poison and is needed NEVER. Not for one day is inflation good - inflation is robbery and theft and hidden taxation and is most damaging to those with lower incomes. Inflation should be rid of FOREVER. Not one more day. Ever.
ytgv3fc7 1 year ago
great vid. thx for the info peter.
lindabebe835 1 year ago
As usual, a great explanation!
mikebius 1 year ago
you are wrong about hyperinflation Peter. Hopefully you will realize it soon. leave the gold bugs - even the shoe shine boys are buying gold (at least the ones who have money).
zeusvalentine 1 year ago
@zeusvalentine no they are not. they buy houses and stocks.
GovWillKillU 1 year ago
@zeusvalentine hyperinflation is the only mathematical outcome - the alternative is to destroy massive amounts of global currency, dollars and yen and sterling pounds. It's not about being a gold bug, it's about adding up the math. Too much money in the system, too few goods - too much inflation. You can't pretend the numbers aren't there and the math doesn't lie.
ytgv3fc7 1 year ago
It sounds like he WANTS the dollar to go down. While that may make him a few bucks, it reduces the wealth of the nation and the purchasing power of our salaries. It's essentially a pay cut for every American, especially given how much we import.
christo930 1 year ago
@christo930 ...You have no idea what your talking about. He is saying that the government are the ones that want the dollar to lose value.
petiemac24 1 year ago
@petiemac24 I am just saying how it sounded. As a general rule, I am a "fan" (for lack of a better word), it's just the way he came off in this video.
christo930 1 year ago
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CHo0ZE 1 year ago
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CHo0ZE 1 year ago
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CHo0ZE 1 year ago
I get the feeling they're gonna pull the plug when we attack Iran. A new war is enough of a distraction.
seanboy80 1 year ago 10
the end is nigh.
stealthpakfa 1 year ago 2
what are you willing to give up?
marniespeaks 1 year ago
hmm this guys solution is to raise interest rates so the banks can own even more public wealth... this guys sounding dodgy. The fed introduced low interest rates so they could suck people in and then raise them again so the banks can take even more assets... this is not a solution, it was the intention all along.
jamesarongray 1 year ago
@jamesarongray Why should it matter to you which way interest rates go? Be prepared for higher since they can't get any lower, and stop worrying about it.
1979 was glorious for those ready for it. I am looking forward to a redux.
mcdonaldscalling21 1 year ago
@mcdonaldscalling21 I'm looking forward to the collapse and beyond it as well... I'm just pointing out the banks intentions for people who are interested in hearing
jamesarongray 1 year ago 2
@jamesarongray agreed. There should be no central interest rate, no central bank, and no one should be suckered into this kind of lending, nor their kind of 'savings' which do not even work compared with inflation which is THEIR CREATION.
ytgv3fc7 1 year ago
@ytgv3fc7 Yeah... i can't believe this guy... maybe when this crisis began it was a good idea to keep the rates up but now that there down... raising them is only going to benefit the banks... a new banking system is called for... so i agree with u.
jamesarongray 1 year ago
@jamesarongray In a free market, the market sets the rate. When the rate is set by the fed it causes malinvestment. If we have any inflation the Fed will start to raise rates. The fed is worried about deflation right now so they keep rates low. Sooner or later all that extra credit in the system will cause inflation. Inflation causes the % rate to go up. Then when all the federal debt is rolled over at the new higher % rate the whole house of cards comes crashing down.
orionstarman 1 year ago 2
I can't believe a few people gave this video a thumbs down! Bernanke and McMahon must be watching these vids.
silverfuturist 1 year ago
How long and how right does Peter have to be before knuckleheads get it?
My wife and I are savers and we are discusted in the returns we get. 3% on term deposits? the central banks are preaching to the collective in debt choirs while they screw the people who underconsumed, saved and did the right thing.
I understand the deflation argument and for real-estate, sure. Inflation is real for other goods such as foods and energy. Have you grocery shopped lately? there is massive inflation.
justgetsome 1 year ago
@justgetsome Dude, if all you're making is 3%/annum, you need to start worrying about why you're not making more, and worry less about the inflation/deflation argument along with all the other garbage that means absolutely nothing about making money. Being 'right' or 'wrong' has nothing to do with making a return. Who gives a shit what Peter, Tom Dick or Harry is saying or doing. It doesn't matter, and it won't make you bank anyway, that's for sure....
mcdonaldscalling21 1 year ago
@justgetsome Look, if you're following someone who's investment philosophy included getting their asses kicked 30, 40, 50% in 2008, then you will follow anybody to hell evidently, and I am certain that even if they were the smartest guy in the room, they STILL don't know how to make money in the markets. That's OK though, because most can't.
There's a reason why brokers have clients, it's because they need the money they bring in for them. It's got shit to do with making a return for you.
mcdonaldscalling21 1 year ago
@mcdonaldscalling21 ...Thanks for taking the time and writing me.
i have a collegue at work who is all ways on-line looking at his stocks.
He's the kind of guy who, like a typical gambler, only tells you when he's
winning and never losing.
I had enough one day and i asked him' well how much to you have in stocks?'
He said about $60,000. i started to laugh, hysterically. He said why are you laughing? i said well if that's all you have you are better off puting it in the stock market.
justgetsome 1 year ago
@justgetsome ...it isn't enough money to do shit with anyway. I also proceeded to tell him it all ways guys like you that have advice about money but you don't have the kind of money i do in the first place. I didn't get an inheritance my friend. This savings we have is due to due diligence and for years. I'm still a young man(38). I finished the conversation with; when you get $300,000 in cash and have your house, 2rentals and a new car paid for come talk to me, not before then.
justgetsome 1 year ago
@justgetsome ...i didn't want to turn this into a pissing contest but he left
me little choice. It's easy for him to say put the money into the stock market because it's not his money nor does he have the means to save such. When people achieve a certain level of savings they care more to protect this money than make so called higher returns.
$60,000? What a joke! he's better off going to the casino and playing it on black. This guy will be making his millions on Amway next right?
justgetsome 1 year ago
@justgetsome Fortunately I qualify to talk to you then since, other than the rentals (which I sold 6 years or so ago) I have the pre-requisites.
I now run other peoples money (illegally of course as I have no accreditation) because they realize there are people out there that have proven the market can be gamed well enough, and 3% a year is a dog-s breakfast and a waste of the best opportunity (in the form of the market) to make returns that would knock the doors off of most people.
mcdonaldscalling21 1 year ago
@mcdonaldscalling21 ....I'm sure you do well for your clients.
I sleep well at night making $1000 in interest a month on that lousy 3%, $2500 from my group home which is leased by the gov't of Canada. $800 from our first apt.
The thing is i call people out, and often and no one has even been able to show me wealth without some kind of catch. All they can show is bullshit loan payments, that's not wealth that's dirtbag territory. I tell them such. Loans equal loser and tell them such.
justgetsome 1 year ago
Acknowledging that some people and companies have to buy new builds...ceterus paribus, pretend you had just won the lottery for just enough to buy that new house you've always wanted...you probably won't because it's throwing money away...until the majority of potential home buyers can conduct that simple thought exercise and say "yes, I can afford the risk of purchase", economist will continue to "be surprised" and too big to fails will have to pay interest on the trillions of CDO's they hold..
imataxslave 1 year ago
The main reason why some people cannot refinance, is that they are shocked when the bank tells them they have to come up with 20% down because they have no equity in their house due to the collapse of the value of the house and the outstanding mortgage is too high.
olh1152 1 year ago
@olh1152 ...which is a good thing. people shouldn't be able to buy
a house with no money down. Where is the sacrifice in savings?
Nothing risked nothing gained, that's why people can walk away. If
someone has there own money invested, it's not so easy to do.
This is the moral hazzard we have created.
justgetsome 1 year ago 4
@justgetsome, that is the point exactly. In my case I put 20% down when I bought my house in 2006. My rate at the time was 6.375%. Now I am trying to refinance at 4.75 % and I cannot do it because of my mortgage balance to house value. In order to do it I have to come up with 20% again. I don't have that money. I cannot walk away because I have no where else to go. I am stuck.
olh1152 1 year ago
@olh1152 ...I understand what you are going through. Banks only foreclose on people in your situation. People that have a vested interest; ie...you put your own money into it, the 20%.
People that put nothing down, had arms or negative amor. all of the gimmicks are sitting pretty because they have nothing to lose and the bank knows it.
This is the moral hazard I talked about. You did the right thing, saved 20%, made all your payments and now you are the one who gets the shaft.
justgetsome 1 year ago
This has been flagged as spam show
Thank you Peter!
Shiff For Senate!!!!
Armando7654 1 year ago
the government owns almost all the mortgages made over the last couple of years in order to promote real estate landing, the banks sell them once the mortgages are made
borderpatrol05 1 year ago
@borderpatrol05 I bet they will sell to China when dollars start devaluing in a nasty print-devalue spiral.
ytgv3fc7 1 year ago
the government owns most of the mortgagees made over the last few years, the banks sell them to the government once they are made
borderpatrol05 1 year ago
END THE FED
sharinganclan213 1 year ago 4
1:08 If we replaced it, what would the time frame roughly be?
thxs
TheUSVET 1 year ago
@TheUSVET Interestingly enough, after the Iceland banks collapses in 2008, everyone wanted to know how long it would take for them to recover. I read last week that Iceland is almost near full employment and everyone seems to be doing fine. Look at Zimbabwe, they are doing better as well even though their dictator is still in power. I suspect that the recovery would happen faster than most people would predict when the Fed Govt and the Fed Reserve collapses for good.
rayme4raw 1 year ago
@TheUSVET It is impossible to predict time frames. If the Fed hiked interest rates and let all the bad loans, bad banks and bad companies collapse, if the US Gov. ended its foreign wars and took the troops home, if the US went back to sound money and constitutional government...it'd probably be a few years of misery followed by a great and real economic boom.
vindician 1 year ago 2
Making the money off my savings, the banks get theirs,
blueghist 1 year ago
IMHO, Peter Schiff is always awesomely right.
MrDorkusMaximus 1 year ago 2