Peter Schiff 1/23/09 - CNBC Kudlow & Company

In this video Peter says that U.S. banks like BofA and CITI have no value. "People who buy stock in financials might as well flush their money down the toilet." He also points out that Obama says Americans need to sacrifice, but all he's trying to do is get Americans to blow money at the mall, and that's not sacrifice. Also, you don't solve problems by spending money and getting into debt. You solve problems by saving money and producing goods.

Predictions: Oil will rebound and skyrocket upward just as fast as it fell. This year the DOW will be worth 7oz of gold, and next year 5oz of gold (was 9oz at time of interview).

Category:

News & Politics

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• Peter
• Schiff
• Videos
• banks
• bailout
• economy
• debt
• kudlow

[FoShizzle951]

If I was on a panel with the Schiff, all I would say is, "Peter Schiff is right."

[TheFlex21]

the ageing blond bimbo is going to loose a lot of money

[jdepps13]

bc schiff understands that the dollar and the us economy and all its debt is worthless. when people figure this out en masse they will race to invest in actual things and not in dollars. hence, the oil move.

[Badfellah]

Thanks for a good reply yhamdon!

Appreciated.

[yhamdon]

In conclusion, Peter Schiff is correct with his forecast that Oil will rise, as you have limited credit to fund new exploration and mostly because even if the World economy contracts by, say 3%, Oil scarcity will be declining even faster from this point forward. And when you have scarcity of a thing, you have increased volatility with an steep upward spike. Hope this helps.

[yhamdon]

Since the first Oil was produced in the USA, the World has always had spare capacity, for example, according to the EIA, in 1985 the total spare capacity of the World was about 23%. Meaning, Oil producing countries can turn up the tap quickly if need be to fuel economic growth or counter disruptions. Today, there is less than 2% spare capacity. And according to UK Dep. of Energy and EIA, the World's output will begin dropping vs. reserve supply by 6-9% yearly.

[yhamdon]

The forced selling of assets with true value is the reason Oil is low today. The reason Oil will 'sky rocket', like peter Schiff rightfully predicts, is based on 'conventional oil spare capacity. Spare capacity it the ability to produce more oil than demand. This is necessary so if you have a disruption of oil, say like a hurricane in the Gulf of Mexico or a pipeline disruption in the middle east, other producers can counter by turning up the taps to assure consistent supply.

[yhamdon]

Oil is currently the most sold commodity. This has taken place due to the vast majority of Banks & Corps having to cover their loses. Lets remember that commodities hold intrinsic value, or what I like to call 'True Value', unlike paper instruments like cash. Therefore, as commodities are not in infinite supply, this forced selling will stop.

[ucnews]

Sign the petition demanding congress to focus on TRICKLE UP stimulus plan amendments. Instead of a stimulus package that relies on the benefits trickling down from Wall Street to Main Street, the benefits of this plan will trickle up from Main Street to Wall Street.

[Badfellah]

Why does Schiff believe the oil price will sky rocket when it finally has been confirmed as "bottomed"?

Anybody share his view, or can explain why he thinks that?

Thx.

[ExtraTerrestrials]

i think they hate peter because peter is smarter and speaks the truth.

[dooglio]

God I wish Keynes' work would have died with him. These guys spout off this nonsense like it's the truth. Deflation would be a good thing, if the gov't would just allow it! Tell me what is wrong with falling prices?