Peter Schiff on the Euro Crisis, the Rising Dollar and the GOP (12/12/11)

The European Union's summit solution or no solution? Friday, markets were excited for a day, but now is it just back to reality? Moody's reiterates that its ratings for the eurozone are still negative, with a downgrade still in the card for a number of sovereigns, including, you guessed it, France. Sarkozy says the loss of a triple A (AAA) would not be "insurmountable," and that If the rating companies did "pull it, we'll face the situation coolly and calmly." Really? Maybe for Napoleon this is true, but in Latvia, depositors are already lining up to take their money out of banks, which proves that "cool and calm" is not always something that can be achieved simply by words alone. And this should concern France and the rest of the Eurozone, in light of reports like this latest one by the OECD, which warns that industrialized governments should expect to struggle with borrowing more than 10 trillion dollars this year as they remain at the mercy of the market's "animal spirits." And speaking of bank runs, it's the anniversary of one that started in the US in 1930, credited with bringing down the banking system. So what could stop that from happening today? While people talk about jobs, the deficit, the president...is this the silent threat that could bring down the economy? Peter Schiff of Euro Pacific Capital joins us to discuss all these issues. He is host of the Peter Schiff show, as well as author of many books including "Crash Proof," and "The Little Book of Bull Moves in Bear Markets."

Now, in other news, we learned today that Virginia-based Xe (formerly known as Blackwater USA) plans to unveil a new name—Academi—and new logo. In an interview with The Wall Street Journal, Ted Wright, president and chief executive, said the name change aims to signal a strategy shift by one of the U.S. government's biggest providers of training and security services. Also, despite the growth of government and the very large deficit spending that we have seen over recent years, the White House has proven that it is not immune from the downturn hitting the rest of the real estate market in America. Zillow, the online real estate marketplace, now values the White House at $263,453,600, a drop of $350,200 in the past 30 days, making it a relative bargain. And the place has great walk and transit scores to boot.

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[TWSceptic]

Looks like ShittReport and his gay friend have thumbed down a Peter Schiff video again.

[optionsupdate]

wow look how beautiful she is,

[bighands69]

@poopingeneral

This whole break up of the EU currency is laughable some times.

EU is the only economy that has not yet used Quantitative easing.

Britain, USA, Russia and china have all used quantitative easing on a sequential basis and this is going to be a bigger problem for them in the long run. And the reason for this is that their currency will be lowering in value.

This does not change the fact that Europe has troubles.

[poopingeneral]

Today's headlines: Apparently Soros stated the EU collapse would be catastrophic, and that the FX Bank in England is preparing for the possibility of an EU breakup.

If the EU breaks apart, this will be an avalanche of financial problems throughout the world, the likes of which we haven't seen in 80 years. Because it is not a market collapsing, or a business collapsing, it's an entire currency collapsing. It's the 2nd most traded currency, the Euro is. Get ready people, 2012 is a bumpy ride.

[ThaigerDon]

@TWSceptic i bet they did, LOL

[Crosshair84]

@RTProducer Which is why bank panics and collapses were rare before the era of Central Banks. The US was unique in the 19th century thanks to unit banking laws. Canada in the 19th century had no such panics.