Peter Schiff Articles

Peter Schiff Slamming Ben Bernanke

Posted by Vegas Martin in Economic Comentary, Videos on April 17, 2011 | Comment »

The U.S. Dollar has hit an all-time low, commodity prices are soaring, our cost of living is increasing, and our standard of living is decreasing, yet this was planned by The Fed and Ben Bernanke to create jobs and help real estate. That’s a laugh. All QE1 and QE2 has done is screwed this country over even more. Bernanke should listen to Peter Schiff. Bernanke is nothing more than a crack dealer for the U.S. government’s spending addiction.

Peter Schiff Explains Effect of Sovereign Debt On Markets

Posted by Vegas Martin in Economic Comentary on February 5, 2010 | Comment »

A few words from the straight shooter Peter Schiff who discusses the ramifications of the soverign debt of Spain, Portugal, Greece, and Lithuana.  He puts the Dow down 268 on February 4, 2010 into perspective.  Somehow overlooked in this whole story is the debt load of the United States and what will happen when California needs to be bailed out.  What is going to happen when our debt-to-GDP of 11% catches up to that of Greece, which is just 12%.  Watch and learn.

Peter Schiff Reacts to Obama’s State of the Union

Posted by Vegas Martin in Economic Comentary, Political Commentary on January 25, 2010 | Comment »

Points out the inaccuracies of Obama’s State of the Union address.

Peter Schiff weighs in on the Stimulus

Posted by Vegas Martin in Economic Comentary, Political Commentary on February 9, 2009 | Comment »

If you’ve been a reader of the site, you’ve probably seen a lot of coverage of economist Peter Schiff.  Schiff feels that the proposed stimulus will only make this recession much worse, which will lead to a hyperinflationary depression.  If the government does nothing, we know the economy will get much worse, but many people think the stimulus can only help the economy.  Schiff, however, feels the stimulus will only make matters worse, much worse.

Schiff raises the notion that we’ve been living in a phony economy based on borrowing and spending and now we have to live with the consequences of the lack of financial discipline we’ve had.  Schiff points out that the free market is telling us to stop consumption and spending because the only way real wealth can be built is through saving.  Schiff states that we have to allow the current economy to collapse since it’s been phony and replace it with a viable economy.

Watch this video:

Peter Schiff Weighs In On Obamanomics

Posted by Vegas Martin in Economic Comentary on November 10, 2008 | 1 Comment

Obama’s Economic Plan: Will it be the problem or the solution?

Listen to Peter Schiff on this radio show. I’ve talked about him in my previous articles. His advice is to get out of the dollar now!  Although called Dr. Doom by some, he hits the nail on the head and predicted the recession we’re in today years ago.

“Our country became great not because of what politicians did, but because of what politicians didn’t do. The faith in our economy is in ourselves. It’s in freedom. It’s in capitalism. It’s in keeping the government in check.” – Peter Schiff

Here is Peter Schiff on CNBC speaking on Obama’s economic plan:

Here is a brilliant article from Peter Schiff published in the Washington Post, Don’t Blame Capitalism. This is a great excerpt, which beautifully describes the mess that we are in.

And even today, as market forces deflate the credit bubble, the government is stepping in to re-inflate it. First came the Treasury’s $700 billion plan to purchase mortgage assets that no one in the private sector would buy. Now it has recapitalized banks to the tune of $250 billion, guaranteeing loans between banks and fully insuring non-interest-bearing accounts. Policymakers say that absent these steps, banks would not be able to extend loans. But given our already staggering debt burden, perhaps more loans are not the answer. That’s what the free market is telling us. But the government cannot abide solutions that ask for consumer sacrifice.

Real credit can be supplied only by savings, so artificial steps to stimulate lending will only produce inflation. By refusing to allow market forces to rein in excess spending, liquidate bad investments, replenish depleted savings, fund capital investment and help workers transition from the service sector to the manufacturing sector, government is resisting the cure while exacerbating the disease.

Hedging Against Inflation With Gold

Posted by Vegas Martin in Economic Comentary on November 8, 2008 | 3 Comments

What you need to know about inflation:

At one time, all the currency in the United States was backed by gold and silver. This meant that the price of the dollar directly reflected the price of gold. Back then, our money was literally “as good as gold.” The Federal Reserve was then created in 1913 and our currency was no longer backed by the gold standard. If we went back to the gold standard, one dollar today would be worth two cents in 1919 or one cent in 1870.

Our country currently has a $10 trillion debt. Most of this money has been borrowed from foreign countries such as China. Since our country is having difficulty paying these countries back, these countries are becoming more hesitant to lend us money. This is causing the Federal Reserve to print more and more money for the government to use for things such as an “economic stimulus package.” This means that more money is in circulation. More money in circulation means that the value of the dollars that you currently have goes down. Since the value of money goes down, the cost of goods go up. Since the cost of goods goes up, your purchasing power goes down.

In fact, if want to see how inflation works in your every day life, just look at how the price of your groceries has increased from 2006 to 2008. You wouldn’t be surprised to see the price of goods such as rice, pasta, meat, milk, and eggs increase by 50-80%. This isn’t solely due to inflation since the global supply and demand also impacts these prices, but the prices of these goods also reflects inflation.

Well, if inflation hurts the ordinary consumer, why does the U.S. continue to print absurd amounts of money? If you’re a debtor, inflation is good. You want inflation as a debtor. If you owe $10 trillion, you want the value of the dollar to go down so you don’t have to pay as much back and then the price of inflation can be passed onto you, the consumer and taxpayer.

Should I protect my wealth by buying gold?

Currently, the price of gold is $735 per ounce. From 1990-2005 the value of the gold did not go above $450 per ounce and averaged approximately $350 per ounce. When inflation increased from 2005-2008, it’s no surprise that the price of gold skyrocketed because the dollar was losing value. The price of gold nearly hit $1,000 in July and traded at around $900 throughout October.

Peter Schiff has boldly predicted that the price of gold will be $2,000 at the end of 2009 and half-jokingly said that it may be $5,000 by 2012. This doesn’t mean that the value of gold is going up, but should be seen as the value of the dollar going down. This video is a great lecture on the decline of the dollar.

I suggest that you listen to Peter Schiff, the president of Euro Pacific Capital. He predicted the deep U.S. recession of late 2008 in August 2006. Schiff is now suggesting to buy gold, as it’s value could double due to the declining dollar. I also think it’s a very good idea to protect some of your savings and invest in gold in order to hedge against inflation. I’m not saying convert your entire savings to gold, but having gold when the dollar takes a dive seems like a good decision. Schiff has said that “it’s impossible for the value of the dollar to go up.” If you want to invest in gold, you’re basically betting that the value of the dollar will go down due to inflation, which seems like an incredibly likely scenario at the rate the Federal Reserve is printing money.

Before you decide to invest in gold, please conduct some independent research. Stock Hustler also has some great information on the topic.

Here is an article that explores the relationship between the price of gold and oil.

This article got a good debate going on whether to buy gold right now or if this recent surge in gold is just a bubble like everything else has been. The consensus: nobody knows for sure where gold is going, the price of gold is just as volatile as everything else, and if you want to get into gold, it should be about 10% of your portfolio to hedge against inflation.

Great article on how banks deciding to lend will affect inflation, thus affecting gold. If banks continue to lend, inflation will occur, but if banks sit on their money, deflation may occur.

The strengthening dollar? This article got a nice debate going on just how valuable the dollar really is.