Gold Has One Way to Go-Up-Peter Schiff
By Greg Hunter’s USAWatchdog.com
Money manager Peter Schiff predicts, “We are headed for a monetary crisis, a dollar crisis. . . . Money supplies are going to explode, and gold supplies are going to be constricted.” According to Schiff, that means only one thing, “The price of gold has one way to go in the long term, and that is up.” Schiff says the reason why it hasn’t ignited is because, “People are buying into this myth the economy is recovering. . . . We’re facing a worse crisis than ever.” Schiff thinks the real reason why the federal government is suing the S&P rating agency is because it downgraded U.S. Treasuries last year. Schiff says, “The reason why they’re being sued is not only because of what they did but to send a message to the other ratings agencies that you better not downgrade U.S. Treasuries.” Schiff predicts, “People who own Treasuries are going to lose a lot of money.” Join Greg Hunter as he goes One-on-One with Peter Schiff of Euro Pacific Precious Metals.
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About the Author
Greg Hunter
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.
Greg, if we all could be as presient as Peter Shiff and have his common sense about printing money and the negative effect it could have on our economy, we would have a much better world and life. Amen.
Thank you LGC and Luis Chavez!
Greg
Greag,
Our ears are greatfull of having you close!
Luis Chavez
Queretaro, Mexico
Greg, what do you think of the article linked below? I suppose compared to the Euro and Pound, the dollar may seem okay, but as you and your guests point out, with endless printing, the buying power of all these currencies has to go down.
http://www.telegraph.co.uk/finance/currency/9881410/China-loves-the-US-dollar-again-as-America-roars-back.html
Also, I read an interesting opinion piece on the history of money,where the author claims that the most stable currency in human history was a wheat based currency in Egypt that lasted for thousands of years, because wheat is a commodity with a practical use.
http://www.theperfectcurrency.org/main-history-of-money/history-of-money
Thank you for the comment and links!! Good stuff man!
Greg
Is it a coincidence that after the US backed Japan in its recent dispute (over islands that were annexed by Japan in 1895 from China and which were to be returned to China under Potsdam Declaration) by stationing 60% of its Navy to the Pacific in Obama’s “Asia-Pacific Pivot”, and staging joint military exercises with Japan, Australia, etc., off China’s coast that China decides to LOVE the USD again?
Now that China decides to buy US Treasuries, Japan’s Shinzo Abe was recently given a cold reception by Obama in Washington.
Connect the dots if you will. I’ll stick to the gold.
In 1966, Alan Greenspan accurately observed: “In the absence of gold, there is no way to protect savings from confiscation through inflation. This is the shabby secret of the welfare state’s tirade against gold. If everyone decided to convert his bank deposits into gold and silver… private assets would be preserved but Government created credit would be become worthless.”
Now, my only problem with Peter Schiff (and other commentators) who say the same thing is that they keep complaining about the gold price with reference to the USD, as if it were their intention to one day sell their gold and go back to the USD after making a USD profit. In other words, even though they say that the USD is worthless, they have not yet made the mental step of rejecting it and looking beyond.
In Australia, a few are now using the 1913 currency convention and are converting their dollars into the XAG (1oz of silver), XAU (1oz of gold) and XPT (1oz of platinum). These coins have no stamped reference to any country and have no value reference to any fiat currency and are therefore world currencies, free to find their own value. For example, in your country, instead of having an “American Silver Eagle / value US$1” you would simply have a “Silver Eagle / value 1.00 XAG”. No country, no reference to the USD at all.
Futhermore, people are starting to use these currencies to trade goods and services and the movement is growing, not just here but around the world. Finally, a global currency that everyone can trust!
So if your commentators were serious, they should “catch up” and stop complaining about gold in USD terms and instead reject the USD as a basis for reference. Then embrace the development and trade in the (oldest) currencies XAG, XAU and XPT.
As usual, I suspect that the American Government will react violently rather than change its ways, but at least the problem will be fully exposed, which is always the first step towards finding a solution.
My main concern is that the American ego will never allow the right and sensible outcome and instead would prefer to destroy the rest of the world before suffering any temporary inconvenince themselves!
Fraser,
Thank you for the comment. Everyone should take the time to read Mr. Greenspan’s original writing. here it is:http://www.321gold.com/fed/greenspan/1966.html This is very insightful and informative.
Greg
Absolutely. Then you’ll see how people can be turned. Not only did Greenspan turn on his family, relatives, neighbors and countrymen, so did Bernanke. Must be something in the financial sociopaths’ kool-aid.
Greg, good to have you back, in a weird way I think the attack means you have arrived, people are waking up, and your site for whatever reasons appears to be a threat to the elite, the government, and the MSM powers.
In any event, thanks for having the “ba**s” to get back up and tell the truth.
Thank you Art and Justin for your loyal support.
Greg
When Peter Schiff talks – people SHOULD listen.// His books are a good investment-I always recommend them; even to Liberals.His prognostications have been nearly flawless through the years. // It always amazes me that people actually LAUGH at him on the mainstream TV shows.= They’ve been brainwashed by their own chatter.
PS.
I believe that all of your commentators also incorrectly say that “The USD will collapse and there will be hyperinflation in America when OVERSEAS investors finally reject the USD”. But logically speaking, these events can only occur when US CITIZENS lose faith and abandon their own currency. Sure the trigger may come from overseas, but it is the US reaction that will determine the result.
The US Constitution should (but in reality probably won’t) prevent the prosecution of any citizen that cashes in their USD and uses XAG, XAU and XPT instead. Because Article 1, Section 10 of the Constitution states that: “No state shall… make any thing but gold and silver coin a tender in payment of debts”. So in fact, it is the USD (a Federal Reserve promissory Note) that is the illegal currency, rather than gold and silver!
Hi Greg
WTG getting Peter for the week wrap up.I’m an avid follower of him.
Here’s another token in our ever changing world and once again its not good.Is it time to move to Asia?
Thanks Greg
http://www.guardian.co.uk/business/2013/feb/22/bank-england-yuan-trade-china
Thank you Dave for the comment and the link.
Greg
PPS
Truly and sincerely, I absolutely love your work Greg and am a daily listener. If I knew how to help / contribute from Australia with confidence that it would be received, I would. Maybe I could send you 1 XAG !
Fraser,
You are very kind. There is a P.O. Box address located on the donations page. The box is secure. There is also Paypal. Thank you for whatever you do! You can decide to do nothing and you still honor me with this comment!!!
Greg
Greg,
I love you and Peter by right around 10:35 Peter gets a little innuendoish. Just kidding.
The stock market is up because of printing and this is causing people to sell gold and silver in the short term as they enter the stock market to try to make some profits. One large tumble in the market and gold and silver move up quickly.
Thanks again for a great site.
Ken
Thank you Ken for your comment and support.
Greg
Greg:
New subj- on Feb 25 2013 there will be a court hearing in UK concerning BBC inaccurate reporting of 9/11 event concerning the take down of twin towers and bldg seven. Scientific finding as you may know show that fire did not bring these bldgs down. You need to cover this hearing because the presstitute media of usa will not write one word about this. The hearing is in a small town in UK. I can’t find out where. The people of America need to know that their own govt was involved a terrible cover up of this terrible ordeal. You maybe putting yourself at risk here if you report it. Betts
The town is a place called Horsham. I believe this is correct…. Betts
William,
Please keep me informed and post links if you can. Thank you.
Greg
I found it with interest that Jim Puplava commented today that he wished some USD Bears would admit their wrong. I personally think it was a comment directed to long term USD bear Peter Schiff.
I think Schiff will be right in the end but he must admit that USD did not collapse when he thought it would.
Robert,
How can anyone be bullish on the USD when the Fed is printing $85 billion a month to infinity (“Open-ended” QE).
Greg
I think the point here is that Schiff stated that the USD collapse and hyper-inflation was “imminent” for years and he even admitted recently that he was early.
If you took his advise you would have been out of Treasury and bonds and stuck with gold and gold stocks
In fact, inflation remained relatively low, and Treasury bonds were one of the best-performing asset classes, trouncing gold and stocks.
cha ching !
PPS
Finally Greg, although slightly off track, I think we can draw comparison between the current situation and the 1979 movie “Apocalypse Now”.
In the movie you had Marlon Brando in total control as a God like figure. His record was excellent, but in order to maintain control his methods had to become more and more “unsound”. Eventually, even his supporters saw “the horror” and wanted to “terminate his command”. Assasins were sent, but with no success. Finally, Marlon Brando gave up and allowed his termination by Martin Sheen after realizing that in order to continue forwards, his methods had to become totally unacceptable – “drop the bomb, kill them all”.
Now in our 2013 remake of the movie, we have the Federal Reserve as the God like figure in control. At least up until the last decade, the record has been good, except possibly in the years 1975 and 1987. However, in the last decade the Federal Reserve has had to use increasingly “unsound” methods to retain control; such as money printing, falsifying Government statistics and manipulating markets. Even strong supporters have now seen “the horror” of so many asset bubbles being pumped and dumped and some have called to “terminate the command” of the Federal Reserve; such as Ron Paul who ran the 2009 “End the Fed” campaign.
Which brings us to the final scene of our 2013 remake. The Federal Reserve has now become so powerful (and the Government so dependent) that only the Federal Reserve itself has the power to terminate its command. And so it must choose between continuing on with ever more intervention that will eventually cause “Apocylpse” to the world’s economy; or realize that the cause of the problem is its own manipulation of markets and that it should simply stop all activities (or cease to exist) and allow the markets to cleanse themselves.
The sad part is that only the Federal Reserve can choose the title and ending of this remake. That said, there are only two choices: “Apocalypse Now – Really Bad” or “Apocalypse Later – To Zero”.
Either way, I don’t believe there can be a happy ending !
Great Stuff Fraser.
Greg
Concerning Horsham court hearing Monday. Go to google and type in BBC court hearing Horsham. This will give you a little more info. It will really be difficult to find out what goes on in the court as no pressitute will be there. It may trittle down later, but the story is that US and UK are going to suppress this court hearing. Some democracy, right ?? Betts
Thank you William Betts for the update.
Greg
I am unrealiably told that this 1918 song classic was a favourite of John Maynard Keynes and was subsequently adopted as the Federal Reserve’s theme song… but if this is not true, then it should be!
“I’m forever blowing bubbles,
Pretty bubbles in the air,
They fly so high,
Nearly reach the sky,
Then like my dreams,
They fade and die.
Fortune’s always hiding,
I’ve looked everywhere,
I’m forever blowing bubbles,
Pretty bubbles in the air.”
Greg,
One thing not mentioned about the gold price right now, is that it is only the paper markets that are being manipulated. If the ETF’s didn’t exist,I believe the price of gold wouldn’t have been able to be held down this long, or this persistently. Buying physical and taking delivery, whether it’s gold, silver, and platinum, is the most sensible way to go. Sure it’s a lot more “convenient” to use “vehicles” like GLD, but those are the instruments that make it extremely easy for larger players to liquidate positions, and then buy back later at lower prices. The rotation in and out is fairly obvious. Right now with prices below $1600, it’s truly a gift. In less than 3 years it’ll be double that. Silver will likely be triple where its at in under 3 years. And one can convert the precious metals into any currency they wish when it comes time to sell some of it.
My “two ounces” ! 😉
Great interview Greg. Glad to see you back on line…
Good to be back Chip.
Greg
Just like they brainwashed people into thinking Gold is a relic, they brainwashed them into not seeing that Obama is deliberately crashing the economy so he can declare Marsahl Law and throwout the Constitution. Then we will have to fight to regain our freedoms all over again. I am so saddened that so many people in their own stupidity are aiding the very enemy that seeks to subjugate them.