Inflation Chickens Will Come Home to Roost – Peter Schiff

By Greg Hunter’s USAWatchdog.com 

Money manager Peter Schiff says all the money printing and debt explosion since the Great Recession comes with a huge downside. Schiff says, “All sorts of bad policies basically took place thanks to the monetary excesses applied by the world central banks, but now we are at a point where all these inflation chickens are going to come home to roost. It will not be in stock prices or real estate prices or bond prices, but in good old fashion consumer prices. Food, energy and all the things that we need to live are going to get a lot more expensive.”

Schiff says the Fed is overlooking some big problems coming. Schiff says, “They (Fed) did not stress an environment where we have more inflation or where we have stagflation, where we not only have a rise in unemployment and a recession, but consumer prices and long term interest rates that go up at the same time. They (Fed) are not even thinking that’s possible, but that’s actually probable. The real problem is when real inflation rears its head, there is nothing the central bankers can do about it. If they try to fight the inflation by tightening up on monetary policy, it’s like slamming on the brakes. They are going to have to jack interest rates very high, and everything is going to start imploding. The whole credit bubble is going to collapse. We are going to see stock markets tumble. Bonds are going to go into default. There will be bankruptcies, layoffs, bank failures and the governments will have to start defaulting on their obligations and payments on social programs, or even interest on principal. You have a massive crisis coming if the Fed fights inflation, but you have an even worse crisis if they don’t. I am betting on this initially. As inflation gets worse and worse, the central bankers are going to say it is a good thing.”

Schiff predicts, “Inflation is going to run out of control. . . . This is why people need to buy gold. Paper currencies are going to lose a tremendous amount of value. So, if you want to preserve your purchasing power of your savings, you better be saving real money and not all this funny money the central banks create. . . . Once the market perceives that there is no light at the end of the tunnel, that we are never going back to normal, that interest rates are going to stay negative in real terms forever, that the Fed has no ability to raise rates, that all the new money that has been created will never be destroyed, that the Fed balance sheet will grow in perpetuity so liquidity will never be removed, then the dollar will fall through the floor. Then we are going to get all that inflation.”

Schiff is predicting another bull market in gold and silver. Schiff says, “If we are going to have another bull market in gold, which we will and it’s probably already starting, we are going to have a bull market in silver. I don’t think we have ever had a gold bull market that didn’t include silver. In every gold bull market, silver has outperformed gold (on a percentage basis). So, there is a lot of upside in silver.

Join Greg Hunter as he goes One-on-One with Peter Schiff, founder of Euro Pacific Capital and Schiff Gold.

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After the Interview:

Peter Schiff has two sites with lots of free information and podcasts. Go to Europac.com and SchiffGold.com to get more original analysis and information.

This segment is sponsored by Discount Gold and Silver Trading. Ask for Melody Cedarstrom, the owner, at 1-800-375-4188.

For a free audio only link to this Peter Schiff video click here.

 

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Comments
  1. Rachel

    Thanks Greg,

    Great update!

  2. Paul in oz

    I have been listening to Peter Schiff since at least 2006. He Jim Sinclair, Gerald Celente and Dr. Marc Faber are of all of a number of your great guests, are IMO absolutely the most accurate assessors of what is going on and will happen. Whether it is Mr. Sinclair’s “QE to infinity” or Mr. Celente’s “monetary methadone” or Mr. Schiffs clear understanding of what markets are and how economics without fraudulent manipulation operate, it is always to hear them on your show. Greg, thank you, and continue to keep up the great work … Since I firmly believe the country is doomed without a second Trump term, whatever short term manipulations occur, no matter how ridiculous they may be, are worth the long term cost, because the cost of Trump not getting a second term is greater than any additional fuel being added to the meltdown fire.

    • Anthony Australia

      Me too, since 2008. Got his books and all.

    • paul ...

      Paul in oz … as Schiff explains: we have a Welfare Cabal … Warfare Cabal … Drug Cabal … and Monetary Cabal that threatens our “State of the Union” … all these Cabal’s are working together to destroy our economy … ordinary Americans who become homeless on welfare, crippled in war, high on drugs and penniless will likely say … “see … we have become great again”!!

      • paul ...

        To defeat the Deep State (DS) … get rid of your cell phones and don’t talk in your car if it is newer then 2003 (all new model cars are bugged) … don’t talk near any electronic equipment (TV’s, dishwahers, etc., etc.) … or you can use reverse psychology and say exactly the opposite of what you think near the TV, etc. (fake it and say how you are going to be voting for Biden but really know you will be voting for Trump)!! … https://www.zerohedge.com/news/2019-06-26/nsa-again-exposed-unauthorized-collection-americans-phone-records

      • ISMAR DIDIC

        Excellent Peter😍🍉

    • Rob

      People like Peter Schiff, Jim Sinclair, Gerald Celente and Dr. Marc Faber are not invited onto mainstream channels because men who speak the unleavened truth on any given subject are always hated because truth kills pleasure:

      2 Timothy 3:1-4 But know this, that in the last days grievous times shall come. (2) For men shall be lovers of self, lovers of money, boastful, haughty, railers, disobedient to parents, unthankful, unholy, (3) without natural affection, implacable, slanderers, without self-control, fierce, no lovers of good, (4) traitors, headstrong, puffed up, lovers of pleasure rather than lovers of God;

      Even in Christianity the unleavened truth is shunned by most bible teachers because it requires much more than most want to hear:

      John 12:24-25 Verily, verily, I say unto you, Except a grain of wheat fall into the earth and die, it abideth by itself alone; but if it die, it beareth much fruit. (25) He that loveth his life loseth it; and he that hateth his life in this world shall keep it unto life eternal.

      There is much more to salvation than what is being taught today from most pulpits:

      https://sumofthyword.com/2018/04/03/once-saved-always-saved/

    • Bob Halton

      Paul in Oz I couldn’t agree more. I love Peter Schiff and hang onto just about every word he says. I know President Trump is well aware of the state of the economy and is trying his best to get reelected so he can work on it in a 2d term. If it goes down “before” the election, we are all in a very bad place. Socialism is definitely not the answer. That is why Mr. Trump is so vociferous in his criticism of the Fed’s policies. It’s merely a stop gap so that the economy won’t fail until after the election. Let’s hope he succeeds.

      • FC

        I find myself in Mongolia and visited the National Museum where university students have varies drawings displaying the corruption between the politically connected and the general public.
        I spoke to the studentd who had organized the event about the socialist rule of Mongolia and current day Mongolia.
        During our conversation he spoke highly of students back in the 80’s and 90’s protesting against socialism and wanting a change to democracy.
        I explained right now in America the complete opposite is happening, he was gobsmacked.

  3. Rodster

    Inflation has been ongoing in various forms so the public doesn’t catch on. You see it in the form of product shrinkage while the price stays the same. Most brands of orange juice are now 52oz instead of 64oz. In my area a half gallon of milk has increased anywhere from 20-45 cents., which translates to $2.45 – 2.99 a half gallon.

    I’m seeing more and more seniors (70-80yrs old) working the checkout lanes because they can’t make it on what they get from the Gov’t.

    Inflation is every where and has been for sometime if you just know where to look.

    • Uncommon Sense

      On the positive side it is easier to lose weight now!

    • Freebrezer

      R – per milk … if you took away the Federal Governments susbsidies, milk would be around 8 to 10$ a gallon. They make sure milk prices are low, this so the poor can afford it.

  4. William Stanley

    Mr. Hunter,
    Thanks for everything, especially for maintaining your journalistic standards.

    • Greg Hunter

      Thank you William.
      Greg

  5. The Zionist 2A American Patriot

    I keep an eye on various market sectors and in addition to bond yields plummeting and metals prices spiking, another worrisome trend has begun: the US Dollar index is falling.
    The lower the Dollar index falls, the less the Dollar is worth and the higher consumer prices go.
    Gold and silver, baby, silver and gold. There is very little time left to get in on metals at a reasonable price level.

    Some will point to the stock market and say “See, stock prices are rising so everything’s okay.” But I believe people are buying stocks now for three reasons:
    1- They see problems but they’re in denial and they think the markets can never crash again.
    2- They’re low-info types who don’t pay attention and they see no problems
    3- They’re treating stocks like gold – a hedge against future troubles

    IMO, only one economic policy can save this economy: a return to conservative, free-market capitalism. But even if all the Pelosis, AOCs and Bernies get voted out, nobody will do what’s right because the system would still have to be allowed to crash to get rid of all the $Trillions of fiat. No politician has the balls to let that happen. So we’re stuck.
    Gold and silver, baby, silver and gold.

  6. The Zionist 2A American Patriot

    Remember the saying:
    “Always have enough gold to bribe the border guards.”

    • Jodyp

      I AM the border guard, and I WILL defend my property.

      • The Zionist 2A American Patriot

        How many ozs do you need to look the other way?

        • Jodyp

          I believe you missed my point. I won’t be running.

  7. Anthony Australia

    Fantastic interview Greg,

    The thing that surprises me is on some business forums in Australia, Peter is unfairly labelled a loon. This is because too many Bozos are calling out predictions based on an ultimate pinpointed timetable, which has passed, rather than lining to the detailed circumstances.

  8. (Rev) Andrew de Berry

    I love your guest. Straight as an arrow in my book. Thanks as always. Andrew UK

  9. sheryl

    Looking forward to reading comments. To me he sounded like an infomercial for his company sorry

    • Greg Hunter

      Sheryl,
      Fair point but Schiff did some very good information and analysis too.
      Greg

    • Robert

      Cheryl, all this pimping of gold and silver yet what are we suppose to do with it? Its not like everyday services are going to be able to transact in gold and silver. The cash registers won’t have assay machines to determine if its even real. So just how are we suppose to use this gold and silver at the grocery store, the gas station, the auto parts store, the bakery, the dept store, the furniture store, the restaurant?

      • Greg Hunter

        Robert,
        Can you spend a share of stock in a restaurant? How about a bond? How about a painting or an acre of land?
        Greg

      • John McGowan

        Robert, the point to holding gold and silver is not to use it for currency (although if things get bad enough that certainly would be a possibility). The idea is to hold it and cash it in for currency should the need arise. It seems you aren’t a savvy PM buyer or investor as you would be aware of how to liquidate your PM’s when/should the need arise. It may also be possible under the right conditions to trade your PM’s for land and automobile or other large commodities. There are a growing number of states (Utah comes to mind) that have passed laws that have made PM’s useable as currency – going back to the original intent of the Founding Fathers. Those who believe that PM’s are worthless or a waste of time are going to be very sorry indeed. I’d rather have it and not need it than to need it and not have it.

  10. AndrewB

    Hi Greg
    I’ve listened to Peter Schiff many, many times but this interview is by far the best to date. What happened to Peter’s father, at the hands of a vengeful State apparatus, was beyond despicable – and that Peter soldiers on, trying to educate and alert the public about the true state of affairs, is only to be admired.

    • Montana Guy

      Peter’s own words in a tribute to his father Irwin A. Schiff, “my father was fortunate to have been born into the freest nation in the history of the world. But when he passed away on Oct. 16th, 2015 at the age of 87, a political prisoner of that same nation, legally blind and shackled to a hospital bed in a guarded room in intensive care, the free nation he was born into had itself died years earlier.”

      Nothing has changed. Dare to expose the tyranny of Big Brother and you will be incarcerated. Today Trump is hell-bent on serving the same wrath of tyranny on Julian Assange. Where is the outrage?

      Peter is correct. The nation is dead. Is there any greater example of cognitive dissonance than MAGA slaves clinging to their master Trump and leftist slaves clinging to the likes of Hillary or Bernie? Americans can only see 2 boxes. Sad.

  11. Bob t

    Hi Greg, had problem accessing previous to Shiff video
    Where can I get it
    Excel not Peter Shiff interview
    Finally investors should see there is no way out for fed

  12. paul ...

    It’s about time people stop investing with crooks … https://www.zerohedge.com/news/2019-06-25/merrill-lynch-caught-criminally-manipulating-precious-metals-market-thousands-times … and Schiff their account for safety sake!!

  13. Louise

    Buy gold with what? Is the average person supposed to take on more debt to buy gold?
    I am tired of these ‘buy gold’ people who are gold brokers and who are selling it. I don’t even watch the ‘buy gold’ interviews anymore. It’s the same broken record. Why not make a generic ‘buy gold’ video and play it once a week.
    Peter Schiff is telling us everyday essential items are going to become very expensive and possibly people won’t be able to afford them, but we are supposed to run out and buy gold. When everything collapses, maybe he will be able to barter with gold coins for groceries in his wealthy affluent neck of the woods, but I don’t think that is going to work for most of us.

    • Greg Hunter

      What have you been doing for the last several years?
      Greg

      • Louise

        It’s too bad your comments can’t be moderated, Greg. I think that was uncalled for. I must have hit a nerve. I thought better of you.
        What have I been doing? I have been trying to stay alive while calling on faith and courage to maintain my hope that one day I can continue my life’s work, which like yours, is productive and challenging. Reversals can strike without warning. May you be spared learning that lesson.
        Best Wishes ……… Louise

        • Greg Hunter

          Louise,
          Please forgive me. I a so sorry I came off harshly. I have been telling people to get prepared. preparation requires sacrifice and hard work and many people do not want to do that. They want an easy answer that will not interrupt their lives on bit. You obviously are not one of those people. Again, so sorry I came off harsh.
          Greg
          By the way life, has dealt me some harsh blows. After I was let go at CNN I could not find work anywhere. I had been blacked balled din the industry. I had to cash out my 401ki and start USAWatchdog.com. I made zero money for 5 years. The only way I can get by now is that I have to do everything, and I mean everything from take out the trash, to learn new tech, to write and edit the stories the stories and book the guests. I have not taken a real vacation since 2009. m I am not complaining. My job is to inform people. I always pray to the Holy Spirit that I do not misinform people. I will pray you get some help some how! Don’t give up and “Fear Not”!!!

          • Anthony Australia

            Solid man Greg! That quality is priceless.

            • Greg Hunter

              Thank you AA!!
              Greg

          • Louise

            Thank you , Greg, for your gracious and sincere reply. It is easy to forgive gentle misunderstandings.
            I agree with you about preparation and make every effort to use common sense about remaining informed and prepared.
            I know you work very hard and I understand the sacrifices you have made on many levels to bring truth to the world through your channel. I will pray also for your continuing success. May you be guided by wisdom and strengthened by truth.
            Best wishes ….. Louise

          • Louise

            Thank you , Greg, for your gracious and sincere reply. It is easy to forgive gentle misunderstandings.
            I agree with you about preparation and make every effort to use common sense about remaining informed and prepared.
            I know you work very hard and I understand the sacrifices you have made on many levels to bring truth to the world through your channel. I will pray also for your continuing success. May you be guided by wisdom and strengthened by truth.
            Best wishes ….. Louise

            • Greg Hunter

              I am praying right now for you Louise.
              Greg

        • DB Cooper

          Louise, Do not feel alone … Greg seems consistently unable to moderate his responses to those that wish to follow his site and contribute. Yours in Faith and Liberty, FN, DB.

          • William Stanley

            DB,
            I’ve missed you.
            You have a point. Nevertheless, please don’t deprive us of your society.

    • sandra sullivan

      Along those same lines of thinking, I, too, have questions. Some are if silver is valued at 15 dollars and I want bread and milk costing 6 dollars, how is change going to be made? Are we going to use our coins we have now? Could it be set up like a credit to be drawn on until 15 is used up or we going to have a new currency? backed by what? How do we pay bills, if banks are going to be non-existent ? I sure would like to have these questions answered by someone who is a lot smarter than I am.

      • Freebrezer

        Sandra – No one knows the future, best recourse is to just understand the past – look to Venezuela as a prime teacher to what socialism leads to (i.e. corruption). And as Greg says – be prepared … have food, water, and eliminate as much debt as possible! The best Silver investment (my opinion) is the old US silver currency (it is still “real money” and it is legal tender for all payments) … Most coin shops deal in it (it is called junk silver – Just worn US silver coins that have no rarity value but are worth the silver in them … ~0.73 oz per 1 $ face value) and they charge about 2 to 4 % over the cost of silver. Buy it in silver dimes, quarters, halves. With silver at $15.50/oz, 4 silver quarters cost about 11.50$. Something costing 6.00$ would be one silver quarter and two silver dimes … or $50 paper dollars buys you $4.40 in coin face value (or about 3.20 oz of silver). Really quite simple.

      • John McGowan

        Hi Sandra. The purpose of having precious metals is to use them as an “insurance policy” that you can cash in if need be. There are, and will be, any number of dealers and companies who will buy your metals when/if the time comes. In the mean time it is a good idea to have a small cache of ready cash on hand. Save what you can – even $5-$10 per week if possible would be good. Puerto Ricans who were caught off-guard by the hurricane a couple of years ago found out the hard way that digital methods of payment are of no use when the electrical grid goes down. I’m not worried about making my house payment in the event of a financial meltdown, I just want to be able to buy necessities until banks re-open. Once the banks re-open I’ll pay my mortgage payment. One way to use silver is to get some “junk” or Constitutional silver coins (pre-1964 dimes and quarters and half-dollars up to 1970) or fractional silver rounds in 1/10, 1/4 and 1/2 ounce sizes. They are a little more expensive but might be useable under the right circumstances. Same goes for gold. Fractional coins and bars are easier to obtain than a full one ounce bar or coin. I always check my change when I get quarters and dimes because you might just get lucky and get a pre-1964 coin. That is like getting free silver. It is rare but I have gotten a quarter and half-dollar like that. I understand your concern but try not to get too afraid. It sounds as if you might have some silver and that is good. Fortune favors the prepared. Do what you can and make sure to cultivate relational ties with others in your area. People can do a lot when they all work together.

      • Paul in oz

        Sandra, I think it will be quite complex in some ways … when I was younger people operated in a much more community spirited way … back then you didn’t have credit cards, but your corner store who also sold fresh produce and sliced meats and cheese etc. new who you were …. they gave you credit and you paid them off when you could … in your example, you may give them the silver coin and have a credit in reserve if you can trust them, otherwise you may get something else of $9’value or get extra milk and trade it. Part of being prepared is having a community spirit and be around like minded people … neighbours will be neighbourly again. The other possibility is more mad max (which is more likely in the mega cities) where dog eat dog and survival will be difficult because of the total lack of community spirit. My family lived through soup kitchen days …. and in the past in a smaller city in which I lived, when the place that served hot meals closed for a day, I would go out with a big pot of stew or pasta etc and a portable heater it and serve it to the people … my payment was their gratitude …. those are the thing that are going to have to happen when the economy is destroyed until it gets back right again.

      • Steve Bice

        Sandra: I’m not sure what “smarter” means. But I’ll give it a try. By way of experience, I want you to understand that my “advice” is just my opinion. But I have been “preparing” for twenty years. This may also help Louise understand why Greg responded as he did to her complaint.

        It is not “new” that the economy is fragile…and volatile. It has been so at least since the tech wreck in 2000. We have had lots of warnings…not the least of which was the 2007 implosion of the housing market and subsequent doomsday moment for the entire system. It is frustrating I’m sure, but it is still unfair to lash out at those offering their best advice for protection against monetary malfeasance. We have had a lot of time to get ready…as best we can for our individual circumstances.

        Now, to the point. Many jump to the extreme when analyzing a shock to the system. While it is certainly possible for a complete collapse of civilization, there are a lot of scenarios that are highly disruptive, but fall short of Mad Max.

        A loss of confidence and dollar shock may result in a dramatic devaluation of the dollar. Gold and silver will retain their value, while the dollar falls. You won’t be spending silver under such a scenario. You will be spending dollars with lesser value (more expensive goods)…but you will have more of them by virtue of your silver (gold) holdings. The medium of exchange will remain the same (dollars); only the value changes.

        In the Mad Max scenario, all bets are off. We may all be in trouble but for the grace of God. Even so, it is just prudent to own something tangible that is not dependent on the financial system.

        With regard to frustrations about buying gold or silver, anyone who has waited until this point to begin preparation is certainly at a disadvantage. But anyone above the poverty level can buy a silver ounce or two a month. It’s not much, but it is something. It is never to late to think like an ant rather than a grasshopper.

        One ounce of silver and a couple mini-bottles of bourbon for trading makes you an ant. Don’t get frustrated. Get busy.

        Best wishes…

        • Steve Bice

          P.S. Direction ultimately says nothing about final destination. Humans seem to be hard wired to extrapolate and extend a graph or trend. A sudden revaluation of the dollar could be the crisis needed to force our inept congress to rein in spending and return us to a surplus. It gives them cover to reduce or eliminate “entitlement” spending…which is unsustainable. Hard choices, lots of pain…but better than a complete collapse of the financial system.

    • John McGowan

      Hi Loiuse, I saw your comment and wanted to make a respectful reply. I don’t know your financial situation so please don’t be offended by what I am going to say. It has been my experience that we Americans can usually find areas in our finances where we can make some adjustments in order to get those things we need. I’m as guilty as anyone for wasting money on things I think of as “necessities.” And that is half the battle. Giving up something now for something better later. It isn’t easy – far from it, but it is worthwhile. I’m kind of shocked that you would pounce on Greg the way you did. Perhaps he hit a nerve too? I’m thinking so. The thing is – he won’t say that, whereas an outside observer such as myself will. Hey, it hurts, I know. Maybe it was a little direct – sometimes that’s what it takes to get us to think about our situation. If you are really strapped I get it, I’ve been there, but there are still ways to invest in PM’s. One does not have to buy gold when silver is a solid, highly more affordable alternative. But you have to have the right mind-set. This isn’t a get rich quick scheme. Its a long term play, perhaps on the order of 10+ years. I wish you success and prosperity in the days to come.

  14. paul ...

    The gold market will continue to rise because it knows that the Deep State “needs to obliterate Iran” because of Iran’s long understood position (since Iran’s Islamic revolution) that the Ayatollahs “have been consistently against nuclear weapons on moral grounds” … which does not fit the Deep States “total annihilation view of military warfare” that makes using nuclear weapons to kill people acceptable … https://www.zerohedge.com/news/2019-06-25/how-many-have-you-killed-nukes-iran-slams-us-hypocrisy-over-atomic-record

    • Freebrezer

      Paul – that article was totally PROPAGANDA and total crap! I am really sadden that you would even allure to it. My dad was in Europe when the war ended and was slated to go over to fight Japan. The casualties were expected to be anywhere from 250,000 to 1/2 million American Service men, and Japanese casualties (civilian) where expected to be 2 to 3 million. 2nd) to have the mullahs lecture us on morality … PLEASE maybe a double dog PLEASE!