By Greg Hunter’s USAWatchdog.com
Money manager Peter Schiff hasn’t changed his investment strategy one bit, even though the world seems to be falling apart. Schiff explains, “I am already prepared, and what I am trying to prepare my clients for is for the day when the dollar is no longer the reserve currency. . . . From an investor’s perspective, we are engaging Russia, not in another hot war, but in a financial cold war. That simply accelerates this process because I think that we are really unarmed to have this battle. America depends on countries like Russia hoarding dollars, accumulating dollar reserves, invoicing their customers in dollars and supplying products that we pay for with the dollars that we print. When we anger countries like Russia or other countries that may be sympathetic with Russia, and they might be upset about the way we throw our weight around. They also might be upset that by holding dollars, they are really emboldening the United States to do this. There are a lot of nations that might resent the power the U.S. wields. . . . I think we are pissing off a lot of people we really ought to be sucking up to, and it’s all accelerating this day of reckoning.”
On gold, Schiff, who oversees more than $2 billion in investments, contends, “The only thing I or some of my clients are upset about is we didn’t sell when it was way up there so we could buy it back. . . . I am preparing for a much bigger move.” Schiff goes on to say, “I do think the main reason the price of gold is not much higher is not because the price is being suppressed, and maybe it is to some extent, but I think it has more to do with financial ignorance. The vast majority of people who should be buying gold don’t understand that they need to be buying it now. There is not a lot of understanding among the big players who manage trillions of dollars, and they are making foolish investments based on a lack of understanding of what’s happening. I think when it dawns on more investors exactly the predicament the Fed is in, that this recovery in the U.S. is a mirage. It is not real, and rather than the Fed ending QE and raising rates, it will be launching a whole new round of QE. It will be even bigger than the last one. When investors get their arms around that, they will be buying gold and they will be paying much higher prices. Then, nobody will be talking about manipulation because the price is going to be skyrocketing.”
On the recent so-called strength in the U.S. economy, Schiff says, “I think it is all downhill from here. I think this second quarter print, even though we are going to revise it down, that’s the big print of the year. I think the third and fourth quarters are going to be bad. I think that’s when the Fed is going to have acknowledged—once again—it’s wrong. It over estimated the economic strength that is not there. . . . They have diagnosed the economic patient and came up with a cure of printing money and artificially low interest rates. That cure doesn’t work. In fact, that cure is the reason we are so sick.”
On Fed Head Janet Yellen, Schiff predicts, “Yellen is going to say, we just need an even bigger dose. The patient is sicker than we thought. That’s why it’s not responding to our monetary medicine. So, we need even more. More money printing is not going to work, and it will make it worse.” Schiff goes on to say, “Remember, Janet Yellen is the most liberal Fed Chair we’ve ever had. No Republican is going to reappoint her. So, her only chance of having a second term is for a Democrat to be in the White House. So, she has a lot of selfish interest in doing what she can to help the economy and she believes what helps the economy is printing money. . . . She is going to pull out the stops. It’s going to be monetary pedal to the metal. So, there is a lot more stimulus coming. The official government measures of inflation, that doesn’t even come close to accurately measuring how bad it is, those official measures are going to get worse.”
Join Greg Hunter as he goes One-on-One with Peter Schiff, CEO of Euro Pacific Capital and Euro Pacific Precious Metals.
(There is much more in the video interview.)
After the Interview:
Peter Schiff is a prolific writer. If you would like to read his analysis of the markets, you can do so at Euro Pacific Capital
or Euro Pacific Precious Metals.
Both sites are free, and contain lots of good information and articles.