Peter Schiff: Get Real Money, Gold and Silver – as the Fed Will Not Stop Printing Money
By Greg Hunter’s USAWatchdog.com
Money manager Peter Schiff warns that Japan will likely stop buying U.S. government debt. He contends, “If the Central Bank of Japan has a choice between monetizing Japanese debt or U.S. debt, they’ll go for their own debt . . . that means the Fed has to print even more money.” Closer to home, the new debt deal also means more money printing because of even bigger deficits. According to Schiff, “The majority of the tax increases were cancelled. The spending cuts were cancelled . . . the Fed is going to have to keep buying bonds to keep interest rates from surging.” Schiff thinks talk from the Fed about stopping the $85 billion a month money printing (QE) is preposterous. Schiff says, “They can’t do it. . . . The minute they try to take the cheap money away, the phony economy is going to crumble.” What’s not going to crumble is the gold and silver market. Even though precious metals have been down recently, Schiff says, “So what, buy more. Look at the sell off as an opportunity to unload more of your fiat currency and get some real money.” Join Greg Hunter as he goes One-on-One with Peter Schiff, CEO of Euro Pacific Precious Metals.
The observation that I make is that CB’s are diversifying out of their respective holdings of US Dollars and Treasuries/Bonds. Rather than stampede to the gates (dump Bonds and USD to buy PM’s) they adopt the realisation their holdings of US Investments are depreciating consistently year over year. A steady as she goes approach gets them there, whilst limiting their downside (a stampede only achieves an undesirable…dramatic loss of value in a short space of time). Accumulation is the name of the game.
On the issue of increased money supply and inflation….there is but one real indicator of inflation…GOLD (or its inverse..the USD).
Money printing aka…Debt Monetisation allows two things to occur. The FED (Non Government Body) increases its balance sheet in both assets and liabilities. The liabilities are the newly created Bond obligations, while the money generated through their issuance go towards accumulating assets ..think MBS (Fannie and Freddie) or other (worthless)Debts owned by member banks or international banks. The consequence to QE is an unfavorable currency movement (down).
The FED also supports the government by buying up treasuries ..which in turn allow the government to spend more money than they generate. We all know the government spends money on various programs including welfare. This in itself doesnt generate inflation. It is the currency movement causing inflation to be exported. This finds its way into production (overseas) via input costs…which ultimately work their way into products and pricing of goods imported. Its very subtle…and becoming more obvious.
Some believe this FED action in intended. This, they contend, is to stimulate US exports. All other actions as we have seen have been unsuccessful in kick starting the economy. So it is a planned scheme to undermine the strength of the currency to allow or foster growth. The risk for US Bond holders is that they are literally holding ticking time bombs. The Chinese and Japanese get it. So too does Russia and India and ME Wealth/Sovereign Funds.
It literally is a currency war .. a very real race to the bottom. All fiat becomes worthless against real assets. Ultimately there is nothing that supports fiat, other than a promise by the issuer.
Thanks for your reply. I agree with your points. By moderate I meant the actual rate you mentioned 8-9%. What is surprising to me is that it is not higher than that. I mean the money supply has greatly expanded and the consequences of that don’t seem to correlate very well, at least not just yet…
Greg, “The phony economy” kind of sums it up doesn’t it? Last weeks job numbers showed further slowdown(s)in manufacturing. I suggest a country that doesn’t actually make, produce, build, or manufacture anything of value can’t stand for long. There’s already too many Enron’s out there now such as the “financial industry” who makes or produces nothing of value. An economy can only handle only so many such industries which makes money making nothing, basically ponzi schemes if you will. The next time you drive by a bank stop and think what are you buying there, what are they selling, and, more importantly, why do they get free money and not me?
Greg: this is too good. “So what, buy more. Look at the sell off as an opportunity to unload more of your fiat currency and get some real money.” The only thing we the people can do is sit down. Refuse to work till the gooberment stops the fed bailouts,and prosecutes the fraud.
Infomercial. Interviews should be of folks that aren’t selling a product, books, their website, etc. If usawatchdog gets any money from Schiff, or any other, since this is investment advice, I’d would expect you would disclose it.
If your theory is correct, all the presstitutes in the MSM would have to stop taking advertising and should not have an opinion. Oh, but they do have an opinion and it is how rosey things are. If you read and trusted the MSM, you’d believe we had the green shots of a recovery when in reality we are at best bottom bouncing. The real “bloodshed” in the economy is already starting with the wonders of Obamacare.
If you had stopped putting money in a 401-K and used that money toward PMs 5 years ago you would be sitting pretty, around 75+%. The stock market is manipulated so that the little guys cannot win. 401-K’s have evolved from a savings vehicle to a way for the big brokers and bankers to harvest money on a regular basis. The market makers and big banks have such power and dark pool info that the stock market is no longer a level playing field. Before, the little guy had a chance to pick good stocks but if you look at the SP500 or the DOW, anyone who was in either index in Jan of 2000 (12 years ago) is about even before you account for inflation; with inflation you would be down nearly 10% if we buy into the 2% inflation nonsense. If your 401-K is matched $ for $, this would have made sense at some point, however, it was the match that made you a return, not the market. If you bought Gold coins 12 years ago, you would have had over a 250%increase and silver would give you about 110%. AND a biggie, it would be in your control, not like the people who lost safe segregated funds in MF Global.
Just how solvent and safe is any broker with all the counter party risks out there? Risk that you will not know until the court rules that your money is really someone else’s that has more clout.
Nice touch, Greg…bringing on the “poster child” for complete and total cluelessness…Peter Schiff himself. During the 2008-2009 market meltdown was there anyone on planet earth (cept for maybe Jim Cramer)who lost his flock of clueless followers more money than Peter Schiff did? 🙂 Schiff is correct tho, the Fed will continue to print be able to print as much money as they want since $trillions$ will be eliminated from the system as a result of grossly overbloated stock prices (the inflation guage gold refuses to price and cannot price cuz gold stock prices are also bloated.) Not only that, the continued money pump will NOT be inflationary. The market is already telling us that as I have pointed out. Peter Schiff will once again ignore this fact and anyone who listens to this “most terminally clueless” of clueless clowns will once again be crushed…just like in 2008-2009. I’m surprised you would even bring on somebody like Schiff, Greg. But I’m glad you did. Let’s keep these morons in the spotlight until they go silent :-)Meanwhilst, back at the JoeJustJoe headquarters my golden NUGTs move onward to the destination I have outlined. Are you beginning to believe int eh truth I bring you, Greg? No worries, mate…you will…ooooh, you will 🙂
Greg: Iv been waiting for that reply to jo jo
Great reply Greg. Best to ya…
Are we on the same planet Joe is on?
Oh, to answer your question about my identity…I am a simple market follower without any affiliation with any moneyrunning agency or Wall St firm. I do not manage $$$ for anyone cept a handful of folkes who ask for my advice. I have invented a market timing system which is in the final stage of development but that system will only be made available to a select few of my friends and associates. I will continue to make the calls that you will see from no other source as long as you will allow me to do so. You are on teh right track cept you are incorrect about how it will play out in teh marets. If you wish to banish me (the truth) for any reason it is your own choice and I honor your decisions. But keep in mind…it will be your readers who will miss out…and lose…becuz they will follow the advice of the terminally clueless talking heads you parade here…and not listen to “the turth” *-)
I think no name Joe’s real name is Ben Bernanke !
Joe,you wrote,”I have invented a market timing system which is in the final stage of development.” So Joe, you have developed a system. I can not wait to see your qualifications. Most people touting systems make money selling the systems not because the system is really a winner. By the way, George is my real name and I have degrees in accounting,and forensic accounting with minors in money and finance.
I do agree Joe – although Schiff manages a lot of money, it isn’t always managed in the best way. You can search online for many people who have lost lots of money with his firm. Many of his book predictions, if followed, would have lost people money. HOWEVER … with this being said, what he says about gold and hyperinflation I believe is true. He was right when he preached about gold several years ago, and he is right now. You can never depend on one human to give you all the right answers. Economists/investors can only give you THEIR best idea of what might happen. You have do your own research, find what resonates with you, and follow that path.
Great interview. Schiff tends to get under some folks skin but the fact remains he’s been right for a very ong time and he’s an absolute genius on economic history. Happy 2013 to you Greg and keep up the good work.
HAPPY NEW YEAR PATRONS OF USAWATCHDOG.COM ET AL:
Well, we seem to have some controversies about who’s who but perhaps we can ALL agree with this guy, Thomas Edison, who once said: “Not one person on this planet knows even 1 millionth of 1% about anything!” We try our best but it’s true that we should each conduct OUR own due diligence….in my opinion anyway.
My controversial problem/queseion is understanding why we neophyte, American type suckers are left with trading the whipsaw futures market for gold; when Dr. Mark Faber (who manages billions of his own money & probably others’ money besides as well)tells US in the video, MELTUP, @ the National Inflaion Association’s website that gold should be pgged (no longer traded at all) @ $1,000,000 per troy oz.? Why are we the American suckers loosing OUR gold’s buying power therefore to the futures market prices that swing up, down and all around? Is it because we are ALL totally uninformed; based upon the statement made to US ALL by Thomas Edison or what’s the TRUTH here?
RUSS SMITH, CA.(One Of Our Broke Fiat Money States With No Gold)
Hi Greg, great job on your choice of guests as is all of your work on your site excellent. Peter Shiff has been pretty much right on since he came on the scene in the early 2000s. Do not worry about the hacks and uninformed cynics.
A couple of thoughts. Money, real money is only backed by true labor, gold and silver. This has been the case for thousands of years. Currency, is only backed by debt. True currency (Like the US Dollar) is always fiat in the fact that it is not real nor will it hold it’s value as more of it gets printed over time. Currency always works the opposite of gold and silver. The more that is printed, eg: QE4ever, Fed bond buying, the more gold and silver will react. The longer the naked short selling and precious metals supression goes on, the higher the real jump will eventually be when it comes. Those in government and at the Fed have an agenda to complete before they allow the currency to collapse and the price of commodities to skyrocket. Neither can be allowed yet as that agenda has not been completed. Remember, there has never been a currency to survive in history. Gold and silver always has and this time is no different. Peter Shiff is 100% correct.
Hi!, Patrons Of USAWATCHDOG>COM Et Al:
Further questioning along the lines of my 1st post toaday is: We have suffered inflation that robs US ALL of OUR $’s purchasing power & so some advisors have told US to buy gold as a hedge against those losses in OUR purchasing power right? Now, with gold trading under $1,700 per troy oz. in the whipsaw Futures Market & Dr. Mark Faber saying it should be pegged at $1,000,000 per troy oz., OUR hedge price is being stolen as well right? Why confiscate the people’s gold; when all that the nefarious STATE has to do is steal OUR hedged purchasing power as well the sdame confiscating the purchasing power of OUR $’s, in order to plunge US all into Socialism?
Next, what would have happened within OUR Gold Mining communities/industries as well, if gold was pegged @ $1,000,000 per troy oz.? The extreem austerities that some miners have too long suffered would have been wiped off their financial map wouldn’t it or not? OUR miners worldwide would have prospered themselves, allowing them to hand out emense profits to those share holders who funded their operations wouldn’t they have or not? So, now, OUR hedges are dead and many of OUR gold miners have already died on this cross of artificial futures prices have they not? Of coarse OUR Socialist elitists found within our governmnt could care less that these artificial prices serve their goals of destroying middle class America etc. could they? Are we all, as gold investor capitalists, instead of helping to form a new American renassance instead gradually joining in with the New American Socialist Mickey Mouse Club?
RUSS SMITH, CA.(One Of Our Fiat Money States Wihout Any Gold)
I think Peter S. is a valid guest to have on the show but I don’t agree with his call for hyperinflation. I’m in the camp that feels there will be a massive deflation first. But both camps agree something is very wrong with our system and it can’t continue business as usual for ever. The only question is when and how. Picking up some physical gold or silver isnt a bad idea.
Happy New Year to all. Best of luck, I do think this is the year we see something break.
Peter reminds me of myself and Jean Dixon. I think she made around 2,000 predictions a day and when a few came true she was hailed as a prophet. I never got hailed for some reason. I’m 60 and in the old days did pretty well paying attention to what the Rockefeller family was doing. I bought a few shares of Exon stock when they moved away from gold and into oil or vice versa. They no longer publicize their financial actions so all I know is when I say “they can’t do that”, I usually find out they can. It’s like saying they can’t suppress gold and silver prices. HUH!!! What is real anymore? Let’s start with Enron and ask their Employees. From there let’s go to all the majors who bit the dust since 2005. Let’s take a good look at AIG. Oh, I forgot we can’t because the MSM only spends about 3 seconds on what really happened then goes on for months about Janet Jackson’s breast. They (whoever they are) can do anything they want and this should be clear to all of us. This really was one of the main points of Occupy, just pointing out every day that rules only apply to us suckers (only speaking for me). So have fun first and foremost and good luck to us all with our predictions.
It is my belief that the Fed at their recent FOMC meeting deliberately released their report with “accidental” statements from the Fed governors included in the written version with the hope that the statements about the possibility of discontinuing QE perhaps by the end of 2013 to cause a negative effect on the gold prices. The gold price smash that occurred on Thursday. was created by the Fed with the help of the mainstream media. If the Fed is going to give the appearance of low inflation they cannot allow the appearance of the rise in gold prices as gold is a measurement of inflation and inflation must be controlled by the Fed or the big lie will be discovered by the citizenry and other sovereign countries. The days of golds manipulation are getting closer and closer to the end.
Peter Schiff could be wrong. Japan will probably keep buying U.S. debt.
1) U.S. keeps printing money and Japan keeps printing money. I cannot see the difference between the two. Although they are two different currencies, both “central banks” are using infinite QE.
2) Japan’s economy is getting worse and worse. Japan’s national debt is already close to 200 percent of GDP. Buying more U.S. debts may be better than buying its own country’s debts.
3) Japan needs the U.S. to stand against China. Japan may be pressured to buy more U.S. debts in exchange of the U.S. military supports.
This year, “…Japan plans to bring its long-delayed Rokkasho reprocessing plant online, which could extract as much as eight tons of weapons-usable plutonium from spent reactor fuel a year, enough for nearly 1,000 warheads. That would add to Japan’s existing stockpile of 44 tons, 9 of which are stored in domestic facilities.” (From The New York Times, “Japan Nuclear Mistakes”, http://www.nytimes.com/2012/11/29/opinion/japans-nuclear-mistake.html?_r=0&pagewanted=print)
While many people, including the MSMs, worry about Iran’s nuclear program, they overlook the nuclear program of Japan. Although the U.S. wants Japan to counter-balance China’s power in the region, a country with so many tons of weapons-usable plutonium is certainly a threat to its surrounding countries. Even if Japan don’t use the plutonium for military use, it is a country prone to earthquakes. The next big quake in Japan could cause a worldwide nuclear disaster.
Perhaps justjoeblow should put his money where his mouth is and make a wager. Gold vs S&P. Your supporters can place several oz of AU in escrow and joeblow can do the same. Who’s in?
I agree with Joe about Peter Schiff.
I listened to a Youtube video on his address at a Ron Paul Festival, in which he repeatedly talked about people on Social Security/Medicare “living off the government.”
I have worked all my life and paid into Social Security. When the Medicare tax was instituted, I started paying that, too.
If you listen to Mr. Schiff’s rhetoric, then my paying into the SS for 50 years means nothing. It was a gift to the government. Now when I get near retirement age, I’m “living off the government” to expect to receive back on 50 years of paying in.
If the government had been wise with the money being paid in from the get-go, invested it (instead of spending it) and let it build all these 50 years that I have been working — there would be no Social Security insecurity.
Start in at about 9 minutes to hear Schiff’s opinion on Social Security.
Thanks for the Schiff interview Greg:
However, I think Bill Still/ Ellen Brown have it nailed and all these gold bugs have it wrong, tho they are all banking and anticipating a return to some type of gold or commodity basket standard.
Bill Still contends in his two youtube documentaries, ‘Secret of Oz’ and ‘The Money Masters’ “he who has the gold makes the rules” and that includes BOTH govt and private entities.
Certainly makes sense to me.
Thanks for bringing us the great interview!
Do not worry about the Joes of the world.
They are Ben Bernanke in disguise.
No problemo, Greg. I understand that some folkes just can’t handle the truth so I will refrain from telling you fine folkes about the way it “really” is from this day forward. . . . . (This is Greg Hunter I cut off the rest of this comment.)
And you can. . . (It’s Greg Hunter and I have deleted the rest of this comment.)
Thanks for having Peter on.I follow him religiously.what is your take on the trillion dollar coin?If Imo ,it’s a joke/check the details as to how they intend to use it.Im sure you noticed that knee-jerk reaction when when we spoke last as to the fed minutes//Im still trying to figure out what they where trying to pull..thanks again .Great show as always.
Greg and fellow USAWatchdog pack members,
Joe seems to be pushing us to buy certain stock/EFT’s. I know that some stock scammers tout buying trading systems or certain stocks/ETF because they profit from the move. I am not saying Joe is a scammer but he does seem a little desperate. If he is giving investment advice, he should be licensed as in most states, it is a requirement.
A lot of people touting market timing systems manipulate the data to make it appear better.
The source of precious metals suppression lies within a MEMBERSHIP ORGANIZATION (why should that be unnatural) calling itself “The Pilgrims Society” that stands back of the Bank of England and the Federal Reserve. This is heavily documented at the free access link. I am convinced if we can get enough publicity for this group their actions can be stopped. Quotes from only 5 members over the years—The Times, London, August 24, 1931, page 12—“I am surprised to see responsible statesmen advocating the remonetization of silver, which would add very little to currency, and is a form of confiscation and repudiation”—diamond tycoon Sir Abe Bailey, whose fellow members of The Pilgrims London drove silver to 24.5 cents per ounce in Feb 1931, and took England off the gold standard the month after he made his mercenary remarks! Douglas Dillon, Treasury Secretary 1961-1965, who took us off silver coins, wanted to “Assure the silver users that the price will not rise beyond its present market for a long time to come”—Wall Street Journal, March 12, 1963, page 4. The Economist, London, July 13, 1963, page 166— “Dillon, the Secretary of the U.S. Treasury, has said that silver bullion would be released on demand to prevent silver rising.” That was the main reason for the Silver Purchase Act of 1934 followed by Roosevelt’s silver nationalization grabbing over 113MOZ from the public—to concentrate global silver in the Treasury for use by The Pilgrims Society to suppress world prices! James Zirin, currently in The Pilgrims management, worked for the son of Henry Morgenthau Jr., FDR’s Treasury Secretary who ran the gold and silver absorption vortex and a member! Week by week details of the metals seizure, March 1933 through February 1937 are in a 312 page pdf at http://www.nosilvernationalization.org In the Federal Reserve Bulletin, April 1963, page 469, we notice the testimony by (Pilgrims member) William McChesney Martin Jr. head of the Federal Reserve System at a Congressional hearing—“The Board believes it is unnecessary to utilize silver as part of the U.S. monetary system. Although some concern has been expressed that removing the silver “backing” from part of our currency might lower its value, I would not agree.” Pilgrims member William Simon, who bombed gold from $200 to $103.50 as Treasury Secretary, and who was on the COMEX board when the Hunt silver play was crushed in January 1980, said “The international monetary role of gold should continue to diminish”–Vital Speeches of the Day, January 15, 1977, page 199. In a speech at the International Monetary Fund on August 31, 1975, Pilgrims member Alfred Hayes, who as president of the NY Fed Bank oversaw removal of silver coins from the nation’s largest banking district, said—“I am particularly proud of the Federal Reserve Swap network, in the development of which I was involved from its inception, linking the Federal Reserve and 14 other central banks and the Bank for International Settlements. Gold has long been viewed by many as a barbarous relic and phasing it out of the system completely seems to have a good deal of appeal in some quarters.” The fact that a membership organization of powerful people has directed the suppression of precious metals for over a century has to easily be the biggest news in precious metals. There is enough documentation to make a strong court case. Why do so many in the PM long community continue to ignore this documentary (all free access, it’s about protecting our property rights, not about me making money selling a book!) At Guide Star I find Paul Volcker is a Pilgrims VP, he’s Obama’s top economic adviser and arranged for the Hunts to forfeit almost 60MOZ silver by 1986! Will Volcker “advise” Obama to nationalize gold and silver? Publicity can prevent this catastrophe! Only after 7 years of agitation on my part did their site http://www.pilgrimsociety.org go up, they mention Defense Secretary Weinberger was a member, but left out that he bled 11MOZ silver from the national stockpile for price suppression, and to create excuse for a second silver grab “we’re at war and we have no silver; hoarders must surrender silver at once!” It fails me to understand why many of the PM longs would just ignore all this and so very much more I DOCUMENT about this low profile group of world makers whose motto is “Here And Everywhere.”
Hello, I’m a physician in Texas and I have been following Peter S. for a while know. Now, obviously I do not have the credentials or knowledge to ask serious questions here or expect to understand all that is written, but I can feel/sense the approaching crisis Peter S. is predicting… now of to my question…
I have a piece of land in Mexico (cattle ranch with several thousand acres) and I have multiple buyers interested in it, most of them are US buyers. Money-wise it translates to about a ### million USD operation. This ranch has been in my family for a couple of generations and I’m hesitant to sell even though the price seem right because I’m not sure if I want to go ahead and make the deal and get stuck with dollars (or pesos for that matter) and have the economy collapse and end up with zero purchasing power of my money. I hope you get the point and try to emphasize with me.
What would you guys/gals do if you were in my position? I have no urgency to sell, but I’m worried serious buyers wont be around if the economy ever crashes, and I’m also afraid of having dollars and them being worthless in the short term (according to Peter S.).
Thanks a lot for your input, I really appreciate it!!!
I had a feeling that was going to be your advice… I think I’ll go ahead and hang on to the land for some time and see how everything plays out. Thanks so much for your input Greg, I appreciate it!
Hey thanks for censoring the comment, well I guess I’ll just go post over at the Huffpo, which has about 10,000 times the traffic you do.
Another great interview. Maybe you can answer this, or maybe you could pose this question to one of your next financial interviewee’s:…
With world wide money printing now firmly in place, why have we only seen relatively moderate amounts of inflation? Why is this money not heating up the inflationary cycle?