Tag Archives: HyperInflation

Peter Schiff: Reversal Tuesday, jobs, Fed critics, Bernanke

* Gold and silver skyrocketing, but hard reversal on Tuesday. Same with other commodities.

* Bond market eroding as Quantatative Easing backfires.

* Friday’s optimistic job report is small limited to service sector. (Peter Schiff advocates production.)

* World-wide criticism of the Fed. Germany calls Ben Bernanke “clueless.” Obama defends Fed during India visit.

* Obama says Fed’s mandate is to grow economy. This is BS actual mandate is price stability and employment. Fed CAN’T grow economy.

* Sara Palin’s criticism of Fed in Wall Street Journal and WSJ calls it the “harshest criticism of Fed they’ve seen from a politician.” WTF??? There’s this guy Ron Paul who’s actually in office, you know.

* Ben Bernanke’s op-ed defends QE2. He has nerve to claim increase in stock prices will spur consumer spending. Completely incoherent! This is nothing but a stock market bubble. Surprising lack of criticism to this in WSJ.

Peter Schiff on the Rises Prices of Everything

One of Peter’s best videos:

* What experts are saying about gold. When asked, Suzanne Orman hesitantly admitted that investors can buy gold, but just a tiny bit, and certainly not the physical stuff, but an ETF.

If you believe in sound money and the JP Morgan Gold fraud, then it seems like she’s taking her talking points from some very powerful people.

* Big Media propaganda talking about this was the best September (typically a down month) in 71 years.

This is obviously flawed. If, for example, the dollar loses half it’s value in a day, the same analysis will call it the best DAY the stock market has ever seen.

Peter compares the Dow’s 7.7% and S&P’s 8.8% gains to other things:

A Commodities index gained 8.7%.
Soy Beans 9.5%
Copper 10%
Rice 10%
Oil 11%
Corn 12%
Silver 13%
OJ 13%
Cotton 17% (Peter’s jockey shorts beat the Dow)
Sugar 19.3%
Australian Dollar 9%

Peter Asks: “Do you think stocks really went up in value in September, or is it more likely that the dollar lost value?”

* The bogus CPI index says prices went up 1.5%. Federal Reserve’s Open Market Committee says inflation is too low.

Peter Schiff on the dollar, bond bubble, stimulus, krugman

* Yen, Swiss Franc, Silver, Gold are all up b/c dollar is weakening.

* If interest rates ever go up, bond bubble will burst.

* Obama’s new $50 billion dollar stimulus. (The earlier one was $700 billion.)

* Paul Krugman continues being wrong. He wrote that we haven’t stimulated enough, and wishes we had another WWII to help economy recover. See broken window fallacy.

* Many people hoping for a gridlocked Congress after the next election. Peters fears bi partisanship which is much worse. The worst Democratic ideas with the worst Republican ones.

Peter Schiff on last weeks jobs report and more

* Slight point of disagreement: One thing I struggle with is Peter’s insistence that we need manufacturing jobs (@0:35). Neither he nor any other single person knows what the economy needs. The free market will decide. Maybe there is a future in services.

Peter says service jobs lead to a trade deficit, but I suspect the whole notion of a trade deficit is BS. Governments (i.e. nations) don’t trade. People trade.

If I buy a loaf of bread from the bakery down the street, I’m richer in bread and the baker is richer in money. Subjective theory of value. We’re both happy.

If I take a long walk, and buy the bread from a baker in Canada, doesn’t the same situation hold true? Isn’t everybody richer? Why do we speak of this latter situation in terms of a trade imbalance? Perhaps it’s for the employment of all those government economists and television pundits.

* Meaningful recoveries all over the world. This is primarily a U.S. problem.

* Metals very strong because dollar is finally weakening. (Investors originally fled to the dollar, follow the old, incorrect philosophy that dollar=security.)

* Tax cuts are good, but government shouldn’t be targeting them, or combining them with business load guarantees.

* Some Bloomberg reporter dismissed double dib with the logic: things are pretty bad, so they probably can’t get worse.

* We probably can’t afford Obama’s latest idea – a new GI bill.

The one and only Peter Schiff on the dollar, bonds, GM’s IPO, the media and more

* Bond Fund manager and Freddie/Fannie-guaranteed mortgage holder Bill Gross advocated the Freddie/Fannie bailout. He has recently suggested government should 100% nationalize Freddie and Fannie, and allow everybody to refinance at a lower rate.

* Bill Gross argued this would stimulate consumer spending and thereby the economy. Of course, what our economy needs is more savings, not spending.

* Real Estate prices are still too high and should never have been propped up. They need to come down. Artificially high prices for homes deprive more productive endeavors of resources.

* Do not buy Government Motors IPO. Some profit might be made by those with good timing, but they will go bankrupt again. The bailout prevent the restructuring they needed. They company is not run to produce good cars at a profit. It is run to serve labor.

* Dollar strengthens despite bad news based on weakness in stocks. Old habits (like buying dollars on bad news) die hard.

* Congressional Budget Office increases deficit estimate, but the estimate remains complete bullshit. Nothing to do with reality.

* Big Media (Robert Reich) continues to sing the praises of debt, and demonize saving.

* Peter’s predictions about Freddie and Fannie come true.

* Refinancing homes at (artificially suppressed) lower rates is creating a ticking time bomb for banks who will be holding 30-year paper. Once the paper becomes worthless there will be rampant bank failures.

* NY Times publishes BS article about why we won’t have a recession. Sheer propaganda. The implicit argument is that a zero Fed rate will avoid a recession. This is nonsense.

* Bonds remain overpriced, as Americans who attempt to save decide to lend money to the government. Inflation will punish bond-buyers.

* A better scheme for unemployment benefits would be an initial lump sum. This would avoid the disincentive to work. Of course, we’d all be better off if people decided for themselves whether or not to buy unemployment benefits, creating a market for various flavors of unemployment insurance.

* Peter has bet against the advice he gives. If the government actually followed his advice, it would undermine his investments.

* The sooner the crash happens, the better, because the longer the malinvestment persists, the more effort it will take for the economy to restructure.

Two Peter Schiff Videos — the best economic analysis today

* Dollar continues to decline.
* US continues to follow misguided Keynesian stimulus philosophy.
* GM (government motors) spends bailout money to buy sub-prime-like auto loan business.
* GM bailout was actually bailout of auto workers union.
* The most interesting part of this video begins at 6:00. He talks about how Goldline, a gold selling company, has abused customers by selling overprices antique coins. Peter predicts that this will be leveraged to attack all gold dealers. Remember, tyrants have always hated gold.

* 7th week in a row of declining value of the dollar.
* Propagandists say that the U.S. will not be like Japan. Peter argees only in a perverse way: the U.S. will suffer much, much more than Japan did in the 80’s.
* GDP is bullshit. It’s recent increase is completely attributable to debt and deficit spending.
* Politicians claiming credit for the abomination that was the auto bailout. They will need another bailout soon.
* The 2008 crisis was a UNITED STATES crisis. The world was exposed to it because they had loaned us so much money, but don’t believe the propaganda of the U.S. getting caught up in a world crisis.
* Expect people to begin fleeing the dollar, and U.S. assets. Expect gold to make another run, despite some talking heads claiming that it’s about to crash.
* No sign of a stricter Federal Reserve. As November elections approach, all incumbent politicians will fight for more easy money — which will be like drinking more booze to avoid a hangover.