Peter Schiff spoke with the Shadow of Truth podcast last week. They had a friendly conversation about the Chinese yuan, the downfall of the US dollar, and the condition of Peter’s imprisoned father, Irwin. They also discussed the track records of the Federal Reserve Chairmen and how the price of gold can be used as a yardstick to judge the success of their monetary policies.
Alan Greenspan used to say that he could tell whether or not he was doing a good job by the price of gold. If the price of gold was lower than $400 an ounce, he was doing a good job, and if it was above, he was doing a bad job… [So] Bernanke wants to discredit gold, because gold is discrediting the Fed. Gold prices going up is a vote of ‘no confidence’ in the fiat money that the Fed is creating. What is really a barbaric relic is the federal reserve note, the dollar, just a piece of paper backed by nothing. Gold is real money. It has a tradition of safety. Paper money has a tradition of failure.”
Dr. Ron Paul turned 80 years old last week, and the Mises Institute threw a birthday party for him. Tom Woods and Judge Napolitano introduced Dr. Paul with stirring speeches, reminding us of how pivotal Ron Paul has been to the libertarian and free-market movements.
Dr. Paul delivered a resounding inspirational talk directed at those who strive to spread the message of free markets and a free society. While he reminded us of the terrible effects of an overreaching federal government and central bank, his message is primarily one of hope.
Argue the case for liberty. Then you are going to argue the case for the greatest prosperity for the greatest number of people, the largest middle class. Then we have a society where if the goal is to seek excellence in virtue, you can do it. It’s all your responsibility… If you accept the notion that the government should protect us in a moral way and tell us what our habits should be, or we need the government to redistribute wealth, it can’t be done without the taking away of liberty.”
Lew Rockwell originally published this address on his podcast, and SchiffGold has compiled it into a YouTube video for you to enjoy.
CNBC’s Futures Now got Peter Schiff’s take on United States stock market volatility. Peter refuted the idea that Chinese markets may be influencing US stocks, arguing that the Federal Reserve’s lack of transparency about its monetary policy is really to blame. He also briefly discussed the gold market, and why hedge funds shorting the yellow metal could be in for a world of hurt.
Yes, I’d be buying gold. The hedge funds have actually been shorting. Apparently a few weeks ago it was the first time ever that the hedge funds have been net short. Of course, we’ve had an $80 rally in the past couple of weeks. We’ve given back about $20 now. But I think there are a lot of people who are trapped short gold who are going to be in for a world of hurt. In fact, if we get back above $1200, it’s going to be some real pain for those shorts…”
RT America hosted Peter Schiff and Mark Weisbrot from the Center for Economic and Policy research to discuss why the United States markets have been so volatile. While they both agreed that the US economic recovery has been poor, Weisbrot insisted that this is because the US government hasn’t done enough with its monetary policy. Peter, of course, argued that big government and a dovish Fed are precisely what have kept America from truly recovering from the Great Recession.
This market is all about the Fed. That’s the only thing that has been propping it up. If the Fed takes away the zero percent interest rates, this market is going to implode and we’re going right back into recession. That is the real story. That is what is hurting markets around the world. It’s the fear of higher interest rates. That’s propping up the dollar, that’s depressing emerging markets, that’s depressing commodity prices. This is the problem. But nobody believes or realizes that the Fed is bluffing…”
Peter Schiff told Newsmax TV what he thinks is behind the big drops in the United States stock market recently. Unlike the mainstream financial media, Peter doesn’t think China has anything to do with yesterday’s volatility. Instead, he believes the markets are starting to wake up to the fact that the Federal Reserve is propping up the financial markets with its stale and destructive monetary policy.
[When] the year began, we were divided between two camps: those that thought the Fed would move in March and those that thought they would wait until June. They were both wrong. I was the only one that was saying the Fed won’t move at all in 2015, because they can’t do it at all without pricking their own bubble…”
Jim Grant appeared on CNBC this morning with an explanation of the underlying reason why United States stocks just plummeted. His core message is that capitalism requires both success and failure. When central bank monetary policy corrupts pricing as thoroughly as it currently has, it ruins the market’s ability to withstand healthy business failures. Grant doesn’t talk about it in this interview, but just a month ago he reminded us of the best assets to hold as protection from this distorted financial world – precious metals.
The prices themselves are the cosmetic evidence of underlying difficulty. So if you misprice something, it’s not just the price that’s wrong, it’s the thing itself that has been financed by the price. So you have perhaps too many oil derricks, too many semi-conductor fabs. We have too much of something, which is financed by an excess of credit or debt. That, to me, is the essential backstory to this morning’s difficulties. It’s the mispricing of asset values, led by central banks who think that by inflating or lifting up stocks, bonds, real estate, they will thereby engender prosperity…”
Chris Waltzek interviewed Peter Schiff on GoldSeek Radio a couple weeks ago and released the interview this past weekend. In the interview, Peter predicted the Dow Jones Industrial Average could be down 10% from its high before September. This morning, the Dow is down almost 10% on the year – more than 12% from its high.
Former Federal Reserve Chairman Alan Greenspan appeared on Fox Business this week with two strong messages for investors:
1. The United States economy is “extraordinarily sluggish,” and part of this problem is the massive amount of government entitlements. He pointed out that entitlements have grown nearly 10% a year for the past 50 years, no matter which political party is in office. This adversely affects savings, which is the foundation for economic growth – a message Peter Schiff has been sharing for years.
2. Interest rates have never been kept this low for this long, so a huge bubble in bonds is forming. While this could correct itself slowly, history tells us that it will likely pop quickly, with devastating effects for the financial markets.
After the Federal Open Market Committee’s meeting yesterday, the markets finally started to wake up to the fact that Janet Yellen’s Federal Reserve has no clue when or how it will raise rates. Analysts are starting to realize what Peter has said before – how will the Fed deal with the next recession if rates are stuck at zero? Of course, nobody but Peter is pointing out that a fourth round of quantitative easing is the Fed’s only solution.
The price of gold moved up on the news, while stocks were choppy. As usual, Peter Schiff took the time to dig into the latest economic data that reveals the economy is in no condition for the Fed to raise rates in September, let alone this year. This is just one of many reasons why now might be the perfect time to invest in physical gold.
Case in point was the Empire State Manufacturing Index that came out earlier this week on Monday. This is for August. Last month in July, that index was 3.86%, which is a really low number. The consensus was for a slight improvement to 4.75%. That’s what everybody thought. Well we actually got minus 14.92%… It wasn’t even in the realm, anywhere close. The lowest forecast that anybody made was 3%. Positive 3%.”
CCTV America interviewed Peter Schiff last week about the benefits of moving your business to Puerto Rico. Earlier this year, Peter discussed how moving to Puerto Rico is the next best thing to renouncing your United States citizenship without having to pay exit taxes to the federal government. In this interview, he also points out how Puerto Rico may be in debt, but when compared on a per capita basis to the United States, America is in much worse shape. It’s just a matter of time before America’s creditors realize this is the case.