Black Friday has become an infamous holiday of American consumerism. We seem equally amused and disgusted by the inevitable news of crowds waiting through freezing nights only to trample each other on the way to a discount toaster. Many people watch a video of Black Friday fights like the one below and shake their heads at the blatant materialism. We ask ourselves, “Where has the good, old-fashioned holiday spirit gone?”
Perhaps we should be asking a different question. These fights seem almost like an ominous foreshadowing of just how desperate people could become when faced with a real economic crisis. When Peter Schiff points to goods shortages, hyperinflation, and drastic bank emergencies in countries like Greece, Cyprus, or Argentina, most people shrug it off. “That could never happen here. America is different.” But if suburban house moms are willing to get into hair-pulling fistfights over electronics discounts, what do you think they’d be willing to do when their life savings disappears overnight thanks to inflation or a banking crisis?
On CNBC Asia on Wednesday night, Peter Schiff defended his forecast that the Federal Reserve is very unlikely to raise interest rates in December. He argued the Fed is focused on keeping a market bubble inflated, instead of allowing the US to experience a painful, but necessary economic recovery. Peter pointed to companies like Amazon as proof that market valuations are completely out of line with fundamental realities:
Amazon sells stuff for less than it costs. They just keep selling stuff and losing money… This is the problem everybody has – when you have companies that are selling at a loss because they’re trying to drive their revenues, not their profits. Because the people buying the stocks just don’t care.”
Peter Schiff discussed the market expectations of a December rate hike from the Federal Reserve in his latest appearance on Alex Jones’ InfoWars. The two went on to discuss the real condition of the United States economy and why the US may soon be following Europe’s lead towards negative interest rates and more inflation. Finally, Peter made the case for electing Bernie Sanders in the 2016 Presidential Election:
By having Sanders as President, he’ll screw up the country so badly so quickly – and it’s already screwed up – that he might hasten a real revolution towards free markets, to abandon all this nonsense. All he wants to do is make the welfare state bigger. He wants to expand the socialist programs from the New Deal, from the Great Society. The stuff he wants to do would bankrupt America. But the problem is we’re already bankrupt. So why not go all-in on socialism so we know how bad it is, so we can puke it all out and start over again?”
The Federal Reserve released its October meeting minutes yesterday, and the financial media largely interpreted them as saying a December interest rate hike is still a lock. However, Peter Schiff points out to CNBC that the minutes weren’t nearly that conclusive. As far as he’s concerned, the minutes leave plenty of wiggle room for the Fed to make excuses for delaying right hikes even more, just as they’ve done all year long. Whatever happens, Peter believes the Fed’s actions will be bullish for gold.
I think that the Fed has not raised interest rates all year, because they’re afraid to do it. I think they’re worried about the economy. They don’t want to admit that, so they pretend to raise rates. They keep coming up with excuses about why they’re not going to do it. There are plenty of excuses they could use not to raise rates in December. Maybe if we get to December and the stock market is near all-time highs, and everybody thinks the rate hike is fine, is it possible that they’ll deliver a quarter point and then try to talk it back by saying one and done, we’re not going to do anymore? It’s possible, but I think if they do that they’re going to regret it.”
On Friday, International Monetary Fund Director Christine Lagarde basically green-lighted the proposal to add the Chinese yuan to the IMF’s Special Drawing Rights basket of currencies. Peter Schiff told RT’s Boom Bust that this is just another step in the direction of China surpassing the United States as an economic power. Ultimately, Peter believes China could back its yuan with the gold reserves it has been stealthily amassing and present its currency as a stabler alternative to the US dollar.
Peter went on to argue that the Federal Reserve will not hike the fed funds rate in December, pointing to the Paris attacks as a new excuse the Fed could somehow use to maintain an easy monetary policy. This would allow the Fed to draw attention away from the fact that American consumers aren’t spending like they used to as the US tumbles into a new recession this holiday season.
After a year of anticipating a Federal Reserve interest rate hike, all eyes are on the Fed’s December meeting. There are two obvious outcomes: the Fed does raise interest rates or it does not. In his November Gold Videocast, Peter Schiff explains why both scenarios are bullish for gold. Peter points to the behavior of gold under both Alan Greenspan and Paul Volcker as proof that a rising interest rate environment isn’t automatically bearish for the yellow metal. On the other hand, if the Fed continues to delay raising interest rates, investors will begin to realize their expectations were ill-founded and reconsider their positions in gold and silver.
Either way, investors who have been waiting to buy should thank the Fed for extending the opportunity to buy gold for less than $1,100 an ounce.
Rob McEwen provided Kitco with an insider’s view on the mining industry and physical gold investment. McEwen was the founder and former CEO of Goldcorp, the world’s fourth largest mining company, so his insights into precious metals should not be taken lightly.
McEwen had 3 very important observations for investors:
1. If prices remain this low, there’s a possibility of gold and silver supply shortages as miners produce less.
In a new podcast, Tom Woods tears apart an article from the liberal website Think Progress in which an amateur economist attacks the gold standard. Joseph Salerno (Academic Vice President of the Mises Institute) and Jeffrey Herbener (Associate Editor of the Quarterly Journal of Austrian Economics) joined Woods to counter the mainstream misconceptions of the gold standard.
Think Progress went so far as to claim that the gold standard is responsible for increased consumer price volatility. This is clearly wrong, which Woods proves with a single chart. Notice when consumer prices really start to skyrocket – right around 1971 when Nixon closed the “gold window.”
In his latest appearance on Alex Jones’ InfoWars, Peter Schiff began by discussing the tyrannical imprisonment of his father Irwin Schiff. They went on to discuss the economic predicaments of both the United States government and the average American citizen. In a country crippled by debt and an unhealthy sense of entitlement, Alex and Peter ask the essential question – how can intelligent investors prepare themselves for what comes next? One answer: buy hard assets like physical gold and silver.
In his latest video blog post, Peter Schiff challenges the mainstream notion that the October jobs numbers released yesterday are good enough to justify the a Federal Reserve rate hike in December.
Just because a rate hike is a possibility doesn’t mean it’s going to happen. It’s been a possibility all year. People thought it was possible they were going to raise rates in March. They didn’t. They thought it was possible they’d do it in June, September. Some people thought they might have raise rates last month. That was possible, but it didn’t happen… Yellen didn’t say that if we get all the improvements we want, we’re going to raise rates. She said if we get all the improvements we want, we might raise rates. She didn’t even use the word probable… Probable would imply the possibility was greater than 50/50…”