Peter Schiff on Coast to Coast

Coast to Coast AM interviewed Peter Schiff this week. They talked about the real story of the Obama recovery, central bank manipulation of the money supply, and why silver is just important for your portfolio as gold. It’s a long interview that you can find in full here. Highlights of Peter’s responses are transcribed below.

“The reason the Republicans won this landslide victory – it’s not because Americans are voting for small government. Two of the states that ousted Democratic incumbents and elected Republican challengers also voted to increase the minimum wage in their states. So they’re not voting for less government. They want more government. They’re just frustrated about how bad the economy is. Three-quarters of the voters basically think the economy is in a recession… And I think they’re right…

“That’s the real story of the Obama recovery. All the jobs that have been created are based on all the full-time jobs that have been destroyed and all the part-time jobs that have taken their place. Because we’ve created a lot more part-time jobs than full-time jobs we’ve destroyed. During this supposed recovery… we’ve actually lost a million-and-a-half full-time jobs. What we’ve gained is 7 million part-time jobs. And this is one of worst statistics: most of those jobs are going to people who don’t even want them. So far in 2014, all the net job gains are for people 55 and older. People under 55 have actually lost jobs in 2014. Why are all these people in their 60s and 70s getting part-time jobs? Because they’re broke. They want to be retired, but they can’t afford it anymore because of the higher cost of living…

“You can make a lot of money now, because the people that control most of other people’s money are betting the wrong way. They’re buying US stocks, they’re buying the dollar, they’re selling gold. What people need to do is the opposite of those trades. People need to be buying gold, they need to be buying gold stocks [and] selling the dollar. Getting into foreign markets now, because people don’t know what’s going to happen…

“The majority of the economic data that has been coming out over the past several months has been bad. Yet everybody ignores it because they want to believe that the economy is good. The first half of 2014, the US GDP only grew by 1.25%. How anybody can think that’s a recovery? It’s because they’re only looking at the second quarter where we grew by 4% and they’re ignoring the first quarter where the economy dropped by more than 2%…

“What’s going to happen is the stock market isn’t going to crash because the government won’t let it anymore. The government’s not going to let anything crash, they’re just going to print too much money. So what happens is the dollar crashes. In real terms, in terms of say gold, the stock market will crash. But most people won’t be able to take advantage of it because they don’t own any gold. All they own is paper. For the people that own paper, the price of everything will go up. But if you own gold, the price of everything is going to go down. That’s what you want…

“Once we have this economic implosion… I do hope that this will be the catalyst for a real economic renewal, a real change in course. People voted for change when they voted for Obama. But they didn’t get change, they got Bush’s policies on steroids. What we need is real change, which is free market capitalism…

“When I talk about gold, I generally mean gold and silver. They’re both monetary metals, they’re both precious metals, and they’re both going to go in the same direction. I personally think that the upside potential in silver is actually greater than it is in gold. So I recommend that people buy both metals… Especially for your barter money. If you want to have one-ounce coins, half-ounce coins that are convenient for transactions in case things really get bad if we have price controls due to runaway inflation…”

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