US Mortgage Payments Will Be Cheaper Than Stamps in 30 Years (Audio)

Peter Schiff covers a wide range of topics in his latest interview with Chris Waltzek on GoldSeek Radio. Of course, they look closely at the precious metals markets and how they’re being influenced by the Federal Reserve’s monetary manipulation. However, they also discuss the price of oil, Russia’s ruble problems, and the future of the United States housing market.

Highlights from Peter’s interview:

“The markets are preparing for the Fed to stop creating money. In fact, the Federal Reserve has been bluffing that not only will it end QE, but it will raise interest rates and shrink its balance sheet, which is like destroying money. Taking money out of circulation. Shrinking the money supply – that’s what the Fed has been pretending it can do, and I think that has effects as people start to price that in. It just so happens that maybe the first market to feel the pain is the oil market. If the Federal Reserve continues on this pretense, it will be a lot of markets, like the stock market, the real estate markets. In fact, the US economy will be back in recession if the Fed removes all the monetary props…

“Janet Yellen has promised to reduce the balance sheet down below $1 trillion by the end of the decade. Of course, nobody has bothered to consider that that’s not even possible. There’s now way the Fed could do that, because there’s no one who would buy those bonds. The Fed can’t get rid of $3.5 trillion worth of Treasuries and mortgages. There’s no buyers…

“I would kind of agree [with Jim Rickards]. I think when this market really turns, it’s going to do it with a vengeance. It’s going to do it in a way that if you’re not already in the market, you’re not getting in. And if you’re short, you’re just going to be decimated. I could see the gold market moving up over $100 in a single day. Maybe $200 or $300…

“I don’t know that it’s necessarily manipulation. But it’s the major players all acting in unison based on the same themes and same misconceptions. Think of all the people that piled into dot-com stocks in the 1990s. The stocks weren’t being manipulated, but the prices were rising based on the decisions that people were making at that time…

“If [Russia] simply used some of their foreign reserves to buy… a bunch of gold futures and then asked for delivery, that would be enough to skyrocket the price of gold. Then they would own even more gold, but I think the collapse of the dollar that would result from the skyrocketing price of gold would also be bullish for the ruble…

“If you’re looking for significant quantitates of gold, they’re just not to be had. We’re not experiencing that right now on the retail level, because we don’t have clients that are buying gold by the ton… In that respect, we’re not having a problem at SchiffGold for people that want to buy 5 to 10 ounces of gold. But if you have major players that are looking to move significant amounts of fiat into gold, and they’re having a problem locating the physical, that really shows you how tight the supply is…

“Who knows what the dollar is going to be worth in 30 years. I joke with people, I think 30 years from now when you send in your final mortgage payment, the number written on the stamp is going to be larger than the number written on your check…

“I’m trying to get into metals for the metal. I’m not trying to become a collector of rare objects. Numismatics are the same thing as buying stamps or baseball cards or works of art. They’re collector’s items, not necessarily monetary inflation hedges. Just because a numismatic is made of gold doesn’t mean it’s a gold investment. I can buy an antique coffee table, it doesn’t mean I’m investing in wood…”

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