Peter Schiff Drops Golden Truth Bombs on CNBC’s Scott Nations

Peter Schiff once again went toe-to-toe with one of his favorite foes on CNBC’s Futures Now. After Peter explained why the Fed won’t be able to shrink its balance sheet, Scott Nations challenged him, citing GDP growth, unemployment numbers, and low inflation as reasons we should view the economy as strong.

When Peter pointed out that the jobs numbers were not good, Nations suddenly reversed course proclaiming, “That has nothing to do with whether or not we’re in a recession!” Then Nations went after Peter on gold. That’s when Peter really let him have it. Check out the video.

“I recommend what I think is going to make investors money.” Peter states. “And you know what? Gold is outperforming the US stock market this year by triple, and if you go back to 2001, people who bought gold have much more money than people who just bought stocks. So buying gold, having gold as part of your portfolio, has been a wise choice for investors.”

Nations pressed on insisting gold is not a good investment; however, Peter offered some historical perspective to set him straight:

“When I started buying gold for my clients in 1999, it was under $300 per ounce. It’s now almost $1,300 per ounce. People who have been following my advice have made money. How many people came on CNBC in 1999 and touted dot-com stocks where they went to zero? Yet you don’t give those guys a hard time. They blew their clients up. They lost all of their money when I was telling people to buy gold at under $300 per ounce.”

During the interview, Peter also discussed the strength of the dollar, Federal Reserve policy, and the fact that it looks to be “business as usual there in the Swamp,” despite Pres. Trump’s campaign promise to drain it. Peter also asserted, “What Janet Yellen has done and what she is going to do is going to make me a lot of money. And it’s going to make people who have been following my advice a lot of money.”

You can watch some of the other clashes between Peter and Nations here , here, here, and here.

Interview Highlights

“Well, I believe [Trump’s] correct. The dollar is overvalued. But he’s wrong in his view about how the overvalued dollar impacts the US economy, at least in the short-run. And because the dollar is overvalued, we have an artificially high standard of living. I think that when the dollar does decline, it’s going to take the US standard of living down with it.”

“We want a dollar to be valued based on the fundamentals, and the fundamentals of the US are lousy. The dollar should be a lot lower. But because it’s a reserve currency, because a lot of speculators buy the dollar, the dollar is higher than it should be Americans enjoy a standard of living, at least temporarily, that’s out of whack with their actual productivity, and so this is another example of be careful what you wish for, because when the dollar goes down, our problems are going to exacerbate.”

“These trade deficits – in the long-run they’re terrible for because we’re spending ourselves into bankruptcy because we’re borrowing to consume. But in the short run, we benefit because we get to enjoy greater consumption than our productivity would allow. It’s our foreign trade partners that are subsidizing us.”

“It seems like neither Obamacare or Janet Yellen are going to be replaced. Now that we’re dropping bombs in the Middle East, to me it looks like business as usual there in the swamp, and all of the people who were buying into US stocks because they thought something was going to change, and that Trump was going to ‘make America great again,’ better take a look at what’s actually happening and separate that from the campaign rhetoric.”

“As an American, I’d like to see [Janet Yellen] replaced because she’s a disaster for the country. She’s completely incompetent.”

“When the month of February began, the Atlanta Fed was looking at 3.4% GDP growth in the first quarter. Now they’re just looking for 0.6. We actually might get negative GDP growth in the first quarter. Yet despite this, they’re still posturing as if they’re going to raise interest rates, and I think Donald Trump would like to change that posturing to try to blow some air back into this bubble, which now he has basically named for himself. When he was a candidate, he was very critical of the ‘big, fat, ugly bubble.’ Now that he owns the bubble, he wants to make sure it doesn’t pop. So, he wants to get Janet Yellen to play ball.”

“What Janet Yellen has done and what she is going to do is going to make me a lot of money. And it’s going to make people who have been following my advice a lot of money. It’s already started. Look at the price of gold this year. It’s up about 12%. It’s up triple what the Dow is. Emerging markets – same story. They’re about tripling the gains of the Dow. And this is just the very beginning. Because as the air comes out of this bubble, and as all the damage that 8 years of 0%, or near 0% interest rates have done to this economy – when Janet Yellen goes back to the drawing board on QE4, as she lowers rates and launches an even bigger quantitative easing program than the last three combined, the bottom is going to drop out of the dollar. Gold is going to take off. And then people are finally going to see the real damage that has been done to this economy with this reckless monetary policy.”

“The Fed has been talking about shrinking their balance sheet since it started to expand. Bernanke was talking about shrinking the balance sheet. Talking about it and doing it are two different things. There’s no way they can let the balance sheet shrink, because who’s going to buy all those extra bonds? How is the Treasury going to sell enough bonds to repay the Federal Reserve? The whole economy is built on this bubble, and if the Fed tries to shrink its balance sheet, interest rates have to move up dramatically, especially long-term interest rates, and that collapses the stock market, the bond market, the real estate market. It takes the banking system along with it. I don’t think the Fed is going to shrink its balance sheet. I think its balance sheet is going to balloon to new highs.”

“Prices don’t rise because of economic growth. Economic growth keeps prices from rising, because economic growth increases the supply of goods because you produce more. What causes prices to rise is a weak economy – an economy that is not productive and where you have a central bank that is printing a lot of money.”

“Even Alan Greenspan is forecasting stagflation. And he ought to know because he wrote the playbook that Ben Bernanke and Janet Yellen are following. So, it’s not just me.”

“I recommend what I think is going to make investors money. And you know what? Gold is outperforming the US stock market this year by triple, and if you go back to 2001, people who bought gold have much more money than people who just bought stocks. So buying gold, having gold as part of your portfolio, has been a wise choice for investors.”

“When I started buying gold for my clients in 1999, it was under $300 per ounce. It’s now almost $1,300 per ounce. People who have been following my advice have made money. How many people came on CNBC in 1999 and touted dot-com stocks where they went to zero? Yet you don’t give those guys a hard time. They blew their clients up. They lost all of their money when I was telling people to buy gold at under $300 per ounce.”

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