I had the opportunity this week to reconnect with Peter Schiff, CEO and Chief Global Strategist of Euro Pacific Capital.
It was a powerful interview, as Peter indicated the Fed is trapped in a long-term position of destroying the dollar, while mainstream voices cheer resultant new highs of the stock market. Such dollar debasement Peter explained, means “the price of gold is going to skyrocket”—once the negative propaganda wears off.
When asked if continued money printing is setting the stage for an equities market collapse, Peter said, I think the dollar is going to collapse before the market [does]…The Fed is propping up asset prices by debasing the dollar—the currency with which those asset prices are denominated.”
“So if you’re going to destroy your currency, then asset prices are not going to collapse…Another way you can look at it is expressed in gold…Stock and real estate prices expressed in gold are going to go down significantly over time.

War Bird



From Tekoa Da Silva, Bull Market Thinking:

In response to this week’s conflicting policy statements issued by the Fed, Peter said, “They checked into the ‘Roach Motel’ of monetary policies because they can get in—but there’s no way to get out. So what they do is they bluff. They pretend there is an exit strategy knowing that exit is impossible…they just have to maintain the pretense as long as they can, before the market figures out the true predicament they’re in.”

“No matter what Ben Bernanke says, between now and the time he’s supposed to taper, he will come up with an excuse why he can’t and I think he already knows this. But he can’t let the market know that the whole recovery…is merely a temporary by-product of the QE, and that the minute you remove the QE—we’re right back in recession.”

When asked if continued money printing is setting the stage for an equities market collapse, Peter said, “I think the dollar is going to collapse before the market [does]…The Fed is propping up asset prices by debasing the dollar—the currency with which those asset prices are denominated.”

“So if you’re going to destroy your currency, then asset prices are not going to collapse…Another way you can look at it is expressed in gold…Stock and real estate prices expressed in gold are going to go down significantly over time. I know we’ve had a rally in asset prices in terms of gold recently…but I think that’s very temporary.” 

In terms of the most beat-up sector in the marketplace at the moment, gold mining stocks, Peter indicated that they represent, “The greatest buying opportunity that I’ve seen during the entire bull market…Many gold stocks are actually priced even lower than they were a decade ago…So you got the opportunity to ‘roll back the clock’ to the time where gold was under $300 oz…[but] I’m not sure how long this window of opportunity will be open…hopefully people will take advantage of it.”

Speaking also to the cost-struggles these companies have suffered through, Peter said, “Gold has not gone up as fast as the cost of mining it, because everybody is convinced there is no inflation. They believed the propaganda from the central banks and governments, and so gold has not even gone up to reflect the increased cost of mining it…but I think eventually…the price of gold is going to skyrocket and the miners are going to literally be gold mines. Right now they’re not—but I think eventually they will be.”

As a final comment towards the ‘madness of crowds’, Peter said, “The majority is always going to be wrong…the mob has such a vested interest in believing in a fantasy, that they can’t reject it…[even] in light of evidence that would seemingly prove them wrong.”

“[But] I think those of us who can see through all the B.S.—we know how this game is going to end. We know where the puzzle pieces need to be and we just have to position ourselves accordingly…The fundamentals are going to win out in the end regardless of how far they deviate…[even] during these periods of mania.”

This was another powerful interview with one of the true market visionaries of our time. It is required listening for serious investors and market students.

To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to to your desktop:

>>Interview with Peter Schiff (MP3)

 

2013 Silver Maples As Low As $2.29 Over Spot!

 

 

  1. Someone commented that they felt the fed would sacrifice the dollar to save the bond market so this jives well with that.
     
    In other news, it’s payday, and that can only mean one thing… LOL!
     
    p.s. did you guys know Peret Schiff’s father is a political prisoner in the US for fighting tax laws?

    • His father is Irwin Schiff, 85 yrs old.  His release date was delayed from October 7, 2016 to July 26, 2017 (per Wikipedia), when he will be 89 yrs old.  At his age, it seems this man is not afraid to stand up for his beliefs.

    • “Someone commented that they felt the fed would sacrifice the dollar to save the bond market so this jives well with that.”
       
      As closely intertwined as the USD and UST bonds are, I don’t see how it is possible for one to survive and the other not.  If the USD dies, ALL paper assets priced in USD will follow.  That would seem to be a “full faith and credit” disaster of epic proportions.
       

  2. Hyperinflation in Germany (Weimar Republic) started off slow…  Nearly everyone was caught off guard…  If enough fiat currency is printed, this is what eventually happens–every time.
    Price Index Statistics:
    July 1914 – 1.0
    Jan 1919 – 2.6
    July 1919 – 3.4
    Jan 1920 – 12.6
    Jan 1921 – 14.4
    July 1921 – 14.3
    Jan 1922 – 36.7
    July 1922 – 100.6
    Jan 1923 – 2,785.0
    July 1923 – 194,000.0
    Nov 1923 – 726,000,000,000.0

  3. Agree that it is good to see Peter out there vouching for physical silver Doc!

    In other news from my far post in the empire, Alexco Resources (largest primary silver mining) is ceasing operations until the winter pending an improvement in market conditions.  Ditto for Western Copper and Gold Corp.  It looks like the miners in my neck of the woods are throwing in the towel.  Get ready for major shortages of physical gold and silver and the possible final divergence between the paper and physical markets!!

  4. Ha ha Neo, I got that and hopefully others here will as well.
    Speaking of old cars – here is my latest acquisition and it cost me the equivalent of 8 common-date Morgan silver dollars.
     
     

  5. The dollar index continues to hold up just fine at 82.50, the 10 year bond is at just 2.50%, what is the big deal?
    So the Euro, Yen, and Pound are so much better, give me a break. The dollar may in fact continue to rally against all global currencies, then what?
    The dollar has been great against PM’s and all commodities the past 2 years, this dollar going to collapse is nonsense.

    • You need to extricate your head from your ass before you can make sense of what’s going on. If you can’t do that then on your way and go invest whatever you’ve got in Dollars, Treasury Bonds or Equities.

    • The dollar may go lower, but it’s not going to collapse, not gonna happen.   Even if it goes to 50 on the dollar index, that is not a collapse.
      The dollar will be the reserve currency for years to come, that is not going to change.   Could gold go to $5000, yes but the dollar will still be around.
      There is no replacement for the dollar, do you think the BRIC’s can form their own global currency?   No chance. The dollar wins by default for at least for another decade or two.

    • I hope and pray that you are right, Z-Man, but have to prepare for the possibility that you are not.
      More Time would help all of us, unless we get caught up in the ranks of the unemployed/underemployed.

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