What is your reality check? The various ways Peter Schiff understands the world seems coming close to reality.
Peter David Schiff is an American stockbroker, financial commentator, and radio personality. He co-founded Echelon Wealth Partners in Canada. He is involved in other financial services companies including Euro Pacific Asset Management, as an independent investment advisor, and Schiff Gold.
Mr. Schiff is a believer in gold and conversely is of the idea that Bitcoin is for the far majority of small investors a losing game. Let’s break down the topics that Mr. Schiff addressed in this interview.
Schiff: “Ten years of low interest rates have spurred the government to borrow more and more money. Now (2024) it should raise rates but the FED can’t because it’d bankrupt the nation. The markets haven’t figured out where we are. We are on the precipice of much greater economic crisis than the one we had in 2008.”
In the video between 10:20-16:00 Schiff explains his work-related pedigree (and peters out a few minutes later).
- Schiff wears a golden ring, bracelet and watch to make the point that gold is valuable because it is a scarce material
- Schiff says gold is running hotter ever year bc he thinks the U.S. might re-commision the Gold standard again
- when looking at a Gold chart today ppl might glean from it that “wow, gold is very interesting to invest in; Schiff explains 39:00 that what that chart actually means is the dollar getting less and less worth
- the price of gold per ounce was in 1880 $20. When the FED in 1913 was established gold per ounce was still $20 … the dollar preserved its value from the birth of the republic until the creation of the FED!
- the printing of money out of thin air destroyed the value of the dollar
- the price of gold per ounce was in 1880 $20. When the FED in 1913 was established gold per ounce was still $20 … the dollar preserved its value from the birth of the republic until the creation of the FED!
Fiat money system is
- based on nothing
- inflation is not curbed; the FED should raise rates to much higher numbers
- when FED lowers lending rates to 2% it creates a boom in spending
- the spending is based on more borrowing
- when FED lowers lending rates to 2% it creates a boom in spending
- when looking at a Gold chart today ppl might glean from it that “wow, gold is very interesting to invest in; Schiff explains 39:00 that what that chart actually means is the dollar getting less and less worth
- the price of gold per ounce was in 1880 $20. When the FED in 1913 was established gold per ounce was still $20 … the dollar preserved its value from the birth of the republic until the creation of the FED!
- the printing of money out of thin air destroyed the value of the dollar
- the price of gold per ounce was in 1880 $20. When the FED in 1913 was established gold per ounce was still $20 … the dollar preserved its value from the birth of the republic until the creation of the FED!
- government spending is at record high as also government debt
- household and credit card spending is at record high
- people are working more jobs AND borrowing more money (c.cards etc) to stay afloat by spending!
Manufacturing is not doing well
- production is not high
Schiff says:
- the real reason the FED stopped hiking rates it was going to cause a financial crisis
- 21:15 interest rates are too low, gold indicates that. Foreign central banks are buying gold in lieu to $$ bc as Schiff explains they estimate that inflation will be going up high enough to jump to gold to ensure enough purchasing power
- the price of gold went from low $30s in the seventies to $800
- when the next economic apex of a financial crisis (we’re already in one but we don’t accept it) represents itself … central banks world wide should avoid giving financial aid and therefore let people and businesses go broke … not to throw salt in wounds, but to avoid another catalyst inducing higher rates of inflation
- 31:20 the FED had a long time ago conceded to the idea of not fight inflation bc the costs would be unacceptable to leaders and society. The FED cannot say they conceded but by making perpetual siphoning of more (extra printed) money possible … it’s kind of obvious
Schiff says:
- because of ten years of low interest rates banks have practically become insolvent
26:26 Schiff: In a nutshell in a Boom-Bust cycle … during the Boom policy mistakes are made (people cheering) and when things go awry during a Bust period … the government should try to avoid as much to interfere with the markets correcting what went wrong. But when people and bussinesses are affected when many lose money … politicians representing the government will anyway interfere to ameliorate people/bussinesses loses. According to Schiff this IS A BIG MISTAKE albeit an understandable one.
Schiff is of the understanding that 44:30-54:30
- Bitcoin has no underlying value
- as long as more fools buy Bitcoin the earlier fools can sell to the later fools
- ultimately Michael Saylor Bitcoin investment company https://www.microstrategy.com/investor-relations/executive-team shall go bankrupt Schiff stated
- Bitcoin would crash and the creditors would end up with the company