I'm tempted to load up on Greek stocks; they're so cheap right now: Athex index has a P/E ratio of 9.6 S&P 500 has a P/E ratio of 18.2 Greece couldn't default. THIS WAS SPARTA!
I agree with you. Not only is the US the world's biggest manufacturer, it is a major producer of agriculture. It amazes me that Peter Schiff always says the US produces nothing, and nobody corrects him on the air.
Financial Times reported yesterday evening that "Moody's US credit rating would come under pressure unless economic growth was more robust than expected or tougher actions were taken to tackle the countrys budget deficit"
I made a 6 part series on oil, those that rule, and the impact oil has had on the World. It's worth a look whenever you get a chance. It's called, "Road to Endless War".
why we're so screwed up: "In the 1980's the USDA ordered the annual destruction of 50 million lemons, 100 million pounds of raisins, 1 billion oranges." Thomas Woods - The Politically Incorrect Guide to American History
America, you gotta love it, Bankers get millions, while the little guy loses his house in a foreclosure or short sale and gets a bill from the bank for the deficiency.
I am not blaming...just pointing out which Party was in control of the Congress (which has the power to make budget bills; the House in particular). I am giving credit where credit is due.
PragmaticStatistic, Looking at history, quoting statistics and anticipating the future, You know with qualities like that you'd never make-it in politics
6:00 yes peter, but you did mention a few months ago that you didn't think the dollar would rally to make 80 and as of a few minutes ago....it's 80. you'e a great orator, a grea business man, and a great sales man, truly will make an excellent politician.
Peter guessed wrong because the next crisis might happen sooner than he thought - - the US dollar is still considered "safety" when compared to foreign stocks. When people start fleeing from stocks, they automatically land back in the US dollar, so the value of the US dollar goes up during big market selloffs...
@Zelovich: I love it when Keynesians claims that their stimulus work. If it works, they are right; if they don't work, they are still right b/c it wasn't enough. You are covered either way. I don't understand why anyone would take these Keynesian crackpots seriously, but this is a bit too much - especially in light of the fact that so-called "fill-in" gap models have been used repeated over and over again.
I think that’s because everyone is doing the same thing. I think from what I’ve heard that the global economy is probably one huge bubble. I’m not an expert so my opinion isn’t worth very much but I think it is coming the only question is when. Buying things that have real value like gold and silver that preserve value are probably good as to give people a solid backstop against either hyperinflation or a sovereign debt crisis or just as a means of storing wealth. It’s complicated but I think it’s pretty close to a certainty that one of the two things is going to happen.
Thanks, I found his quotes. 5k does appear to be a stretch, but his main argument is that it's not too late to enter the gold market. It does seem intuitive that it's a good hedge, even at current prices, against USD (and other currency) inflation.
To follow up, I see the options as: 1) Stay in stocks as they may rise with inflation (a little scary). 2) Take a withdrawl, pay the taxes and penatly, then invest the remainder in something that will at least hold value in a crisis (hard to take that big tax punch)
the unemployment rate only counts people who are still searching for a job. In other words, more than 0.3% of the unemployed people have given up on trying to find a job.
I agree with your first point and it's one, in my opinion, that's not made often enough by econ types; probably because they don't want to lower themselves to believe that the knuckle dragging military has such a huge underpinning effect to world markets. I like gold too but remember that historically gold has never needed to be backed by anything. It has always done the backing (hence the tonnage in central bank vaults). But, for now, I agree the value does fluctuate day to day in value.
The US is still the largest manufacturer in the world. You forgot petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, and mining.
What is happening in Greece is but a small sample of what WILL happen in the coming American debt crisis. Actually there will be considerable pain when government shrinks because we are so dependent on it. It will be like coming off of heroin.
The Eurozone's problems are more political in nature. There's no lender of last resort and no nation state is supposed to bail another out under Masstricht. I expect they eventually will because the PIIGS are threatening to break apart EMU, but Germany in particular will be very unhappy about this, since they spent a decade sucking it up after reunification.
Peter, fantastic blog today. A question that many of us have is, "How can I protect my 401k? The 'safest' option that my company offers is cash. There is no option to buy gold or anything other than stocks. When the dollar collapses, the value will be crushed if I just leave it in cash." Can you address this in a blog, as it affects so many people. Thanks!
no one would ever vote for ron paul, he doesn't tell people what they want to hear. He speaks truth that is hard to swallow. Too bad no one listens, that truth would save the country.
Peter says it in the video. It's the reserve status of the dollar. The dollar is THE international currency. Oil and other commodities are traded in dollars. Billions of dollars in debt is stipulated to be repaid in dollars. Among the many troubled countries, the US is thought to be one of the surest to make good on its debts. All this provides tremendous support to the dollar. The dollar can't disappear until something is there to replace it. Gold? Not yet.
Thanks again Peter for puttting things in perspective! If anyone out there is new to peter schiff, you can get Wallstreet Unspun podcasts. they go back for months. There are some real jewels in there too. Love the analogies. Compares Bernake to a voodoo doctor with jue jue beans waving a stick as opposed to a real doctor. LOL when I heard that. Couldn't be more true!
Thanks Peter, I am with you on the long term effects and believe this traders rally does not change a thing about the overall situation. Not sure about the paper stock of gold and silver but the physical is as solid as the metal itself.
For all the Canadians out there, this little known fact should scare the bejesus out of you. The Bank of Canada has in its foreign exchange reserves nearly all USD. No gold, silver, etc. You can figure out the rest. The CAD is effectively the USD. It's basically the same for all other Western nations aligned with the USA. I always chuckled inside when people recommended buying CAD.
...i believe the u.s. is in the process of "expanding" these safety nets. i also believe the population would accept total combined taxes at 50% if their lifestyle or standard of living stays relatively the same...food, water, a flushing toilet, electricity, entertainment, sports, sex...(not necessarily in that order)...before they feel the need or have a desire to do something about it. the average citizen will not leave the country for basic needs if they receive basic needs here.
I didn't say the US does NOT produce anything. Maybe my English is not very good. I said... "We have NOT been the LARGEST anything with manufacturing in many decades". I put the keywords in caps so you will understand this time. I am not sure how you got that we don't manufacture anything out of that.
I agree with the borrowing, but that money has to be paid back with tax money which is from the private sector. It will either come from the current private sector or the future private sector. However, one point that I did overlook is that we could be paying for these jobs with debt that is paid back with devalued paper.
Meh - we wouldn't be screwed if government actually shrunk... Do away with social security, medicare, any and all welfare, and pare our military down to nearly nothing at all. That might fix the problem... but we all know that sure as hell isn't going to happen.
Most our trade is with US, so makes sence to hold USD, at same time many nations hold CAD as reserve money. Canda still has G&S aswell but it has been dwindling away for many years.
The speculators in gold and silver who did so on leverage and did not take physical delivery are now getting out of the USD carry trade. It's a good thing as they will get crushed when people/industry want physical delivery. Take this opportunity to buy physical Au & Ag. If you want some risk, add some Chinese Yuan. Even if not official, the yuan (RMB) will effectively be the reserve currency as you will need it to do business with the eventual world's largest economy.
Ok thanks for the info and I will look into it, but what I said is true. Beck has ridiculed Paul over his non-interventionist foriegn policy and that was the main reason Beck didn't support Paul. The fact that both Palin and Beck support the Pauls is mind numbing though. I smell something fishy, but hopefully not. Hopefully, Palin and Beck have come to their senses about Dr. Paul.
@ForTehNguyen During and after WWII, the US also positioned themselves well relative to other countries debt. We owned the world debt and would benefit from that for years. This is similar to China's positioning today. They are angling to capitalize on world debt for years to come. A large portion of our children's lives will be spent indentured to Chinese people.
I hear you Peter, ignore these guys that see the dollar rally and get scarred that their 3 ounces of silver just went down. I do disagree with you on one thing. That is hyperinflation. Seems to me that deflation is the real problem in the near future. Esp if the EU starts to fall apart and our real estate continues to slide along with wages and high unemployment.
In the next 5 years, 35% of our tax-revenue will goto paying the interest on our ever rising national debt... No. I didn't say the principal-&-interest pmt... I said the interest alone! That leaves 65% of the tax-revenue to fund the remanider of the budget! As that will literally be impossible to fund our annual Gov't expenditures (like Soc. Sec., Defense & Medicare - not to mention the plethora of social spending that 'Capt. Progressive' wants to levy on the tax-payer) we are screwed!!!
nice job. First smart comment on youtube in a while lol... For now I would be long on USD though, when the momentum shifts, we ride it the other way. Who's with me?
I'ts SPAIN, much worse than Greece. Greece is in bad shape but it's SPAIN the major problem in the EU. Spain situation is TERRIBLE. 70% of the enterprises are delaying the payment of taxes to the government. As the medias don't share fair information I don't know what is really happening but I think the government is not getting half of the money it is spending. In a few months or days the situation here in Spain is going to collapse and this is bad for all the EU
The dow has hit 1 once of gold many times in the last 100 years. look it up. every time the dow = 1 once of gold, that signals the time to bow the dow long term.
Peter, you know I always think you're the man! But, just for the record, in regards to you saying you don't know when to time the dollar/gold markets, you did say several months ago that it was the last call to get out of the dollar. I can't remember exactly, but I think it's when the House passed the bill to raise our debt level to $14.1 trillion. Also, no one is talking about the FHA being opened up to house flippers. I thought for sure that you or Max Keiser would've jumped on that one.
When consumerism in USA is back in full stride and job creation numbers are improving monthly, when we stop worrying and buy that new tv and consider a new car ... then the axe will fall and Schiff's predictions will all come true. Govt's agenda remains quite different than what citizens hope for but do not expect any longer; govt will unite Mexico and Canada with USA and form a united north america, a new world order. Econ worries make for a nice diversion. How much is air fare to Switzerland?
I'm looking around my bedroom, I can't find one thing that's "Made in the USA". we've legislated all of our jobs overseas and we'll export even more manufacturing with Cap and Trade :(
If a nation can service its debt in the sort term but not the medium or long, then it is broke. The U.S. appears to me that it will not be able to service its debt without borrowing the money to do so, within the decade.
Your children & your grandchildren? My friend, that is optimistic at best! The collective financial storm that is rising without any actual sustainable productivity to even slightly curb it; continued easy monetized money from the Fed to these hoarding banks - that will spill it all out when their reserve limits are lowered - causing massive inflation; and new proposed egalitarian socialism - where productivity is punished and spending is increased - means that we are already near the edge!
btw Peter, the plunge in the gold price was due to 'paper' gold i.e. COMEX, rumor has it that London is 90% out of 'physical' gold and in March everybody will try to get delivery and hence LBMA and CRIMEX wil GO BROKE!!! now here's a REAL hope!!
What about Microsoft, Google, Intel, HP, apple these companies are reporting massive profits. They make up about 90% of the worlds IT infrastructure. All the huge corporations seem to be US based, maybe this will change one day ut we are not there yet, by a long shot.
i dont think we will ever pay back the loans, but your right we will have to pay the interest, which will be horrendous, even with devalued currency, because the interest rates will be sky high by then. what has to happen is a renegotiation of the debt. china will just have to agree to take a haircut that will look like a mohawk.
gold falls $50 in a day, so what, this is a short term thing. People need to take a step back and look at the big picture. The dollar does not command as much labor and capital as it use to.
@U2ForNow This is from the United Nations, National Accounts Main Aggregates Database. I not claiming the US is problem free, but it's incorrect to claim that the US doesn't produce anything anymore.
@BlackOp-- Excellent points all around. Our friend has been thoroughly indoctrinated. @Rata-- What you don't seem to get is that if you don't sanction a small group of men with the monopoly of initiating violence then there is no coercive power for evil men to use to their advantage to control or manipulate us. No one is suggesting a land without laws and rules, just that we don't need a mafia in charge of those rules and laws. Voluntary interaction,baby!
the dollar is still worth less then a dollar so where are all these people buying dollars? as for gold and silver they are still great buys right now. silver and gold are way up from 5 years ago. metals go up and down all the time and theyre more of a long term investment. if anyone guessed wrong it was you buying silver or gold at a higher price then they are now.
shiff invests long term.. If you go to his firm like I did, they will tell you that you shouldnot/cannot touch the money invested for 5 years. So remember these short term moves dont matter to Shiff. He has been saying buy gold for 8 years, regardless of price and will continue until the dow = 1 once of gold.
@rollinglibs101 Peters advice is long term. If you are a trader then you can beat his statement by taking profits on ups and downs but long-term trend is up.
I'm tempted to load up on Greek stocks; they're so cheap right now:
Athex index has a P/E ratio of 9.6
S&P 500 has a P/E ratio of 18.2
Greece couldn't default.
THIS WAS SPARTA!
I agree with you. Not only is the US the world's biggest manufacturer, it is a major producer of agriculture. It amazes me that Peter Schiff always says the US produces nothing, and nobody corrects him on the air.
Financial Times reported yesterday evening that "Moody's US credit rating would come under pressure unless economic growth was more robust than expected or tougher actions were taken to tackle the countrys budget deficit"
2010? I feel so old
a daily precious metal fluctuation of 2% ? the alarm on my gold holdings sure hasn't sounded
I made a 6 part series on oil, those that rule, and the impact oil has had on the World. It's worth a look whenever you get a chance. It's called, "Road to Endless War".
why we're so screwed up:
"In the 1980's the USDA ordered the annual destruction of 50 million lemons, 100 million pounds of raisins, 1 billion oranges."
Thomas Woods - The Politically Incorrect Guide to American History
Wal-Mart is closing stores and laying off corporate jobs. That sure sound like a recovery to me Mr. President.
America, you gotta love it, Bankers get millions, while the little guy loses his house in a foreclosure or short sale and gets a bill from the bank for the deficiency.
Good point..... heavier load, held up by fewer people.
Yup I'm starting to get scared now.
I am not blaming...just pointing out which Party was in control of the Congress (which has the power to make budget bills; the House in particular). I am giving credit where credit is due.
I think we'll all know soon if Schiff knows what he's talking about.
'Commodity' currencies are the currencies of nations that rely very heavily on export of commodities.
PragmaticStatistic,
Looking at history, quoting statistics and anticipating the future,
You know with qualities like that you'd never make-it in politics
Schiff you are right...even though some parts of me and the rest of the country wish you were not. It is, what it is. Keep up the good work!
6:00 yes peter, but you did mention a few months ago that you didn't think the dollar would rally to make 80 and as of a few minutes ago....it's 80.
you'e a great orator, a grea business man, and a great sales man, truly will make an excellent politician.
Peter guessed wrong because the next crisis might happen sooner than he thought - - the US dollar is still considered "safety" when compared to foreign stocks. When people start fleeing from stocks, they automatically land back in the US dollar, so the value of the US dollar goes up during big market selloffs...
thanx Peter
@Zelovich: I love it when Keynesians claims that their stimulus work. If it works, they are right; if they don't work, they are still right b/c it wasn't enough. You are covered either way.
I don't understand why anyone would take these Keynesian crackpots seriously, but this is a bit too much - especially in light of the fact that so-called "fill-in" gap models have been used repeated over and over again.
10 years on and no sovereign debt crisis yet.
I think that’s because everyone is doing the same thing. I think from what I’ve heard that the global economy is probably one huge bubble. I’m not an expert so my opinion isn’t worth very much but I think it is coming the only question is when. Buying things that have real value like gold and silver that preserve value are probably good as to give people a solid backstop against either hyperinflation or a sovereign debt crisis or just as a means of storing wealth. It’s complicated but I think it’s pretty close to a certainty that one of the two things is going to happen.
I'm listening to Mr Schiff, I'm buying phisical silver. I can't afford to buy gold so I buy silver coins and 1 ounce bars of silver.
Crazy..Well put though Peter.
Thanks, I found his quotes. 5k does appear to be a stretch, but his main argument is that it's not too late to enter the gold market. It does seem intuitive that it's a good hedge, even at current prices, against USD (and other currency) inflation.
To follow up, I see the options as:
1) Stay in stocks as they may rise with inflation (a little scary).
2) Take a withdrawl, pay the taxes and penatly, then invest the remainder in something that will at least hold value in a crisis (hard to take that big tax punch)
the unemployment rate only counts people who are still searching for a job. In other words, more than 0.3% of the unemployed people have given up on trying to find a job.
This is it folks, we're are seeing beginning of the collapse.
I agree with your first point and it's one, in my opinion, that's not made often enough by econ types; probably because they don't want to lower themselves to believe that the knuckle dragging military has such a huge underpinning effect to world markets. I like gold too but remember that historically gold has never needed to be backed by anything. It has always done the backing (hence the tonnage in central bank vaults). But, for now, I agree the value does fluctuate day to day in value.
The US is still the largest manufacturer in the world.
You forgot petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals, electronics, food processing, consumer goods, lumber, and mining.
Because some of us are smart enough to short these things, including the dow.
What is happening in Greece is but a small sample of what WILL happen in the coming American debt crisis.
Actually there will be considerable pain when government shrinks because we are so dependent on it. It will be like coming off of heroin.
mongoose704 the currency will fall too, and we’re going to get runaway inflation
you're right in a way: getting into an investment is one skill, getting out to the sidelines during a correction is a REAL skill.
Peter's misunderstanding about the dollar is his biggest blind spot. Otherwise, he's been brilliant.
The Eurozone's problems are more political in nature. There's no lender of last resort and no nation state is supposed to bail another out under Masstricht. I expect they eventually will because the PIIGS are threatening to break apart EMU, but Germany in particular will be very unhappy about this, since they spent a decade sucking it up after reunification.
yup, I backed up the 18 wheeler today :)
US is the largest beef producer/exporter in the world, Australia a close second. Brazil is gaining ground.
Peter, fantastic blog today. A question that many of us have is, "How can I protect my 401k? The 'safest' option that my company offers is cash. There is no option to buy gold or anything other than stocks. When the dollar collapses, the value will be crushed if I just leave it in cash." Can you address this in a blog, as it affects so many people. Thanks!
I just gave a plug for Peter on 96.9 WTTK out of Boston...Go Peter!! Beat the Chris Dodd clone!!
GO!! Peter !!
Dang! Bought up a whole bunch of gold, silver, their stocks and mining companies yesterday! Argghhh... Talk about buying before the dips.
no one would ever vote for ron paul, he doesn't tell people what they want to hear. He speaks truth that is hard to swallow. Too bad no one listens, that truth would save the country.
Peter says it in the video. It's the reserve status of the dollar. The dollar is THE international currency. Oil and other commodities are traded in dollars. Billions of dollars in debt is stipulated to be repaid in dollars. Among the many troubled countries, the US is thought to be one of the surest to make good on its debts. All this provides tremendous support to the dollar. The dollar can't disappear until something is there to replace it. Gold? Not yet.
Thanks again Peter for puttting things in perspective!
If anyone out there is new to peter schiff, you can get Wallstreet Unspun podcasts. they go back for months. There are some real jewels in there too. Love the analogies. Compares Bernake to a voodoo doctor with jue jue beans waving a stick as opposed to a real doctor. LOL when I heard that. Couldn't be more true!
Deflation will only happen when you compare prices in terms of gold. Prices in terms of US Dollars will be inflationary.
Thanks Peter, I am with you on the long term effects and believe this traders rally does not change a thing about the overall situation.
Not sure about the paper stock of gold and silver but the physical is as solid as the metal itself.
10th Amendment - The Cure is to Ignore!
He said that it fell right at the beginning.
Hid did, he also predicted gold could have small slips before that.
For all the Canadians out there, this little known fact should scare the bejesus out of you.
The Bank of Canada has in its foreign exchange reserves nearly all USD. No gold, silver, etc. You can figure out the rest. The CAD is effectively the USD. It's basically the same for all other Western nations aligned with the USA. I always chuckled inside when people recommended buying CAD.
...i believe the u.s. is in the process of "expanding" these safety nets. i also believe the population would accept total combined taxes at 50% if their lifestyle or standard of living stays relatively the same...food, water, a flushing toilet, electricity, entertainment, sports, sex...(not necessarily in that order)...before they feel the need or have a desire to do something about it. the average citizen will not leave the country for basic needs if they receive basic needs here.
Keep up the great work Peter!
Airfare to Switzerland is affordable while your dollars are still valuable. Better do it soon though!
the market = freedom to choose and strong money
the fed = no freedom and weak money
They do that almost every day. Maybe one day they will
I didn't say the US does NOT produce anything. Maybe my English is not very good.
I said... "We have NOT been the LARGEST anything with manufacturing in many decades".
I put the keywords in caps so you will understand this time. I am not sure how you got that we don't manufacture anything out of that.
I agree with the borrowing, but that money has to be paid back with tax money which is from the private sector. It will either come from the current private sector or the future private sector. However, one point that I did overlook is that we could be paying for these jobs with debt that is paid back with devalued paper.
Meh - we wouldn't be screwed if government actually shrunk... Do away with social security, medicare, any and all welfare, and pare our military down to nearly nothing at all. That might fix the problem... but we all know that sure as hell isn't going to happen.
Let's hope it's a cultural one
Most our trade is with US, so makes sence to hold USD, at same time many nations hold CAD as reserve money. Canda still has G&S aswell but it has been dwindling away for many years.
No it is not, our military is only possible as long as we can borrow money. Solders don't work for free and guns and ammo don't fall from space.
Show me a soldier that will fight for pennies a day.
In this case, Zimbabwean style hyperinflated trillion Federal Reserve notes.
Ron Paul should start using more financial advice from Schiff.
The speculators in gold and silver who did so on leverage and did not take physical delivery are now getting out of the USD carry trade. It's a good thing as they will get crushed when people/industry want physical delivery. Take this opportunity to buy physical Au & Ag. If you want some risk, add some Chinese Yuan. Even if not official, the yuan (RMB) will effectively be the reserve currency as you will need it to do business with the eventual world's largest economy.
Yeah, the 4st and tomorrow will be the 5rd and the next will be the 6nd and so on and so on.
Ok thanks for the info and I will look into it, but what I said is true. Beck has ridiculed Paul over his non-interventionist foriegn policy and that was the main reason Beck didn't support Paul. The fact that both Palin and Beck support the Pauls is mind numbing though. I smell something fishy, but hopefully not. Hopefully, Palin and Beck have come to their senses about Dr. Paul.
I believe Pete.
@Panzer, not much of a choice. It is what my employer does. Cannot touch it unless I leave the company for some reason.
@ForTehNguyen During and after WWII, the US also positioned themselves well relative to other countries debt. We owned the world debt and would benefit from that for years. This is similar to China's positioning today. They are angling to capitalize on world debt for years to come. A large portion of our children's lives will be spent indentured to Chinese people.
Dear Lord, would you please let Mr. Schiff and Mr. Paul be our leaders in 2012?! Thank you Lord, Amen.
@Zeldovich
And you don't think there will be another meltdown?
my is my silver and gold down? I thought the next crisis the world wouldn't flee to dollars. that's what peter guessed. somebody guessed wrong.
I suppose time will tell.
I hear you Peter, ignore these guys that see the dollar rally and get scarred that their 3 ounces of silver just went down.
I do disagree with you on one thing. That is hyperinflation. Seems to me that deflation is the real problem in the near future. Esp if the EU starts to fall apart and our real estate continues to slide along with wages and high unemployment.
China's up to bat soon for a correction. Pete you have a great way of communicating complex ideas in a simple way. Stay the course!
In the next 5 years, 35% of our tax-revenue will goto paying the interest on our ever rising national debt... No. I didn't say the principal-&-interest pmt... I said the interest alone!
That leaves 65% of the tax-revenue to fund the remanider of the budget!
As that will literally be impossible to fund our annual Gov't expenditures (like Soc. Sec., Defense & Medicare - not to mention the plethora of social spending that 'Capt. Progressive' wants to levy on the tax-payer) we are screwed!!!
Major problems out there...
nice job. First smart comment on youtube in a while lol... For now I would be long on USD though, when the momentum shifts, we ride it the other way. Who's with me?
I'ts SPAIN, much worse than Greece.
Greece is in bad shape but it's SPAIN the major problem in the EU.
Spain situation is TERRIBLE.
70% of the enterprises are delaying the payment of taxes to the government.
As the medias don't share fair information
I don't know what is really happening but I think the government is not getting half of the money it is spending.
In a few months or days the situation here in Spain is going to collapse and this is bad for all the EU
He did say that a small decline was possible, and that it would be a good time to buy gold if ti happens.
not consistently I think he means
The dow has hit 1 once of gold many times in the last 100 years. look it up. every time the dow = 1 once of gold, that signals the time to bow the dow long term.
Peter, you know I always think you're the man! But, just for the record, in regards to you saying you don't know when to time the dollar/gold markets, you did say several months ago that it was the last call to get out of the dollar. I can't remember exactly, but I think it's when the House passed the bill to raise our debt level to $14.1 trillion.
Also, no one is talking about the FHA being opened up to house flippers. I thought for sure that you or Max Keiser would've jumped on that one.
When consumerism in USA is back in full stride and job creation numbers are improving monthly, when we stop worrying and buy that new tv and consider a new car ... then the axe will fall and Schiff's predictions will all come true.
Govt's agenda remains quite different than what citizens hope for but do not expect any longer; govt will unite Mexico and Canada with USA and form a united north america, a new world order. Econ worries make for a nice diversion.
How much is air fare to Switzerland?
I'm looking around my bedroom, I can't find one thing that's "Made in the USA". we've legislated all of our jobs overseas and we'll export even more manufacturing with Cap and Trade :(
If a nation can service its debt in the sort term but not the medium or long, then it is broke. The U.S. appears to me that it will not be able to service its debt without borrowing the money to do so, within the decade.
Your children & your grandchildren? My friend, that is optimistic at best!
The collective financial storm that is rising without any actual sustainable productivity to even slightly curb it; continued easy monetized money from the Fed to these hoarding banks - that will spill it all out when their reserve limits are lowered - causing massive inflation; and new proposed egalitarian socialism - where productivity is punished and spending is increased - means that we are already near the edge!
btw Peter, the plunge in the gold price was due to 'paper' gold i.e. COMEX, rumor has it that London is 90% out of 'physical' gold and in March everybody will try to get delivery and hence LBMA and CRIMEX wil GO BROKE!!! now here's a REAL hope!!
What about Microsoft, Google, Intel, HP, apple these companies are reporting massive profits. They make up about 90% of the worlds IT infrastructure. All the huge corporations seem to be US based, maybe this will change one day ut we are not there yet, by a long shot.
i dont think we will ever pay back the loans, but your right we will have to pay the interest, which will be horrendous, even with devalued currency, because the interest rates will be sky high by then. what has to happen is a renegotiation of the debt. china will just have to agree to take a haircut that will look like a mohawk.
gold falls $50 in a day, so what, this is a short term thing. People need to take a step back and look at the big picture. The dollar does not command as much labor and capital as it use to.
@U2ForNow This is from the United Nations, National Accounts Main Aggregates Database. I not claiming the US is problem free, but it's incorrect to claim that the US doesn't produce anything anymore.
what percentage of GDP is "generated" by government spending? I am sure the USSR had a great looking percentage in 1988.
how would it hurt china to let its currency appreciate? all of a sudden import costs would plummet and there would be a surge of domestic spending,
@BlackOp--
Excellent points all around. Our friend has been thoroughly indoctrinated.
@Rata--
What you don't seem to get is that if you don't sanction a small group of men with the monopoly of initiating violence then there is no coercive power for evil men to use to their advantage to control or manipulate us. No one is suggesting a land without laws and rules, just that we don't need a mafia in charge of those rules and laws.
Voluntary interaction,baby!
COMA California Oregon Michigan Arizona
Hey that was a really good take down of the situation. Question. Did Rogers just call the China Top yesterday?
the dollar is still worth less then a dollar so where are all these people buying dollars? as for gold and silver they are still great buys right now. silver and gold are way up from 5 years ago. metals go up and down all the time and theyre more of a long term investment.
if anyone guessed wrong it was you buying silver or gold at a higher price then they are now.
shiff invests long term.. If you go to his firm like I did, they will tell you that you shouldnot/cannot touch the money invested for 5 years. So remember these short term moves dont matter to Shiff. He has been saying buy gold for 8 years, regardless of price and will continue until the dow = 1 once of gold.
@rollinglibs101 Peters advice is long term. If you are a trader then you can beat his statement by taking profits on ups and downs but long-term trend is up.
$ is done , time to buy gold