Peter Schiff: ‘We Are Either In, Or On The Cusp Of, A Brand New Recession’

Tonight I’ve been reviewing some of the latest material from Peter Schiff, president and chief global strategist of Euro Pacific Capital. Schiff, as most of you may know, correctly-called the latest financial crisis the United States still finds itself in. From the Schiff Report YouTube Video Blog this past Saturday:

We are either in, or on the cusp of, a brand new recession. And remember, contrary to previous recessions, this one is starting, starting, with unemployment above nine percent, starting with interest rates already at zero. So, imagine what’s going to happen when we get the next round of fiscal stimulus- they’re going to blow the deficit off the charts. And of course, the Fed can’t do anything on the rate front. All they can do is print more money, which destroys the value of U.S. bonds. So I think S&P again is being much too generous with their rating forecast…

So, that is my warning to everybody, and I’ve been saying it. You can’t just get out of Treasuries. You need to get out of all debt denominated in U.S. dollars, because that really is what S&P is saying here. S&P is saying, “We have so much debt, that if you buy Treasuries, you’re going to lose, because you’re going to be paid back in inflated dollars.” Well, if you lose on Treasuries, you lose on any bond that’s denominated in dollars. In fact, you lose on your dollars. If you have them in your bank. If you have them stuffed underneath your mattress. S&P is telling you, “Get out of dollars.” That’s what I’ve been saying, and now they’re saying it too. Even if they won’t tell it to you that straight, they want to sugar coat it. I never do that.


“S & P AA+ on U.S. Sovereign Debt not Low Enough”
YouTube Video

And the following is from an e-mail I received from his investment services company, Euro Pacific Capital Inc., earlier this evening:

As may have been expected, the majority of investment professionals are reacting perversely to the crisis. On the day after the first ever downgrade was issued on American government debt, investors reacted by igniting one of the biggest rallies in the history of the treasury market. Such an illogical reaction suggests that investments of better value and fundamentals continue to be overlooked.

I see many places to find shelter from the growing economic storm. While media attention is focused on weakness in the Euro, other currencies are doing quite well against the dollar. Over the last 12 months, the Australian dollar is up 12.6%, and the Swiss franc is up 37%. I believe investments that produce reliable income denominated in these, and other, currencies offer meaningful protection from declines in the U.S. dollar. Assets such as non-dollar sovereign bonds, utilities, and real estate trusts all offer these traits. Gold, which I consider to be the only real money, is up 41% so far this year and today had its biggest one day gain in history. I believe that in the current environment exposure to precious metals offers the best way to preserve wealth.

I know a number of mainstream financial/investing types don’t care for Schiff. However, I find it hard to dismiss the views of someone who’s made some terrific calls regarding the direction of the markets/economy over the past couple years- along with others still playing out.

(Note: The author disclaims any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , ,

No comments yet.

Leave a comment

Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

This Project Dedicated to St. Jude
Patron Saint of Desperate Situations



Please Rate this Blog HERE

happyToSurvive

Advertising Disclosure here. "Code Needed"=Promo Code Found On Advertiser Website. Ad Captions Last Updated 4/18/16.
ANY CHARACTER HERE
Remington Sale Ends 4/30
ANY CHARACTER HERE
Blade HQ Knives Blade HQ Review Coming Soon
ANY CHARACTER HERE
Buy Gold And Silver Coins Gold/Silver Sale, inc. Chinese Gold Pandas, 90% Silver Franklin Half Dollars (Singles/Rolls/Bags). BGASC Reviewed HERE.
ANY CHARACTER HERE
BullionVault World's Largest Online Investment Gold Service & Part-Owned By World Gold Council. BullionVault.com Reviewed HERE.
ANY CHARACTER HERE
Home Of "Survival Seed Vault" Premium Heirloom Survival Seeds. MyPatriotSupply.com Reviewed HERE.
ANY CHARACTER HERE
Nitro-Pak--The Emergency Preparedness Leader Wise Foods Sale, Up To 50% Off; Mountain House Sale, Up To 35% Off; Warehouse & Clearance Sale, Up To 70% Off! Nitro-Pak Reviewed HERE.
ANY CHARACTER HERE
Instant Upgrades! Up To $977.99 In Free Meals; Dehydrated Green Beans Up To 34% Off; Sampler Pack Now Only $25. Food Insurance Reviewed HERE.
Firefield Sale Ends 4/30
ANY CHARACTER HERE
Chief Supply Tactical Apparel and Gear for Law, Fire, EMS, Military and Outdoors @chief Tru-Spec 24/7 Series Pants 25% Off Thru 4/30; Free Bluetooth Speaker w/ Fatt Maxx 6"/8" Side-Zip Boots; 25% Off Propper Polo Shirts (Code Needed). CHIEF Supply Reviewed HERE.
ANY CHARACTER HERE
World's First Bulletproof Baseball Cap Only $129; Bulletproof Ceramic Plate (NIJ Level III Stand-Alone) Only $169; Bulletproof Backpack/Messenger Bag Panel Only $99. BulletSafe Reviewed HERE.
ANY CHARACTER HERE
Firearm Training Alternatives (Airguns/Airsoft). PyramydAir.com Reviewed HERE.
ANY CHARACTER HERE
40% Off All Orders Thru 4/20 12 PM PST (Code Needed). Airsoft Megastore Reviewed HERE.
ANY CHARACTER HERE
Survival Titles Save 20% 35% Off All "Deals Of The Week" Thru 4/18 (Code Needed). Paladin Press Reviewed HERE.
 

Categories

Archives

Prepper Website

RSS Chris Hill’s Other Blog: Offshore Safe Deposit Boxes

  • London’s Sharps Pixley Launches Safe Deposit Box Service
    Back on January 20, I blogged about the opening of two new private, non-bank safe deposit box facilities in the United Kingdom. One of these was Sharps Pixley in London (England), which dates back to 1778 and is an original member of London’s twice-daily gold price fixing establishment. Earlier today while catching up on research […]
  • Spring Break
    I will be on my “spring break” from blogging on Offshore Safe Deposit Boxes after publishing this post. New material will appear again on the blog starting Monday, May 2. Thanks, Christopher E. Hill Editor
  • Ecuador President Announces One-Time Tax On Millionaires, Workers After Earthquake
    From an Associated Press article on the Fox News Latino website Thursday: President Rafael Correa announced Wednesday night that he is raising sales taxes and will charge a one-time levy on millionaires to rebuild cities devastated by Ecuador’s worst earthquake in decades… Using authority granted by the state of emergency he declared after Saturday night’s […]
  • The Safe House In Singapore
    More safe deposit box news out of Singapore. The Middle Ground, a news site covering that part of the world, ran an article back on March 31 about award-winning bullion dealer Silver Bullion and its subsidiary- The Safe House (TSH), a Singapore private, non-bank vault. Ryan Ong wrote: Silver Bullion is a company that owns […]
  • Bank Branches To Suffer ‘Dramatic Decline’ Over Next Decade?
    Have a safe deposit box at a local bank branch? You may be kissing it goodbye in the next couple of years. Niraj Chokshi reported on The Washington Post website Tuesday: That bank branch on the corner — and the one on the way to work — may not be there much longer. As technology […]