Peter Schiff: Stock Market Rally ‘An Illusion’

Marc Faber. Jim Rogers. Peter Schiff.

Three “crash prophets” who correctly predicted the 2008 financial crisis in the United States.

I’ve already blogged today about what Faber and Rogers think of rising U.S. stock prices- and what they suspect is behind it.

How about Schiff, the CEO/Chief Global Strategist of Euro Pacific Capital and CEO of Euro Pacific Precious Metals, LLC?

From his February 1 entry on the The Schiff Report YouTube video blog:

Well the Dow Jones closed above 14,000 today. That’s something it hasn’t done since November 2007. Of course, the media is going to make a big deal about Dow 14,000, the economy is coming back, the markets are coming back.

But, of course, all of this is an illusion created by inflation.

When you debase your currency- when you have inflated dollars that you use to measure stock prices- of course stock prices are going to go up. The price of everything is going up. The government denies there’s inflation. But prices prove it. As if we even need that. The money supply going up is the sheer definition of inflation. And we’re creating a lot of money. And prices are responding by rising, and stock prices are no exception.

But remember, the last time the Dow Jones was at 14,000 back in ’07, gold was about $700 an ounce. Today, gold’s about $1,600 an ounce. So the Dow would have to double from here, and it still wouldn’t be where it was in terms of real money five-and-a-half years ago.

So this rally is an illusion.

But the people on Wall Street don’t even want to acknowledge that.

And going forward? Schiff pointed out:

We’re already at 0 percent interest rates, we’re already at 8 percent unemployment- 14 percent if you use the U-6 number. And that’s as good as it gets during a recovery. And now we’re already trending down.

And I think if the Federal Reserve wants to slow down the rise in interest rates- which we know it does- it’s going to have to accelerate the QE. I don’t think $85 billion of money printing is enough to keep interest rates from rising. And so they’re going to have to print even more. That means the dollar is going lower. Commodity prices going higher. Looks what’s happened to oil prices- they’re almost at $98 a barrel. Look at Brent- Brent Crude is really up. It’s almost at a $20 premium now over North Sea. Gold prices have been stable, but I think gold’s about to take off. I think on Wall Street they’re rationalizing. They’re selling gold and selling gold stocks because they claim that the crisis is over, there’s nothing to worry about anymore, Europe isn’t falling apart, the U.S. economy is getting better, so there’s no reason to own gold. And so you sell gold and you sell your gold stocks. But they don’t understand. People weren’t buying gold because of the European crisis or because of even the U.S. financial crisis. They were buying gold long before those crises began. Look at how gold was doing from 2000 to 2007, 2008. It did better before the crisis than it did during the crisis because the real crisis that worries the gold buyer is a currency crisis. People aren’t buying gold because they’re worried about political uncertainty. They’re buying gold because the politicians are printing too much money. Well, the cheap money policies that were in place prior to the 2008 financial crisis are still here, only, it’s worse. It’s more excessive. The monetary policy is easier. Rates are lower. Central banks are printing money even faster. So, instead of there being no more reasons to buy gold, the reasons have never been better. There have never been more reasons to buy gold, it’s just that Wall Street doesn’t understand this yet. But they will.


“Dow 14,000, GDP, Jobs, Fed, inflation, treasuries, & gold.”
YouTube Video

By Christopher E. Hill, Editor
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Share

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 12/3/16.
ANY CHARACTER HERE
BullionVault World's Largest Online Investment Gold Service Taking Care Of $2 Billion For More Than 60,000 Users. BullionVault.com Reviewed HERE.
ANY CHARACTER HERE
Buy Gold And Silver Coins 1 Oz. Silver Rounds (Secondary Market), 10 Oz. Silver Bars (Secondary Market), 100 Oz. Silver Bars (Secondary Market), Australian, Canadian, Chinese, French, Mexican Gold Coins On Sale! Free Shipping On U.S. Orders $99 And Up. BGASC Reviewed HERE.
ANY CHARACTER HERE
3-Month Food Supply $397 Limited Time Only; Survival Starter Kit X-Mas Tote $74.95 + Free Shipping; Alexapure Pro Water Filtration System $147; Patriot Seeds Gift Set $69.95; Big Savings On "Deal Of The Day" Page; Free Shipping On Orders Over $79. MyPatriotSupply.com Reviewed HERE.
ANY CHARACTER HERE
bullet proof vestsWorld'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
Blade HQ Knives Holiday Sale!; Free Patch Orders Over $49 (Code Needed); Free Shipping All Domestic Orders Over $99. Blade HQ Reviewed HERE.
ANY CHARACTER HERE
Survival Titles Save 20% Discontinued Title Sale- Savings Up To 75% Off Original Price. Paladin Press Reviewed HERE.
 

Categories

Archives

Prepper Website

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

  • Related Reading: Malca-Amit’s New UltraVault Safe Deposit Box Service Profiled By South China Morning Post
    Malca-Amit, “widely recognized as the world’s leader in diamonds, jewellery and precious metals logistics and storage,” recently launched its UltraVault safe deposit box service in Asia. According to the UltraVault website: Our innovative portable safe deposit box enables you to: -View, withdraw or store your assets any time of the day or night -Select the […]
  • Related Reading: The Economic Times Article On India’s Safe Deposit Boxes
    I’ve had India on my mind recently. In particular, I’ve been thinking about the country’s safe deposit box industry in light of the ongoing “currency experiment.” Vikram Doctor over at The Economic Times (India) has also been speculating as to what the blitzkrieg on cash means for safe deposit boxes, publishing a piece entitled “Crackdown […]
  • Related Reading: SurvivalBlog.com Post About U.S. Bank Safe Deposit Boxes
    Back on February 2 I blogged about James Wesley, Rawles (comma not a typo), an author, lecturer, and founder/Senior Editor of SurvivalBlog.com, a preparedness blog that receives more than 320,000 unique visits per week. The former U.S. Army intelligence officer had just advised SurvivalBlog readers to “get a safe deposit box offshore, and store some […]
  • Happy Thanksgiving
    Just wanted to wish the American readers of Offshore Safe Deposit Boxes a Happy Thanksgiving. Thank you for your continued readership and support (that applies to everyone!). Christopher E. Hill Editor
  • U.S. Bullion Dealer Miles Franklin Launches Private Safe Deposit Box Program In Canada
    While pulling material together for the blog this morning, I learned about a new “offshore” safe deposit box program that’s just been launched by a well-known American precious metals dealer. Andrew Hoffman, Marketing Director for Miles Franklin (“one of America’s oldest, most trusted bullion dealers”) wrote on SilverSeek.com on November 2: We’ve spent more than […]