living standards

Peter Schiff: ‘The Day Of Reckoning Is Getting Closer And Closer’

Economist, financial broker/dealer, and author Peter Schiff appeared on the Alex Jones Show last Friday. Schiff, who correctly-called last decade’s housing crash and recent global economic crisis, warned viewers of rising inflation, a U.S. dollar collapse, and civil unrest. The CEO of Euro Pacific Capital said:

Most people know there’s inflation. They don’t believe the government numbers or they don’t even know about the government numbers. All they know is that the cost of living is going up. Food is more expensive. Their utility bills are higher. Rent is going up. Health insurance premiums are going up. But Alex, we ain’t seen nothing yet. When it comes to inflation- this is just the beginning. The price increases that Americans have been enduring are only going to get much, much worse… But nobody is going to welcome a higher cost of living, and your best defense against that, as I said, is to protect yourself. To get out of your dollars. To diversify internationally

More and more people- mainstreaming people- I’m hearing people talk who now realize that this is the 9th inning of this thing, this whole experiment with Keynesianism and fiat money. It is very, very late in the game. Time is running out, right? The clock has been ticking and ticking. It is going to stop, and you can see that. The day of reckoning is getting closer and closer

The real drop is not just going to be in the pound, but in all the world’s fiat currencies. In particular, the U.S. dollar, which is at the center of this whole Frankenstein’s monster when it comes to a monetary system. And it is going to implode. And this dollar crisis is going to make the financial crisis of 2008 look like a Sunday school picnic, especially in the way it impacts people’s standards of living…

There is going to be, I think, rioting and looting. Especially when we have a currency collapse. Because I think then you’re going to have shortages. I think the government is going to impose price controls. And I think there is going to be a problem for people to get goods and services that are in short supply…

(Editor’s note: Bold added for emphasis)


“Bubble Ready to Implode. Massive QE Coming!”
YouTube Video

(Editor’s notes: Info added to “Crash Prophets” page. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

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

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Wednesday, July 13th, 2016 Civil Strife, Crash Prophets, Currencies, Government, Inflation, Investing, Main Street, Monetary Policy Comments Off on Peter Schiff: ‘The Day Of Reckoning Is Getting Closer And Closer’

Peter Schiff: Obama, Federal Reserve, Government Have Failed As ‘This Economy Is A Disaster’

Economist, financial broker/dealer, and author Peter Schiff appeared on the Alex Jones Show last Friday. Schiff, who correctly-called last decade’s housing crash and recent global economic crisis, discussed a number of subjects with Jones, including Puerto’s Rico’s recent default/economic crisis and “modest” U.S. inflation numbers. The “crash prophet” said of the U.S. territory:

It’s never a problem until it is. So Puerto Rico is broke, but now it’s a problem because the creditors figured out that they’re broke. Well America is more broke than Puerto Rico. That’s a fact. It’s just that our creditors haven’t figured it out yet. But when they do, then Donald Trump is going to end up being right, because all we can do is default. And if we don’t default, if we print money- which now Trump is saying, “Oh, we don’t have to default because we can print.” Well printing is worse than default, because printing doesn’t just wipe out the bondholders, it wipes out anybody who hold U.S. dollars.

When asked by Alex Jones where all the inflation is being hidden, the CEO of Euro Pacific Capital pointed out:

It’s actually hiding in plain sight because, because first of all, the inflation is all the money printing. That’s the definition. The consequence of inflation is that prices go up. But look, stock prices went way up. Real estate prices went back up. Rare art went back up. Collectible cars went back up. I mean, asset prices have gone up like crazy- that is inflation. And, of course, anybody who lives in America knows that the prices are going up. Look, rents are up about 8 percent year-over-year. Look how much health care costs have gone up. Utilities are going up. Look at the price of food. Have you bought a steak recently at a supermarket? Prices are going up. It’s just that the government is not doing an accurate job of reporting, and that is by design…. The standard of living is going down. Americans are working two or three jobs a piece. And they can barely make ends meet. You know, this economy is a disaster. And everyone wants to pretend that it’s great, because no one wants to admit that Obama is a complete failure, that the Federal Reserve was a complete failure, that everything that government has done has failed.


“Venezuela Is America’s Socialist Future”
YouTube Video

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

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

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Tuesday, May 24th, 2016 Crash Prophets, Currencies, Debt Crisis, Defaults, Employment, Federal Reserve, Fiscal Policy, Food, Government, Health, Inflation, Main Street, Monetary Policy, Money Supply, Stocks, Utilities Comments Off on Peter Schiff: Obama, Federal Reserve, Government Have Failed As ‘This Economy Is A Disaster’

Peter Schiff: ‘Economy May Be Entering A Period Of Stagflation’

“I think now you’re going to see big increases in consumer prices. Remember the stagflation of the 1970s. Except this is going to have a lot more stagnation and a lot more inflation. And unlike what Ronald Reagan did at the end of that decade to put out that fire, nothing like that is going to happen this time because we can’t do it. We don’t have the tools. We can’t raise interest rates to fight inflation no matter how high inflation rises because that’s how broke we are. The only things keeping our institutions afloat, including the federal government, is artificially-low interest rates. And the more debt we have, the more important those low interest rates are to maintain the illusion of solvency. So, inflation is going to keep on going up and that is going to cause a flight from the dollar…”

-Peter Schiff, CEO of Euro Pacific Capital, in a February 5, 2016, entry on The Schiff Report vlog on YouTube.com

“Stagflation.” The word sends a shiver down my spine. And while Peter Schiff’s mention of it earlier this month caught my attention, alarm bells were sounding when the “crash prophet” talked more about stagflation in his Euro Pacific Capital weekly commentary that was just released Monday. From that piece:

Many were largely caught off guard by the arrival last Friday (February 19th) of new inflation data from the Labor Department that showed that the core consumer price index (CPI) rose in January at a 2.2 % annualized rate, the highest in more than 4 years, well past the 2.0% benchmark that the Fed has supposedly been so desperately trying to reach. It was received as welcome news…

In the past I argued that even a tiny, symbolic, quarter point increase would be sufficient to prick the enormous bubble that eight years of stimulus had inflated. Early results show that I was likely right on that point. The truth is that the economy may be entering a period of “stagflation” in which very low (or even negative) growth is accompanied by rising prices. This creates terrible conditions for consumers whereby prices rise but incomes don’t. This leads to diminished living standards.

The recent uptick in inflation does not somehow invalidate all the other signs that have pointed to a rapidly decelerating economy. Just because inflation picks up does not mean that things are getting better. It actually means they are about to get a whole lot worse. Stagflation is in fact THE nightmare scenario for the Fed. If inflation catches fire now, the Fed will be completely incapable of controlling it. If a measly 25 basis point increase could inflict the kind of damage already experienced, imagine what would happen if the Fed made a real attempt to raise rates to get out in front of rising inflation? With growth already close to zero, a monetary shock of 1% or 2% rates could send us into a recession that could end up putting Donald Trump into the White House. The Fed would prefer that fantasy never become reality…

(Editor’s note: Bold added for emphasis)

Schiff, who correctly-called last decade’s housing crash and recent global economic crisis, went on to predict a dollar collapse, accelerating consumer price increases, and the U.S. Treasury bubble bursting with this scenario. A grim outlook, which you can read in its entirety on the Euro Pacific Capital website here.

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

(Editor’s notes: Info added to “Crash Prophets” page; a qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

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Wednesday, February 24th, 2016 Bonds, Crash Prophets, Currencies, Debt Crisis, Government, Income, Inflation, Interest Rates, Monetary Policy, Recession, Stimulus Comments Off on Peter Schiff: ‘Economy May Be Entering A Period Of Stagflation’

Peter Schiff: ‘Inevitable’ QE 4 Will Lead To U.S. Dollar Crisis

On August 28, 2015, Euro Pacific Capital’s Peter Schiff spoke at The Jackson Hole Summit, “the first ever event to discuss monetary and fiscal policy at the same time as the Central Bankers are discussing policy,” according to sponsor American Principles Project. Schiff, who correctly-called the housing bust and economic crisis last decade, warned those in attendance that because the Federal Reserve isn’t allowing market forces to fix imbalances in the financial system, the United States is ultimately heading towards a dollar crisis. From the presentation:

The Fed needs to raise interest rates right now. Not because the economy can take it, but because it can’t. Because, again, it is a bubble that needs to be popped. The sooner we pop it, the better. But of course we’re going to find out that the Fed didn’t save us from the financial crisis. They simply interrupted it. And they kicked the can down the road. And we’ve now caught up to the can. And, the problem is, because we’ve delayed solving the problem- see, the financial crisis was the beginning of the solution. And the Fed interrupted it. The market was trying to fix what the Fed broke. Real estate prices coming down were part of the solution. Banks failing was part of the solution. That recession was part of the solution. And the Fed interrupted it. And instead they gave us an even bigger bubble. And now we’re going to have to deal with that…

All the real economic recovery is being prevented. The Fed has got it all dammed up with its monetary policy. But it’s afraid to release the dam because it’s going to unleash all of these forces, this creative destruction that is so necessary, because we cannot have this genuine economic recovery that would actually lift living standards and create good jobs for the American people. We can’t do that unless we allow this phony economy that’s been resurrected on the foundation of cheap money collapse. But nobody is going to allow that to happen…

And then they’re going to launch QE 4. Which nobody really understands. I think it’s inevitable. I said this from the beginning. I said that when they launched the very first round of quantitative easing that they had walked into, checked into, a monetary roach motel. That there was no way out. Once they went down this line, that we were in for the duration. You live by QE, you die by QE. I said we’d have more QEs than Rocky movies. And I think they had six of those. And of course they got progressively worse. And so I think QE 4 is going to be even worse than the last rounds. And ultimately… ultimately, where we are headed is to a dollar crisis…


“Peter Schiff at Jackson Hole Summit: The Monetary Roach Motel”
YouTube Video

Christopher E. Hill
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)

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Tuesday, September 29th, 2015 Bailouts, Banking, Bubbles, Crash Prophets, Currencies, Employment, Federal Reserve, Housing, Interest Rates, Investing, Monetary Policy, Money Supply, Recession, Recovery, Stimulus Comments Off on Peter Schiff: ‘Inevitable’ QE 4 Will Lead To U.S. Dollar Crisis

Marc Faber: Young Americans Will Earn Less, Have Less Wealth Than Their Parents

I wrote on Survival And Prosperity a couple years ago:

Back in 2006 when I was working at a suburban fire department, a battalion chief came into my office, saw the local paper on my desk, and asked, “Did you read that piece about how kids these days might be the first generation who won’t be better off than their parents?” I replied, “Yeah, it was depressing.” The fire officer confided, “That stuff scares me. I’m worried they might be right about that.” I’d be concerned too, especially if I were the parent of a couple of young kids like this chief was.

Fast forward almost nine years after that discussion took place. Swiss-born investment advisor/money manager Marc Faber was interviewed by Barron’s last week. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report talked with editor Jack Otter about a number of financial topics, including how younger people in Western societies will be less well-off than their parents. From their exchange:

OTTER: You always find new ways to depress me. And today you told me that for the first time in 200 years of history, we will bequeath to our children less wealth than their parents had.
FABER: Yes. I meant that with respect to Western societies and Japan, where essentially the younger people, today’s generation, will earn less than their parents. And they will have less wealth than their parents, inflation-adjusted, because we will have wealth taxes, we’ll have more estate taxes, and we have essentially declining real median incomes in the Western world and Japan. But the good news is that we have essentially have in the countries that opened up post-breakdown of the socialist, communist ideology- China, Soviet Union, Eastern Europe, and so forth, and India, of course- we have entire generations that will earn much more and have a much better standard of living than their parents had.

On India, “Doctor Doom”- as the financial media likes to call him- thinks that India’s stock market could rise by 15 percent in 2015.


“Dr. Doom Offers 2 Stocks Picks, But Gloomy Outlook”
Barron’s Video

By Christopher E. Hill
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.)

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Sunday, December 14th, 2014 Asia, Crash Prophets, Demographics, Europe, Income, Stocks, Taxes, Wealth Comments Off on Marc Faber: Young Americans Will Earn Less, Have Less Wealth Than Their Parents

Chinese Bank Official: Yuan Could Become A World Reserve Currency

Barring a complete economic meltdown in China, I suspect China’s currency, the renminbi, has a good chance of becoming the world’s next reserve currency. And so does one of their banking officials, apparently. From Reuters’ Aileen Wang and Kevin Yao this evening:

The Chinese yuan could potentially become a world reserve currency as the country gears up to boost its global clout, deputy central bank governor Yi Gang said in remarks published on Thursday.

“Why do global investors like to hold a certain currency and make investments in a market? They mainly consider its safety, returns and depth, and the liquidity of the market. China’s market and the yuan have full potential,” Yi said in an article published in the official Financial News…

“We need to quicken the pace of internationalization of our capital markets to improve the global status of the yuan,” Yi added, without elaborating on how to move toward that goal.

As if anticipating such a statement, Barry Eichengreen, professor of economics and political science at the University of California, Berkeley, wrote a piece in the Wall Street Journal yesterday that pondered what the impact might be to America should the U.S. dollar no longer play the role of the world’s reserve currency. Dr. Eichengreen, whose new book Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System was just released in January, said:

The greenback, in other words, is not just America’s currency. It’s the world’s.

But as astonishing as that is, what may be even more astonishing is this: The dollar’s reign is coming to an end.

I believe that over the next 10 years, we’re going to see a profound shift toward a world in which several currencies compete for dominance…

In this new monetary world, moreover, the U.S. government will not be able to finance its budget deficits so cheaply, since there will no longer be as big an appetite for U.S. Treasury securities on the part of foreign central banks.

Nor will the U.S. be able to run such large trade and current-account deficits, since financing them will become more expensive. Narrowing the current-account deficit will require exporting more, which will mean making U.S. goods more competitive on foreign markets. That in turn means that the dollar will have to fall on foreign-exchange markets-helping U.S. exporters and hurting those companies that export to the U.S.

My calculations suggest that the dollar will have to fall by roughly 20%. Because the prices of imported goods will rise in the U.S., living standards will be reduced by about 1.5% of GDP-$225 billion in today’s dollars. That is the equivalent to a half-year of normal economic growth. While this is not an economic disaster, Americans will definitely feel it in the wallet.

Sources:

Wang, Aileen and Yao, Kevin. “China says yuan could become a reserve currency: report.” Reuters. 2 Mar. 2011. (http://news.yahoo.com/s/nm/20110303/bs_nm/us_china_economy_yuan). 2 Mar. 2011.

Eichengreen, Barry. “Why Dollar’s Reign Is Near An End.” Wall Street Journal. 1 Mar. 2011. (http://online.wsj.com/article/BT-CO-20110301-714544.html) 2. Mar. 2011.

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Wednesday, March 2nd, 2011 Asia, Currencies, Deficits, Government Comments Off on Chinese Bank Official: Yuan Could Become A World Reserve Currency
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