U.S. dollar

Peter Schiff: Sell Dollars, Buy Gold, Gold Stocks, Chinese Stocks

The second “crash prophet” I’ll be blogging about this weekend is Peter Schiff, the CEO and chief global strategist of Euro Pacific Capital. Schiff, who correctly called the housing bust and 2008 economic crisis, appeared on CNBC Asia last Wednesday and shared the following with viewers:

The dollar has had a huge rally based on the anticipation of a normalization of interest rates, of a shrinking of the Fed’s $4.5 trillion balance sheet. All this is wrong. None of this is going to happen. It’s all fantasy. That balance sheet is going to explode when they launch QE 4. So the dollar is a bubble. You should sell dollars. Gold has been suppressed because people have been buying dollars and selling gold. Gold’s a great buy. Gold stocks. And you’ve had a nice correction I think in your part of the world, in Hong Kong. Some of these Chinese shares, I think there’s a lot of opportunities there to look to protect yourself in the equity markets. Because when the Fed unleashes QE 4, that’s going to send a lot of money into the emerging markets. A lot of money is going to leave the U.S. in search of safe havens.


“The Last Thing That Fed Wants is a Rate Hike”
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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Must-Read Marc Faber Interview

Regular readers of Survival And Prosperity know on Sundays I try and blog about the latest investment activities/recommendations of the “crash prophets”- Marc Faber, Jeremy Grantham, Jim Rogers, and Peter Schiff. This week, three of the “prophets” are sounding off. First up is Marc Faber. An interview of the Swiss-born investment advisor/money manager was published Friday on the website of MarcoPolis, a Paris-based international online publishing company. Johnnes Maierhofer and Peter Matay conducted one of the most comprehensive interviews of Dr. Faber I’ve ever come across, writing on MarcoPolis.net:

In this exclusive interview with Marcopolis.net Marc Faber covers it all: from commodities and China to the outlook on inflation, the Euro and gold. According to him the global economy is not healing. To the contrary, we might find ourselves back into recession within six months or a year. In that case he expects more money printing by central banks, which eventually could lead to high inflation rates and renewed strength in commodity prices.

On the bright side, he sees great economic potential in Vietnam. Also, the Iraqi stock market has good potential now that a deal with Iran has been reached. While mining stocks are extremely depressed we might see defaults before any meaningful recovery…

Followers of Faber know he’s been a gold bull for years now. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report said this about the precious metal (and other investments of his) during the exchange:

I own gold and it doesn’t worry me that it went down because as I mentioned to you I have this diversification, the bonds in US dollars and the cash in US dollars has been a good investment essentially over the last twelve months. Then I own equities and I own properties in Asia that have been reasonably good investments so the fact that gold is going down doesn’t worry me and I buy every month a little bit but I think on this weakness I will increase the position substantially because I had maybe say 25% in gold but because equities and properties went up, the dollar went up and gold went down, the allocation to gold is no longer 25% but maybe only 10 or 15%.

So then I have to stock it up again. But I would say an individual should definitely own some physical gold…

“Doctor Doom” believes gold confiscation is a possibility, and added later in the discussion:

I think they will take the gold away and go back to some gold standard by revaluing the gold say from now 1000 dollars an oz. to say 10,000 dollars an oz…

A “must-read” interview for Faber followers, which you can access in its entirety on MarcoPolis.net here.

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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Peter Schiff: ‘Gold’s Going To Take Off’ When Fed Doesn’t Raise Interest Rates, Starts QE 4

Economist, financial broker/dealer, and author Peter Schiff appeared on the Fox Business Network yesterday. As the price of gold hit a 5-year low, the noted gold bull was asked his thoughts. Referring back to the dot-com bust and gold’s subsequent lift-off into the 2000s, Schiff told viewers:

I think people are making the same mistake again. They have faith in the Fed. They have faith in Yellen. This is the biggest bubble ever. And I think people should be buying gold, but they don’t know enough to do it.

Schiff, who correctly called the housing bust and 2008 economic crisis, added later:

The dollar has been rising on the idea that the Fed is going to raise rates. But I don’t think that it’s actually going to happen. I don’t think the Fed can raise rates. That’s why they’ve been at zero for seven years. This bubble is so big that even a small rate hike will prick it. So I think all the Fed can do is talk about raising rates. They know that they can’t do it. Now, could they do a 25-basis point hike just symbolically to pretend that they’re going to do more? Maybe. But I don’t even think they’re going to do that. I think they’re going to do QE 4, and when the market comes to terms with reality, gold’s going to take off. But when people are going to wake up? I can’t tell you. It’s amazing that they’re so clueless for so long.


“Gold Will Take Off Once Market Comes to Terms With Reality”
YouTube Video

The CEO and chief global strategist of Euro Pacific Capital remarked that he tells people to have ten to fifteen percent of their portfolio in gold, and still stands by the recommendation.

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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Peter Schiff: China Attempting To ‘Back Their Currency By Gold’

Reason magazine recently interviewed well-known economist, financial broker/dealer, and author Peter Schiff. The chief global strategist/CEO of Euro Pacific Capital discussed gold (as it relates to China) with ReasonTV viewers right before last weekend. Schiff claimed China is attempting to back its currency with the precious metal. From the exchange:

I do think that, quietly, they have been increasing their ownership of gold. We don’t really know how much gold they have. But I think it’s significant. They haven’t reported their numbers in years. I think it’s because they don’t want the sellers of gold to know how much their buying, because they obviously want to buy it as cheaply as they can. But I think they’re doing this for a reason. I do believe that they do want to untether their currency from the dollar. But they don’t want it to just be backed by nothing. So rather than have it be backed by dollars- which really is tantamount to backed by nothing because the dollar’s backed by nothing- but to back their currency by gold. And at one point, all paper currencies were backed by gold, right? And if the Chinese were to back the RMB by gold, they would have the only gold backed currency on the planet, and it would probably be the most desirable and the strongest currency, and will replace the dollar as a world reserve currency were they to accomplish this.


“Is China Moving Toward a Gold Standard? Peter Schiff on the Chinese Market Crash”
YouTube Video

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

(Editor’s notes: Ironically, The Wall Street Journal reported this morning that Chinese gold holdings now amount to 53.32 million troy ounces, behind the U.S., Germany, Italy, and France (in that order); 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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Peter Schiff: Gold Still On Course For $5,000 An Ounce Or More

In a recent MarketWatch phone interview, Peter Schiff, President and CEO of Euro Pacific Capital, repeated his call for the price of gold to reach and possibly surpass $5,000. Myra Saefong reported on the financial news website Friday morning:

“You need to be long gold and there is going to be a huge payday,” Schiff said. “Ultimately,” gold will see $5,000 an ounce and it “could go higher.”

Though gold has been range bound since about mid-2013, Schiff said the turning point for the metal would be a close above the high it saw in January. Gold futures peaked at around $1,300.70 that month, according to FactSet.

“That’ll change the current dynamic,” Schiff argues…

(Editor’s note: Bold added for emphasis)

I’ve blogged about that $5,000 number from Schiff before. Back on October 25, 2012, Schiff told viewers of CNBC’s Futures Now TV show:

$1,700? One day we’re going to look back at $1,700 with nostalgia. People are going to be shocked at how inexpensive gold was when it could be snapped up for such a bargain price. It’s not going to take too long. Just in a few years. I mean, we’re talking gold $5,000. That’s not the ceiling. That might end up being the low end of the range that we’re going to be into. Remember, Ben Bernanke has promised to print over a trillion dollars in 2013. I think he’s going to print more than that. It’s not going to revive the economy. It’s not going to create jobs. But it will help destroy the dollar. And that is going to send gold higher…

I think you’re going to see a big move in the next couple of years.

It’s not just physical gold he’s bullish on. Saefong added in that MarketWatch piece:

“I think the upside in gold stocks is phenomenal from here,” Schiff said.

(Editor’s note: Bold added for emphasis)

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.)

Source:

Saefong, Myra. “Peter Schiff, more bullish than ever, sees gold headed to $5,000 an oz.” MarketWatch. 15 May 2015. (http://www.marketwatch.com/story/peter-schiff-more-bullish-than-ever-sees-gold-headed-to-5000-an-oz-2015-05-15?page=1). 16 May 2015.

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Peter Schiff: U.S. Headed For ‘Major Economic Crisis’ Centered On Dollar

Euro Pacific Capital CEO/Chief Global Strategist Peter Schiff appeared on CNBC World Monday. Schiff, who correctly-called the housing bubble/crash and financial crisis late last decade, warned viewers:

What people have to understand, is because of the Fed and their prior policy mistakes of keeping interest rates at zero, of all this quantitative easing, they have screwed up this economy so badly, that if the Fed were to raise interest rates at any point, they would precipitate a worse financial crisis than the one they caused in 2008. And so we’re not going to get a rate hike, no matter what they say. We’re going to get QE 4, and the next crisis is going to be a dollar crisis…

I think without another dose of QE the bubble is going to pop and we’ll be back in recession. And so to prevent that from happening, and to postpone the day of reckoning, we will get QE 4…

And if you look at the enormity of the debt on the federal balance sheet, on corporate balance sheets, look at real estate prices, the banking sector. You know, all those banks that we’re too big to fail in 2008 are much bigger now than they ever were and they’re very susceptible to even a slight increase in interest rates, which is why the Fed won’t raise them. But you’re right- it’s not going to go on for another six years. We’re going to have a major economic crisis center around the U.S. dollar long before that six-year time period can expire.


“FOMC Rate Hike Hints are a Bluff”
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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Marc Faber Doubts Fed Rate Hike In 2015, Buys Crude Oil Stocks

Swiss-born investment advisor/money manager Marc Faber was recently interviewed by Latha Venkatesh and Sonia Shenoy at CNBC-TV18 (India). The publisher of the monthly investment newsletter The Gloom Boom & Doom Report talked about a number of financial/investing topics- including a potential rate hike soon by the Federal Reserve. From a transcript of the discussion published on the Moneycontrol.com website on April 13:

Sonia: So, you are not expecting a rate hike from the US Fed this year?

A: What I said is in my view the Fed will not increase rates this year unless there is really a very sharp pick up in the economy or there is a colossal pot-hole developing in stocks. But otherwise I doubt it because the dollar has been strong. Okay, it may weaken somewhat, but I do not think it will collapse against the euro and against the yen and the British pound and so forth. So, the dollar is relatively strong. The economy in the US, the latest say, ten indicators that came out were all on the weak side. And under these conditions I doubt the Fed will increase rates. But that is an academic debate. What is important is I think the Feds and other Western Central Bankers will keep interest rates at a very low level for a very long time and will try to keep interest rates in real terms negative. In other words below the rates of cost of living increases.

(Editor’s note: Bold added for emphasis)

Dr. Faber shares the belief of fellow “crash prophet” Peter Schiff concerning an increase in the federal funds rate in the near future. However, Schiff has added that if the U.S. central bank does raise interest rates anytime soon, it will be miniscule.

Faber, who correctly forecast the rise of commodities, emerging markets, and China last decade, shares something else with a different “prophet.” From the transcript:

Latha: Yes, I note your exasperation. Therefore let me come to another asset class: commodities. Do you think they have bottomed or is it that there would be a long trough for this asset class?

A: We have to distinguish because the price of oil has very little to do with the price of orange juice or coffee. So each commodity has its own price dynamics driven by global production and global demand. Now industrial commodities have performed miserably along with emerging markets over the last couple of years because the demand was slowing down especially from China. So, you have prices of iron ore and steel and copper and oil that have collapsed. I happen to think that at this level a lot of commodities are reasonably priced, does not mean they will go up right away. But they come now into a buying rate and I have been buying some oil stocks recently.

(Editor’s note: Bold added for emphasis)

Last Sunday, I noted Yale economics professor Robert Shiller, who spotted the U.S. housing bubble last decade and the dot-com bubble a few years earlier, had purchased a crude oil ETF.

You can read the transcript of the entire exchange between Dr. Faber and CNBC-TV18 on Moneycontrol.com here.

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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Peter Schiff: Coming QE 4 ‘The Lethal Round,’ ‘The Decline Of The Dollar Is Only Just Getting Started’

“Total nonfarm payroll employment increased by 126,000 in March, and the unemployment rate was unchanged at 5.5 percent, the U.S. Bureau of Labor Statistics reported today…”

-U.S. Department of Labor, Bureau of Labor Statistics, “Economic News Release,” April 3, 2015

Euro Pacific Capital CEO/Chief Global Strategist Peter Schiff is out with his latest entry on The Schiff Report YouTube video blog. On April 3, Schiff savaged the latest U.S. jobs report and told viewers:

I think that this is not a one-off fluke, and that all of a sudden we’re going to have another strong jobs report for April and May, and that all the other bad economic data is going to magically improve with the improvement in the weather…

If you’re expecting a big rebound in the second and third quarter, it’s going to have to come from the consumer spending more money he doesn’t have. So I don’t see where all this fantasy is coming from other than just sheer wishful thinking. But the Fed is going to at some point have to acknowledge that the U.S. economy is not as strong as it thought. And I can already hear the calls and the justification for more stimulus, for QE 4, whether they call it that or not, because everybody is going to agree “The problem is, that we just didn’t do enough stimulus”…

We’re going to do another round, and this is going to be the lethal round. This is going to be the overdose on QE. Because the crisis that’s coming is going to be a dollar crisis…

The decline of the dollar is only just getting started. Whether it’s going to continue next week, or it’s going to have to wait a little longer for people to figure this out. But you have this huge speculative bid that’s been in the dollar for months based on this false notion of this legitimate U.S. recovery and a Fed that’s going to be raising interest rates. We have neither. We have an illegitimate recovery. We have a bubble masquerading as a recovery. The air is already seeping out. And the Fed hasn’t even pricked it by raising rates, which is why they don’t want to raise rates, because they don’t want to accelerate the process. In fact, they’re going to do whatever they can to delay it by blowing air back into the bubble with QE 4.


“Job Growth Fades as Excuses Wear Thin”
YouTube Video

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

(Editor’s note: 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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Lord Rothschild Warns ‘Geopolitical Situation Perhaps As Dangerous As Any We Have Faced Since World War II’

Jacob Rothschild, or 4th Baron Rothschild Bt, OM, GBE, FBA, as he’s known across “the pond,” has issued a warning to investors in RIT Capital Partners, an investment trust chaired by the 78-year-old banker. Lord Rothschild wrote in the £2.3 billion trust’s 2014 annual report (Report & Accounts for the year ended 31 December 2014) under “Chairman’s Statement”:

Our policy has been clearly expressed over the years. Simply put, it is to deliver long-term capital growth while preserving shareholders’ capital; the realization of this policy comes at a time of heightened risk, complexity and uncertainty. The economic and geopolitical environment therefore becomes increasingly difficult to predict.

The world economy grew at a disappointing and uneven rate in 2014 after six years of monetary stimulus and extraordinarily low interest rates. Stock market valuations however, are near an all-time high with equities benefiting from quantitative easing. Not surprisingly, the value of paper money has been debased as countries have sought to compete and generate growth by lowering the value of their currencies – the Euro and the Yen depreciated by over 12% against the US Dollar during the course of the year and Sterling by 5.9%. The unintended consequences of monetary experiments on such a scale are impossible to predict.

In addition to this difficult economic background, we are confronted by a geopolitical situation perhaps as dangerous as any we have faced since World War II: chaos and extremism in the Middle East, Russian aggression and expansion, and a weakened Europe threatened by horrendous unemployment, in no small measure caused by a failure to tackle structural reforms in many of the countries which form part of the European Union.

However, in a world of zero or even negative bond yields, equities may well remain the destination of choice for investors. Furthermore, the majority of companies are reporting profits exceeding forecasts together with steady earnings growth. In Europe, the combination of a more competitive Euro, an aggressive programme of quantitative easing and the yields available on equities, may well lead to even higher valuations…

(Editor’s note: Bold added for emphasis)

In 2012, it was reported the elder member of the Rothschild banking family took a $200 million position against the euro.

You can read the entire report on RIT Capital Partners website here (.pdf format).

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

(Editor’s note: 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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Robert Kiyosaki: 2002 Prediction Of Huge Stock Market Crash Next Year ‘Holding Course’

“‘Rich Dad’s Prophecy’- [Robert Kiyosaki’s] most recent book- predicts that the market will crash around 2016 when the oldest Baby Boomers start cashing out their 401(k) plans. Individuals whose savings are locked into 401(k) plans will suffer because these retirement plans, aren’t flexible and don’t do well in a bear market…”

-CNN.com, October 30, 2002

How many readers out there know who Robert Kiyosaki is? The American entrepreneur, educator, and investor was quite popular back in the early 2000s. I first encountered him while watching public television around that time, sharing financial and investment strategies taught to him by his rich “Dad” and found in his 2000 New York Times best-selling book Rich Dad Poor Dad. Kiyosaki went on to write a number of books, including Rich Dad’s Prophecy in 2002.

Last Tuesday, Robert Kiyosaki appeared on the Alex Jones Show. Kiyosaki talked about his new book, Second Chance, and other subjects, including a certain prediction made about the U.S. stock market next year. From their exchange:

JONES: The world is just crazy at this point. Give us your prognosis for the planet. There’s obviously opportunities for those of us that are studying it. I mean, I going to do better probably than ever as things get worse. But I’m not happy about that, because I know it’s hurting the average person.
KIYOSAKI: Amen. Alex, I would say exactly the same thing. It doesn’t make me happy that I’m getting richer and richer, and I see my friends getting poorer and poorer. I’m very concerned right now about my generation- the Baby Boom generation, the biggest generation in history. And they bought that program of put all your money in a 401(k) and invest for the long term. Now, I wrote a book called Rich Dad’s Prophecy back in 2002. That was 13 years ago. And I said the biggest stock market crash in the history of the world was coming in 2016. I was kind of guessing. But unfortunately, I didn’t write it to be right. I wrote it out of concern. If I’m correct that in 2002 what I said the biggest market crash was coming in 2016, that means millions and millions of Baby Boomers, their kids, their grandkids, will feel the effect of that when their retirement savings are wiped out. I hope I’m wrong. But so far, my numbers look accurate and it’s holding course right now. So I don’t write because I want to be rich or poke fun or want to be righteous. I am rather concerned about my fellow citizens.

“But so far, my numbers look accurate and it’s holding course right now.”

Disturbing. Kiyosaki added later on in the interview:

I’m just concerned about this possible- I hope it doesn’t happen- but if my “rich Dad” was correct, again, published in 2002 Rich Dad’s Prophecy predicted the biggest crash in the history of the world was coming in 2016. And that’s why I wrote Rich Dad Poor Dad, that’s why I speak, that’s why I write, that’s why I take on the media. But I’m very concerned for my [fellow] citizens. Look, Alex, what happens? Let’s say I’m right- hopefully I’m not. And millions of Baby Boomers lose their pensions, their homes, their jobs- they lose everything. What is the ripple effect throughout the world going to mean to that? We’ve never been here before. Never before has the U.S. dollar, one currency, been the reserve currency of the world- and we’re printing it. The Europeans are printing, Japanese are printing. And you’ve got to look at this and go, “This is not good.” So that’s my concern right now.


“Great Economic Collapse & Currency Meltdown Is Coming
Says Financier Robert Kiyosaki”
YouTube Video

So how is Robert Kiyosaki going to fend off the crisis he still sees coming? While taking phone calls from listeners, Kiyosaki revealed:

I like silver personally. I love gold. I have a lot of gold and silver.

Further insight was provided right before the holidays, when Eve Fisher of The Sydney Morning Herald reported:

“The world is in very serious trouble and the next 20 years will not be like the past two decades,” says Kiyosaki, who predicted the downfall of Lehman Brothers investment bank in 2008 and the ensuing GFC.

“I foresee a global currency crash, like the one that ruined Germany in the 1920s, which will wipe out the poor and the middle class – as the rich get richer.

“People will see that money and shares are not real wealth, just paper, and the way to survive is by acquiring assets – like property, resources, gold and other precious metals.”

Farmers will benefit as land and food become highly valued commodities, he says…

(Editor’s note: Bold added for emphasis)

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

(Editor’s note: 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)

Source:

Fisher, Eve. “Robert Kiyosaki says to prepare for the worst.” The Sydney Morning Herald. 10 Nov. 2014. (http://www.smh.com.au/business/robert-kiyosaki-says-to-prepare-for-the-worst-20141111-11jyhr.html). 21 Feb. 2015.

Robert Kiyosaki’s latest book…

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Peter Schiff: What’s Suppressing The Price Of Gold

The second installment of Peter Schiff’s Gold Videocast for 2015 is out on YouTube. And Euro Pacific Capital’s Schiff shared his thoughts about what’s been suppressing the price of gold these days. He told viewers:

ObamaCare forces employers to provide insurance for full-time employees. As a result, employers are hiring more part-time workers than they normally would. And that is substantially influencing these numbers. In fact, the real reason that we have such a low unemployment rate and we’re creating so many jobs, is because people are in effect sharing their job. We have a job sharing program…

Traders are ignoring all of the bad economic data that they should be focusing on, and instead just remaining fixated on the job numbers. And I think they are in position to be blindsided when the economy turns around…

So for now, it’s the false belief that the economy is strong, and that the Fed is going to raise rates- based on a misunderstanding of what the jobs’ numbers really mean- that is keeping a lid on the price of gold.

“False belief” plays an additional role in lower gold prices at this time, says Schiff. He added:

One other thing that is happening that should be lifting the prices of gold which is inflationary monetary policies all over the world. You know, more and more central banks are reducing their interest rates, launching their QE programs. Gold prices are rising in terms of those currencies. But the fact that everybody believes the dollar, the U.S. is going to be the lone holdout in the easy money parade- that is what’s keeping gold prices from really going ballistic…

I think we’re going to be leading that parade. Not only are we not going to raise interest rates or not raise them substantially- maybe we get a trivial rate hike although even there I think it’s more likely that we won’t. But we are going to be launching a new QE program- the Mother Of All QEs…

And when the markets realize this, then it’s going to be like taking the lid off the pressure cooker when it comes to the price of gold. And it’s going to be rising sharply. In the meantime, I continue to encourage people to accumulate as much physical gold and silver as they can before the rest of the financial community wakes up to this reality, and they’re rushing to buy these metals at much higher prices.


“Gold Videocast: America’s New ‘Job-Sharing’ Economy”
YouTube Video

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

(Editor’s note: 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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Peter Schiff: Get Out Of Dollars And Own Gold, Silver, And Stocks In Countries With Much Sounder Economies

Early last month I blogged about an interview series with well-known investor Jim Rogers on the Wall Street Daily website that was conducted by Robert Williams, founder of the Baltimore, Maryland-based investment research/market commentary service. Williams followed that up with a three-part interview of Euro Pacific Capital’s Peter Schiff that began on New Year’s Eve and finished just yesterday. Just like that Rogers series, it was pretty insightful stuff.

On December 31, 2014, the Wall Street Daily published “The Real Earthquake Is About to Hit.” That was followed on January 7, 2015, by “When Will the Dollar Bubble Burst?” From an exchange between Williams and Schiff:

WILLIAMS: So what’s our readers to do with their money, Peter? Their 401(k) s, their retirement accounts, their savings accounts? I mean, the markets aren’t safe, the banks aren’t safe, and the dollar isn’t safe. How can someone possibly protect themselves?

SCHIFF: Well, I mean, there’s no way to protect yourself really from the volatility, because, you know, you gotta be – the volatility’s here, but you know, long term, if you understand what’s gonna happen, then what – it’s pretty easy – what to do, and that’s get out of, you know, dollars, and own gold and silver, and own equity stocks in countries that have much sounder economies, you know, structurally sound economies underlying, you know, their markets and, you know, buy a lot of value. You can’t just buy a lot of hyped-up assets that have been propped up by cheap money and the bubble.

So you have to be in the right asset classes, be in the right currencies, be in the right countries, and I think, in the long run, you know, you’ll come out on top but it’s kinda difficult for a lot of people to do because, in the short run, you know, it’s the – you know, the people that are getting it wrong, that have been having their investment strategy validated by price auction because, you know, they have a lot of company. The cloud has got it wrong. There’s not many people in the scheme of things that actually understand what’s going to happen or, you know, if they do, they’re certainly not, you know, investing for that end game. They’re trying to – you know, they’re trying to finesse this and they’re trying to, you know, dance while the music’s playing, but they’re hoping that by the time it stops, they’ll have a safe seat somewhere…

(Editor’s note : Bold added for emphasis)

Yesterday, in “There Are No Safe Havens Left,” Schiff shared with readers where he thought commodities, crude oil, and gold are going in 2015 and beyond.

Head on over to the Wall Street Daily website to read Part 1, 2, and 3 of this nicely-done interview.

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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Marc Faber: Gold Going Up 30% In 2015

“BullionVault, an online service for investors to buy and sell physical gold and silver, said its Gold Investor Index fell in December to an almost five-year low.

The gauge, which measures the balance of buyers against sellers, slipped to 50.5 from 52.1 in November, the London-based company said in an e-mailed report today. That’s the lowest level since February 2010 and marked the biggest drop since 2013. A reading above 50 indicates more buyers than sellers…”

-Bloomberg.com, January 6, 2015

Regular readers of Survival And Prosperity know that Swiss-born investment advisor/money manager Marc Faber has been a gold bull for some time. And the publisher of the monthly investment newsletter The Gloom Boom & Doom Report is so confident about a rising price of gold in 2015 (in spite of all the negative sentiment among investors) that he made an eye-opening prediction yesterday. Sara Sjolin reported on the MarketWatch website Tuesday afternoon:

“I’m positive [that] gold will go up substantially [in 2015] — say 30%,” Faber, whose investment letter is called the Gloom Boom Doom Report, said at Société Générale’s global strategy presentation in London on Tuesday.

“My belief is that the big surprise this year is that investor confidence in central banks collapses. And when that happens — I can’t short central banks, although I’d really like to, and the only way to short them is to go long gold, silver and platinum,” he said. “That’s the only way. That’s something I will do.”

(Editor’s note: Bold added for emphasis)

BullionVault

Dr. Faber repeated his recent “bubble in everything, everywhere” statement while in London. Sjolin added:

“We simply have highly inflated asset markets. Real estate is high, stocks are high, bonds are high, art prices are high, and interest rates and short-term deposits are basically zero,” Faber said. “The only sector that I think is very inexpensive is precious metals, and in particularly precious-metals stocks.”

(Editor’s note: Bold added for emphasis)

Faber, who became well-known for advising clients to get out of the U.S. stock market one week before the October 1987 crash and for predicting the 2008 global financial crisis, appeared on CNBC’s Squawk Box back on September 19, 2014, and warned viewers:

Today, the good news is we have a bubble in everything, everywhere– with very few exceptions. And, eventually, there will be a problem when these asset markets begin to perform poorly. The question is- what will be the catalyst? It could be a rise in interest rates not engineered by the Fed, because I think they’ll keep interests rates at zero on the Fed funds rate for a very long time… We could have essentially a break in bond markets at some point. We also could have a strong dollar. A strong dollar has already happened in the last two months signifies that international liquidity is tightening. And when that happens, usually it’s not very good for asset markets.

Dr. Faber also sees a potential investing opportunity in emerging markets, which you can read about in Sjolin’s piece on the MarketWatch website here.

(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.)

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

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Marc Faber, Jeremy Grantham, Jim Rogers, And Peter Schiff All Sound The Alarm

I find it both funny and disturbing that the financial types who missed the U.S. housing bubble/bust and global economic crisis that was readily-visible by the second half of 2008 are now claiming the U.S. economic “recovery” is on solid footing and there are no asset bubbles in sight.

Meanwhile, the few individuals who correctly-predicted that carnage- including Marc Faber, Jeremy Grantham, Jim Rogers, and Peter Schiff- are sounding the alarm again.

Here’s what each of these “crash prophets” have been saying lately (the following statements have all been blogged about previously on Survival And Prosperity).

Swiss-born investor and money manager Marc Faber warned CNBC Squawk Box viewers on September 19, 2014:

Today, the good news is we have a bubble in everything, everywhere– with very few exceptions. And, eventually, there will be a problem when these asset markets begin to perform poorly. The question is- what will be the catalyst? It could be a rise in interest rates not engineered by the Fed, because I think they’ll keep interests rates at zero on the Fed funds rate for a very long time… We could have essentially a break in bond markets at some point. We also could have a strong dollar. A strong dollar has already happened in the last two months signifies that international liquidity is tightening. And when that happens, usually it’s not very good for asset markets.

“A bubble in everything, everywhere.” Reminds me of what British-born investment strategist Jeremy Grantham said right before the asset bubbles popped during the “Panic of ’08.” Speaking of Grantham, he penned in his November 2014 quarterly investment letter entitled “Bubble Watch Update”:

I am still a believer that the Fed will engineer a fully-fledged bubble (S&P 500 over 2250) before a very serious decline…

My personal fond hope and expectation is still for a market that runs deep into bubble territory (which starts, as mentioned earlier, at 2250 on the S&P 500 on our data) before crashing as it always does. Hopefully by then, but depending on what the rest of the world’s equities do, our holdings of global equities will be down to 20% or less. Usually the bubble excitement – which seems inevitably to be led by U.S. markets – starts about now, entering the sweet spot of the Presidential Cycle’s year three, but occasionally, as you have probably discovered the hard way already, history can be a snare and not a help.

(Editor’s note: Bold added for emphasis)

“Fully-fledged bubble (S&P 500 over 2250) before a very serious decline…”

The S&P 500 stands at 2,058 this Sunday- only 192 points away from Grantham’s bubble “target.”

There’s also investor, financial commentator, and author Jim Rogers, who was talking U.S. equities on RT’s Boom Bust on December 26, 2014, when he remarked:

I know the bear market will come… The next bear market, Erin, is going to be much worse than the last one because the debt has gone through the roof. Debt worldwide, including the U.S., has skyrocketed, and we’re all going to have to pay a terrible price for all this money printing and all this debt.

(Editor’s note: Bold added for emphasis)

Finally, there’s Euro Pacific Capital’s Peter Schiff, who argued on The Schiff Report YouTube video blog on Halloween 2014:

When this illusion collapses, this fantasy of a U.S. economic recovery- because everybody believes there’s no recession anywhere in sight, that we’re years away from a U.S. recession- when in fact, another recession is right around the corner. And in fact, it will be worse than the recession that we had in 2008, 2009, if the Fed does not come in with QE 4…

I expect Janet Yellen to react to this coming recession the way Ben Bernanke reacted to the last one. The way Alan Greenspan reacted to the last one. Because that’s the only playbook we’ve got. And remember, when this recession starts, they can’t start with rate cuts. Rates are at zero. You can’t cut from zero. All they can do is revamp QE. And believe me, it’s going to have to be a lot bigger than QE 3. QE 4 is going to have to be bigger than QE 3 for the same reason QE 3 had to be bigger than QE 2- the economy builds up a tolerance. The more addicted to QE, the more QE you need to get any kind of result. And this last result was minimal in the real economy. I mean, yes- the Fed was able to get the stock market to go up, but the real economy never experienced any real economic growth. The average American is worse off today than when QE began. By far. Incomes are down. Real employment is down. Net worth is down. Poverty is up. Government dependency is up. The cost of living is up. Nothing has improved, except maybe the level of optimism on Wall Street…

This crisis is not really going to be about a credit crisis. Not private credit. It’s going to be about debt. Sovereign credit. It’s going to be about the dollar. A currency crisis. A sovereign crisis. Which is going to be very different than the crisis we had in 2008. It’s a crisis of an excess of QE. Of an overdose of QE. That’s the one that’s coming. That’s the one that we have to prepare for. That’s the one that I have been warning about since the beginning…

Schiff, who’s also a financial commentator and author, has been the most vocal of the four in warning of economic pain dead-ahead of us.

Jim Rogers talking the day after Christmas about the coming bear market alerted me to the fact that all these “crash prophets” whom I regularly-follow on this blog are now sounding the alarm at the same time. To summarize their recent warnings:

Marc Faber- “A bubble in everything, everywhere.” Actually, I believe he still likes Asia and Asian emerging economies.
Jeremy Grantham- “I am still a believer that the Fed will engineer a fully-fledged bubble (S&P 500 over 2250) before a very serious decline.”
Jim Rogers- “The next bear market… is going to be much worse than the last one because the debt has gone through the roof.”
Peter Schiff- “An overdose of QE. That’s the one that’s coming. That’s the one that we have to prepare for. That’s the one that I have been warning about since the beginning.”

At the start of 2015, it will be interesting to see how the next couple of years play out, for I believe Americans will get the chance to experience quite a bit of the above in that time period- whether they want to or not.

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

(Editor’s notes: 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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Jim Rogers: Coming Bear Market In Stocks Will Be ‘Much Worse Than The Last One’

Well-known investor, financial commentator, and author Jim Rogers was on RT’s Boom Bust last Friday. He spoke with host Erin Ade about stocks and commodities (among other financial topics). On stocks, Rogers told viewers:

The breadth has been terrible. Most stocks are down- most U.S. stocks are down in 2014. They’re not up, whatever the averages are doing. It’s not been a good year for most investors in nearly any asset, unless you happened to own bonds or the U.S. dollar…

When asked about a coming bear market in equities, the former investing partner of George Soros warned:

I know the bear market will come… The next bear market, Erin, is going to be much worse than the last one because the debt has gone through the roof. Debt worldwide, including the U.S., has skyrocketed, and we’re all going to have to pay a terrible price for all this money printing and all this debt.

(Editor’s note: Bold added for emphasis)

Ade also asked Singapore-based Rogers about the greatest opportunity in commodities right now, to which he responded agriculture. The chairman of Rogers Holdings advised the audience:

Buy yourself some rice. Buy yourself some sugar…


“Jim Rogers on Russia, China, and commodities”
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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