Infinite Unknown

“Even if somebody wants to say we’re going to have low inflation for the next year or two, can anybody really say that [with] this most inflationary monetary policy in the history of this country, that people are going to be able to buy a bond for 30 years and clip a 3-per-cent coupon [and come out ahead]?” Mr. Schiff asks. “Does anybody believe that?”

“I think what we should know by now is that we can’t put any faith in what happens in the short run. Internet stocks went way up. Does that validate anything? No. They collapsed to zero,” says Mr. Schiff. When it comes to U.S. Treasuries, “nobody is intending to hold to maturity. Everybody thinks they’re going to get out the door in time.” That’s the greater fool theory at work, and it’s the very definition of a bubble. Beware, all those who would seek shelter in supposedly ultra-safe bonds.

In the beginning, there was a Nasdaq bubble. When the air went rushing out of it, a housing bubble formed, a symptom of a much larger bubble in credit, which in turn helped inflate (arguably) new bubbles in the emerging markets, in oil, and in other commodities.

Pop, pop, pop, pop. Can there possibly be any bubbles left after Meltdown 2008? Only one, maybe: Government debt. In 2009, it could be swept away, too.

“The bond market’s going to collapse,” warns Peter Schiff, president of Euro Pacific Capital, a brokerage firm based in Connecticut. He’s one of a small number of financial pros who called the plunge in U.S. real estate prices before it happened; now he’s forecasting the same for U.S. Treasuries. “It’s the biggest bubble yet to burst. It is a complete fantasy.”

That’s the sort of cheery New Year’s forecast you might expect from a man nicknamed Dr. Doom. But Mr. Schiff has important company in the bearish camp. Pimco, the Newport Beach, Calif., giant that manages some $800-billion (U.S.) in bonds, has also grown negative on U.S. government debt, especially long-term debt. With 30-year Treasuries yielding barely 3 per cent, the rewards hardly seem worth the risk, Pimco’s managers are saying - unless you believe U.S. inflation will be close to nil over the next three decades. Not too likely.

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Tags: Bonds, Bubble, Economy, Fed, Federal Reserve, Government, Peter Schiff, PIMCO, Politics, Treasury, U.S.

Peter Schiff: “I am a 100% convinced that anybody who has their wealth in US Dollars will be just as broke as the people who had their money with Madoff.”

(All 6 parts are a must-see.)

Part 1 of 6

Source: YouTube

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Tags: Barack Obama, Commodities, Depression, Dollar, Economy, Euro, Fed, Federal Reserve, Gold, Government, Great Depression, Hyperinflation, Hyperinflationary Depression, Inflation, Meltdown, Peter Schiff, Politics, Stock Market, U.S., Wall Street, Yen, Zimbabwe

As recession fears cause the nation to embrace greater state control of the economy and unimaginable federal deficits, one searches in vain for debate worthy of the moment. Where there should be an historic clash of ideas, there is only blind resignation and an amorphous queasiness that we are simply sweeping the slouching beast under the rug.

With faith in the free markets now taking a back seat to fear and expediency, nearly the entire political spectrum agrees that the federal government must spend whatever amount is necessary to stabilize the housing market, bail out financial firms, liquefy the credit markets, create jobs and make the recession as shallow and brief as possible. The few who maintain free-market views have been largely marginalized.

Taking the theories of economist John Maynard Keynes as gospel, our most highly respected contemporary economists imagine a complex world in which economics at the personal, corporate and municipal levels are governed by laws far different from those in effect at the national level.

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Tags: Debt, Dollar, Economy, Government, Inflation, Keynesianism, Peter Schiff, Politics, Recession, U.S.

“Tens of millions of people unemployed, inflation spiraling out of control, the government instituting price controls that result in shortages and blackouts and long lines for things. I think things are going to get very bad.”

“From an investment point of view, investors need to stay clear, because they need to realize that it’s not just U.S. stocks and real estate that are going to lose value, but U.S. bonds. This is the last bubble yet to burst. I think we’re going to see a collapse of the bond market sometime during Obama’s first term, and interest rates are going to spiral out of control, and the dollar is going to just be destroyed.”
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People aren’t laughing any more at the way-out-there predictions of Peter Schiff, whose long-standing pessimism about the economy and stock market has been largely borne out.

Schiff heads Euro Pacific Capital, a brokerage in Darien, Conn. with more than $1 billion in assets under management. He has silenced critics because he predicted the collapse of the housing market, the subprime crisis and the soaring of oil prices in his market commentaries before they came to pass.

A YouTube video called “Peter Schiff Was Right” shows him being repeatedly mocked when he went on TV stock shows to make those ultimately correct calls in 2006 and 2007, including forecasting a recession 2 1/2 years ago.

Now, in the midst of what’s already the biggest financial crisis in decades, the prominent purveyor of gloom and doom still sees far tougher times ahead - including a depression and a bear market he thinks will last another five years or more.

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Tags: Bailout, Bonds, Bubble, Commodities, Depression, Dollar, Economy, Fannie Mae, Freddie Mac, General Motors, GM, Gold, Government, Inflation, Lehman Brothers, Oil, Oil Prices, OPEC, Peter Schiff, Politics, Recession, shortages, Stock Market, U.S., Unemployment

Peter Schiff will also be right on Inflation and Gold.

The dollar is not strong because it is ‘the reserve currency’, it is strong because of all the liquidation going on and people are just sitting on cash waiting for better times to come.

What we see now is not deflation, it is the force of liquidation. M3 is over 18%! We will see inflation, even hyperinflation in the US.

Peter Schiff and Ron Paul will be so damn right about the economy.

Today UN economists warn that dollar is in for a hard landing next year:
“The current strength of the dollar is temporary and the US currency risks a hard landing in 2009, according to a team of United Nations economists who foresaw a year ago that a US downturn would bring the global economy to a near standstill.”
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2. November 2008

Source: YouTube

Tags: Cars, Economy, Financial Crisis, Inflation, mortgage crisis, Mortgages, Peter Schiff, Stock Market, Wall Street

Source: YouTube

Tags: Commodities, Dollar, Economy, Financial Crisis, Gold, Inflation, mortgage crisis, Mortgages, Peter Schiff, U.S.

As the Federal bailout bonanza prepares to spread beyond the mortgage and financial sectors to fill Detroit’s depleted coffers, few economic or policy analysts have spared a thought for the destitution of the U.S. government itself.

Put simply, our government doesn’t have enough spare cash to bail out a lemonade stand let alone a bloated and failing industry that is losing tens of billions of dollars per month.

Washington can only offer funds that it has borrowed from abroad or printed. Unfortunately, the nation is in the grips of a delusion that money derived from these sources has the power to heal. But history has clearly shown that borrowed or printed money only has the power to destroy.

The argument that energizes the pro-Detroit camp is that the government should extend the same courtesy to the rank and file auto workers that it lavished upon the fat cats of Wall Street.

While two wrongs certainly do not make a right, the fact remains that the Wall Street firms are still floundering despite the bailouts. What’s worse, the money spent was either printed or borrowed from abroad. Both options are destructive to America.

When it comes to bailouts, the real discussions are not centered in Washington but rather in Beijing, Tokyo, and Riyadh. With no money of our own, our ability to bailout our own citizens is completely dependent on the world’s willingness to foot the bill.

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Tags: Bailout, Banks, Cars, Debt, Economy, Financial Crisis, General Motors, George Bush, GM, Government, Henry Paulson, Peter Schiff, Politics, Stock Market, U.S., Wall Street

This is important. Watch it. Peter Schiff has been right, is right and will be right in the future.
Forget about deflation that is nonsense, that is like Bush or Paulson telling us that ‘the economy is sound’.

Source: YouTube

Tags: Bubble, Central Bank, China, Commodities, Debt, Dollar, Economy, Gold, Hyperinflation, Inflation, Peter Schiff, Recession, U.S.

Added: Oct. 13, 2008

Source: YouTube

Tags: Civil liberties, Civil Unrest, Congress, Credit Crisis, Credit Crunch, Debt, Depression, Dollar, Economy, Fed, Federal Reserve, Financial Crisis, Food, Food shortages, Germany, Glenn Beck, Government, Great Depression, Habeas Corpus, Hyperinflation, Inflation, Martial Law, mortgage crisis, Mortgages, Peter Schiff, Politics, Recession, U.S., Weimar Republic, Zimbabwe

It is incredible to see the rampant devaluation of the U.S. Dollar. The Federal Reserve just hours ago made a rare cut of 25 basis points during the weekend which will cause even more inflation. Gold immediately moved up $20 an ounce and the U.S. Dollar Index plunged under 71 in international trading. If this type of market activity continues the U.S. Dollar will have no value in a few months. While it is probably unlikely that we will see a hyper-inflationary collapse of the U.S. Dollar within the next few months, these policies are entirely unsustainable. If the Federal Reserve does not move to defend the value of the U.S. Dollar we will eventually see a hyper-inflationary collapse and worldwide financial turmoil. This view is also shared by other well respected financial analysts. Peter Schiff recently raised concerns about a hyper-inflationary collapse of the U.S. Dollar, Robert Reich a former Clinton cabinet member believes we are facing a depression and Alan Greenspan the man who caused this whole mess wrote in the Financial Times stating that we are facing the worst financial crisis since World War II. What’s amazing is that the Federal Reserve isn’t even trying to protect the U.S. Dollar because all they care about is saving the power of their private banking cartel. They don’t care about the U.S. Dollar nor do they care about the country itself. They are destroying this country through their actions and there needs to be an investigation into the controllers of this bank.

Alan Greenspan saying that we are facing the worst financial crisis since World War II is like a killer returning to the scene of their crime and explaining the results of their crime. Greenspan recently told nations in the Gulf to drop their currency pegs to the U.S. Dollar which encouraged a further drop in the U.S. Dollar. Greenspan’s Financial Times article will cause an even greater acceleration in the collapse of the currency. As the former head of the Federal Reserve, his comments still hold a great deal of importance with people around the world. This means that his comments can literally move the value of the U.S. Dollar one way or another. It is incredibly sick how Greenspan can get away with creating the current crisis we face with his low interest rate policies earlier this decade and analyze the problems that are occurring today that were a result of his own policies with no criticism from the corporate controlled media.

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Tags: Alan Greenspan, Bear Stearns, Ben Bernanke, Dana Perino, Depression, Dow Jones, Fed, Federal Reserve, Financial Crisis, George Bush, Gold, Gulf States, JPMorgan, Middle East, Peter Schiff, Robert Reich