Posted on 10/28/2014 4:08:38 PM PDT by blam
Tyler Durden
10/28/2014
Ahead of tomorrow's decision by the FOMC, Peter Schiff ventured on to CNBC to discuss the economy, the fed, and gold... among other things. Schiff rightly fears that while the Fed may well stop QE3 tomorrow, QE4 will not be too long behind it as he notes, rather eloquently, that "an economy that lives by QE, will die by QE" as the Fed's total lack of willingness to allow stocks to fall (see Bullard 2 weeks ago) or a 'cleansing' recession leaves the nation's economy in far worse shape than it was before the Fed's intervention. Schiff calmly replies to the anchor's questions (as she proclaims "I am not on the side of the Fed but..."), gently explains his view on gold when challenged about his 'wrongness', but when a guest starts hounding him for being dangerous to CNBC viewers wealth... Schiff (rightly) loses it - must watch!
(snip)
(Excerpt) Read more at zerohedge.com ...
Schiff has been singing the doom-and-gloom song for years now. He’s like a broken record.
His performance during 2008-9 was abysmal. It was worse than simple buy-and-hold of the S&P 500.
Schiff’s appeal is that he makes his readers feel superior to the “lemmings” who ignore his advice and make money in the market.
The problem is that Gold is manipulated. The price is controlled very carefully.
That is one reason why we do not see gold at $5,000. Lots of reason to own gold. The value of the currency is eroded, but still gold is undervalued.
Mr. Schiff would be correct in his forecasts quite often if the markets were not manipulated. The only people who know where and when a price point will be reached are the manipulators.
But his assessment of the fundamentals are in line with other heavy hitters like Jim Rogers and Marc Faber. CNBC is wrong to ridicule.
And you think the economy is just peachy I’ll bet.
I can only control my own personal economy and yes, it is just peachy. I have no control over what happens on Wall Street so I don't obsess over it.
Goldbug ping,
Thanks for the ping.
You might go to youtube and search for “Peter Schiff was right” about his predictions (for which he was ridiculed) prior to the 2008 housing crash.
He was a broken record then and shown to be just as right. He has a logical approach to the Fed’s QE1, QE2, Operation Twist, and QE3. And if you match the Fed’s monetary expansion to the Wilshire 5000 you will find a very interesting and high correlation.
All the fed can do is pretend they want to end QE, and then each time go right back to it after some feigned lull,
The minute interest rates are raised to curb inflation, we cant pay the interest on our debt and the Dow immediately begins dropping without its sugar high fix and undoes all the fakery from being propped up by QE, its a liquidity trap, and hence inflation must never be acknowledged,
A con game whereby politicians can prop up their buddies with a wink and nod, i.e oracle or facebook etc picking winners and losers in the market, ‘my what power, how come we didn’t think of doing this earlier’ and they know the majority won’t have a clue and just want the status quo to continue,
2008? It's 2014.
You nailed it to the wall. Servicing the debt is impossible at free market rates. QE until it all falls apart.
2008? It’s 2014. — Veggie Todd
Exactly. He called 2008 in the years immediately prior.
Doing the same now? Maybe.
Don’t make me quote the “learn history” or “doom” and “repeat” quote. It’s all there, can’t fake that.
If folks don’t want to at least listen to someone who was right before, and was ridiculed for predictions before the fact, and later proven right, well . . . happy trails.
I view the prolonged QE and zero interest rates as a form of hypnosis. The Federal Reserve bank has the sheeple happy and hypnotized same as Hussein Obama does. When half the voters are low information voters this is not a surprise.
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