Apr 2, 2014

Inflation Is Going To Wipe Out The Savers

Inflation is going to wipe out the savers. When the government wants to wipe out their debt they are wiping out someone else`s assets. If the governments were going to allow deflation and they were going to default then being a saver would be a good thing unless of course you were a saver in one of the institutions that failed and there is no bailout.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

The Dangers of Removing Monetary Accommodation To Slowly

What Janet Yellen wants to do is to remove the punch bowl very, very slowly so as not to abruptly end the party. That is exactly what Greenspan did. He inflated a big bubble and he thought if he let the air out gently that there would not be any kind of adverse consequences. He was wrong.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Apr 1, 2014

High Frequency Trading (HFT), Short Term Traders Are Not To Blame

I don`t think you can blame what may or may not be happening in the gold market on High Frequency Trading (HFT) or even about the volatility in the stock market. You are always going to have program traders, you are going to have people that are buying and selling based based on technical indicators, based on momentum indicators.

By and large, this creates extra liquidity. If it wasn`t for all the people speculating in the market, the markets would be thinner. It would be a little harder to buy and sell stocks if the only people selling stocks were long term investors who wanted out and if the only people buying stocks were long term investors that wanted in - there would`t be that much trading going on.

So I don`t think its the traders that are responsible for the problems.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Federal Reserve: Dealing With The Genie They Let Out Of The Bottle

At some point its not going to be, "inflation is too low", its going to be, "inflation is much too high." And the pressure on the bond market will be intense, the amount of money the Federal Reserve is going to have to create to artificially supress interest rates will be too much for the economy to bear in the way of dollar depreciation and consumer price increases.

So at some point they are to have to deal with the genie they let out of the bottle. How long can they wait? I do not know. But they are going to wait as long as they can and believe its going to be a huge, huge problem at the time they try to do something about it.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

What Economists Assume About Deflation

It is just accepted as economic truth that if consumers felt that prices were going to fall and be 1 percent lower next year, they would not shop. They would not spend any money at all. They would wait a year to get that savings. They would wait a year to save 1 percent.

And they say that and is just accepted without anybody bothering to think how completely ridiculous or asinine such an assumption is. Can you even imagine a circumstance where you need something or wanted something and it costed 100 dollars but you were convinced that at the end of the year you could buy it for 99 dollars, that you would hold off on shopping, that you would not buy it, that you would wait a year and then buy it because it would be a dollar off? That you would go without it for an entire year in order to save that dollar. And then if at the end of the year you thought that it would be at 98 dollars if you waited another year that is what you would do even if you needed it. 

We know that this is ridiculous yet every economist is making that assertion with a straight face.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Yellen: Higher Inflation Coming

The only thing Janet Yellen is going to succeed in doing of all the things she wants to do, she wants to help the economy, she wants to create jobs - she is going to fail these. The only goal that she is going to succeed at is raising inflation. Because there will be a lot more inflation thanks to Janet Yellen. And its not going to stop at 2 percent. But I can only imagine how high inflation will actually be if the official numbers were at 2 percent.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

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