The Federal Reserve Will Have To Reverse Course

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

A Different Housing Bubble

In America now, its a very different housing bubble because the houses now are being bought by institutions, hedge funds, private equity guys, to rent them out to the guys that lost them out to foreclosure the last time around.

So, this housing bubble is very different from the last one. But I think, its even more dangerous because these guys that own these houses, they will sell them quickly just like they are going to cut their losses in their stock portfolio. And you have all these houses now that are owned by hedge funds that are empty because they actually can`t find tenants because people don`t have jobs, so they can`t afford to rent these houses. So, they want to rent small apartments and apartment rents are rising very rapidly in the United States, meanwhile we have all these single family homes for rent sitting vacant, yet we are still building them because of the Federal Reserve. So, if we had a rational interest rate policy, we would have lower home prices, we would`t be squandering our resources.  

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

Housing Bubbles Everywhere

There are housing bubbles everywhere. Wherever interest rates are artificially low, they are going to impact asset markets, particularly something like housing because most of the houses that are bought are not bought with cash. Usually there is debt involved, people borrow money to buy a house. And the cheaper it is to borrow, the more you can pay for your house. If you have an extended period of time where interest rates are held artificially low, you are going to have artificially high real estate prices.

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

Why Falling Prices Are A Good Thing

Falling prices are a reward for capitalism. They make wages more valuable, they make savings more valuable. Well, the argument is, if prices are falling, nobody is going to buy anything, they will just be waiting for lower prices. Of course, that is absurd. We all have cellphones, we all have laptop computers, we all have plasma TVs. The prices for those items are falling all the time. That does not stop people from buying them. In fact it encourages people to buy them.

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

Video: Canadian Housing Bubble, U.S. Economy

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

Interest Rates Are Very Important

Interest rates are a very important aspect of money because interest rates represent a price. And like all prices, they are determined by supply and demand. The supply is all the savings, the demand is all the people that want to borrow money, wether its businesses, wether its college students, someone who wants to buy a car, the government... Everyone borrowing money is competing for this store of savings. Because for every dollar borrowed, someone had to save that dollar, someone had to not consume and put that dollar into savings so that someone else could spend it or invest it.

If you have a lot of savings then you are going to have low interest rates because the supply is going to be greater. And what does that mean? What economic signals is that sending to the market? What that says is that people prefer future consumption to current consumption. Because after all when you are saving money, you are just deferring consumption. Every dollar you save is going to be spent eventually, except you are not going to spend it today, you want to spend it tomorrow. And hopefully you will spend the dollar tomorrow plus all the interest that you earned over time.

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 Is A Believer In Cheap Money, Inflation

Yellen is very much a believer in cheap money and inflation, Keynesian economics. She is going to be under a lot of pressure to try to stimulate the economy, to create jobs, and she can`t do that by printing money but she does not know that.

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

Bigger Crisis Coming

You have seen a rise in the stock market, you have seen a rise in the real estate market but that is not because of a good economy. It`s because of bad monetary policy. It`s the same monetary policy that resulted in the 2008 financial crisis. I think we are going to have a bigger economic crisis coming.

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

Gold: Bull Market Has a Long Way To Go

From where we are today, I think the bull market has a long way to go. I think that the fundamental factors that the gold doubters have been ignoring all along, I think those factors are even stronger then ever.

I think what happened in 2013 was, some of the people that had been very skeptical of gold, they got out. They came in maybe in 2010, 2011, they finally got into the market and they all decided at one time that they did not want to be there. And it`s all based on the false expectations of a U.S. economic  recovery, which I think it`s an illusion.

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

Video: Vancouver Resource Investment Conference 2014

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

Video: Yellen Will Be Even More Dovish

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

Video: The Best Economy Is A Free Economy

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, Stock Market & Gold

The Federal Reserve is not going to let the stock market collapse. That is why it can`t taper. That is why it can`t raise interest rates because if the Fed did those things the stock market would collapse and so they are going to have to supply even more liquidity to keep the stock market propped up. But that is great for gold.

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`s Impossible Mission

Remember, the Federal Reserve also has to shrink its balance sheet, its not about tapering. Tapering is the easy part, even though that is impossible. The hard part is when the Federal Reserve goes from being a buyer of Treasuries, to being a seller of Treasuries. How is that even possible? Who would step in front of that train?

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

If The Federal Reserve Withdraws Itself From The Bond Market, It Will Implode

Why would you want to buy U.S. Treasuries? The yields are too low compared with every other asset. Why would`t you just buy stocks? I mean, the yields are too low relative to where inflation is, relative to the risk. If the Federal Reserve materially withdraws itself from the bond market, the bond market implodes.

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: If They Don`t Buy U.S: Treasuries, Who Will?

If they don`t buy treasury bonds, who will? The biggest buyer of treasury bonds in the world is the Federal Reserve. After that, you have other central foreign banks like China and Japan but there are no real buyers , in fact the hedge funds have been big buyers out of the Caribbean but why would hedge funds buy U.S. Treasuries when the yields are not even 3 percent? I mean nobody pays 2 & 20 to buy Treasuries. The only reason hedge funds are buying treasuries is because they are levered up, they are gambling.

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

Video: The Bullish Case For Gold

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 Monetary Illusion

This is all phony and it is the result of this monetary illusion that`s been created by the Fed but it will end, just like it ended in 2008 with the financial crisis. That was the by-product of the bad monetary policy of Alan Greenspan. Well, that blew up on Ben Bernanke`s watch. Ben Bernanke`s monetary policy is even more reckless and irresponsible than Greenspan`s and it is all going to blow up on Janet Yellen.

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

Stock Market & Real Estate Bubbles

It`s not the economy that is strengthened by QE. The economy is actually inhibited by QE. Quantitative easing is preventing a badly needed economic restructuring  that would enable the U.S. economy to actually grow. Instead what we are doing is we are pretending there is growth by inflating bubbles in assets. We have a stock market bubble, we have a real estate bubble, and now we can take that phony wealth and we can turn it into consumption through debt. And that is what is going on. But it`s not legitimate economic growth, you can`t confuse the two.

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`s Next Moves

I believe they are not going to follow through with a tapering timetable. What they are more likely to do is increase the amount of monetary stimulus they inject into the economy. They will be doing a lot more than 85 billion dollars, not less. And it`s not good that they are doing this. It`s bad but it`s what the Fed is going to do because it`s the only way to keep the bubble from imploding.

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

Video: QE Is Preventing The Needed Economic Reestructure

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

We Will Have A Crisis Early In The Yellen Term

The Bernanke bubble is bigger than the Greenspan bubble. The monetary policies pursued by Bernanke were far more reckless than the ones pursued by Greenspan and therefore the bubble is much bigger. And therefore the damage to the economy when it pops will be much bigger.

We are going to have another crisis early in the Yellen term that will be bigger than the crisis that we had early in the Bernanke term (2008 financial crisis) and Wall Street and the government are equally as prepared. They will be equally blind sighted.

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

Video: Debating Bitcoin Versus Gold

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: Blowing Air Into A Bubble Economy

The only thing that quantitative easing has helped do is exacerbate the problems and reflate the asset bubbles. So, yes it has caused the stock market to go up, it has caused the real estate market to go up but that is masking the problems in the economy. And in fact, we don`t need high stock prices and higher real estate prices. they are already too high. We will never have a legitimate recovery as long as the Federal Reserve is concentrated on blowing air into a bubble economy. That is all they are doing.

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

Video: Stimulating The Bubble

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

Labor Force Participation Rate: Lowest Since 1978

The unemployment rate did tick down from 7 percent to 6.7 percent but that is not good news either. It did not go down because the unemployed found jobs, no. It went down because the unemployed stopped looking, they threw in the towel and they left the labor force. Hundreds of thousands of americans left the labor force, the labor force participation rate is now at a new low for this period, its as low as it was back in 1978 and of course back then, women were just entering the labor force, so its actually much worse today than it was in 1978.

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

Employment Report: Lowest Job Creation In 3 Years

When the official number came out it was just 74,000 jobs created. That the lowest in more than 3 years. And in fact if you actually look at those 74,000 jobs, better than half of them are actually temporary jobs. In fact for all the talk about job creation and the economic recovery in 2013 the U.S. economy actually added fewer jobs in 2013 than it did in 2012.

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

Video: Dissecting The Employment Report

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

Employment Report: Wall Street Does Not Believe The Numbers

Most people on Wall Street don`t believe these numbers. They are arguing they are an aberration, that we should ignore them, that it is an outlier, that is inconsistent with the data. The truth is, its very consistent. We have been getting mixed data. Everybody is looking at the economic glass as being half full. They are ignoring the bad data but the reality is whatever good data we have, is a direct result of the quantitative easing that the Federal Reserve is now threatening to taper.

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

Video: The Side Effects Of Extended Unemployment Benefits

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

Video: Obama Signed Up For The Bronze Plan

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

Inflation: Prices Are Going Up

Prices are actually going up, despite the fact that the government tells us they are not. But one of the main reasons that prices have not gone up even faster is because we have exported a lot of that inflation to emerging economies. Check the inflation rates in other countries that peg their currency to the U.S. dollar that have big trading surpluses with the United States.

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

This Is A Great Environment For Gold

Gold was going up faster than stocks in 2002, 2003, 2004, 2005... What did we have back then? We had a phony economic recovery that was generated by cheap money. Well, now we have an even phonier economic recovery generated by even cheaper money. This is a great environment for gold.

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

Higher Interest Rates & Economic Growth

If interest rates were a lot higher, where would the GDP be? If we could not borrow and spend all this money where would it be?

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

Asset Bubbles In Stocks, Real Estate

What is happening right now is that we have a lousy economy and so the Federal Reserve is propping it up by creating inflation. We have asset bubbles in stocks, real estate, we have a government bubble.

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 Fundamentals For Gold Have Never Been Better

What is amazing is that you have this big down year and yet hardly anybody views it as a buying opportunity. They think 2014 is going to be just as bad. The fundamentals for gold have never been better than they are now. The fact that so many people can`t see that just makes me even more bullish.

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

Video: Gold Is Going A Lot Higher

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

Video: A Lecture On Money

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

This Bubble Is Too Big To Pop

I am not bearish on stocks, I am bearish on the U.S. dollar, I am bearish on paper. People just assume that I am all gloom and doom, so that I think the stock market is going down. If the Federal Reserve did the right thing for the U.S. economy and let interest rates go up, the stock market would come crashing down. But I do not believe the Federal Reserve is going to do the right thing. They will keep doing the wrong thing. This bubble is too big to pop, the Federal Reserve knows it, so they are going to keep on supplying air. So, yes. Stocks are going to go up, but the dollar is going to down a lot more in real terms. And yes, gold is going to go up.

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