Markets: The Bad News Aren`t Really Sinking In, Yet

The markets continue really to ignore all of the overwhelming bad news. Bad news on the economy, bad news on the corporate earnings front, on retails ales, you name it. The news is bad. The markets seem to shrug it off, the equity markets, the bond markets, the forex market, the gold and silver market.

I mean, sure there is a knee jerk reaction, we get some bad news and gold spikes up, the dollar dumps but then it recovers what it lost and gold surrenders its gains. The bad news aren`t really sinking in.

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

U.S. Treasuries Are Not Risk-Free At All

U.S. Treasuries are not risk-free at all because people that own them are going to take a haircut, they are not going to get paid 100 cents on the dollar and if they are it is because the dollar has collapsed and what they get paid will be worth even less.

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

U.S. Debt: Is Default The Solution?

I think it is going to have to because we have to have higher interest rates, there is no question that we cannot keep artificially suppressed interest rates or the U.S. Dollar is going to collapse, we are going to have runaway inflation, we are going to have to do something or we are not going to have real capital investment unless we have genuine savings. And no one is going to save when interest rates are zero or negative.

We are going to have to raise interest rates but then when interest rates go up it will be impossible to service the debt. Forget about repaying it. We cannot even pay the interest. (iShares Barclays 20+ Year Treasury Bond ETF (TLT), ProShares UltraShort Lehman 20+ Year ETF (TBT), U.S. Treasuries)

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