This is Taper-Light, At Best

This is taper light, at best. But its not even that. Because the Fed was so worried about the effect that would have on the market simply by announcing a decision to taper in the future that the Fed decided to sugarcoat that bad tasting medicine. How did they do it? The Fed changed its language with respect to its commitment to keep interest rates at zero. They have been at zero for years and the Fed has said, as long as unemployment is above 6.50%, interest rates will stay at zero. Now,the Fed has changed that language, it has rewritten it. It now reads, the Fed is going to leave interest rates at zero well past the point in time where the unemployment rate goes below 6.50 percent. So they haven`t just moved the goal posts, they have destroyed the goal posts.  

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 Fed Is In A Box

At some point the market is going to figure out the box the Fed is in and it will not want to hold the dollar. It will realize that it is QE infinity and when the dollar really starts to come under pressure, if it loses 10, 20 percent of its value against a basket of currencies, that is when the Fed is going to have to make a choice. A very difficult choice that is has been avoiding for years, which is going to be to dramatically increase interest rates even if the unemployment rate is rising, even though it is going to force many banks into failure, even though it might force the government to default on its debt, even though its going to bring out a very severe recession, the Fed is going to have to raise rates anyway and start selling Treasuries not buying them. Or if it does not have the integrity, or the courage to do that, then its going to print even more money and the dollar is going to crash.

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

How An Economy Grows And Why it Crashes: Simplifying Economics

There are teachers who use this book around the world to help educate students in the classroom. Today the Keynesian economists really overcomplicate what really is a very simple subject of economics. And I think why the book does so well is, we break down the complexities of our modern day economy in which these economic principles seem to be lost, we break it down and we focus on a simple island with three individuals, struggling to survive and then its in that context that we introduce all these economic principles and then we demonstrate how the principles do not change as the economy grows and becomes more complex. The book is very humorous, you can read the entire thing in three to four hours.  

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

Investing In The Big Picture

There is a lot of politics when I talk about the markets, a lot of economics involved in it because I am generally investing in the big picture. So I don`t spend a lot of time getting into the particular details of a particular company, the balance sheet of a company or what I think it is going to happen to earnings. Lots of people talk about that. There is nothing really unique about having an outlook on a particular company.

So what I think is more unique is my perspective on the global economy, in particular the U.S. economy and a lot of it relates to politics because a lot of what is wrong with our economy can only be fixed politically.

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

America`s Level Of Taxation

Americans are paying levels of taxation that would be unthinkable around the time of the American Revolution.

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

Alternative Media: The Best Source Of Information

I think the best source of information right now in the media is the alternative media. There is a lot of good stuff on the internet, you just have to look for it. Unfortunately, most people don`t know where to look and so they never come across it. I started doing my radio show partly for that reason.

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