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.