Author Topic: Schiff: 2/3 of America to Lose  (Read 508 times)

0 Members and 1 Guest are viewing this topic.

Offline happyg

  • Hero Member
  • ****
  • Posts: 11,822
Schiff: 2/3 of America to Lose
« on: March 29, 2014, 02:01:40 PM »
By MONEY MORNING STAFF REPORTS
 
A record breaking stock market is distorting a frightening reality: The U.S. is being eaten alive by a horrific cancer that will ultimately destroy the economy and impoverish the vast majority of its citizens.

That's according to Peter Schiff, the best-selling author and CEO of Euro Pacific Capital, who delivered his harsh warning to investors in a recent interview on Fox Business.

"I think we are heading for a worse economic crisis than we had in 2007," Schiff said. "You're going to have a collapse in the dollar...a huge spike in interest rates... and our whole economy, which is built on the foundation of cheap money, is going to topple when you pull the rug out from under it."

Schiff says that, despite "phony" signs of an economic recovery, the cancer destroying America stems from a lethal concoction of our $17.2 trillion federal debt and the Fed's never ending money printing.

Currently, Yellen and The Fed are buying $65 billion per month of Treasury and mortgage bonds and will increase or decrease this number as they see fit.

According to Schiff, this "exit strategy" is not credible and will unravel.

Eventually interest rates will rise... and when they do, Schiff says, stocks will tank and bonds dip to nothing. Massive new tax hikes will be imposed and programs and entitlements will be cut to the bone.

 "The crisis is imminent," Schiff said.  "I don't think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems."

 "We're broke, Schiff added.  "We owe trillions. Look at our budget deficit; look at the debt to GDP ratio, the unfunded liabilities. If we were in the Eurozone, they would kick us out."

Schiff points out that the market gains experienced recently, with the Dow first topping 17,000 on its way to setting record highs, are giving investors a false sense of security. 

"It's not that the stock market is gaining value... it's that our money is losing value. And so if you have a debased currency... a devalued currency, the price of everything goes up. Stocks are no exception," he said.

"The Fed knows that the U.S. economy is not recovering," he noted. "It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode."

Should American seniors who've been paying taxes their whole lives bear the price of Washington's folly? See the shocking facts by clicking on the video.

A noted economist, Schiff has been a fierce critic of the Fed and its policies for years. And his warnings have proven to be prophetic.

In August 2006, when the Dow was hitting new highs nearly every day, Schiff said in an interview: "The United States is like the Titanic, and I'm here with the lifeboat trying to get people to leave the ship... I see a real financial crisis coming for the United States."

Just over a year later, the meltdown that became the Great Recession began, just as Schiff predicted.

He also predicted the subprime mortgage bubble burst, nearly a year before the real estate market fully crashed.

His recent warnings, however, have been even more alarming.  Will they also prove to be true?

In his most recent book, "The Real Crash" How to Save Yourself and Your Country", Schiff writes that when the "real crash" comes," it will be worse than the Great Depression.

Unemployment will skyrocket, credit will dry up, and worse, the dollar will collapse completely, "wiping out all savings and sending consumer prices into the stratosphere."

Schiff estimates this "cancer" could consume a trillion dollars from consumers this year.

"Today we're the world's greatest debtor nation. Companies, homeowners and banks are so highly leveraged, rising interest rates will be devastating."

According to polls, the average American is indeed sensing danger. A recent survey found that 61% of Americans believe a catastrophe is looming - yet only 15% feel prepared for such a deeply troubling event.

Is Devastation The Ultimate Cure?

Despite its bleak outlook, Schiff's book has become a real wake-up call for millions of readers.

While Schiff's predictions can be grim, he also offers step-by-step solutions that average Americans can follow to protect their wealth, investments and savings.

According to Schiff, "the crash and what follows" can be beneficial. But only for those who understand beforehand what is happening and have time to prepare for the devastation.

"All we can do now is prepare for the crash," Schiff said. "If we brace ourselves properly and control the impact, we will survive it."
http://moneymorning.com/ext/schiff/articles/schiff-americans-will-lose-everything-in-coming-market-crash-ng.php#.UzcHhuTCilI.twitter

Offline sinkspur

  • Hero Member
  • ****
  • Posts: 28,599
Re: Schiff: 2/3 of America to Lose
« Reply #1 on: March 29, 2014, 02:11:09 PM »
Quote

While Schiff's predictions can be grim, he also offers step-by-step solutions that average Americans can follow to protect their wealth, investments and savings.

According to Schiff, "the crash and what follows" can be beneficial. But only for those who understand beforehand what is happening and have time to prepare for the devastation.

"All we can do now is prepare for the crash," Schiff said. "If we brace ourselves properly and control the impact, we will survive it."

Like every other bear, Schiff has a vested interest in talking down the economy and markets.  Thus have the bears ever been.
From  "A Shining City on a Hill"

To "A global laughingstock"

Offline sinkspur

  • Hero Member
  • ****
  • Posts: 28,599
Re: Schiff: 2/3 of America to Lose
« Reply #2 on: March 29, 2014, 02:13:05 PM »
And, as I thought, Schiff is a big gold bug.
From  "A Shining City on a Hill"

To "A global laughingstock"

Offline kevindavis

  • Hero Member
  • ****
  • Posts: 7,644
Re: Schiff: 2/3 of America to Lose
« Reply #3 on: March 30, 2014, 09:05:15 AM »
And, as I thought, Schiff is a big gold bug.


That explains it...
GOP House members came to Paul Ryan to be Speaker. He didn't come to them. And he was everybody's conservative darling back in 2012. So unless 1 of the remaining 240 wants to step up & do a better job in budgeting & negotiations & herding the party cats, then everybody please STFU. You go to battle with the army you have, not the one you want but don't have.

Kevin Davis

Online andy58-in-nh

  • Hero Member
  • ****
  • Posts: 5,891
Re: Schiff: 2/3 of America to Lose
« Reply #4 on: March 30, 2014, 09:53:54 AM »
Schiff happens to be correct, and history will "bear" him out.

The Cargo Cult Keynesians who run the show in Washington and who dominate the Banking Class will ultimately be proven wrong: public debt is not a meaningless abstraction, and value of the dollar is not whatever the Fed declares it to be.

In the meantime, they will continue to enrich themselves by pumping phony dollars into a phony stock market while the American economy continues to shed jobs and "grow" its output almost entirely by means of Federal spending and inventory growth, rather than through production.
Liberalism isn't really about making the world a better place. It's about reassuring the elites that they are good people for wanting to rule over it.

Offline Oceander

  • Technical
  • Hero Member
  • ****
  • Posts: 45,278
  • #ToldYouSo
Re: Schiff: 2/3 of America to Lose
« Reply #5 on: March 30, 2014, 12:49:58 PM »
Quote
"The Fed knows that the U.S. economy is not recovering," he noted. "It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode."


And that is the revenge the democrats are planning to hit the republicans with when they - the democrats - lose this November.  They would, I think, prefer to hold off the bomb until Jan. 21, 2017, once Obuttocks is safely out of office and they and their fellow-travelers in the MSM can conveniently blame the crash on the new guy in office - hypocrisy knows no bounds when it comes to liberals - but I'm sure they'll take letting a republican-controlled Congress take the fall as enough of a consolation prize.

Online jmyrlefuller

  • J. Myrle Fuller
  • Hero Member
  • ****
  • Posts: 12,615
  • There's no one out there quite like me.
    • Fullervision
Re: Schiff: 2/3 of America to Lose
« Reply #6 on: March 30, 2014, 02:00:56 PM »
Quote
"The United States is like the Titanic, and I'm here with the lifeboat trying to get people to leave the ship...
This quote says it all.

Two words: wannabe Messiah.
"Just because people in positions of authority are stupid, it doesn’t mean you have to go along with it." —Arlo Guthrie

"In the excitement of great popular elections, deciding the policy of the country, and its vast patronage, frauds will be committed, if a chance is given for them." —Richard Henry Dana, Jr.

Avatar by FatCow. Used under free license

Offline Oceander

  • Technical
  • Hero Member
  • ****
  • Posts: 45,278
  • #ToldYouSo
Re: Schiff: 2/3 of America to Lose
« Reply #7 on: March 30, 2014, 02:20:59 PM »
This quote says it all.

Two words: wannabe Messiah.

true enough; but the facts on which he attempts to build his campaign for Messiah-hood aren't as fabricated as his candidacy is.


Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf