Bruce Norris is joined by economist and President of Euro Pacific Capital, Peter Schiff. Peter is author of Crash Proof: How to Profit From the Coming Economic Collapse and The Little Book of Bull Moves in Bear Markets.
Bruce starts off by asking if the media and nonbelievers are now sending apologies since Peter had taken such heat for his views. Peter says they have not and doesnt think many people understand the situation at hand.
Peter sees what the government is only going to make things worse. Although some are taking this weeks erratic behavior as the start of the next bull market, Peter says bear markets are well known for extreme fluctuations.
Bruce asks Peter what has surprised him most in the past 30 days. Peter is surprised that the government has stepped in and pretty much done whatever they want with what remains of our financial market. No one is challenging them.
Peter feels the financial system is in trouble and that were broke. Lending institutions loaned money to people who should have never had it. Instead of the banks failing, were going to fail.
Peter says that we should expect major inflation. By 2009, well be seeing much bigger, phony CPI numbers. He doesnt think the government will fess up to the numbers but the consumer will feel it.
Bruce asks about unemployment rate. Peter doesnt think our wages will increase because were not competitive. Home prices will go down but other consumer staples will go up.
Bruce asks if Peter was in charge what he would do. Peter says theres no solution. The US had a party and now we have a giant hang over. Theres no magic bullet. Peter would let the painful recession run its course. Peter would make government smaller and would slash government spending, military spending, and other drains on savings. We need savings.
Bruce talks about 70% of US GDP being consumer spending and asks what it will be in the future since we cant keep that up. Since weve been borrowing all that money, Peter thinks people should only be spending what they have. We have to get back to basics. He feels were setting up a great depression combined with massive inflation.
Foreign investors will lose a lot of money and learn their lesson. No country will want US money and that will worsen inflation. Peter says hes been surprised the dollar has done so well in the short run. He feels once the selling is over, the dollar is going to take a big hit.
Bruce asks about gold, silver, interest rates and oil and where Peter sees them in the coming year. Peter thinks by next year well be over $100 a barrel. Peter says since the government is in control, it will be hard to say where interest rates will be.
Bruce asks if Peter sees a gold standard coming back and how that might help. Bruce says that weve nationalized Fannie, Freddie, and some of the banks, whats next? Peter is looking to car manufacturers, states, and utilities. The issue is we cant bail out everyone. FDIC doesnt insure value, only quantity.
Bruce asks about the people about to retire. Peter thinks people we will be back in the work force and that things are drastically going to change. People will not be able to retire. Peter says his books really addressed how consumers could and can protect ets.
Bruce asks about tax changes. Peter sees tax increases for rich under Obama but the increases will further undermine the ability to create employment opportunities. The middle class will get tax cuts but they wont do anything. The extra money wont buy anything. Government will increase spending. If you have no income, the tax cuts dont matter.
Bruce plays devils advocate and asks what a few more trillion would mean. Nobody would be poor if economic wealth could occur by printing money.
Peter strongly believes we need a new solid foundation built on savings and manufacturing. Anyone holding US debt will not get paid. They will get paid but the money will be worth less.
Bruce asks about two specific moves the audience can implement. Peter says to buy gold and silver and says move out of US stocks and go to global stocks. He also says there is a lot of value outside of the Unites States. Bruce says the global markets havent done so well in the past three months. Peter doesnt think those will stay down long term and that most of this is emotional reaction.
Europac.net is Peters website and the number to reach his group is 800-727-7922.
Duration : 0:8:11
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