'Crisis Only Just Beginning': Right About the Crash, Peter Schiff Sees More Pain Ahead
For those of you who have not followed him, he has been dead on for a while. To save you some time here is a link to a set of YouTube videos on Mr. Schiff:
I am curious what all of you have to say. I am going to post this same message on the UYG board to get their take as well. I will post a link to the UYG post in a second for reference.
saw the you tube video and even have his book. I think we will not collapse because our military might does something to prop up the dollar and our economy we little guys cant understand. china is not stupid. they wouldnt keep lending to us if default was remotely possible. so why do they continue? Because..........if we go under, the whole worlds game of musical chairs comes to a hault and all economies fail! Maybe china doesnt even expect to get paid back but 1/4 of the money...as long as we keep importing! Hasnt anyone ever figured out why china keeps lending to us? yet, gold "could" go to $1500 and then another bubble bursts. Who knows. Ayway, whats with the retailers going up like 10% today? You mean everything is fixed in 2 days? WTF!
Im my opinion we are all witnessing a another form of warfare of the economic kind. That was how we beat the Soviet Union in the 80's. USA is doing the same thing again against China and the Middle East. Pumping up commodities and growth markets while at the same time lending all the money they can to ANYBODY breathing knowing they will default on the loans. Then they sell those securities to China and other countries and insure them (Credit default swaps). Then the USA causes a massive deflationary spiral driving all commodities down (Illegal Comex Manipulation) Look it up. Among many other clever tactics the USA is using. What results is like you said, the USA is king and can outlast any other country in very hard times. Now the US is reinflating the monetary system as fast as they can, printing money 24/7. Stopping sales of GOLD.
The middle east caught wind of what is happening and Iran just backed their currency by gold. Saudi Arabia is trying to buy as much gold as they can get now, China also, but they cant cause the price will go through the roof so they have to do it slowly. Russia is hammered cause oil is at 50 and going lower :-)
Ultimately what you get is rising unrest in China. No jobs! and Barack Obama comes in and reignites manufacturing and energy independence. A protectionist approach. He has already signed onto the plan. He is not a liberal anymore, they sat him down and told him what the deal is and he will obey. The prez is just a puppet.
I know people that invested on his recommendations. 90% of what he pumps are foreign dividend paying stocks. Most of those in his portfolio are down 40-90% this year! The other 10% of what he recommends is gold which has fared much better....but don't seriously follow this guy's advice. He was FINALLY right about the economic collapse but had been calling the collapse for 15+ years.
The biggest problem with the short ban is Financials get left behind during a short covering rally. After the initial pump, all selling is real with no price supports underneath. Traders stay out because they can't ride the rips. Closest analogy is when a stock drops below $5 and is unmarginable and not an institutional holding, it's pretty much toast. A lot of people on this board bought UYG or the triple XXX ETF version knowing there was going to be squeeze. For a long ETF I would want volatility, otherwise I would stick with high volatility stocks themselves and not have to deal with the trading decay of ETFs.
Just be careful about the stocks that Schiff's firm advises you to invest in. My Schiff portfolio is down over 60% from purchase price. So, I would not call that dead on -- but closer to dead!
LOL! I never take advise from anyone. I am too damn stubborn. I am a macroeconomics junkie and see a painful deleveraging process that is just beginning. I am concerned that due to the trillions of dollars in debt the government is pouring into the market to prop up the short term will lead to a much more scary government deleveraging process in the future. We have ahead of us a social security, medicare, and deficit crisis. In addition, if a nationalized health care plan is passed in the next two years, we will have that to boot, as that will become quickly insolvent due to the other drags on government funds.
I am already a believer and posted earlier tonight on the subject, you cant pay off debt by creating more debt thats how we got here in the first place. Borrowing from one credit card to pay on the other credit card is a recipe for disaster.