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Peter Schiff: This Unstable House of Cards is Going to Implode
With continued fear surrounding the banking and monetary system, today King World News interviewed Peter Schiff, CEO of Europacific Capital. When asked about gold, Schiff remarked, “I think we’re going higher. The gold stocks, to me, look like they are headed a lot higher. They need to breakout from the consolidation that they have been in. For the last year we’ve been consolidating. If you look at the HUI index, with 600 being the high and 500 being the low, we’ve been in that 100 point trading band more or less ever since late 2010.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
December 6, 2011
Peter Schiff continues:
“So we’ve been consolidating for about a year. We had a big move up from the lows on the gold stocks from October of 2008 where that index was down at 150. So we had a nice run from 150 up to 600 and now we’ve been consolidating for a year. I think when we decisively breakout we’re going to have another run as big as the run that proceeded it. So I think this index (the HUI) goes way over 1,000.
That’s all they (the Fed) are going to make is mistakes, which is why we don’t go forward, we go backwards. They are just going to keep repeating all of the mistakes until they can’t make them anymore because we are too broke.
They are going to keep printing money so they can keep encouraging Americans to spend money. They are going to keep trying to hold this house of cards together, even though they have to pile more cards on top of it to do it, making the structure that much more unstable. Eventually it’s going to implode, there’s nothing they can do about it. They can delay it, but every time they do they make it worse....
Continue reading the Peter Schiff interview below...
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“I don’t see how we can simultaneously print all of the money for us and Europe, but we certainly seem to be doing that now with this most recent boost of dollar liquidity on these swaps. I think more money is going through the IMF, which, of course, is being supplied by the US...I think we are just trying to keep this whole thing together.
You don’t want to be the last person holding currencies, the last person buying gold. But as more and more people lose confidence in the paper currencies then their value diminishes all the more and the price of gold keeps on rising. That just drives in more buyers into the precious metals market because it shows the weakness of the fiat alternative.
So as people wake up and they rub all of the government soap out of their eyes and see what’s going on, they buy gold. Then it becomes a self perpetuating cycle where the more people fear currencies. The less they want them, the more they want the alternative.
Gold goes up, other prices go up, those that are still in the dollar are that much poorer because they are seeing the cost of living go up. So they gradually throw in the towel and they buy and it feeds on itself.”
The KWN interview with Peter Schiff is available now and you can listen to it by CLICKING HERE.
You can also go to Peter Schiff’s website goldscams.com and download his special report.
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
