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Schiff - Possible Rally Tomorrow & Investors To Be Blindsided
With global stock markets and commodities a sea of red, today King World News interviewed Peter Schiff, CEO of Europacific Capital, to get his thoughts on what lies ahead. Schiff told KWN the stock market is being led by inflation, but we have “serious structural economic imbalances” and many investors will be “blindsided” by the next crisis. Here is what Schiff had to say: “The stock market is still being led by inflation. There is still liquidity out there. You can’t hold cash because there’s no return. You really can’t buy bonds if you’re an investor because there’s no return there and you’re just buying into a bubble.”
© 2012 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 This material may not be published, broadcast,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.
May 3, 2012
Peter Schiff continues:
“So, I think people are just buying stocks out of default. But I don’t think you have an improving economy. A lot of people would try to look at the stock market and say, ‘The stock market is doing well because the economy is getting better.’ It’s not.
The stock market is going up because (fiat) money is losing value. We had strong stock markets during the housing bubble and the dot-com bubble, but the underlying fundamentals were not sound. That was the problem.
I don’t see any real recovery....
Continue reading the Peter Schiff interview below...
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“We could create a few more jobs, temporarily, as we spend ourselves deeper into debt, but by the end of the year the unemployment rate starts to pick up again. The prices for food and energy keep rising.
We’re in a lot of trouble, and the government is going to try to revive the faltering economy with more stimulus. It’s never going to work. It’s just going to make the problem worse and we are going to have to deal with a lot of inflation.
The problems are ultimately going to be the debt, rising interest rates, a weaker dollar, and this whole phony economy imploding. People think trying to revive the consumption based, debt financed economy, that characterized the bubble years, is progress. It’s not.
We have serious structural economic imbalances, and we haven’t even begun to address them yet. We just make them worse with everything that we’re doing right now. People were surprised by what happened in the housing market ... because they don’t understand the fundamentals.
Because they don’t understand the fundamentals this time, they are going to be blindsided by what’s about to happen. It should be crystal clear and anybody who understand the fundamentals is not going to be blindsided by the crisis.”
Schiff also had this to say about gold: “At some point you’re going to see some kind of a breakout in gold. We’ll see tomorrow if we get a much weaker than expected jobs number, and we get strong talk of QE, that could cause gold to rally.”
In this interview Schiff discusses gold, the mining shares, what investors should be watching now, what they should be looking for in the future and much more. The KWN Peter Schiff interview is available now and you can listen to it by CLICKING HERE.
“The Real Crash: America’s Coming Bankruptcy --
How to Save Yourself and Your Country”
Released May 22, Pre-order from Amazon CLICK HERE.
© 2012 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.
The Jean-Marie Eveillard and Dr. Keith Barron audio interviews are available now. And be sure to listen to this week’s incredible line-up of other KWN interviews, which include Eric Sprott, Egon von Greyerz, Rich Yamarone, John Embry, Jim Sinclair and John Hathaway. You can listen to these interviews by CLICKING HERE.
Eric King
