Peter Schiff continues: 

“Everybody is waiting for the other shoe to drop for the price of gold.  If you look at the price of gold stocks, p/e multiples, the assumption must be that earnings are going to fall sharply.  That’s based on the idea that gold prices  are going to go down.

The street is wrong if that’s what they are betting on....

Continue reading the Peter Schiff interview below...


To hear which company $10 billion Sprott Asset Management and Sun Valley Gold

are the largest shareholders of and why click on the logo:

“It creates a good opportunity for people to take the other side of that trade in the metals, and in particular the mining stocks. 

(Right now) China is buying all of the gold they produce.  They did surpass South Africa as the world’s biggest gold producer.  But I do think that if the production is not high enough in China, the Chinese are going to have to go out into the (open) market and buy gold, and that obviously is bullish for the price.”

Schiff also warned:  “The perfect storm is the real fiscal cliff that we’re going to go over.  The real fiscal cliff is when we can’t borrow any more money because our creditors wake up to the fact that we’re no good for the debt and interest rates start to rise. 

They (interest rates) rise sharply and then we have to choose between default and collapse, or runaway inflation.  That’s really the perfect storm and unfortunately we are sailing right in to it.”

Schiff also added:  “We don’t need QE, we only need it the way a heroin addict needs heroin.  It’s not good.  It’s better to go through withdrawal and get the heroin out of your system.  But we’ve got an economy that’s completely dependent on QE.  That’s why it’s so screwed up.

We need to break that dependency, but the Federal Reserve doesn’t have the stomach for that.  So they are going to keep on ‘fixing’ us with more and more damaging doses of QE.  We’re going to get it (QE).  The Fed knows it’s coming, it just doesn’t want to admit how weak the economy is.

We’ve built a consumption based economy where everybody borrows money and spends it.  The only reason we can do it is because interest rates are at practically zero and we can service the enormity of the debt.  But the minute QE goes away and interest rates rise, the party is over, the whole thing collapses.  The Fed knows that.  So they have to look for more excuses to keep supplying more QE, and keep interest rates at zero.

Meanwhile, until we allow interest rates to rise, and allow a healthy restructuring of our economy, we’re never going to get a legitimate recovery, we’re never going to really have economic growth, we’re never going to create jobs.

So we know we’re going to have an endless stream of quantitative easing.  We’re going to have more QE’s than Rocky movies, until eventually it’s a horror movie and the whole thing implodes, and the economy literally dies of an overdose.”

© 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.

This is a tremendous interview with Peter Schiff.  He discusses Europe, the US, gold, the mining shares and what KWN listeners should expect going forward.  The KWN interview with Peter Schiff is available now and you can listen to it by CLICKING HERE.

Peter Schiff: CEO of Europacific Capital and author of

“The Real Crash: America’s Coming Bankruptcy --

How to Save Yourself and Your Country”

To order from Amazon CLICK HERE.

The interviews with John Embry, Egon von Greyerz, James Turk, Dr. Stephen Leeb, John Hathaway and legendary Art Cashin ($612 billion UBS) are available now.  Also, be sure to listen to last week’s line-up of other KWN interviews which include Gerald Celente, Don Coxe ($538 billion BMO) and Eric Sprott by CLICKING HERE.

Eric King

To return to BLOG 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.

Subscribe to RSS
KWN Blog