Peter Schiff: Fade the Fed and How to Profit from the Coming Stagflation

We are in a period of great upheaval, strife and angst, in which fiat money printing is truly out of control.

In this presentation hosted by Cambridge House International, Peter Schiff touches on the coming chaos that is rapidly approaching and the chaos that is already at our front door.

The Federal Reserve is out of control and they have no true solutions to the problems at hand.

How do you profit and persevere in the coming madness? Watch, listen and learn.

- Video Source, Peter Schiff

FED Is Printing Dollars Out of Control, Which Will Lead To Its Collapse

Time is running out and now some people are starting to sound the alarm about the US dollar. This time, Peter Schiff repeated his thesis about the imminent collapse of the US dollar and FED monetary policy.

The US government's response to the crisis caused by the COVID-19 pandemic has only accelerated this process. Previously, Peter was alone in calling for the future collapse of the US dollar, but now everything seems to be changing. An article by the Yale economist Stephen Roach, which was published on Bloomberg, confirms Peter's earlier concerns.

Roach claims that the collapse of the US dollar is inevitable. Americans are waiting for the strongest change in living standards. Roach is afraid of the growing deficit of the US state budget. And the situation after the pandemic, this value is at a critical point. And even with this dynamic, they are ahead of Federal spending.

"The coming collapse in saving points to a sharp widening of the current-account deficit, likely taking it well beyond the prior record of -6.3% of GDP that it reached in late 2005."

- Stephen Roach, economist

• According to the author, the fall of the dollar will have three big consequences.

• The first is inflation. An oversupply of currency will lead to a sharp increase in unsecured prices for goods and services

• Second, the trade deficit will impose additional tax obligations on customers.

• Third, in trying to get rid of China, the main financing of the American debt is lost

Earlier, Peter called for abandoning the US dollar in favour of buying gold and stock.

- Source, The Tradable

Stage Now Set for USD Crash: Peter Schiff

The CEO of Euro Pacific Capital and renowned Bitcoin critic Peter Schiff has tweeted that the current circumstances are showing a deep USD crisis which threatens to bring on a USD crash soon.

He also comments on the numerous suggestions to defund the police in the US, while the Binance CEO mentions the negative 2020 events as being beneficial for Bitcoin growth and wider BTC adoption.
‘The stage is now set for a dollar crash’

Peter Schiff has taken to Twitter to share some more negative thoughts on the current economic situation and the civil unrest in the US.

In particular, he has once again shared his skeptical take on the future of the USD. Schiff has expressed the root of his doubts many times and is not the only expert who has these beliefs. They stem from the fact that the Fed has printed over six trillion USD in this recent crisis caused by the pandemic that originated in China and quickly spread to major European and Asian countries and led to a quarantine.

Speaking on the injection of newly printed USD into the economy, Schiff said that after the Fed happily satisfied the demands for USD, the result was “a glut of U.S. dollars that no one needs or wants.”

Schiff summarized that the situation could lead to a crash of the dollar.

While Peter Schiff is a Bitcoin critic and does not believe in BTC, the head of Binance, Changpeng Zhao, has, on the contrary, mentioned Bitcoin as a possible winner in the aftermath of the present 2020 issues.

Like many, including Peter Schiff in his earlier tweets, CZ expects hyperinflation to break out and big trouble for small retail businesses. But, it seems he reckons it will be good for the flagship cryptocurrency.

- Source, u.today

The Stock Market Is Waving a Giant Red Flag. Will You Ignore This One Too?

The stock market’s miraculous recovery over the past two months comes with one nasty side-effect: extreme over-valuation risks.

S&P 500’S Frothy Valuation

By Monday’s open, the S&P 500’s price-to-earnings (P/E) ratio had reached 23.00. In other words, the index is trading at 23 times forward earnings–the highest since mid-2001.

The P/E ratio measures a company’s current share price relative to its per-share earnings. A high P/E often means that a market’s current price is not justified by its earnings outlook.

The elevated P/E comes even as many corporations revised or pulled their forward guidance due to the pandemic. As of Friday, 27 S&P 500 companies had issued negative earnings guidance for Q2 compared with 21 that issued positive guidance.

An ‘Uncomfortable’ Rally

Stocks have rebounded more than 43% from their March lows thanks to unprecedented Federal Reserve intervention and optimism about a broad economic resurgence. The bulls were vindicated on Friday after the Labor Department reported a net gain of 2.5 million jobs in May.

As the S&P 500 inches closer to record highs, Allianz’s Mohamed El-Erian says the rally is making him “uncomfortable.”

The economist, who correctly predicted the pandemic-driven bear market, told CNBC:

For me personally, it’s an uncomfortable bet to continue to bet on a huge recovery… I don’t like doing this. But I respect and admire those who can.

Despite their ‘win-win’ attitude, investors are failing to consider the long-term impact of Fed intervention in the market.

The Fed’s balance sheet has been growing since September when the overnight repo market suddenly went haywire. But the pace of intervention has skyrocketed since March as all levels of government scrambled to prop up a sinking economy.

- Source, CCN

Peter Schiff: The Rising Stock Market Is Not A Sell Signal For Gold

US stock markets continued their inexplicable rally despite the economic destruction wrought by the coronavirus-induced shutdown. The S&P 500 is only down about 3.5% on the year and the Nasdaq is actually up. As a result, a lot of investors seem to be getting out of safe havens, including gold. But in his podcast, Peter Schiff explains why selling gold is a mistake if you understand what's really going on. In a nutshell, stocks are rising because the Fed is printing money. And no matter what the mainstream says, money printing matters.

Think about what has happened over the last year and ask yourself: does this make any sense?

Looking back at the end of 2019, people were optimistic. The stock market was booming. There was no sign of a recession in sight. But since then, the US economy has plunged into the worst recession since the Great Depression sparked by a global pandemic. Over 40 million people have filed for unemployment. The Federal Reserve is printing dollars at breakneck speed. The federal government has run up trillions of dollars in new debt through borrowing for stimulus and bailouts. And we've seen major civil unrest with looting and destruction in many major American cities.

If you were told all of this was going to happen back in January, would you have believed the S&P 500 would barely be down and that the Nasdaq would be up some 8%?

There is only one explanation.

"The only reason the market is rallying is because of the Fed. I mean, people can try to say, 'Well no, the market is anticipating a recovery.' This is a lot more than the anticipation of a recovery. This is the Fed driving the narrative, driving the market higher."

There was a bit of data that came out Wednesday that injected some optimism about a recovery into the markets and helped boost stocks. The ADP private payroll report came out. The expectation was for another 8.6 million jobs lost, but the number came in at just below 2.7 million jobs.

Peter said that number doesn't even look possible given that we've seen 2 to 3 million people file for unemployment every week. Nevertheless, as soon as the number came out, the market rallied and gold sold off. The sentiment seemed to be that the economy isn't as bad as we thought.

"The economy is as bad as they thought. In fact, it's probably worse. But when the number came out, the market rallied on it because of, I think, the momentum that has been created by the Fed."

Peter said stocks are way overpriced even if the economy was much better than people thought.

"Remember, the US stock market was overpriced at the end of 2019, before any of this bad stuff had happened. And now we have all this bad stuff, which is much worse than anybody could have possibly envisioned, and the market is barely down in the case of the S&P 500. And in the case of the Nasdaq, the market is actually higher. Even though it was already expensive and priced for perfection, we got the antithesis of perfection, yet the market went up anyway."

Meanwhile, the dollar is getting pounded and the bond market is also feeling the pressure. The yield on the 30-year appears to be pushing toward 2%. That is still low, but keep in mind, not too long ago that yield was below 1%.

Incidentally, this is a problem for the Federal Reserve. The central bank bought a lot of Treasuries when the yield was under 1%. One of the reasons the market went up was because of all the money the central bank printed to buy up those bonds. Now, as rates rise, the Fed is losing money because it has taken on a lot of interest rate risk. As interest rates rise, bond prices fall. That means the Fed's balance sheet is losing money.

Ultimately, we're seeing the market move away from safe havens and that includes gold and silver. This is due to unwarranted optimism about an economic rebound. But Peter said he thinks it's just the rise in the market itself that is creating the optimism.

"People are thinking that the market is rising because people are optimistic about the recovery. I think people are optimistic about the recovery because the market is rising. And the market is not rising because of the recovery. The market is rising because of the Fed - because of all the money the Fed is printing. And even though a lot of people think printing money doesn't matter, printing money matters a lot. And people are about to find out the hard way just how much it really matters."
This is why investors should buy gold. It's not primarily a hedge for your stock portfolio. It's to hedge for your currency.

"Whether they live in the US and have dollars, or they live in Europe and have euros, or they live in Japan and they have Japanese yen, central banks are creating tremendous inflation. And central banks have told everybody that we are intentionally destroying the value of our money. That is our goal. We want prices to go up more. We want more inflation. We want the dollars, or the euros, or the yen that you're keeping in the bank or in your mattress somewhere - we want them to lose value. The longer you hold on to them, the more value they are going to lose. This is on purpose. This is by design. So, once the central banks have told you that's the plan, you would be a fool to cooperate."

Gold is a hedge against central banks creating inflation. It's a hedge against debasing currency. Instead of selling gold because the stock market is going up, investors need to understand why the stock market is rising.

"It's rising because the Fed is printing all this money because the Fed is creating inflation and debasing the value of currency. That is going to drive the value of gold. Gold becomes more valuable because of what the government is doing to prop up the stock market and prop up the economy. So, a strong stock market is not a sell signal for gold."

- Source, Peter Schiff via Seeking Alpha

Peter Schiff: Being Able to Buy Things With Bitcoin Is Lie

Peter Schiff took to Twitter to share an article about Democratic presidential candidate Joe Biden having high chances of walloping Trump in the November elections this year.

After saying that he had been warning people about the aftermath of the pandemic’s (and Trump’s QE) harmful impact on the economy and the US population, Peter Schiff replied to a comment from a follower who suggested Bitcoin as a way out.

The Euro Pacific CEO stated that in reality, you can buy nothing with Bitcoin or any other crypto.

‘Pay with crypto is a marketing gimmick’

The main reason Schiff cites for his predictions coming true in the near future is the current unemployment rate totaling 14.7 percent. That equals a loss of 34 million jobs, which is much more than in the Great Depression in 1929-1930, as per the aforementioned article.

The Fed Reserve and Donald Trump have injected over $6 trl into the economy via a quantitative easing program, which included one-time $1,200 checks to qualifying US citizens.

Later on, the Fed Reserve announced its intention to start buying ETFs to ensure that companies’ stocks have high enough demand.

A Twitter user in the comment thread suggested that buying BTC would be a way out and a chance to avoid using cash, which may soon lose a great deal of its value.

To that, Peter Schiff responded that in reality, you have to first convert Bitcoin into fiat USD, and only then can you purchase anything. So, he insists, the narrative that you can pay for real things with BTC is a lie...

- Source, U.Today

Peter Schiff: The Next Crisis Will Happen Overnight

Quiet day in the stock market. More jobs lost than expected. Fed’s balance sheet moves through $7 Trillion. 

Ron Insana says big deficits are not a problem. Next crisis will happen overnight. Retails sales declining fast, even as shoppers hoard groceries. 

Netflix and Amazon are not COVID investments. Federal Reserve illegally grabbed the authority to do what It’s doing. 

Gold is at the beginning of a big rise. Buying the stock market is not contrarian. Bitcoin is not an inflation hedge.

- Source, Peter Schiff