Today Peter Schiff stunned King World News when he said the US will be back on a gold standard “... in a year or two.” Schiff
also said, “I would have expected a (financial) collapse to have
already happened.” Schiff went on to warn, “... at this point I’m going
to assume there is no more stay of execution and we are going to have
our crisis coming up right after Europe.”
But first, Schiff had this to say regarding Bernanke and his Jackson Hole speech:
“QE3 is coming. He’s got that card up his sleeve. It’s been hidden up
there for a long time. He’s reluctant to admit it, but he will play it
eventually. He’s going to be coy about it because he doesn’t want to
actually come out and reveal his hand.”
Peter Schiff continues:
“You know we’ve got a phony
recovery, so it’s going to fail. So we are going to get more QE. It’s
not that we need it, but if we don’t have QE3, then we are back in
recession. The Fed is going to try to stop that, even though the
recession is part of the cure.
We have a lot of problems,
and if we cure them it’s going to mean a short-term recession as we
repair the damage. Until the Fed lets us have a real recession, as
painful as that may be, we are never going to have a recovery. We’re
just going to have these artificial, stimulus induced highs that are
going to result in relapse to recession as the stimulus wears off.
We’ve got massive economic
imbalances, structural malinvestments around the world because the
dollar is the reserve currency. It’s too weak. We print too many. So
other central banks have to print up more money to buy up all of the
unwanted dollars.
Peter Schiff was attending the Republican Convention, but when KWN asked about it he unloaded:
“It’s disappointing to me. First of all I don’t like the fact that
everything had to conform. It’s all Romney, Romeny, Romney. I mean I
know Romney is the nominee, but there were other people that ran for
President and I think it would be nice to see some of those signs out
there.
There are a lot of Ron Paul
supporters here. I think it would have been nice if the convention
acknowledged Ron a little bit more and let the people show their support
for other candidates, in addition to Romney. The Ron Paul camp felt
strong-armed, and I think that was a mistake.
You’ve got a lot of
energetic, motivated people that would join in with this party, and were
enthusiastic about Ron Paul. They should have tried to cultivate that
and bring them into the fold, into the tent and acknowledge their
efforts. Instead they basically slapped them in the face and turned
them off.
This can have the effect of
getting them so discouraged that they look to a third party candidate
or don’t even bother to participate or vote. The bottom line is there
are a lot of people who are frustrated about the way they were treated.
This convention has ben a
lot of sound bites so far, but not a lot of substance. To me it’s not
really a convention, it was more like a coronation, and an infomercial
for the Republican Party. The Democrats are going to do the same
thing. I think we’ve really lost the meaning of these conventions
because they are now all about the TV and the sound bites.
Probably the most
frustrating thing was to have to listen to Republican candidates talk
about how much they love Medicare, and how they don’t want to cut it,
and how they always want to make sure it’s here. They want to protect
it and stop the Democrats from cutting it.
When asked about talk in the Republican Party discussing a move to the gold standard, Schiff responded,
“Well, discussing and doing are two different things. But eventually
we will be back on a gold standard, not because politicians want it, but
because the public demands it and the situation requires it.
We are headed for a
currency crisis, and the only way we’re going to stop it is by putting
real value back into the paper dollar. So we have to tie it to gold.
In fact, if you are listening to the Republican Convention and realizing
that, despite the talk, they are committed not to cut anything of
substance.
They want to keep growing
the government, growing the deficits. That eventually means we will
have a currency crisis, and a sovereign debt crisis, which will lay the
foundation for a return to the gold standard.”
When asked when he sees the US returning to the gold standard, Schiff replied, “The
sooner we do it the better because the sooner we start to repair the
problems the easier it is. The longer we wait, the bigger the problems
get. But I think it’s happening soon (a return to the gold standard),
in a year or two.
I would have expected a
(financial) collapse to have already happened. I thought it was going
to happen in Obama’s first term. The miscalculation I made was not
seeing Europe’s problems coming and preempting it. I knew there were
problems with the euro, I just assumed the problems with America and the
dollar would surface first.
