Peter Schiff: Gold and the dollar

In the first of three new videos, the first one dated September the 14th, Peter Schiff reflects upon last week’s rise in the precious metals markets, with gold going up by over $30 dollars in one day, as it headed towards $1,300 dollars an ounce. He also discusses different foreign currencies and their relation to the dollar, such as the Swiss Franc going over one dollar per franc, despite the Swiss National Bank’s stated policy of devaluing their currency, and what the Federal Reserve is going to do about this falling dollar (i.e. nothing).

Mr Schiff finishes up by discussing US trade deficits and how these are going to affect both America and the rest of the world.

In his second video, recorded on September the 17th, Schiff kicks off with the intervention of the Bank of Japan and its propping up of the dollar.

[This reminded me of a military experience I once had. About a hundred of us had to run three miles in 27 minutes, in boots, packs, and uniforms. One of the men beside me started to struggle after about one mile, and two of us propped him up. After a mile of this exhausting effort, the corporal at the head of our column jogged back from the main group and told us that we could keep propping this laggard up if we wanted to, but if we did, this unfit man would probably cause us to fail the run, which would mean that all three of us would have to do the run again tomorrow, rather than just one of us. I’m translating from the original English, which was much more colourful and succinct than this, but hopefully you get the picture. Rather reluctantly we dropped the man, who fell away instantly, going straight down to his knees; he disappeared rapidly behind the group. I felt both shameful and relieved at the same time, which was an uncomfortable psychological mixture. However, the rest of us managed to cross the line in the required time, with me and my other dishonourable colleague just managing to stagger in at the rear with very wobbly legs. Fortunately, I never had to look in the doomed man’s eyes again. I think he got onto the dropout bus and went home before we got back. All of which makes me wonder, just when are the Chinese and the Japanese going to drop their man? And once he’s gone, and they’ve got over the trauma of leaving this doomed man behind, will they ever look back?]

Mr Schiff follows this introduction quickly with a discussion of the recent rise in the price of gold and why gold is still such a great investment, because of his certainty of the ongoing stupidity of the world’s central banks and the ongoing cupidity of the world’s governments and their treasury departments.

He also questions the growing market in deflationary insurance, for instance as sold by PIMCO, and wonders how he can get in on the other side of this action.

Loosing a few tangential arrows at the US press coverage of Chinese and Japanese currency manipulation, Mr Schiff then smashes his entrepreneurial cavalry horse into the frontline shield wall of Obama’s regulatory legions, before trampling upon the Keynesian money cranks hiding behind this wall and their bizarre discredited voodoo economics.

Rounding off our triumvirate of Schiff Report videos, with this final one dated September 19th, Mr Schiff discusses the strange statement from the Federal Reserve that they want prices to rise, rather than stabilise.  I’ll leave you in the more-than-capable hands of Mr Schiff to walk you through this Fed statement, and why it had such an immediate effect on the US markets.

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