Peter Schiff Economic Collapse Warning on The World Money Show

As early as 2006, people were hearing the Peter Schiff economic collapse warnings. If the price is going up for food and energy, then there will be little money for anything else, especially if we all have to make interest payments overseas. In the last few years, we have relied on the inflated values of real estate. But that is all going to come to an end. People were making the same arguments about real estate as they were about stocks in the 1990s. They said that revenue and cash flow didn’t matter. The price always goes up. They were wrong back then, and they’re wrong now.

As the prices start to come down, the banks will have to reinstate stricter lending standards. When you rent an apartment, you need to pay first and last month, and a deposit, and you need to prove some income. But no one had to do this in order to buy a house. It was cheaper and easier to buy than it was to rent. As the banks start to see the real estate for sale, they are going to get worried. They’ll start requiring a 20% down payment. This will exacerbate the Peter Schiff economic collapse scenario. The only reason that real estate was a good investment for most people is that it is forced savings. At some point, you can pay off your mortgage and retire. But when people are taking interest only mortgages, this entire rationale disappears.

Why should a condo that was worth $300,000 a few years ago be worth a million dollars today? Nothing has changed. The people within the industry had a million different reasons to justify the high prices, but they are all nonsense. They absolutely could not see that they were in a bubble.

When the dollar finally collapses, the people of the Asian countries will begin to have a much higher standard of living. For everything that dollars lose in value, the currencies over there will gain. You can benefit from this by keeping your assets denominated in currencies besides the Dollar.

Click here to see the current strength of world currencies.

You spent a lifetime accumulating your wealth. You need to take action now if you want to preserve it. The final section of this Peter Schiff economic collapse warning will be posted soon.

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The Peter Schiff Blog: Videos, Articles, and Summaries

The Peter Schiff Blog consists of articles and videos from Peter Schiff. A summary of each video is also provided. This page is updated with Peter Schiff's investment advice and commentary on stock recommendations, the global financial markets, and the economy.