In this Peter Schiff YouTube address, he says that the correction in commodities and precious metals that began last week has continued this week. There are certainly a lot of technical factors in the correction, but there is also a lot of rhetoric and the margin requirements have been ratcheted up. But fundamentally, people have begun to reassess their outlook on the US and global economies. Other countries are raising interest rates, and people are looking ahead to the end of QE2. If quantitative easing is going to come to an end, then the could end a crutch to the United States economy. Many people believe that even if you remove the crutch, the economy will still be able to limp ahead. As other Peter Schiff YouTube videos have mentioned before, it is actually more like life support.
The United States is probably going to slow down and probably even collapse. Because the economy is so fundamentally weak, QE2 is going to continue. For this reason, the Peter Schiff YouTube prediction is that commodities and precious metals will continue to appreciate. If the US dollar keeps falling, Americans will become poorer, and they will consume less. People with other currencies will be richer and they will be able to buy the products that previously Americans were buying.
If it is true that the economy is going to be weak, then it isn’t bearish for commodities, it is actually bullish because of the further inflation that will result. The definition of what is risky and what isn’t is wrong. Everyone is selling what they perceive to be risky and volatile and they are buying dollars, but their assessment is wrong.
The Fed is not going to take away the punch bowl. They don’t want the economy to sober up. Further, there is a presidential election next year, and that will put a lot of pressure on them to keep up the appearance of a strong economy.
Richard Nixon put price and wage controls in place when inflation reached 4%. Even with the understated CPI numbers that were released last week, we are now at 5% and the Fed says that they aren’t concerned whatsoever. That just shows you the change in opinion. Of course, the CPI is completely worthless except as a piece of propaganda. But the media eats it up as if Moses brought the numbers down from Mt. Sinai.
Even Steve Forbes recently stated that the United States would soon be heading toward a gold standard. But Peter Schiff YouTube videos have been saying this for years. He was criticized by the media because no one in congress is currently talking about this except Ron Paul. But Steve Forbes is looking ahead to the future when there is a potential currency crisis.
The unfortunate Peter Schiff YouTube prediction is that they will go to a gold standard when the dollar is falling through the floor and people are rioting in the streets. Alcoholics only admit that they have a problem when they hit rock bottom. And we won’t go on a gold standard until the economy hits rock bottom.
