Thursday, 26 September 2013

Peter Schiff was right … again. [updated]

Peter Schiff famously gave warning about the collapse of the American housing bubble .. and was laughed at by others who were less prescient.  [If you haven’t done it before, then Google “Peter Schiff was right.” Go on, do it. Do it now. I’ll wait.]

He did it again with the non-ending of QE…

Over the last few weeks, as the overwhelming majority of economists, reporters, and Wall Street insiders expressed certainty that the Fed would begin to taper its QE program, I did my level best to make the public understand that the Fed would do no such thing. As a result, last week's "surprise" announcement provides us with fresh confirmation that most market pundits remain clueless about the true state of our economy. I knew, as they seemed not to, that the Fed is caught in a stimulus trap that will require them to keep the monetary spigots wide open. For my efforts I was treated to another round of snickers, eye rolls, and outright dismissals. You would have hoped that they would have learned better by now.

Fortunately all their dazzlingly wrong predictions are caught on tape. In retrospect it makes for hilarious viewing. Click below to view.

Unfortunately, they have failed to learn anything from their mistakes. The same pundits that were revered before their colossal miscue are still afforded equal respect. The markets still believe the popular consensus that a Fed taper will arrive in October, or maybe by January at the latest. In contrast, I believe that we are now stuck in a state of permanent QE.   But these views remain in the lunatic fringe. How many more times will the markets have to get it wrong before an alternate reality is considered?   In the end it will not be the Fed that voluntarily tapers by easing up on the monetary gas pedal, but an adverse reaction in the currency and bond markets than forces the Fed to slam on the breaks.

UPDATE: Who doesn’t love it when two of your heroes interact? So check out Yaron Brook, entrepreneur & president of the Ayn Rand Institute, talking to Peter Schiff on the Peter Schiff Radio Show—talking on Ted Cruz's filibuster, why California's latest “living wage” hike could sink the state into the Pacific, and about the new off-Broadway Ayn Rand play, Anthem. [Hat tip Paul Van D.]


  1. Peter Schiff, right yet again! I came across him in the early 2000s. Moved all the super into precious metals like what he said I ought to. 1700% return so far. That is solid. This money making investing business is fun and easy. All you ahve to do is listen to the man. He has a habit of being correct. As long as you understand what he is saying and understand his reasoning you will be fine.

    Amit Cim

  2. Peter Schiff has been wrong more often than he has been right. That is why Euro Pacific Capital did just as badly as any other investment firm during the GFC.

    It is a total myth that he was alone in predicting the sub prime meltdown. Many Wall St firms were even shorting their own stock.


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