Minimize

Welcome!

Peter Schiff: Economy Will ‘Implode’ After US Wins Currency War

ker
February 18, 2013

A great missive from Peter.

 

The United States will win the global currency war, and the economy will “implode” as a result, says Peter Schiff, CEO of Euro Pacific Capital.

Central banks around the world are easing monetary policy, which often pushes a currency lower.

“There is a currency war going on. The irony of a currency war, which makes it different from other wars, is the object is to kill itself,” Schiff said at a conference Monday, CNBC reports.

Editor’s Note: 
This ‘Third War’ Will Be the Most Destructive in History, Warns Pentagon Adviser

“Unfortunately, I think the U.S. is going to win the currency war.”

A currency war kills by sparking inflation in countries that depress their currencies. “Anybody who believes there is no inflation [in the United States] isn’t shopping,” Schiff said.

The consumer price index rose 1.7 percent last year, but official inflation numbers are “a total fraud,” Schiff said. “Consumer prices in the U.S. are moving up much faster than indicated by the CPI. It is manipulated. It is deliberately designed to mask inflation, not report it.”

Schiff has been a consistent critic of the Federal Reserve’s massive easing program.

“The Fed knows that the U.S. economy is not recovering,” he noted. “It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode.”

Gross domestic product (GDP) shrank 0.1 percent in the fourth quarter.

“We’re broke. We owe trillions. Look at our budget deficit, look at the debt-to-GDP [ratio], the unfunded liabilities,” Schiff added. “If we were in the eurozone, they would kick us out.”

Bert Dohmen, editor of the Wellington Letter, agrees with Schiff.

“We are already in a recession,” he told Newsmax TV in an exclusive interview. “We got into a recession last year. If you factor in the actual rate of inflation instead of the phony CPI or GDP deflator that the government uses, the economy has been in a recession overall.”

The GDP price deflator gained 1.3 percent in the fourth quarter.

“If you calculate the CPI now as it was calculated in 1980, then inflation is actually around 9 percent,” Dohmen said.

Editor’s Note: This ‘Third War’ Will Be the Most Destructive in History, Warns Pentagon Adviser

© 2013 Moneynews. All rights reserved.

Read Latest Breaking News from Newsmax.com http://www.moneynews.com/FinanceNews/Schiff-currency-war-win-implode/2013/02/13/id/490165?s=al&promo_code=1276C-1#ixzz2LHGRlCjN

Discussion
23 Comments
    Feb 18, 2013 18:15 AM

    OH!!!!!..STOP MOANING PETER….EVERY THING IS FINE….THINGS ARE GETTING BETTER EVERYDAY ….YOU & ALL THE OTHER WET BLANKETS LIKE YOU KEEP PREACHING DOOM & GLOOM….ME I BELIEVE & TRUST MY GOVERNMENT TO BE STRAIGHT WITH US , JUST LOOK AT THEM WITH THEIR HAPPY SMILEY FACES ….HOW COULD THEY POSSIBLY BE LYING TO US………………………………………………………………………………………………………………….
    OOOOPPS !!!!!!!! Sorry about the above i must have swallowed some kind of mind altering pill.

      Feb 18, 2013 18:40 PM

      I agree Irish…
      What an idiot!!!!!!
      He probably doe not even know who won the Super Bowl!!!!!!

    Feb 18, 2013 18:19 AM

    I think Schiff is partly right, but…..

    I Look st hr printing the Fed is doing and I see logic in the insanity.
    I believe they are just printing what the country “needs”.
    They are printing enough to buy up enough treasuries so that interest rates are kept low. They are buying enough mortgage-backed securities, so that banks remain solvent and capitalized.

    Feb 18, 2013 18:24 AM

    Of course, the fact that the Fed is destroying the value of the dollar and will turn the nation into collapse, does not appear to have occurred to the Fed; or it has and they are content to muddle through one day at a time. It really is not the Fed destroying the country, but politicians, hell bent on buying votes even if they destroy the economy.

      Feb 18, 2013 18:14 PM

      CFS,
      Your comments are not really at issue. The AFTEREFFECTS of their fiscal insanity is what I am preparing for.

    Feb 18, 2013 18:10 PM

    The WSJ thinks France and Germany will be at loggerheads again.

    http://stream.marketwatch.com/story/markets/SS-4-4/SS-4-22406/

    Feb 18, 2013 18:17 PM

    WE HAVE A GREAT COUNTRY!!!!!!!!! ITS THE PEOPLE THAT ARE SICK.
    JIM ROGERS IS RIGHT. MOVE OUT OF THE COUNTRY. BUT I DON’T HAVE A BILLION DOLLARS, SO I GUESS I’AM STUCK HERE. BESIDES I WOULD HAVE TO DIG UP ALL MY GOLD BARS, THAT WOULD BE TO MUCH WORK.

      Feb 18, 2013 18:32 PM

      Ha! Good one Denis!

      Feb 18, 2013 18:44 PM

      Irish said he would dig them up for free……if you supply the brew…..

    Tom
    Feb 18, 2013 18:58 PM

    Do you guys think the government is making up these mass killings in order to get Americans pissed off enough to ban guns because the government knows a currency collapse is coming and they don’t want to give the american people a chance to fight back?

    Tom
    Feb 18, 2013 18:00 PM

    Did you guys also know the Peters dad is in jail for 13 years because he didn’t pay his income tax which in fact is unconstitutional.

      har
      Feb 19, 2013 19:53 AM

      Senate has the power to tax. End of story.

        har
        Feb 19, 2013 19:54 AM

        Pretty crystal clear:

        Section 8. Clause 1. The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States

          Feb 19, 2013 19:35 AM

          Yes, but not an income tax – especially a graduated one. Constitutional taxes are ones that you can avoid. For example, you can avoid the sales tax on a loaf of bread if you grow your own wheat and make it yourself.

            har
            Feb 19, 2013 19:51 AM

            Congress has the Power to lay and collect Taxes. It does not state: Except for anything.

            Feb 19, 2013 19:23 AM

            Article 1, Section 9 prohibits direct taxation. The 16th amendment was never properly ratified.
            The income tax is still officially considered voluntary and always has been. Early social security cards had “Not For Identification Purposes” printed in red on the back. What a joke. If you buy into the games these tyrants play with words, there’s not much anyone can say, is there?
            Unless you believe that the government restrains itself because of any laws, the facts are meaningless.
            http://www.youtube.com/watch?v=Xbp6umQT58A

    Feb 18, 2013 18:51 PM

    Tom, if that were the case the people wouldnt have a hope against the military anyway. Remember, the military practices relentlessly when their going to do somthing and goes over all equipment needed countless times, even if they crash helecopters and forget equipment when they actually do the “job” they still geterdone. Just coincidence evedence of operations goes missing of course.

    I dont believe anyone is actually saying what you suggest, but I would think people looking to invest their cash are going to research a thing or two to decide for themselves what is said or done about pretty much anything.

    DYODD then kick youself, lol. Sometimes you could end up feeling ok about yourself tho.

    har
    Feb 19, 2013 19:59 AM

    Housing deflation has wiped out of lot of this so called inflation.

    There places in the U.S. that are back to mid 1980 prices.

    har
    Feb 19, 2013 19:02 AM

    Some other examples:

    I am using a laptop that would of cost me $5,000, 10 years ago – now $590.

    I am watching a 72″ inch flat screen tv that would of cost tens of thounds, 10 years ago. Bought on sale for $899.

      Feb 19, 2013 19:49 AM

      Housing deflation has nothing to do with falling computer or tv prices. Technology always exerts a deflationary force. Even in mining. Mineable grades today are far lower than could’ve been imagined even 40 years ago. The gold price would be much higher right now if it weren’t for the ability to mine low grades profitably.
      Deflation is the natural state in an economy with sound money. Gasoline, for example, is cheaper today than it was 50 years ago in terms of silver. The average house price in the U.S. has crashed in real terms.
      Deflation is a good thing. That’s why the propaganda has always maintained otherwise.

        har
        Feb 19, 2013 19:12 PM

        That is why I said “other example”.

    Feb 20, 2013 20:24 AM

    a flat screen tv and computer are just one small component of the cpi. I also think we saw a housing correction, from a bubble, not housing deflation.