Liberty and Finance, Released on 1/26/24 (Recorded on 1/25/24)
Compared to 2008, “banks are in much worse shape,” says Peter Schiff of Euro Pacific Asset Management (https://europac.com). The FDIC doesn’t have enough funds to bail all the banks out, he points out. If the banking system collapses, either “insured” depositors will not get their funds or they will be paid back in devalued Dollars, Schiff argues. “Either you lose your deposits or your deposits lose their value.”
0:00 Intro
1:03 Gold & inflation
9:34 Debt crisis
16:58 Commercial real estate
22:30 Banking system
30:45 Peter Schiff online
Peter Schiff is an internationally recognized economist specializing in the foreign equity, currency and gold markets. Mr. Schiff made his name as President and Chief Global Strategist of Euro Pacific Capital. He frequently delivers lectures at major economic and investment conferences, and is quoted often in the print media, including the Wall Street Journal, New York Times, Barron’s, BusinessWeek, Time and Fortune. His broadcast credits include regular guest appearances on CNBC, Fox Business, CNN, MSNBC, and Fox News Channel, as well as hosting his own weekly radio show, Wall Street Unspun. He’s also the author of the bestselling books: Crash Proof 2.0
Get Your Money OUT Of The Banks NOW | Peter Schiff added by Herman James on
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I have a lot of respect for Mr. Schiff; he’s definitely one of the smartest guys in the room. But, along with almost all those boneheaded run-of-the-mill pseudo economists that seem to congregate on this site, he makes the same error and wrong conclusion when he talks about how low interest rates — artificially & immorally managed by the fed – have helped the average homeowner afford to purchase a new home (ain’t that ducky, there really is such a thing as a free lunch). But then he goes on to say, “But wait a minute, if it helps potential home buyers, then it must hurt somebody else. And that somebody else is the banks, because when rates rise they’re stuck with all that devalued paper.
My response to that is: “Ahhh, those poor wittle banks. You can cry me a river JP Morgan.” In theory, banks shouldn’t be victims at all because they’re supposed to be experienced players in the market who understand the risk of loaning money during inflationary or dis-inflationary periods. Either don’t make the loan or charge a higher rate to protect yourself against potential rising rates. Add to that, banks know the fed has their backs and are not worried if rates rise, cause the fed has them covered anyway (I know I know, it’s a B.S. system, but don’t blame me).
But most importantly, Schiff is 100% wrong insisting banks are the biggest victims of artificially low interest rates. I’m actually astounded when he ignores this hard fact. The real people who get crushed are savers like you & me who should be receiving a fair and honest interest rate determined by a free market on the hard-earned money we deposit in the bank. This is how it worked some five decades ago for those who are too young to know. The market determined the level of interest rates based on the availability of funds on hand at the time of the loan, and not by a bunch of useless govt apparatchiks. And that’s the way it should work. As it is, savers have been royally shafted for decades now by these criminally low interest rates. Too bad. But once again, nary a peep coming from the public.
I used to think that Schiff was one of the better financial advisors out there also, but no more. He’s been spouting the same dump U.S. stocks and invest overseas mantra for at least 15 years now and if you had listened to his advice you would have not done as well as you would have by investing in the United States. When you are off by15 years or more you are not early, you are wrong!
So, if having a bachelor’s degree in accounting and finance make you an “economist” then I guess I must be a physicist! Real economists, in my opinion, are guys like Marc Faber and Gary Shilling who have actual PhD’s in that area. The rest are just wannbes!