Driving America Over a Cliff: Schiff Explains What Thursday Meant Home » Real Estate News » Blog Posts » Driving America Over a Cliff: Schiff Explains What Thursday Meant Twist is traveling, but just before the taxi came she passed along this Freedom’s Phoenix find. . . . . . Here’s the Reader’s Digest version … 8 Responses to Driving America Over a Cliff: Schiff Explains What Thursday Meant Hutch May 25, 2009 Can you believe anyone still laughs at this man? Belief can trump reality for a time, but in the end, reality always wins a slapping contest. John M. May 25, 2009 It’s easy to see why people laugh at Peter. In his quest to explain his insights, he uses mixed metaphors that can get pretty desperate. Great track record recently, though. Yossarian May 26, 2009 Schiff has made some good calls. He is below average in protecting his customer’s money, however. Sometime back, Mish took him to task for this. For my part, I own Schiff’s books, videos, coaster napkins, etc. He prognosticates fairly well… was way off the mark with his ‘inflation’ expectations, and he completely missed the flight to safety TO the Dollar …. … I think at one point, he even said that banks would start buying commodities.. I don’t even know how that was supposed to work. His ideas on gold seem fairly solid. Longer term, his foreign currency ideas are likely more correct than not. But I don’t know what to make of his observations… some of the leading indicators ARE turning slightly upwards… so it’s not all money out of bonds that’s causing the rise in the market ….. I say it’s going to be a ‘double dip’ recession. I guess we’ll see. Coffee May 26, 2009 Yossarian, Schiff is a book hawker and anyone that has followed him for a sustained period of time has lost >50%. You even quote Mish: http://globaleconomicanalysis.blogspot.com/2009/01/peter-schiff-was-wrong.html “I have talked with many who claim they have invested with Schiff and are down anywhere from 40% to 70% in 2008. There are many other such claims on the Internet. They are entirely believable for the simple reason Schiff’s investment thesis was flat out wrong.” I for one believe in a dollar explosion (NOT implosion), no such thing as economies decoupling from US. Deflation (NOT inflation) is right ahead. Schiif invested heavily in foreign stocks which lost a much greater % than US stocks. His postulate that the US treasury just prints money is childish at best, the fact of the matter is that the treasury creates debt just as one does with a credit card. Using a credit card creates cash but there is counter accounting called debt! As it becomes harder to pay your debt the value of the repayment (Cash) becomes worth more NOT LESS. P.Shciff is a Joke unfortunately the doomers love him as he prosletizes the end of the US, the US economy and the US dollar. THe fact remains his real $ followers have lost such large amounts that will never be recouped. The book buyers and dommers have never invested with him or could. Yossarian May 26, 2009 Coffee: True, had you followed Schiff’s advice, you would have lost a lot of money this past 12 months. I recall a year ago, considering his strategy, and tracking a few investments that were very much like the ones he was suggesting for his clients (Baring China Fund, for one) … I was impressed by how much they LOST. So, I continued reading Schiff’s stuff, and mused to myself how correct Mish’s predictions have been. My own strategy is a mix – pretty much figuring deflation strengthens a cash position. I’m happy with my results. But looking ahead, I wonder. More reading, more research. Oh well. Hutch May 27, 2009 I never follow anyone when it comes to investing. On the other hand when it comes to not investing, I listen carefully to all. Ericc May 28, 2009 Yossarian/Coffe, I been listening to Peter for the last 3 years. I have not made any money but I preserved my capital by selling when the dow was at 13k and buying a foreclosed home from Wells Fargo a few months back for 50% hair-cut. I thank Peter’s advice for that. I just not sure if I waited long enough. Your focusing on the negitive aspect of Peter and ignoring the positive side. That is called having an agenda. Think about the investors that have listened to Peter back in 2004-2005 when they were buying gold. Probably very weathly right now. Your focusing on people who had taken Peters advice in the last 6-12 months. Still a good Probability that gold goes to 2k when the inflation kills the greenback. If your so right about economics explain what happened to Zimbabway and Argentina please when they had the printing presses running. Later, Ericc Coffee May 28, 2009 Time will tell, if you had followed his advice it was to sell US Stocks and BUY foreign stocks. He was pounding to buy Euros at 1.60. Congratulations to you since you only followed one side of his advise. Better to be lucky than smart. I for one am a Deflationist completely contrary to Petes theories. But deflationists also recomended to sell US Stocks way before the top. Deflationist see the value of the Dollar going UP not down. On Gold; it has way under performed US debt in the last 30 years. (IMHO)Buyers of gold at 900 plus have no upside. Argentina printed money using dollars at One to One. They issued their paper at will and found out they could not repay the dollar denominated debt. Buyers of Arg debt thought they could always convert the peso to dollars. Ooops. I doubt World investors had a great appetitite for Zimby currency and they really printed without any backing. Same with the “Banana Republics”. They really issued currency, printed paper, without the corresponding debt. US dollars are backed by real sweat of US citizens and as such will become indentured to the buyers of the debt. IE China will continue to buy US debt.