Peter Schiff & Doug Casey On Gold, Investor Cluelessness, And The "Escape From America" Plan

Tyler Durden's picture




 

In just under 30 minutes, Peter Schiff and Doug Casey muse on many facets of the crumbling edifice of the status quo that is our current world.

From Gold's relatively imminent rise to $5,000 and beyond, to investor ignorance of reality, Casey & Schiff swing from discussions of the US as political entity going forward to 'escape from America' plans for personal and wealth assets, and the realization that the biggest casualty (of US indebtedness), aside from individual liberty, is the value of the dollar - as taxing the middle class is unpopular with both parties - leaving only one route for the government - the inflation tax. Owning gold, silver, and foreign assets is preferred and while the rest of the world is also printing, the US is likely to beat them all.

People "are clueless with respect to the true state of the global economy," with regard to inflation, fiat currencies, and specifically what will happen to the dollar. The conversation is wide-ranging and absolutely must-see as they remind market-watchers that "the whole thing is artificial," as you can't just keep printing money and monetizing debt without the dollar imploding with monetary policy descending (along with its trillion dollar coin) into 'Three Stooges' comedy.

The conversation weaves to some endgame discussions which bring Peter to discuss his father, who he sees as a political prisoner, and his views on the future...

"the biggest change that is coming to the global economy is a realignment of global living standards."

There is something here for everyone...


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Wed, 01/30/2013 - 21:58 | 3201030 zorba THE GREEK
zorba THE GREEK's picture

Physical gold and silver and guns to protect them, that's what it is all about.

Wed, 01/30/2013 - 22:03 | 3201041 THX 1178
THX 1178's picture

What does the world look like when gold is 5000?

Wed, 01/30/2013 - 22:04 | 3201048 lunaticfringe
lunaticfringe's picture

With any luck- you won't have to wait long to find out.

Wed, 01/30/2013 - 22:19 | 3201098 economics9698
economics9698's picture

I love Schiff, he gets it right almost 100% of the time.

Wed, 01/30/2013 - 22:30 | 3201136 Cdad
Cdad's picture

As for Doug Kass, whatever he says, you can discount it very quickly.  His passion is...for rent only.

Wed, 01/30/2013 - 23:05 | 3201221 WmMcK
WmMcK's picture

Casey's (other) passions include polo and cigars.
I've also spent some of my money on wine and song
(and squandered the rest).

Wed, 01/30/2013 - 22:32 | 3201142 Facemelt
Facemelt's picture

except the part about making money for his clients.  not sure that's ever happened.

Wed, 01/30/2013 - 22:45 | 3201166 ACP
ACP's picture

Oddly enough, in this bullshit manipulated market, that's probably true. The Bitchez That Be will cram down the price of PMs as long as they can until THEY decide it's the right time to move in.

FUCKERS.

Thu, 01/31/2013 - 00:44 | 3201494 Gmacks
Gmacks's picture

As a client and a friend of Peter I can tell you that's not true at all.

Thu, 01/31/2013 - 01:08 | 3201553 Freddie
Freddie's picture

I like Peter.  Caset is a bit snarky.  His old man got rich developing land around the beltway of DC thanks to the boom in the govt.  So he benefitted more than most by pst WW2 fiat paper.

Thu, 01/31/2013 - 10:40 | 3202253 TWSceptic
TWSceptic's picture

Doug Casey is one of the most entertaining people to listen to. He will tell you what he thinks and never hold back. He is absolutely awesome. His latest book was a great read, highly recommended.

 

There is no contradiction for a libertarian / anarchist to take advantage of and benefit from government stupidity. He obviously still does it when speculating.

Wed, 01/30/2013 - 22:54 | 3201191 OutLookingIn
OutLookingIn's picture

Love watching those old CNBC clips from 05,06, showing all those "laughing fools" belittling Peter as he attempted to warn them of the coming crash. Well - who's laughing now?  

Thu, 01/31/2013 - 06:49 | 3201852 dunce
dunce's picture

Schiff  is just one of many who have been mocked on national TV that time has vindicated, but the schmucks never apologize or even admit that they were wrong. They are only interested in the popular opinion and adopt it as a fashion accessory, the truth is so dull and boring and does not hold the audiences interest. 98% of their show preparation is hair styling and make up, not financial research.

Thu, 01/31/2013 - 10:49 | 3202296 MeBizarro
MeBizarro's picture

Say what?  He's like a clock on the wall and right 2 a day by sheer circumstance.  He's been wrong a hell a lot more than he has been right since '08 and done some of his clients a big disservice in the process. 

The only thing Peter Schiff cares about is Peter Schiff.  Seen him speak a couple of times in panels and he doesn't STFU & let others speak. 

Wed, 01/30/2013 - 22:10 | 3201067 BlackMagician
BlackMagician's picture

Like it does now...only with LESS people.

Wed, 01/30/2013 - 22:23 | 3201110 savagegoose
savagegoose's picture

necessities are 4x as expensives, luxuries are cheaper. but who can afford them?

Thu, 01/31/2013 - 06:07 | 3201824 cynicalskeptic
cynicalskeptic's picture

DEFLATION is occurring on the things you DON'T need while INFLATION is occurring for the things you DO need..... bad sign of what's coming.  

Most people are having a harder time affording the necessities while those with money to spend aren't spending it.

Those living day to day or holding all their savingsd in cash are going to get crushed when they wake up and find out their money won't buy a fraction of what it once did.

Thu, 01/31/2013 - 08:48 | 3201948 blindfaith
blindfaith's picture

Those living day to day or holding all their savingsd in cash are going to get crushed when they wake up and find out their money won't buy a fraction of what it once did.

Either you don't do the grocery shopping or you don't look at the register total. It is full blown on, right now and worse by the week. 

"Baritoli" alfredo sauce was 16 oz and the first ingredient was cream, water was third....now water is first and cream is down the list.  Every item in the store is adulterated. I could write a book, but no one seems ready to get out the pitchforks and make multinationals or the FED or the government change on bit.

We are ALL couch critics, and they love us for that.

Thu, 01/31/2013 - 10:07 | 3202126 CPL
CPL's picture

This is just the beginning I'm afraid.  Interesting thought on this.  Mechanised farming in North America disappears after oil touches a certain number.  Completely vanishes.  It's been happening in other countries around the world.  While we bitch about the price of oil right now, for the other 90% of the world, that point of industry fatal energy pricing has already happened.   Wait until the price point settles over 150 a barrel.  I doubt we'll see mechanised military after that point.

Everything we have done is because of cheap energy.

http://www.bbc.co.uk/news/world-middle-east-21235306

http://www.bbc.co.uk/news/world-europe-21202432

 

Both the Greeks and Syrians have taken to hacking down the forests in parkland because of the price of heating oil.  Like locusts they'll flatten the area at the rate they are cutting in about a year.  Economic crisis situations are nothing in comparison to the energy problems that follow them.  Oil > Money.

Thu, 01/31/2013 - 16:17 | 3203718 Panafrican Funk...
Panafrican Funktron Robot's picture

Indeed, there's a reason domestic sources of energy long thought to be too expensive to do profitably have had an extremely rapid ramp-up in the last few years in particular.  The petrodollar will soon be dead as a doornail (unless we were to win a war vs. the ASEAN block).  

Thu, 01/31/2013 - 09:58 | 3202099 thisandthat
thisandthat's picture

Makes a twisted sense, since, as prices go up, you're less likely to buy futilities, hence, those prices go down.

Thu, 01/31/2013 - 13:42 | 3203006 daxtonbrown
daxtonbrown's picture

"DEFLATION is occurring on the things you DON'T need while INFLATION is occurring for the things you DO need..... bad sign of what's coming."

 

That's called Biflation. Here's a whole book about it. http://www.futurnamics.com/biflation.php

Wed, 01/30/2013 - 22:47 | 3201172 ACP
ACP's picture

Put on your BernankeBlockers sunglasses, and that should be a good indication.

Wed, 01/30/2013 - 23:16 | 3201252 Dingleberry
Dingleberry's picture

Gold is going to 5k, but you won't want to look out your window. Or walk down the street unarmed.

Thu, 01/31/2013 - 16:21 | 3203722 Panafrican Funk...
Panafrican Funktron Robot's picture

I think it depends on the implementation.  For example, they could peg the dollar at $20K/ounce, and it wouldn't necessarily cause the price of everything else to run like you would think.  In fact, I would recommend they do this, if for no other reason than to provide some kind of floor on USD valuation.  

Wed, 01/30/2013 - 23:40 | 3201313 prains
prains's picture

when gold is 5000 will I be able to buy a tank?

Wed, 01/30/2013 - 23:45 | 3201332 Seer
Seer's picture

Yes.  But you won't be able to afford the fuel.

Next question?

Wed, 01/30/2013 - 23:49 | 3201339 Big Slick
Big Slick's picture

Yeah, but you'll have to build it yourself from within a FEMA camp like Roberto Benigni in 'Life is Beautiful.'

Thu, 01/31/2013 - 02:04 | 3201647 BLOTTO
BLOTTO's picture

lol.

.

Gotta love the witty ZedHed sarcasm(s)...and after reading that fuckin chindick's article - 'lunatic fringe,' i was pissed off again.

.

Carry on...

.

I'm baked.

Thu, 01/31/2013 - 07:43 | 3201877 Downtoolong
Downtoolong's picture

What does the world look like when gold is 5000?

A lot better than when it gets to $50,000.

Thu, 01/31/2013 - 09:53 | 3202088 CPL
CPL's picture

It's not what the world looks like at 5000 per oz gold.

 

It's what the world looks like at 500 per barrel oil.

Thu, 01/31/2013 - 12:10 | 3202616 Chaos_Theory
Chaos_Theory's picture

Milk still costs $4...but instead of a gallon, you get a shot glass.

Wed, 01/30/2013 - 22:12 | 3201078 otto skorzeny
otto skorzeny's picture

according to Obammy-only mopes cling to guns and religion- he'll cling to other men and cigarettes

Thu, 01/31/2013 - 11:58 | 3202562 dbTX
dbTX's picture

otto, Obama will be clinging to other people's guns

Thu, 01/31/2013 - 10:18 | 3202168 pupton
pupton's picture

Yes, but that's not ALL it's about.  You should also have other necessities that will be hard to find or afford during/after a collapse - while you battle or wait for the powers that be to get things running again.  Food, energy, clean drinking water, medicine...aynthing your kids will need, tampons, toilet paper, you know the list...

Thu, 01/31/2013 - 16:26 | 3203752 Panafrican Funk...
Panafrican Funktron Robot's picture

Liquor.  Easily understood trade value, durable, has essential uses as well (antiseptic, fire catalyst, sedative, laxative, social lubricant).  By shooters/smaller bottles for greater fungibility.  

Wed, 01/30/2013 - 22:03 | 3201045 ReptilianSlaveMaster
ReptilianSlaveMaster's picture

The sell off this week was gut wrenching - seems like all the bulls are out and ready for another healthy bull rally to dow 15,000

Thu, 01/31/2013 - 09:56 | 3202094 CPL
CPL's picture

35000.  15000 won't be around long.

Wed, 01/30/2013 - 22:03 | 3201046 LongBalls
LongBalls's picture

Bullets are a much better return at this point.

Wed, 01/30/2013 - 22:11 | 3201070 AllWorkedUp
AllWorkedUp's picture

Yep. Bullets have been the better investment. Just about anything has been a better investment that effing gold stocks.

Wed, 01/30/2013 - 22:11 | 3201071 otto skorzeny
otto skorzeny's picture

good luck finding them-unless you work for DHS

Wed, 01/30/2013 - 22:05 | 3201053 IamtheREALmario
IamtheREALmario's picture

Meh

Wed, 01/30/2013 - 22:06 | 3201057 ArkansasAngie
ArkansasAngie's picture

"the biggest change that is coming to the global economy is a realignment of global living standards."

How about we start at the top.

I don’t want to tax these yahoos … I want moral hazard. The discussion of whether to tax or not is the true great swindle. Boy howdy … talking about a “please … please … Mr. don’t throw me into that briar patch” yelp.

How about we go ahead and untwined those illegal insurance policies aka mutual destruction strategies aka “financial derivatives” aka IOU’s starting at the top and not the bottom. Don’t worry about whether John and Mary Smith are current on their mortgages. When collecting past due invoices you start with the big numbers first!

Point in fact …. without the bailout of AIG, Buffet would be $50 billion lighter. I assure you … he’d much rather fork over a billion or two in taxes than face a bankruptcy judge designating which car he wanted to have on his personal exclusion list.

 

Wed, 01/30/2013 - 22:16 | 3201086 Village Smithy
Village Smithy's picture

Great points. Love the Brer Rabbit reference. You nailed it.

Wed, 01/30/2013 - 23:56 | 3201352 Seer
Seer's picture

I would figure that most of the talking-heads would also take a pretty good bath.

Anyway, you just did what most fail to do: question the underlying premise.  Good on ya!

Wed, 01/30/2013 - 22:08 | 3201061 BlackMagician
BlackMagician's picture

Mr. Shiff you don't have to explain your call of $5000 gold here...and the future value of the dollar...It's a no brainer...why?...because Americans are so damn stupid. Most still think that the dollar is still backed by gold or silver...so why buy it? Most still think their votes count. Most continue to eat up what the MSM says without question...it's going to be ugly when they figure it out...I gave up on 'em this past Christmas after watching the zombies fight for Chinese made goods while bitching about outsourced jobs.  Now like most ZH'ers...I'm watching the clock...waiting for the real party to start.

Wed, 01/30/2013 - 22:17 | 3201091 dmger14
dmger14's picture

Yep.  Half of me wants a quick collapse starting  tomorrow.

Wed, 01/30/2013 - 22:57 | 3201203 TotalCarp
TotalCarp's picture

I like Schiff, i agree with most of the things he says..

But i always have one question.. he is a man of means, and the philosophical war that he is still fighting has been lost. He is like that jap soldier who was hiding in the caves on a Pacific Island till 1959 waiting for the enemy to come. His father is already in jail. Why is he still in US? Why is financially feeding the government that he fights? There are plenty of countries that will welcome him with open arms. Run, man, run! 

Wed, 01/30/2013 - 23:15 | 3201250 ultimate warrior
ultimate warrior's picture

I get what you are saying but I think you are overestimating the quality of other countries. This whole world is fucked so maybe Schiff is thinking its better to stay here and educate some people and fight against the state. That's probably the best option for all of us. 

Wed, 01/30/2013 - 23:29 | 3201272 TotalCarp
TotalCarp's picture

I am no Simon-Black-like clown, but i have lived outside of US for last 3 years and have no plans on returning. I thank gods every goddamn day for leaving. I think if you can live without Amerikan Idol and fking cheese wiz you will be fine just about anywhere these days.

But thats just me..

Plenty of places have: 1. Clean Air, 2. Good clean food, 3. Rule of law, 4. Good schools if you have kids, 5. Decent private healthcare. None of these places are super cheap, but hey... paying all the cash to BarakHussein isnt cheap either. 

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