Fireworks Fly As Peter Schiff Warns "An Economy That Lives By QE, Dies By QE"

Tyler Durden's picture

Ahead of tomorrow's decision by the FOMC, Peter Schiff ventured on to CNBC to discuss the economy, the fed, and gold... among other things. Schiff rightly fears that while the Fed may well stop QE3 tomorrow, QE4 will not be too long behind it as he notes, rather eloquently, that "an economy that lives by QE, will die by QE" as the Fed's total lack of willingness to allow stocks to fall (see Bullard 2 weeks ago) or a 'cleansing' recession leaves the nation's economy in far worse shape than it was before the Fed's intervention. Schiff calmly replies to the anchor's questions (as she proclaims "I am not on the side of the Fed but..."), gently explains his view on gold when challenged about his 'wrongness', but when a guest starts hounding him for being dangerous to CNBC viewers wealth... Schiff (rightly) loses it - must watch!


A well reasoned discussion of the Fed's manipulation of markets and mal-investment hangovers is well worth the price of admission... but at around 6:35 when Scott Nations unleashes his tirade on Schiff, the fireworks start to fly... and Schiff (while being shouted over) reminds guests, anchors, and viewers alike "Go to YouTube, I am wrong a lot less often than most people on this program... and all you do is hassle me"  that he was among the very few appearing on CNBC before the crash who foresaw it and the cataclysmic shift that has occurred (no matter what the perception of short-term memory traders)..."Think of all the bulls you paraded out here when Nasdaq was 5,000"

Absolute must watch...

We can't help but feel the timing of this tirade against Schiff is spookily prophetic and will be in its own YouTube class in a few years...

*  *  *

Ironically, here is Scott Nations in 2008 getting "Schiff'd" by the CNBC anchors (Liesman) and some other guest muppet when he dares to suggest the Fed is intervening and that the President's Working Group (i.e. Plunge Protection Team) is hard at work...

"look at the market action on the 10th and 28th and tell me what else might have generated a 100 point rally in the S&P under that situation?" Liesman fobs him off as some conspiracy wonk...

Yep looks normal to us... 10/10/2008


and 10/28/2008


Those are 100 point moves on a 700/800 S&P!! Nothing to see here eh Liesman, Kiernan, Quick?

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Greenskeeper_Carl's picture

I can't believe they still have him on there. I guess since he is wrong right now(temporarily in my opinion) it's good to have him on to try to make him look foolish. But I bet once he is inevitably right, he won't be getting too many invites. They'll keep parading idiots like gartman on there telling people to buy the dpi every day, all the way down to S&P 600 or so.

ForWhomTheTollBuilds's picture

I saw an interview of him about a year ago, where he mentioned that before the housing bubble burst, every network wanted him on to laugh at and when it became obvious he was right the phonecalls stopped dead.  No one wanted to talk to him anymore.

All the networks wanting him on again now means that we are at a certain point in the process and moving forward.

I MISS KUDLOW's picture

So is mr nation suggesting everyone sell gold and does mr nation own any? For this to be a legit interview mr nation must disclose whether he owns gold,we all need to know

Keyser's picture

Meh, CNBC, what else can you say... 

walküre's picture

the blowhorn is really trying to get people to liquidate their stashes and BTFATH

they need retail stock buyers to come back and desperately

jbvtme's picture

when schiff is finally right i will be long dumpsters and soup bowls...

Cruel Aid's picture

and im sure Hitler had his tender moments

InjectTheVenom's picture

Scott Nations is a complete tool.  I'd take parenting advice from Casey Anthony before i took investing advice from SN.

bunzbunzbunz's picture

Everytime someone says the market will go down, a QE angel gets it's wings, fucks them in the mouth, and grabs the S&P lifting it higher (the cumulative power of angels).

Pinto Currency's picture




When London's LBMA, which is 85% of global gold trading volume, trades 180 million oz. a day with 100:1 paper leverage, the price can't possibly move in any meaningful way until the rig blows up.


Nations is correct in the short term. Schiff is correct in the medium to long term when the whole thing blows. Schiff should know better than to make short term gold calls but then perhaps he believes in the unallocated LBMA gold (paper gold) market.

Supernova Born's picture

If they lose control of the price of gold they will confiscate it and make possession illegal.

They did it before and they'd do it again.

Nothing is as convincing as to the inherent value of gold as money, and as a long term store of value than trying to figure out a substitute.



SocialismIsCancer's picture

Bingo ! - Absolutely correct !!!!

Squid-puppets a-go-go's picture

Schiff vs Nations = the difference between an analyst who cares what constitutes a healthy economy and a greedy fuck who only cares to make money

Keyser's picture

The bottom line is that Peter Schiff is a Schiff family member... If you don't know what that means, you might check his family tree... 

Utah_Get_Me_2's picture

You mean the Kuhn Loeb Rothschild bankster family that was intimately involved with the formation of the Federal Reserve? Yeah they're horrible.

However it appears Peter G Schiff and Peter D Schiff are different people. Let me guess.. it's a Zio-Jew false identity conspiracy.  

lunaticfringe's picture

Fool me once in 1933. Shame on you. Fool me twice, I don't think so.


I am not chumbawamba.

jeff montanye's picture

"they" are not confiscating it from the chinese or the russians.  not even from the indians.  probably not even from saudi arabia, more subservient than which is hard to imagine.

for subjects of obama and his likely shameful successors, buy gold and silver miners.  they weren't confiscated in '33.  they went up about 500%.

Squid-puppets a-go-go's picture

yer, but good luck buying stoxx of a miner that wont go belly up before the reset - with silver trading at 75% of its production cost

rbg81's picture

I am not chumbawamba.

I like it!

crazytechnician's picture

I dont think people would be falling for that old trick again. But it is a lot easier to confiscate physical gold than bitcoin.

Pumpkin's picture

The only reason confiscation didn't turn to revolution in the 30's is that the people trusted government.  Not so today.  Back then, everyone had gold, today the people who actually have it know more about the truth of 'money' and they know what fiat is.  Gold confiscation today would hardly be worth it. 

BigJim's picture

Even under the gold exchange standard, virtually all money was gold back then, so it was relatively easy to confiscate - they just seized it from the banks.

Now? lulz, good luck. As soon as word got out that FedGov were confiscating, oops, sorry, nationalising gold, it would vanish into a million holes in the ground.

Temporalist's picture

Did she say "inflation" because she should know that there is no inflation as per The Fed.  Your "money" is not eroding as she claims it's only getting hopier.  Also she quite rightly points out that if you haven't gambled in the stock markets you can only hold cash; those are the two choices, nothing else.

sun tzu's picture

There is no inflation because the BLS doesn't count unnecessary items like food, energy, and housing. 

stacking12321's picture

keyser, that was a cruel tease, that's not THE jackass, that's just A jackass. you made me think a new golden jackass interview was out.

this is THE jackass, jim willie:


forexskin's picture

and of course any talk of manipulation is "out there" for CNBC. regardless, its happening, due to the FED backstopping primary dealer metal shorts, leasing, ETF wipeouts, etc. the foreign metal settlement exchanges will be the turd in the punch bowl that finally sends COMEX and LBMA to the ER - to say nothing of the chinese and russian accumulation on the cheap - which in my humble opinion, is a quid pro quo for them to not dump the treasuries they hold, starting the (long overdue) run from the dollar to all tangible assets.

fuch the fed.

SilverIsKing's picture

I guess if Peter mentioned the huge drop in CNBS viewership, he would never be invited back.

knukles's picture

Alex Jones is 1,000,000X more right than CBNS

Hal n back's picture

gave up on cnbc when Abby Jo was telling everyone to buy the dip back in 2000.


saw liz claiman on news early this evening talking up the market and how well FB had done. Before FB guided down. And although I do not watch cnbc nor fox biz much, I highly doubt they are exploiting buybacks and NON GAAP accounting all that much as a news story--they will. Between GOOG and FB--most companies would like their sales to be equal to FB and GOOG NON GAAP adjustments.

TahoeBilly2012's picture

CNBC sucked so bad I just got rid of my whole TV.

Lore's picture

When did this process of shouting over one another become endemic to financial television? It's quite offensive and distasteful. That guy Nations seems long overdue for a forceful lesson in manners and class and humility.  It seems symptomatic of a problem manifesting in all levels of American society these days.  Bullying is hardly a healthy, constructive way to resolve disputes.

jeff montanye's picture


tell that to afghanistan, iraq, pakistan, yemen, libya, syria.  

poster children for the genius of u.s./israeli foreign policy.

they want broken states and dead muslims.

it's how they roll.

rbg81's picture

Actually, if you had bought the dip in March 2000 and sold later that summer, you would have done very well.

Aeternus's picture

Just put up this Halloween special of steve quayle on alex jones, complete with animated quayle in a bunker with tom cruise.


Heh heh,, you are right.  The live video feed would cut off too like it did for gata's Bill Murphy when he began testifying before the CFTC in 2010. 

TeethVillage88s's picture

US-UK System loves to cover-up faults.

US-UK System can not admit faults or weakness. You might call this perfectionism. You might call this hyper-politics where you can't afford to show weakness or to even loss one time in public... so you blame employees, scapegoats, sub-contractors, partisan politics, and politics in general.

The fact is that US-UK System is hyper-competitive and Europe must be also. US is the most productive Nation in the World... therefore must be the most corporate system in the world. Sort of fits with the fascist theory... Germany, China are just more socialist or more cutthroat.

Empires Fall:

- When we can't tell the truth
- The Government Can't Tell the Truth
- Government Statistics are Falsified
- Voting Citizens don't know the Truth
- Slaves or Indentured Servants rebel for their Ideals of Democracy, Free Markets, Individual Rights, or for freedom from Serfdom
- Citizens are not longer willing to support foreign Wars or Domestic Wars with blood or Taxes or Inflation

Lore's picture

I recently had a conversation with a kindly, innocent old gentleman who said, with a perfectly straight face, that one of the most important things that make him proud to be a citizen of this nation is that we have press that we can trust. 

ebworthen's picture

Schiff is threatening their religion, their faith, in the Ponzi.

Notice how they ignored the 2008 and 2000 crisis?

Wild-eyed acolytes of the church of debt.

Four chan's picture

five bucks says the fed announces qe4 tomorrow. the last gyrations were testing the controls.

rqb1's picture

I'll take that bet. They will say what they did last time, s and p up for a day or 2 then, down.

sun tzu's picture

They will wait until the next market correction. My guess is tomorrow they will say rates not go up until forever and QE4 may start if necessary. The markets will roar another 300 pts. The markets won't return even stop for a breather until after the elections. We may see new highs by Nov 5.

LostandFound's picture

If your right, then the Petro dollar will demise faster and quicker, interesting times we live in. 

DavidC's picture

Precisely. And it's the same airhead presenter who gave Bill Fleckenstein the hard time the other week.

If she's so good, why is she a TV presenter instead of an investor?


Charles Nelson Reilly's picture

Being a gold bull or skeptic of this charade is the equivalent of a football team that is down 13-0 late in the 4th quarter. They haven't moved the ball all day and have had their brains beat in for 4 quarters. They score a quick long TD, then recover and onsides kick & march down the field to score the winning TD as time expires. Everyone who was high fiving one another & dumping Gatorade on the coach 2 minutes ago looks around at each other and is trying to figure out what exactly the fuck just happened.

Keyser's picture

The nupties on CNBC all have very short memories... I'm glad Peter reminded them of his track record and the fact that he was a laughing stock in 2005 - 2006... Doesn't matter that gold went from $800 to $1900 from 2008 - 2011...  The hosts were told to do a hit piece on Peter and they think they succeeded...