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Peter Schiff On The Big Picture: The Party's Ending
Submitted by Peter Schiff via Euro Pacific Capital,
The past four years or so have been extremely frustrating for investors like me who have structured their portfolios around the belief that the current experiments in central bank stimulus, the anti-business drift in Washington, and America's mediocre economy and unresolved debt issues would push down the value of the dollar, push up commodity prices, and favor assets in economies with relatively low debt levels and higher GDP growth. But since the beginning of 2011, the Dow Jones Industrial Average has rallied 67% while the rest of the world has been largely stuck in the mud. This dominance is reminiscent of the four years from the end of 1996 to the end of 2000, when the Dow rallied 54% while overseas markets languished. Although past performance is no guarantee of future results, a casual look back at how the U.S. out-performance trend played out the last time it had occurred should give investors much to think about.
The late 1990s was the original "Goldilocks" era of U.S. economic history, one in which all the inputs seemed to offer investors the best of all possible worlds. The Clinton Administration and the first Republican-controlled Congress in a generation had implemented policies that lowered taxes, eased business conditions, and encouraged business investment. But, more importantly, the Federal Reserve was led by Alan Greenspan, whose efforts to orchestrate smooth sailing on Wall Street led many to dub Mr. Greenspan "The Maestro."
Towards the end of the 1990's, Greenspan worked hard to insulate the markets from some of the more negative developments in global finance. These included the Asian Debt Crisis of 1997 and the Russian debt default of 1998. But the most telling policy move of the Greenspan Fed in the late 1990's was its response to the rapid demise of hedge fund Long term Capital Management (LTCM), whose strategy of heavily leveraged arbitrage backfired spectacularly in 1998. Greenspan engineered a $3.6 billion bailout and forced sale of LTCM to a consortium of Wall Street firms. The intervention was an enormous relief to LTCM shareholders but, more importantly, it provided a precedent that the Fed had Wall Street's back.
Not surprisingly, the 1990s became one of the longest sustained bull markets on record. But in the latter part of the decade the markets really started to climb in an unprecedented trajectory. As the bubble began inflating in earnest Greenspan was reluctant to follow the dictum that the Fed's job was to remove the punch bowl before the party got out of hand. Instead he argued that the Fed shouldn't prevent bubbles from forming, but simply to clean up the mess after they burst.
But while U.S. markets were taking off, the rest of the world was languishing, or worse:
Created by EPC using data from Bloomberg
All returns are currency-adjusted
But then a very funny thing happened. In March 2000, the music stopped and the dotcom bubble finally burst, sending the Nasdaq down nearly 50% by the end of the year, and a staggering 70% by September 2001. When investors got back into the market their values had changed. They now favored low valuations, real revenue growth, understandable business models, high dividends, and low debt. They came to find those features in the non-dollar investments that they had been avoiding.
Over the seven years that began at the end of 2000 and lasted until the end of 2007 the S&P 500 inched upwards by just 11%, for an average annual return of only 1.6%. But over that time frame the world index (which includes everything except the U.S.) was up 72%. The emerging markets, which had suffered the most during the four prior years, were up a staggering 273%. See table below:
Created by EPC using data from Bloomberg
All returns are currency-adjusted
Not surprisingly, the markets and asset classes that had been decimated by the Asian debt and currency crises, delivered stunning results. South Korea, which was only up 10% in the four years prior, was up 312% from 2001-2007. Brazil, which had fallen by 4%, notched a 407% return, and Indonesia, which had fallen by 50%, skyrocketed by 745%.
The period was also a great time for gold and gold stocks. The earlier four years had offered nothing but misery for investors like me who had been convinced that the Greenspan policies would undermine the dollar, shake confidence in fiat currency, and drive investors into gold. Instead, gold fell 26% (to a 20-year low), and shares of gold mining companies fell a stunning 65%.
But when the gold market turned in 2001, it turned hard. From 2001 - 2007, the dollar retreated by nearly 18% (FRED, FRB St. Louis), while gold shot up by 206%, and shares of gold miners surged 512%. As it turned out, we weren't wrong about the impact of the Fed's easy money, just too early.
2010 - 2014
In recent years, investors who have looked to avoid the dollar and the high-debt developed economies have encountered many of the same frustrations that they encountered in the late 1990s. Foreign markets, energy, commodities and gold have gone nowhere while the dollar and U.S. markets have surged as they did in 1997-2000.
Created by EPC using data from Bloomberg
All returns are currency-adjusted
It is said history may not repeat, but it often rhymes. If so, there may be a financial sonnet brewing. There are reasons to believe that relative returns globally will turn around now much as they did back in 2000. Perhaps even more decisively.
Just as they had back in the late 1990's, investors appear to be ignoring flashing red flags. In its Business and Finance Outlook 2015, the Organization for Economic Cooperation and Development (OECD), a body that could not be characterized as a harbinger of doom, highlighted some of the issues that should be concerning the markets. Reuters provides this summary of the report's conclusions:
- Encouraged by years of central bank easing, investors are plowing too much cash into unproductive and increasingly speculative investments while shunning businesses building economic growth.
- There is a growing divergence between investors rushing into ever riskier assets while companies remain too risk-averse to make investments.
- Investors are rewarding corporate managers focused on share-buybacks, dividends, mergers and acquisitions rather than those CEOS betting on long-term investment in research and development.
While these trends have been occurring around the world, they have become most pronounced in the U.S., making valuations disproportionately high relative to other markets. As we mentioned in a prior newsletter, looking at current valuations through a long term lens provides needed perspective. One of the best ways to do that is with the Cyclically-Adjusted-Price-to-Earnings (CAPE) ratio, which is also known as the Shiller Ratio (named after its developer, the Nobel prize-winning economist Robert Shiller).Using 2014 year-end CAPE ratios that average earnings over a trailing 10-year period, the global valuation imbalances become evident:
As of the end of 2014, the S&P 500 had a CAPE ratio of well over 27, at least 75% higher than the MSCI World Index of around 15. (High valuations are also on evidence in Japan, where similar monetary stimulus programs are underway). On a country by country basis, the U.S. has a CAPE that is at least 40% higher than Canada, 58% higher than Germany, 68% higher than Australia, 90% higher than New Zealand, Finland and Singapore, and well over 100% higher than South Korea and Norway. Yet these markets, despite the strong domestic economic fundamentals that we feel exist, are rarely mentioned as priority investment targets by the mainstream asset management firms.
In addition, U.S. stocks currently offer some of the lowest dividend yields to compensate investors for the higher valuations (see chart above). The current estimated 1.87% annual dividend yield for the S&P 500 is far below the current annual dividend yields of Australia, New Zealand, Finland and Norway.
If a dramatic shock occurs as it did in 2000, will investors again turn away from high leverage and high valuations to seek more modestly valued investments? Then, as now, we believe those types of assets can more readily be found in non-dollar markets.
Another similarity between then and now is the propensity to confuse an asset bubble for genuine economic growth. The dotcom craze of the 1990s painted a false picture of prosperity that was doomed to end badly once market forces corrected for the mal-investments. When that did occur, and stock prices fell sharply, the Fed responded by blowing up an even bigger bubble in real estate. When that larger bubble burst in 2008, the result was not just recession, but the largest financial crisis since the Great Depression.
But once again investors have mistaken a bubble for a recovery, only this time the bubble is much larger and the "recovery" much smaller. The middling 2% GDP growth we are currently experiencing is approximately half of what we saw in the late 1990s. In reality, the Fed has prevented market forces from solving acute structural problems while producing the mother of all bubbles in stocks, bonds, and real estate. A return to monetary normalcy is impossible without pricking those bubbles. Soon the markets will be faced with the unpleasant reality that the U.S. economy may now be so addicted to monetary heroine that another round of quantitative easing will be necessary to keep the bubble from deflating.
The current rally in U.S. stocks has gone on for nearly four full years without a 10% correction. Given that high asset prices are one of the pillars that support this weak economy, it is likely that the Fed will unleash another round of QE as soon as the market starts to fall in earnest. The realization that the markets are dependent on Fed life support should seal the dollar's fate. Once the dollar turns, a process that in my opinion began in April of this year, so too should the fortunes of U.S. markets relative to foreign markets. If I am right, we may be about to embark on what could become the single most substantial period of out-performance of foreign verses domestic markets.
While the party in the 1990s ended badly, the festivities currently underway may end in outright disaster. The party-goers may not just awaken with hangovers, but with missing teeth, no memories, and Mike Tyson's tiger in their hotel room.
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no, the propaganda party is just $tarting to find its $tride...
http://www.philiacband.com/propaganda.html
Byob*
You bet it is. Peter understands the liquidity crunch is rapidly reversing outflated gains generated with Sov credit. The washout may start with liquid assets but how and who it affects was very hard to understand until Asian Flu started. Like 2008, Peter will need to nail that piece down for his work to pay off:
http://www.bloombergview.com/articles/2015-07-09/malaysia-must-overcome-...
http://www.malaysiakini.com/news/272034
Taek Jho Low and Red Granite was a good warmup. Tip of the hat to Nikki.
5jgf23-
Do not underestimate the power of clowns-in-chief to alter the course of collapse.
Yet one of these cocksucker jew banksters will fall...
https://thecampofthesaints.files.wordpress.com/2010/06/obama-fly-on-nose...
Peter Schiff was right one time in his life. He's been completely wrong everything else. I see the DOW climbing to 30,000. What's going to stop it?
The same thing that always stops it; when you get to the pinnacle, the air gets thin and you look down. Once you do that you realize you just paid $50,000 for a tulip and the air goes out of the balloon.
Peter is right about equity markets, but he's wrong about the US Dollar.
Exhibit 1: Japan
Japan is dead ! It's just an embalmed corpse with formaldehy started to run thin...
Schiff is correct. Timing is the problem.
I bought the dip. And then it dipped some more.......
Timing is ALWAYS The Problem. Often it's EVERYTHING.
Perma-Bears/Perma-Doomers are far worse than Perma-Bulls, cause all they do is bitch, moan and complain about Bull markets, but don't offer a better alternative. Your could go broke, listening to these guys. They probably target people on anti-depressants.
They're only selling PM, no matter the price or trend. They're worse than Realtors, with their "It's always a good time to buy" bullshit.
I have PM bullion (over-allocated, actually), but if I hear another pro-Gold propaganda pitch, I swear I'll go postal on them.
End of indignant rant. Time for a cocktail now.
>> (over-allocated, actually),
Ditto that. Been way over allocated for a loooong time. I can't stand gold pumpers. I don't listen to anything anymore. I just bide my time on my little mini farm and ride my motorycle around the countryside. Beats the fuck out of staying connected all the time and realizing just how fucked up things are. Besides, I don't drink so there's nothing to kill the pain.
<< Timing is everything.... >>
Roger that!
I still have ten of those expensive Ebola protective gear outfits I thought I could unload when the panic hit...but crap on me; they are sitting in my closet and will sit there for who knows how long.
Markets are sooooooooooo unpredictable just like the dangers of Ebola. Who knew thaty despite total incompetence of Freeden, the CDC and Barry, the dog gone organism would be this [relatively] harmless?
When the shit hits the fan those suits will come in handy. An Ebola suit is a form of health insurance, be grateful you don't have to use it.
Yeah I used to not drink either; Then I learned how the markets 'work' and how TPTB manipulate them all the time.
They're not wrong, though. I think you just have to get out of the system and try to enjoy what you have in your life.
"The party-goers may not just awaken with hangovers, but with missing teeth, no memories"
Missing teeth? Are we all moving to Missouri?
Nope, it's was no cars before missing teeth, you'll have to walk if you want to move.
it is likely that the Fed will unleash another round of QE as soon as the market starts to fall in earnest
It is the world that is crazy to accept such high valuations for the dollar while US debt and unfunded liabilities per taxpayer are at least 20 times that of Greece.
“The first point I want to get across is that our nation is broke,” Kotlikoff testified. “Our nation’s broke, and it’s not broke in 75 years or 50 years or 25 years or 10 years. It’s broke today.
"Indeed, it may well be in worse fiscal shape than any developed country, including Greece," he said.
http://cnsnews.com/news/article/barbara-hollingsworth/economist-tells-co...
I luv the asswipes that say the bought gold at $250, SPX at 666, and mined 100,000 Bitcon while they slept.
FUCK YOU Fonestar!
Your sister earns $350/hour doing this one simple trick!
If you say his name 3 times he'll appear, just like Beetlejuice. Knock it off.
Hey Phonestar, phonestar, phonestar ru still gay?
Since you are invoking his name three times and you want to hook up with him, he is over on YouTube.
While I am not of that persuasion...Just who am I to stand in your way?
https://www.youtube.com/channel/UCd8cUls2Ml2UxcbiC-sfVyw
It seems that you are suggesting that US is some kind of a blood sucking parasite which thrives on others misery, and others thrive when US is contained? Who knew...
A parasite yes, but more like something out of Stargate where the parasite gives hallucinations of ecstasy rather than misery
Sure, but that still doesn't mean the $US is toast, just as it wasn't in 2000
This stuff cracks me up.
Look my nigga's. You had 300 years of free energy inputs to spark your doobie for you. Fossil fuels. Free sunlight 24x7. It was fossil fuels ended slavery in the US, not Abe Lincoln. It was fossil fuels gave us empires. Fossil fuels gave us world wars. Fossil fuels got us all this consumer dreamscape of cheap crap made of plastic for our cheap throw-away 'roided up economy.
Now we're paying for all that. And you can speculate that there are another 1,000 years of this fantasy if you want, but I'm looking around and I don't see a cheap 1,000 years of that fantasy. It's gonna cost you nigga's for more of that doobie. It's gonna cost a lot. In fact some of you it's gonna cost you your mutherfuck'n life so the rest of us can go on in fantasy about throw-away lifestyle nirvana.
Get ready to die, my nigga's. The rest of us are needing you to line up like good little capitalists and put a pretty fossil fueled bullet in your head. Hey you know what they say, the dead are the lucky ones.
#cougaryoucray
In my spare time when I was a kid I used to like to buy a brick of 22cal and put matches in the ground at about 10 paces. then you shoot and try to light the match, without shooting its head off. Pretty hard, but it can be done more often than you would guess possible.
So when your ready for me to get in line for my turn kittycat, just make sure you turn you head to the side and Ill see if I can light that spliff hangin out your mouth fer ya.
forever lights my spliff homie. well alright her sister now does that without a bullet. now and forever. get it? yeah? no? try harder.
now is nice enough, but forever. dat girl. forever is a scary mo'fo'. now and forever. nice girls once you get to know them.
now has nice tits. forever i don't know about i guess she has nice guns. big ones i mean. not like she needs guns mind you. no tits at all tho and it pisses her off i think which is bad on account of the guns if you follow my drift.
Man, thats like reading a Richard Brautigan novel. I can say that the only time somebody wanted me in a line, it was about 10million NVA and a few VC. They did show me one thing and good, that girl forever is a fraud, she ain"t here. Maybe she lives somewhere but I knew few she cheated on. You remember back from time to time on a date with now...................forever.
oh hell ya she cheats. forever she's just a ho, cheats like the weather, cheats like down stream. she'll cheat when there's no reason to just because. because she's forever.
but now, while she will set you on fire and not in that nice way she's not fronting like her sister forever. now is the real thing and those tits so i think i'll take now over forever. unless forever finds out and gets it in her head i'm cheating because sad to say it can't work two ways. forever gets to cheat a man because she is that. forever i mean.
too bad forever can't be more like now. that would be fine. no wait maybe it would be nice if now was more like forever.
this bottle of wine. who drank it. fuck man now i have to go out again. hey watch me get forever to do it. she owes me.
Brautigan...what a trip...now there's a guy who'll show you what a grown up is.
Oh no he di'int!!!!!
Why should anyone care when they lived Cougar, or the circumstances? You get borne into now without deserving it. You don't deserve a fucking thing and you have supreme mission to fulfill.
You get fed and watered by an abundant planet (because it is here) for most of a century, and that's it. Who gives a fig if you have a car, cable or a stone axe, to help you out in the interim? Is that a measure or what the worth of living, and the means of dying, is. the shit you had, the times you lived in?
I think that misses the point altogether, and I mean 100% miss.
You don't deserve anything, and the planet didn't have to feed you, and it does so at the sole discretion of Life. If a person isn't a "ready" nigga to die, every second of their (NOT 'their') life, then they're failing to realize the basics. I'm literally 100% OK with dropping dead, at any second. Or not, whatever. thus I have zero issues with any of this crap, I'm rendered unrecoverably impervious to it.
How, why, or when it happens it utterly irrelevant to me. I simply don't care. Whatever.
It always fascinates me to see people worked up about it as it is just the outward expression of inner fear. Being alive and being dead are natural states, not options you get to play with. At best you can try to hang around a bit longer, 25 to 50 more years.
So I really don't get how people feel there's some thing to be 'prepared' for! ~?~
Walk out the door, trip on the top step, break a hip, catch super-bug pneumonia in hospital, dead three days from reading this. That can happen to anyone reading this.
So my fundamental question is:
So the fuck what?
PS: please take care on the steps cougar, I don't mean it personally. ;-)
sort of with you on that, apart from when people are activley trying to hasten my or my families demise. then its different.
chart p0rn, yeaaar...
some figures lie and some liers figure...
Lies, damned lies, and statistics ~Mark twain...LOL this fucktard is still hawking gold. The pathetic part is that people STILL listen to him.
Whether you are ignorant, or a troll, here's a little perspective:
Gold priced in the following currencies, and its (gold's) percentage change in value (as of July 4, 2015):
Euro +11%
Danish Kroner +11%
Japanese Yen +18%
Swedish Kroner +20%
Norwegian Kroner +22%
Turkish Lira +29%
Brazilian Real +37%
Argentine Peso +58%
Russian Ruble +62%
Ukranian Hryvnia +140%
Pearls before swine pal, let him marry Obama's queer and suffer madness when reality sets in. Besides he probably thinks the currencys you mention are all suburbs of Detroit.
40% of your list are NDF. Good luck with that.
Nice work Tinky.
Hey Tinkey, that's currency priced by gold, not your way 'round. Your way makes it look like the currency is getting stronger even though it shows the gold price going up. Currencies dowm, gold still an ounce.
I made it clear in the post.
However, I somehow forgot to mention the timeframe, which was two years (ending on July 4th, 2015.)
I've given up on trying to guess when this party is going to end.
However, from my own observations of what's going on in the real world I inhabit, I've never seen more homeless people wandering around my town with signs asking for money, or just wandering around looking for anything.
A property manager I know saw the largest number ever of late rent checks last month. Was it the Fourth of july weekend that caused it or something else? I'll be checking in with her in early August to get a feel for how things are going then too.
The feeling of tension and uncertainty is everywhere with edgy, pushy people in almost every establishment I go into. It sure feels like the rope holding this whole crap heap onto the cliff side is stretched to its limit. Still, we shall see if the banksters and their political lackeys can stretch it even further. They got more distance out of their earlier schemes than I ever thought they could. I can barely stand keeping up with it anymore so ignore it as much as I can and just enjoy each day as they come. Good luck to all in doing the same.
Signs asking for money? Its money for heroin and the likes. Its epidemic. And just think of all the welfare money that pays for drugs that goes to the drug cartels. Its like buying foreign oil. We're funding those that are actively working to kill us.
I don't give a shit about welfare money being spent in a way that seems to rile up so many people beyond any rational thought and is used to divide and conquer the serfs. (Now, all the welfare we've given to the banks and MIC is another story and far outpaces anything given to people with EBT cards. But that's another story...) I'm just trying to observe what's going on in my neck of the woods so I can adjust accordingly.
Personally, I've never had, or I've dumped, the emotional baggage connected to who's doing what to bring down the system as this whole con game never was sustainable from the start of my adult life. All that's happening is that all of the bullshit we've been telling ourselves and that's been drilled into our head by the countless propaganda outlets is finally crushing this bullshit system under its own weight. It was inevitable. I'm just doing what I can to surf this wave because I sure as hell can't stop it or fight it. You are quite welcome to deal with it in your own manner.
Maybe the clowns in charge have a reason for militarizing the police force. They see what is around the corner.
http://jewsofnewyork.org/blog/video/the-descendants-of-jacob-schiff/6/
Herd control.
Your point being?
You do know Peter's dad still languishes in jail for fighting the IRS
http://www.paynoincometax.com/irwinschiff.htm
Peter's pedigree is impecable
The articles at Zero Hedge help me think outside the box. This is my takeaway on the above article.
When a stock market performs quite well over a time period, say 4 years, it will underperform the next few years.
Conversly, when a stock market performs poorly over a time period, it will subsequently outperform.
So this means...buy the Greek stock market!
Here is a chart of the Athens Stock Exhange: http://www.bloomberg.com/quote/ASE:IND
It is about 50 perent lower now than it was in 2011. It looks like that the Greece-ECB kerfuffle is ending soon too.
Some people thought that about the stock market in Cyprus too. Then it went down another 75%. Then people thought it was oversold, and then it dropped another 90%, a bunch more times. It's lost over 99% and hasn't really come back, at least last time I checked. But by all means, jump right in. I wish you the best of luck.
cypros is something else not related to economy
Can't help but think about the Shemitah. We'll see I guess. That's no different than any other prognosticator on ZH or out there in lala land.
He always makes a lot of excellent points, and the market usually ignores him.
One of his best calls was to invest in Euro in 2010. /sarc
Sucks when you loose money.
Sucks to be wrong.
Sucks to be publicly humiliated.
Sucks to have bad timing.
Sucks when there are bubbles.
Sucks to be right -- but the Fed holds all the cards.
Sucks when stocks rally, especially when you're short.
Sucks to be Peter.
PS
Sucks that Chuck Norris died 20 years ago
Sucks that Death hasn't built up the courage to tell him yet.
"Sucks to be Peter"
70 million $ in his pockets
this guy earns money with the hearts of people by selling for example books and playing a hero
Then I assume you are all in stocks and bonds with leverage. Report back in a few years.
Bond market dwarfs the stock market. I'm guessing the bond market is where any major correction will start.
As the bubble began inflating in earnest Greenspan was reluctant to follow the dictum that the Fed's job was to remove the punch bowl before the party got out of hand. Instead he argued that the Fed shouldn't prevent bubbles from forming, but simply to clean up the mess after they burst.
How does one, not elected aquire this Power in a Democracy?
Crime Against Humanity.............I wonder if his Religious beliefs allow this Immoral Overlord to Be This Corrupt?
Does any Non_Jew (OTHER THAN A SLAVE/Minnion) stand a chance?
For everyone bad-mouthing Schiff here, I find it worthwhile to remind them of the following:
"Peter Schiff was right 2006-2007" https://www.youtube.com/watch?v=Z0YTY5TWtmU
Also see:
"Peter Schiff Owning Everyone's Ass on C-Span" https://www.youtube.com/watch?v=YW9f2KsyaOI
You gotta give this guy credit, he takes more shit in the public sphere than just about anyone else out there, despite being proven right again and again. And they rail on him for one simple reason: he speaks truth to power.
This world needs more like him.
Peter must not go to very good parties. This party hastn't even gotten started. I mean, I don't hear any noise yet or even see any cops outside. Nary a naked lady or an outlaw biker to be seen either.
Anyone that questions the "Chairsatan" is a friend of mine.
"Peter Schiff On The Big Picture: The Party's Ending"
Sorry Peter, but this party may be winding down, but it's in meeting room "G." The big party is over in ballroom "Z," for Zion. That party isn't even close to over; Not over until the guillotines sing.
Liberty is a demand. Tyranny is submission..
What will grow where the guillotines dispatched tyranny? Daisies or weeds?
You are actually reminiscing for the French Revolution? I hope not.
You may as well yearn for the good 'ole days of the Chinese Cultural Revolution or even Pol Pot's cleansing via the Khmer Rouge.
Alternatively, a new party is about to begin.
I think you are on to it! This market is not broken yet. Watch the Emini S&P 500 Futures. There are very obvious break levels there. 2047 is a key level etc. For those who want to know, look at Ambush Trades. I use Measured moves and they follow distinct patterns. I make a living trading these ranges.
things will go to shit that will bring on qe i forgot the number then when qe doesn't work there will be 1 thing & 1 thing only that will be wanted dollars you pm loving morons
Historically, the messenger gets killed.
People say Peter is an insider; he couldn't have missed all this and be on the inside. The problem is underestimating the extent of the enemies tentacles and tactics, which are psychopathic. Like giving children in a sand box ak_-47's instead of plastic shovels and buckets. It is a spiritual warfare manifesting itself in the physical world and the enemy of men's souls is very powerful.
------------------------------
Satan was a liar and murderer from the beginning and each person belongs to one of two families, Satan or God's (Jesus). If you do not believe that, then you are ignorant of the warfare and of Scripture, for what is says is true; therefore what it says about man is true (I find deadly accurate) and what God has said would happen has happened and therefore what is said about the future will also come to pass. People call it ancient, but the very nature of truth is that it transcends time, cultures and nations. Truth becomes old when it is no longer needed, sought after or desired. If you want to know how God worked on this nation and what the founders actually believed; get a small book (easy to read) titled "Miracles in American History" and another must-read book is the Bible if you want to ever get to truth, which most prefer to substitute emotionl bias for truth and dress it up as logic and reason.
NC State and local unemployment rates are going back up.
I think that there is a good chance that Peter Schiff is directionally correct with this post, especially as it relates to precious metals and miners.
The one adjustment to his analysis that I might make, and it is something that he does not really address, is that China may need to be grouped along with the US in the equity overvaluation sense - which would be consistent with his theme in a way, because it would be hard to argue that China should not be re-categorized as one of the "economically dominant" nations whose equity markets tend to get overvalued at the peak (much like the US did in 2000).
If we chose to reclassify China as "US-like" in it its demeanor from an equities perspective, then the Chinese market collapse is consistent with his premise that the cyclical readjustment has already begun.
"the anti-business drift in Washington".......
Does Peter really think that? I'd say that the latest totally non-transparent secret trade agreement yet once again proves who is running the show in D.C.
The only "drift" I can see is the continuing charade of our elected officials serving special interest groups at the expense of the average citizen.
My guess is that he's using "anti-business" in a monetary policy sense- artificially low interest rates, bubble creation, tolerance of market fraud, etc.