Peter Schiff: Nobody Is Prepared For The Long-Term Pain That's Coming


The stock market continues its yo-yo ways.

Peter Schiff has been saying for weeks this is a bear market. Well, now even Pres. Trump has said investors may see some short-term pain in the stock market. But the president says it will all be worth it because we will get long-term gain, referring to the benefits we’ll reap when we win the trade war. In his most recent podcast, Peter said that’s not how it’s going to play out.

We’re going to have short-term pain and then the pain is going to get worse in the long-run.”

The big problem is, nobody is really ready for any pain at all.

Peter said this is pain for no reason because these policies are a mistake. Not that some short-term pain wouldn’t be beneficial. But policymakers aren’t willing to take the real steps necessary to reap long-term benefits – cut government spending, cut entitlements, cut defense spending, and shut down government agencies and government departments.

There would be some short-term pain that would deliver some long-term gain. How about if the Fed normalizes interest rates and lets the bubbles collapse, lets people lose money, lets the markets restructure? That is short-term pain for long-term gain. That is what a real free-market recession is like. Let the government get out of the way. Let the central bankers get out of the way, and let the free market correct the imbalances and create a good foundation where we can build a lasting, sustainable, viable recovery.”

But Peter says that’s not what Pres. Trump is all about. He’s about avoiding the short-term pain by kicking the can down the road.

Peter also noted that even while stocks are falling, there is no flight to the dollar. When stocks fell in 2008, people ran to the dollar, but this time, the greenback is not a safe haven. He said the dollar is consolidating for its next big leg down. It’s the opposite for gold.

Gold is getting ready to blow through the roof.”

But right now, people are still complacent. They still believe the fundamentals are good. Peter repeated something he said in a previous podcast – in a sense they are right. The fundamentals haven’t changed. They were lousy when the market was going up and they are lousy as the market is coming down. But the key thing to understand is that the fundamentals are actually getting worse.

This is a time bomb. The debt keeps going up. Every day we’re closer to the crisis. Every day there is more and more debt, right? And so, every day that goes by, we’re one day closer to the debt imploding.”

Peter went on to break down the most recent jobs report and highlighted some other bad economic news that didn’t get much play in the mainstream media.

He also talked about what will happen if the Fed doesn’t follow through with interest rate normalization. The market certainly isn’t prepared for that.

Normally the markets are forward-looking. They discount things that they think are going to happen. Well, if you don’t think something is going to happen, how can it be discounted? So, it’s when the markets are blindsided, when they’re surprised, that’s when you see the biggest moves because they didn’t get discounted in advance. You can’t buy the rumor and sell the fact if you’ve never bought the rumor because you don’t know there’s a rumor or you don’t believe it. So when the fact happens, nobody is positioned for it. Nobody is prepared for it. And that’s where we are in the gold market. That’s where we are in the gold stock market, in the bond market, in the US stock market. Nobody is prepared for any of the things that are going to happen because nobody believes that they are going to happen.


Theosebes Goodfellow sabaj49 Tue, 04/10/2018 - 13:48 Permalink

~"But policymakers aren’t willing to take the real steps necessary to reap long-term benefits – cut government spending, cut entitlements, cut defense spending, and shut down government agencies and government departments."~

And that's it in a nutshell.

Pain cometh to he who is currency-denominated.

Pain cometh to he who is not in hard assets.

Schiff, and his daddy before him, understands that PMs are Money, and reservoirs of wealth, as is land and capital equipment.

What's in your safe?

In reply to by sabaj49

JohnGaltUk j0nx Tue, 04/10/2018 - 10:40 Permalink

Give him a break. It would have been game over a long time ago if central banks round the world were not monetizing government debt, buying equities, slamming the gold market will paper gold, NIRP, ZIRP, currency manipulation. I thought it would have been 2016/17 but the plate spinners still have the plates in the air.

You better have big balls when this falls apart. 

In reply to by j0nx

divingengineer JohnGaltUk Tue, 04/10/2018 - 10:53 Permalink

People think he's a nut for preaching sound investing, he has been consistent and solid in his advice since I can remember. 

We are in bizarro world now. Fundamentals, we are told, do not matter anymore. Long term buy and hold does not work anymore(except for retirement accounts, just sit tight in stocks you ignorant muppets).  You have to trend invest, BTFD and by all means, get levered up! Chase that yield! Even if you have to invest in Chinese organ harvesting companies' junk bonds to make 3%! Don't save, buy stawks!!!


Also, fun fact, I believe his father died in prison over an IRS income tax dispute.


In reply to by JohnGaltUk

libertyanyday divingengineer Tue, 04/10/2018 - 13:29 Permalink

the degree of market manipulation astounds !! NYSE , like other exchanges see only 15 percent of trades done by humans thus rendering any investing tools of yesterday completely irrelevant .  The system is under control of the Great and wonderful OZ........ I have been amazed that the dollar still can be traded for hard assets, im buying PM's cause there isnt anything else

In reply to by divingengineer

tion divingengineer Tue, 04/10/2018 - 13:44 Permalink

So much futility in chasing financialized fuckery gains. I wish more would honestly ask themselves, even if you manage to profit, will you feel satisfied and will you be able to manage to hold on it long enough for it to matter at this stage in the game? People feel it in their bones but they don’t want to face the futility.

Gold is good for serving many purposes and can have no carry costs, but it is unproductive. If someone is looking into buying even moar gold they will never need or for well down the road or to benefit future generations, why not look into putting in some sweat/$ to Make Well Managed Timberland Great Again as a means of further diversification? (I’m especially looking at you rich motherfuckers who already bought up large tracts of pillaged land on the cheap to hunt on and let all of it grow into scrubshit ^^)

In reply to by divingengineer

Decoherence j0nx Tue, 04/10/2018 - 11:25 Permalink

Whether central banks can keep this shit show going much longer or not remains to be seen, but I like Schiff.  I'm sure he wants to make money like everyone else, but he sounds like he's coming from a sincere place.  His arguments make sense, but it's difficult to understand what central banks are capable of doing.  Because it's not just the free market manipulation, it's the psychological effects those games have.  People are easily duped, and I think Peter overestimates markets / people's ability to see through the bullshit.  

In reply to by j0nx

spastic_colon Tue, 04/10/2018 - 09:07 Permalink

" cut government spending, cut entitlements, cut defense spending, and shut down government agencies and government departments."

what do all these have in common? there's your answer.

onewayticket2 Tue, 04/10/2018 - 09:08 Permalink

i believe peter, generally.  He's right.  But believe we'll get a decade or two of ever increasing UBI and "debt forgiveness" to keep the party going.  Gold may outperform with those influences, but I don't see the deserved collapse.  Not with a fed that's shown it will mop up any problem.


it's not the 50 year olds who have to's the 20 year olds.  And those F@#$%$s are rooting for acceleration of the nation's demise.   They'd be wise to listen to Peter, et al.  But sadly, they're trying their best to silence dissenting views.  



chubbar onewayticket2 Tue, 04/10/2018 - 09:26 Permalink

Schiff understands that his "cure" is the downfall of the gov't. The malinvestment through decades of easy money and gov't spending has more businesses dependent upon the economy that has sprung up as a result than not. In other words, almost the entire economy would disappear but for the money coming into the economy via gov't spending and the finance sector (which would disappear).

Nope, the people in gov't have one job, that's to remain in power. Now, it's possible that Trump is doing his best to accelerate the collapse so that we can segue into a completely different monetary system. What that will take, in order to avoid the above scenario, is new technology that can drive a new economic system out of the gutter. Something like "free energy" systems which would require a complete revamp of how we live and what we can do to clean up the environment.

It's been long rumored that the black programs have this technology but the Rothschild/Cabal was keeping it hidden until their depopulation agenda was run. With Trump in there, we are seeing this slow roll-out of disclosure of ET craft, which could be the source of this technology. It's possible that this all happens simultaneously so that there is actually a viable plan that can be implemented which takes our civilization into a entirely different and sustainable direction. At least it's a slim chance, if the cabal doesn't take out Trump in the interim.

In reply to by onewayticket2

Cloud9.5 onewayticket2 Tue, 04/10/2018 - 09:30 Permalink

The collapse is always some distance away until it is not.  I thought this thing was coming apart in 08.  Somehow or another magic money men have kept the show on the road a bit longer.   This year may or may not be it.  We won’t know until we have walked through it.   This year is pregnant with possibilities.  Look to supplies.  But don’t pull a Millerite mistake by selling out, giving it away and going to the mountain top to be beamed up.

In reply to by onewayticket2

Bank_sters Tue, 04/10/2018 - 09:09 Permalink

Subprime borrows are sitting on 72 month 30-40k car loans with maxed out credit cards.   Homes are at record highs as wages go  stagnant.   Oil prices are rising as are interest rates.   Money printing will not solve these problems.  Neither will it solve the war pig's geopolitical quagmire.   

Nunyadambizness Bank_sters Tue, 04/10/2018 - 09:37 Permalink

It's priming to be 2008 on steroids...

I am reminded of an old favorite of mine.... 

Generals gathered in their masses 
Just like witches at black masses 
Evil minds that plot destruction 
Sorcerers of death's construction 
In the fields the bodies burning 
As the war machine keeps turning 
Death and hatred to mankind 
Poisoning their brainwashed minds 
Oh lord yeah!....

Day of judgement, God is calling
On their knees the war pig's crawling
Begging mercy for their sins
Satan laughing spreads his wings
Oh lord yeah!

In reply to by Bank_sters

gmak Tue, 04/10/2018 - 09:11 Permalink

No one expects the Spanish Inquisition. Wait until we all have to act like Manginas because "toxic masculinity". Then you'll know real pain. Following that it will be the 500 year reign of the barbarians who practice the doctrine of peace and like little boys.

wmbz Tue, 04/10/2018 - 09:11 Permalink

"Nobody is prepared for any of the things that are going to happen because nobody believes that they are going to happen.”

~ Most people don't believe with good reason, the "system" is controlled by master debt creators and can kickers. The system should have been flushed out long ago.

Every time going forward there is a glitch in their "system" they paper over it. So one day at some point in time there will be a very large correction, because the system is closer to being overwhelmed, but nobody knows when "it" will happen. Everyone is guessing.

wetwipe Tue, 04/10/2018 - 09:15 Permalink

"Gold is getting ready to blow through the roof.”

He's being saying this since before I started getting hairs on my sack.

I'll say it too... sometime between now and 2150 their will be a currency crisis and yes holding gold will be great, but so will property, farmland, physical assets, etc, etc. In the meantime gold goes nowhere whilst everyone else just BTFD and gets rich.


cubitknot Tue, 04/10/2018 - 09:16 Permalink

As the destruction of the country county unabated I ponder why the vast majority still holds faith in a corrupted system. Elections just don't matter and votes don't mean a thing as no matter who gets into office the games are always the same.

The people are just outmatched and nothing they do will stop the events about to transpire, so complain, write your congressman, express your outrage and watch as the entire country is destroyed from the inside out rendering it gone forever.