🔴 Recession, Gold and the Dollar (w/ Peter Schiff) – Why Gold Is Going Up

🔴 Recession, Gold and the Dollar (w/ Peter Schiff) –  Why Gold Is Going Up


I think a big part of– most people in the
gold world argument is there’s a finite amount of gold. But there’s a lot of claims on it. But there’s only so much physical gold that
exists. Right? But then there’s the GLDs, there’s the futures
contracts that aren’t really backed by gold, or you know you can’t take delivery, the ETFs. So a lot of the argument is that when people
scramble for gold, there’s only so much actual physical that exists that’ll push the price
up a lot. Yeah. It’s going to go up. And of course, you know GLD, that is physical
gold because the GLD, the ETF has to buy the actual gold in order to issue the shares. But yes, in the futures markets, there it’s
a whole different ballgame. Because there, you have people selling gold
who don’t have it. Right. And people are buying gold that don’t actually
want it. They never intend to take delivery. So you can have this paper market of basically
gambling on the price of gold. But yes, a lot of the demand that might otherwise
go into real gold ends up going into futures contracts, which is not buying any actual
gold. But where the problem is going to set in–
and maybe it’s not a problem. If you’re long gold, it’s an opportunity,
or a good thing. Right? But at some point. A lot of the owners of these futures contracts
are actually going to request delivery. Yeah. Because just because they don’t do it now
doesn’t mean they won’t in the future. And at some point, the longs are going to
want delivery and the shorts are going to get delivered a notice that says, yes. You need to deliver your gold. Now the shorts don’t have any gold. Yeah. So now they have to go into the market and
actually buy it. Well where are they going to get it? Right. And that’s when you have a huge move up, and
maybe even a bankruptcy of the COMEX Or does it have to be bailed out? Or what’s going to happen? Or are the people who are requesting their
gold going to be told you can’t have it? You know, you’re going to get paid in cash. Even though you requested physical delivery,
it’s not going to happen. So this could be an explosion of real buying
of gold. And there are a lot of people that own gold. That, oh, it’s all manipulated. And all the paper markets are keeping it down. Maybe so, but it can’t go on forever. And for me, if they are manipulating it, that
means the price of gold is artificially low. That means it’s a great buy. Right, we’re going to get paid. Right, when was the last time gold was really
artificially low? It was when the government controlled the
price until 1971. It was fixed at $35 an ounce. And then Nixon devalued a couple times to
about $42 before we went off the gold standard. But for years, the price of gold was artificially
suppressed. But as soon as that stopped, gold went from,
what, $40 to $850. And so I think gold has been suppressed, whether
it’s an orchestrated plan to suppress it, or just based on market forces of people just
doing what they’re doing. But you have a lot of activity that I think
has suppressed the price of gold. But it won’t go on forever. And eventually, market forces are going to
overwhelm what’s going on to keep the price of gold down, just like eventually overwhelmed
the government’s ability to keep the price down. And the price is going to find a real value. And it’s going to be much, much higher than
it is today, which is why people should own gold. Now, should they only own gold? No. I don’t know I never tell people to only buy
gold. But people should own gold. They should own some gold. And they should own gold stocks. I mean, these things are dirt cheap. I mean, if you want to look at what stocks
can do, look at what gold stocks did in the 1970’s. I mean, there were stocks that went up 50,
100-fold. That’s going to happen again. All right, so people just have to be in these
stocks. Do you have to have your whole portfolio? No. But have some money in these stocks. Most people today have no money in gold, and
they have no money in gold stocks. So using that same kind of analysis that we
just applied to gold that there’s a limited amount of gold, and a lot of claims on it. And at some point, when people call for delivery,
it will push the price up. If we do that same analysis on the dollar. Uh-huh. There’s only $4 trillion of base money. Everything else is loaned into existence. But we’ve got $50 or $60 trillion of dollar-based
debts in the world. That doesn’t include the unfunded liabilities. That doesn’t include the derivatives. So if we do get into a deflationary scenario,
before the inflationary scenario comes, the stock market starts to crash. And we go start into another 2008-type event. Doesn’t that start a daisy-chain of claims
on only $4 trillion that exists? And for a short period of time, won’t the
dollar have those same characteristics that we just talked about with gold? No, because, I mean because dollars, A, intrinsically
have no value. But B, can be created into existence by the
Fed. They can create dollars whenever they want. But they won’t do it until it gets strong,
right? If it’s falling, why would they create more
dollars? Well, in order to prevent rates from rising,
and in order to bail out the government. So let’s say we do have a deflation, and rates
start to rise, and the government has to default on the treasury bonds. Is the Federal Reserve going to sit back,
and allow the US treasury to default on the treasury bonds? Or will the Federal Reserve bail them out
by buying the bonds themselves? Right, because if the market doesn’t want
them at artificially low interest rates, and the Fed– and the Treasury, rather, can’t
afford to pay higher rates, the only buyer is the Fed. Also, if the government has a choice. Hey, we have these Social Security benefits
that we need to pay, but we don’t have any money. Where are we going to get this money? Oh, well, maybe we’re going to default. And tell the people who are expecting a Social
Security check, you’re not going to get your check. Or we have all these government workers who
are retired. They’re expecting a pension. You know, we’re out of money. We’ve just got tell them there’s no check. Is the Federal Reserve going to sit back and
allow all this to happen? Or is the Federal Reserve going to create
the money to make it all possible so that the politicians could pay what they owe? I think that’s more likely, than that they
just apply the tough love. And say, it’s tough love. And say, hey. Too bad. You’ve got a crisis. Deal with it. Decide what– you know, cut spending. I don’t think that the Federal Reserve– our
Federal Reserve is going to do that. So gold, we know. If we run out of gold, it’s gone. Right. You can’t just– you have to mine it. It’s hard to find. It’s expensive to get it out of the ground. Right. They can put as many zeros as they want on
those dollars. They can push buttons, and create them in
infinity. So it’s not the same thing. We did have a run–
But leading up to it, until they pushed the button. When people are going to the banks, and there’s
a run on the ATMs, and they can’t get that cash in– I don’t know– the two days, the
week– the two weeks it takes to pass this bill–
Yeah. –doesn’t the dollar go up? Look, it went up in 2008. Yeah. That’s kind of what I was thinking. But that’s because it was at an all-time record
low. OK. Right. So it’s not nearly an all-time record low
now. It’s not even close. And there’s not a bunch of people short the
dollar today like they were in 2008. And remember, back then, oil was $150 a barrel. You know, plus gold in 2008 had just gone
from under $300 in 2001 to $1,000. So gold had just had 10 years in a row of
going up, and hit a record high. And then you had that. So we’re not in that position now. We’re not even close to that position. In fact, if you wanted to look at something
that’s similar, go back to 2000-2001. Because when we had the stock market bubble
at that time, gold had been in a bear market for 20 years. Right, the dollar index was $120 in 2000. And when the US stock market bubble burst
in 2001, the dollar went down. Gold went up. So today, we’re similar to that circumstance
in where the dollar and gold are trading. Right. So right now, we’re going to get movements
into gold and out of the dollar because of just where everybody is aligned. But ultimately, if we get the type of crisis
I believe, where the Fed has to allow inflation to rage out of control. Or they’re forced to print money into a weakening
economy, into a falling bond market, into our inflationary environment. Where gold prices are rising, where commodity
prices are rising. That’s the end game for the Fed. Because now everybody realizes the box the
Fed is in. They can no longer pretend that they’re going
to be vigilant and fight inflation. Because they’ll obviously have surrendered
to it. Because they’re going to choose to fight recession
instead. They’re going to choose to bail out the government
rather than defend the dollar, and protect its purchasing power. And then the game is over. Then there’s a run. And then the Fed is going to lose control. And at that point, we’re going to have to
make a very difficult decision. The Fed is going to have to make a decision. It’s going to be, OK. You know, do we now raise the interest rates
dramatically a la Paul Volcker to save the dollar from collapsing into nothing? Right. Which would be a complete disaster. But in order to do that, we’re going to have
to bring about a crisis on our own. Which is going to be much worse than the ’08
financial crisis. Because all the big banks that we bailed out
will fail again, except there’s no bailout next time. And it’s not just going to be the shareholders
of the banks that lose money. And it won’t just be the bondholders. But the depositors– in order for the Fed
to do the right thing, it has to let depositors of Bank of America, of Wells Fargo loose their
deposits. Because there is no money there. And the Fed cannot bail out the banks if it’s
also raising interest rates, and shrinking its own balance sheet. So all the chickens have to come home to roost. The government has to fess up. We have to default on our bonds. We have to tell senior citizens, you’re not
getting Social Security. You’re not getting Medicare. It’s all over. You know these were promises we made to get
your votes. We can never keep them. And you know, this is what you get for trusting
us. Right. You know. John Belushi style. You know, you F’ed up. And just admit all that. Or you know, they don’t admit all that. And the dollar does become monopoly money. And then, now we’re Zimbabwe. But you know, we’re going to have to choose
our poison. Right. I hope they make the right choice. But either way, the price of gold is going
up. Just if they make the wrong choice, it’s going
to infinity. Right, because the dollar goes to zero. Yeah. But hopefully that doesn’t happen. I mean, I want to make money, but I don’t
want to make it that bad. I don’t want the country to suffer to that
extent. You know, I know it’s going to suffer. But I hope that we take the right medicine
so that we ultimately can end the suffering, and have a real recovery. [THEME MUSIC]

100 Comments

  1. Peter is worst human and lier and evil one day every body would die and world 🌎 would be end 👹👹👹👹👹👹👹👹👹👹👹👹

  2. I dont get this, the Fed can just print, print – that is ok if all you rely on is your own products/food – what happens when no one wants those dollars? What happens when nations drop the dollar? His answers are text book answers in a real world, they dont apply – this is what a Roman official would have told the people "we will just mix gold with any metal, even chalk if we must" –

  3. The Faggot that plays the role of Peter Schiff is Paul Rubens…. AKA: Pee Wee Herman…. This is an actor reading a script. wake the fuck up people. C'mon, simply listen to the voice and it gives pee wee away! He drones on and on and on and on…. I am exposing him here. Paul Rubens!

  4. Selling gold short when you don't own any gold is a fraud and the Fed should change the law.you can't sell a car to someone when you don't own one.

  5. So you can suppress the price of gold? Not a very good store of value. Bitcoin will likely take control of what gold is trying to be.

  6. Pete…. your problem is simple……You are utilizing past education instead of current information. The "United States" DID NOT CAUSE the past financial crisis…. it was manufactured and caused by the banking cartel. This financial system is NOT ABOUT THE UNITED STATES it is about the worlds financial system. It is all agenda. Your continual focus of the USD and the USA is your demise in knowing what is truly going on in the world today with the global financial system. Your play by play description of the controlled demolition of the financial system by the Illuminati banking cartel is correct….. but the reasoning behind the cause and purpose is INCORRECT. You need to study current information about money. Not what you had learned by in finance school several decades ago. You need to learn it is not about the United States it is about the USD OWNED currency by an entity OUTSIDE THE UNITED STATES….. IT IS ALL ABOUT ONE WORLD CURRENCY FORMATION………which……..YOU NEVER TALK ABOUT!

  7. There not printing cash 1.6tril & stable rest is smoke and mirrors.not conducive to hyper inflating . more likely system lockup. Cash shortage .😎

  8. The problems aren't going to happen until the cost of gas goes up and the cost of food that poor people eat go up like ground beef pork chops and onions and cabbage and eggs bread stuff like that so if u want to invest invest in food poor people eat that is delicious like pork chops / chicken and pizza Mainly ground beef because spaghetti is a super food that everyone eats rich young old poor

  9. We should stop speaking Spanish in the US. There's to much Spanish speaking in the U.S.. We should all speak German in the U.S..

  10. You should all listen to the bail in discussion. We the depositors will be ripped off of our money in the banks. They will all fail. The US can’t keep printing money forever. At some point , you have to pay up.

  11. In order for the government to do the right thing, it would require the right people of moral fiber, and there's nothing but career politicians who just want to get re elected telling people everything is fine and kicking the can down the road for the Millennials to deal with.

  12. QE™NEXT in foreground
    Federal Reserve balance sheet run-off in background.
    Sterilizer as Federal Reserve shrinks duration and reconcile the mess? SIV rears it's ugly head as bond specialists replace physician and therapists as hot college majors?

  13. if you buy gold and it drops 20% from todays price…. how well is it going to work for you as an inflation hedge when you gotta first make up a 20% loss. precious metals is a joke.

  14. Let's make this clear. The metals price is determined by the Crimex market. A bullshit fiat currency market for physical metal when NO metal is traded. The banking cartel CONTROL ALL ASPECTS OF THE COMEX AND THE PRICE OF METALS. The price of gold has been UNDER DIRECT CONTROL FOR DECADES. The last thing the banking cartel want is the masses to flock to physical gold. The control over gold price is all that is necessary to keep the entire world out of physical gold. Let's look at the facts. In a free market with fair mechanics…. gold would be at a fair price RELATIVE TO THE DEBT RATIO OF THE PAPER MARKET. In this "fair" scenerio….. metals would be in the stratosphere in comparison to where they are at. THE ENTIRE METALS MARKET HAS NOTHING TO DO WITH METAL AND EVERYTHING TO DO WITH ….P A P E R !!!!!! In addition. The price of gold will ONLY move under one of two scenarios. 1. If the banking cartel wants it to go down….. it will go down…..if they want it to go up….. it will go up. IT IS ALL AGENDA. As an example of this. Back when gold hit 1,800 record high…..ask yourself what was going on surrounding the rush. I will tell you. GOLD ETF's Globally !!! Country after country accepting gold ETF's to be utilized. The amount of paper "gold" that got involved with the gold market was astronomical at that time. What happened after the ETF's were in place……systematic lower to the price of today where it has been capped below 1,300 for a decade by the banking cartel. Mass amounts of wealth were extracted by the cartel on citizens all over the globe. All the while the paper debt ratio of the world is EXPONENTIAL and gold has not budged beyond 1,300 for a decade !!!! Scenario 2. If there is a complete DEFAULT of the Comex gold market and the paper pricing mechanism is transferred to actual physical gold trading occurs……. the price will rise significantly to levels people are talking about. KEEP THIS FACT IN MIND…….If the default does not occur…….the banking cartel……WILL NEVER allow gold price to go anywhere near a fair (high) level……period…..end of discussion. If you would like to read the 34 page article I wrote entitled "The Deliberate Global Economic Collapse" which I submitted to a high profile financial site and had great reviews……email me at [email protected] I will send the word doc and delete your email afterward. You can do what you please with the article. I am only interested in sharing the information from what I had learned after a 12 year daily aggressive research on the global banking system. The article is accurate. If in doubt….. spend some significant time researching and I believe you will end up agreeing. Take Care Mike

  15. The gold price was not "suppressed"… the USD was backed by gold at a fixed ratio – until the banks (not Nixon) decided they wanted pure fiat money. Gold did not go up – the USD devalued (Schiff even said Nixon devalued the USD).

    The private central banks are a cabal of crooks of biblical proportions.

  16. Social Security was a government mandated INSURANCE PROGRAM to assist with anticipated
    Retirement expenses. The SS trust fund was raided by government and the cash was replaced with IOU treasury notes. The cash was misdirected or stolen. You decide. SS is not a gift or freebies. It is a contractual obligation for the entity that took our money. HOW MANY STUDENT LOANS WERE GIVEN TO THOSE WHO NEVER GRADUATED INSTEAD LIVING OFF THE MONEY THEY NEVER INTENDED TO REPAY🤔

  17. Why not go with a crypto currency + social contract for the purposes of tax collection ? Money and gold are not working in 21 century !!!!!!

  18. Peter you need to go to azquotes.com and look up quotes by George Washington and Jefferson they have a whole pile of quotes under the subject of paper money. t
    Thats why when they signed the constitution they put in that nothing but gold and silver coins can be used to pay debt.ART 1 sect10 U.S.Constitution.Didyou know that FDR worked for Rockafeller when he passed the bar.Rockafeller University of Chicargo told Roosevelt to confinscate Americas gold and put them in FT.Knox The crime of 1933

  19. IF you need any more ideas on paper money go to an unabriged text af Andrew Jacksons Farewell Address he says the constitution meant for us to have a circulating medium of gold and silver coin

  20. When you go to the IRS you should force them to take 200,000 in gold and silver coin and fox news and explain why every one should pay all depts in gold and silver coin

  21. im gonna take a wild guess before watching this, and say peter schiff says the us economy its gonna collapse.

  22. Peter Schiff as been saying that for so many years . This is getting very boring I fall asleep just listening to this Schitt 😀😅😂💵💰🏦🇺🇾 . From Uruguay with Love ❤️

  23. blah blah blah.. i sold all my gold and bought bitcoin at 3500….. what has your gold done since I did that 6 months ago and I've tripled up?

  24. ppl they will keep markets loose until inflation goes higher then 10%, as long as inflation is low, and pensions zombie companies can inflate this will go on.

  25. Schiff is thinking that some people will request physical gold delivery. That's might not be the case if people are buying on margin or have any debts to pay them out, especially if debts are denominated in paper currencies. In short terms the equation is clear: price of gold is tied to FED balance sheet. FED expanded money supply x3 times, Gold moved x3 times higher.

  26. I wish "educated" people would respect basic rules of the English language such as subject-verb agreement……..

  27. While Peter is talking about USD becoming worthless the rest of the world is buying US bonds to get interest and also to benefit from the depreciation of their own currency.

  28. Zephaniah 1:14-18… is well on its way……Acts 17:30,31…….Zephaniah 2:3……2 Timothy 3:1-5….
    1 Timothy 6:9,10……Matthew 7:13,14……Isaiah 9:6,7……Isaiah 60:12…..Luke 21:25,26…..
    Isaiah 45:18,22…….psalm 37:29,34……..proverbs 2:21,22……proverbs 1:5-33……Daniel 2:44….
    Romans 10:9-15……2 Corinthians 4:3,4……1 John 5:19…..John 3:16……Matthew 24:3-22…..
    Psalm 2:1-12……Isaiah 48:17-19…..Revelation 12:9-12…..Romans 15:4….Revelation 11:18….
    2 Peter 3:3-7…..Ezekiel 38:23……psalm 83:18 KJV……Isaiah 45:18,22….1 Corinthians 6:9,10….
    Revelation 22:15…..Isaiah 61:1-11…..Daniel 2:44…..psalm 37:9-11….Ecclesiastes 1:4….
    Psalm 115:16….

  29. Schiff actually sounded logical rather than just being someone who rambles how gold will go to a gazillion. Best interview he's ever given imo

  30. Make a lot of sense. But please don't deny manipulation as before. I buy gold and silver precisely because they are manipulated. They must go up since there is limited amount of them.

  31. The request for bullion from gold backed funds will pale by comparison for the utility demand that comes from consumer driven market monetization because of bullion based payment processing systems like Karatbars. Gold is now (right now) making it's way into circulation as a digital market currency that is mass based (unit of account), where EVERY digital gram is backed by gold

    https://www.forbes.com/sites/joresablount/2019/05/31/10-blockchain-companies-to-watch-in-2019/#45685e11543f

    https://i.imgflip.com/2o537e.jpg

    https://lp1.kb-universe.com/?referer=therooster

  32. I think there will be a recession mid to late next year. I bought bitcoin, gold and if we keep going after I ran, I will buy oil. Were should I keep my cash? I have a bank of america savings account and I would like to pul my money out before the next collapse.

  33. Shorts don't get delivery notices until expiration.

    Buyers can't demand delivery until expiration.

    Where does he come up with this bull.

  34. Read the fine print on GLD (in terms of physical delivery). Almost no one will get physical delivery if there is a run on the physical metal.

  35. I hadn't watched Peter Schiff for some time – I got it and he was just saying the same thing. But his analysis, which I felt was accurate – but way early – may finally be happening. hard to say because no one knows the future.

  36. What do you think will happen? Will the Fed own up to their mistakes and lets interest rates explode? Or will we enter hyperinflation? Why?

  37. Gold is a materialistic thing for those who can't see the beauty of love and bitcoin. Just because you can't touch it doesn't mean it's not there.

  38. But Peter, I can short gold anytime and but back anytime instantly. There's always another paper buyer I can find.The paper gold globex markets will never dry up during a trading day,.liquidity all the time.Even with no uptick rule.You merely need to watch every day the charts on 5 minute charts,the price action,Get out if it looks serious.But what is this nonsense that you can't get out of a globex short position when a selloff comes during a trading day.That's nonsense fear mongering.

  39. She they tell the Public they cant pay Social Security after spending the heck out of it the Public will stop paying taxes.. That's why they want to go.to digital currency but I bet the Public will go ape on it.

  40. Venezuela owns gold and the corrupt UK never gave them their gold, so why should anyone who doesn't control the gold invest in it?

  41. Printing money is a miracle for the Federal Reserve and the politicians… spend more.. print more.. we are bankrupt….

  42. McAfee top pick $mtc on
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  43. Why does Schiff assume that dollar hyperinflation would be a disaster? I think that after dollar inflation goes to over, say, 10%/month, people will switch to silver, silver-backed cryptocurrency, and even unbacked cryptocurrency. I see that as a good thing.

  44. What did we learn? Diversification is important. The nightmare scenerio made my father poor as he locked all his assets in real estate with memories of WW2. Invest in human productivity. Why not choose microchips instead of gold. The fixation on a single asset class is a recipe for grinding poverty.

  45. Was this filmed in Peter's Connecticut home? I wonder if his wife is a blonde or brunette these days. That's what's REALLY important. I want to hear HER talk for a change.

  46. "Schiff predicts that the Federal Reserve will ultimately have to decide between saving the dollar from hyperinflation and bailing out the U.S. government."
    The FED reinforces it's decision each time it bails out the deficit spending. INFLATION BE DAMNED! At least they're consistent.

  47. "We The People " need to unite and take back our country! For too long treasonous politicians and amoral bankers have been destroying our once great nation.

  48. WHAT ABOUT RHODIUM … ITS BEEN TO $10K BEFORE AND HAS BEEN ON THE RISE SINCE 2008 … NOW OVER $3K / OZ AND RISING SHARPLY

    PALLADIUM HASN'T BEEN DOING BAD EITHER SINCE 2008

    AND MY BIGGER THOUGHT AND DOUBTS ARE ON PLATINUM … HISTORICALLY NEVER BEEN LESS THAN GOLD BUT IS OVER $500 LESS THAN GOLD TODAY AND NOBODY TALKING ABOUT IT YET PLATINUM JEWELRY IS STILL WAY ABOVE ITS GOLD COUNTERPART (shouldn't we be buying in a down market ?)

  49. I've listened to Peter Schiff for a long time now – in GENERAL I think he is right….where I think he goes horribly wrong is getting into too specific predictions. I expect he'll be right in the end, but the market noise that happens between this point and his prediction takes us in all kinds of directions that he just can't see. He was right about the Fed and interest rates – but not totally. they did raise rates a bit and it was ok – but then they went too far and will need to lower them. He is clearly right in this case, but the in between was totally wrong. Rates could go up a bit. I actually think the quantitative tightening was probably more damaging…but then what do I really know.

  50. After a divorce, no retirement pension, only limited social security, if the government said no social security check, I will die. What to do? Whatever money is left in the bank, buy as much guns and ammunition as possible and go out and slaughter as many people as possible! Why not? The cocksuckers ruined my life, so I will take their’s.

  51. Great, let's have another mechanism to funny money everyone. You can keep gold cheap just buy futures. How does the guy who actually buys gold get a return if these markets can artificially inflate/deflate price?

  52. its not fkin rocket science, gold goes up preceding and during a recession. Convert back to stocks when the turnaround comes

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