Peter Schiff Says Massive Collapse Of The Dollar
During a recent interview between Peter Schiff (CEO of Euro Pacific Precious Metals) and Greg Hunter (USAWatchdog.com), Schiff says the latest round of ‘QE3′ by the Fed has only postponed the coming collapse. The longer we wait the worse it’s going to be because we simply compound the mistakes that make the crash necessary.
The stage has been set for a currency crisis and a sovereign debt crisis, and they’re going to come, and they’re going to come relatively soon, and it’s going to be horrific.
Not only are people going to continue to lose their jobs with this policy, even the Americans who manage to maintain their jobs, they’re not going to maintain their living standard because their paychecks are not going to keep pace with the escalating cost of living, thanks to the Fed.
When the Fed finally has to choose between runaway inflation and a collapse because they have to raise interest rates to stop runaway inflation or hyperinflation… we’re going to get to that tipping point at some time. The Fed will be ‘damned if it does’ or ‘damned if it doesn’t', and no matter what it chooses it’s going to bring on a crisis. Except if it chooses inflation, it brings on an even bigger crisis. It might postpone it for a few months… but that’s it – we’re going to have this crisis one way or another. Just prepare for it.
It could happen in two months, although more likely it won’t happen that soon, Schiff says, it will happen during the term of the next president. The next year or two is a high probability of some kind of crisis. Just pretend like it’s tomorrow and make sure you have your ducks in a row.
From a survival preparedness standpoint, what can one do to prepare for this? While not knowing the magnitude of a dollar collapse, or runaway inflation, both will affect you badly. If inflation is in our future, consumable goods and tangible assets purchased today will be ‘cheaper’ than later on (assuming that your paycheck will not increase to keep up with inflation – which undoubtedly it will not, and is not). An all out collapse or runaway hyperinflation will be devastating, should it occur. Some advice may be to prepare to be able to live with what you have, or less, and perhaps to get what you need, now. Shore up your food reserves, and go from there. Realize and KNOW that things will not be the same in any way shape or form. Be ready to adapt. Get a head start from others who have no clue this is coming. Become more self-sufficient. Start learning new and practical skills. Don’t buy frivolous things… instead, buy practical and useful. Things that will help you live your life. If you have ‘extra’, then diversify out of the dollar, perhaps into some precious metals, along with your other diversification.
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What practical and useful things do suggest?
@julie, there is no ‘correct’ answer for that question because it is different for everyone, depending on their current supplies and ‘know-how’ and their current station in life. I would suggest browsing through our category archives for articles and lists which will hopefully inspire ideas. There are lots of other good survival preparedness websites out there too. The very basic is to start with food supplies, and build from there.
I’m not sure I believe that this is going to come to pass very soon. They keep doing all this QE, but the money only goes to banks to sit on their balance sheets. Banks aren’t loaning an no one is borrowing, so where does the money go? Balance sheet. Now having said that, I still err on the side of caution. If you buy X number of goods in year, why not buy them a year ahead in one fell swoop? If the prices go up OR they make the packages smaller again, you will already have it and prolly at a cheaper price per ACTUAL unit. But that is about inflation. As far as an economic crisis, yeah, we’re already there, we just don’t realize it. Now if they can keep the house of cards up (all the houses of cards, ha)…well who’s to say what an economic crisis is? LOL Macro economics, one of the great mysteries of our time. Survive well. Enjoy.
First and foremost, this site is great, I read it nearly everday. It’s not over the top like some of the other prepper sites, so good job on that. I’m new to prepping to an extent, I’ve always been a gun guy, so guns, ammo – check and check; got plenty of both. Additionally, I have lyme disease, so I’ve been stocking up on my meds (this is my biggest concern when SHTF). I’ve been seriously considering purchasing gold/silver as of late, however, I’m somewhat apprehensive because how do you know you’re actually getting good sh*t? Which brings me to my next question, who is a reputable dealer?Also, can you buy it in any increment?
I truly believe that the economy cannot continue to sustain the abuse that the gov’t/feds and obama have bestowed upon it. I’m not sure where all of you are from, but I live in the D.C. metro area. Our biggest business in NOVA consists of gov’t contractors. As you’re aware, the so-called “fiscal cliff” is rapidly approaching, and when that hits we will turn into Detriot fairly quickly (no offense to those of you who live in detriot). Now, back in 2008, the recession didn’t hurt this area in the slightest, in fact, we have the highest employment rate compared to most cities, we’re also the wealthiest in the nation. That’s all changing very quickly and the signs of the times are becoming evident. Hewlett Packard’s HQ is here, and they’re laying off 27,000 workers in the next few months, multiple private contractors are laying off 30% of their workers between now and November 5th. Add to that, the business park where I work was thriving even a year and a half ago, and now it looks like a ghost town, approximately 70% of the businesses have either closed or moved…and this is a fairly new upscale business park. It was built in 2006. I may be next. My company which has been in business since 1983 has laid off close to 80 employee’s between mid June and this week. All of this was unheard of between 2008 and 2011. Again, this has all happened so recently. To conclude, if the the wealthiest county in the country is going through these changes, it’s a very bad sign. When this depression goes into full swing, I have a feeling there will be no stopping it. So, I better get my ass in motion.
Good luck and God bless.
@ ididntbuildthat, Regarding bullion dealers, do your due-diligence and research. Having said that, you could try APMEX, JMBullion, or others… You could do a ‘test’ buy, and start small to be sure you are comfortable with the process.
@Ididn’tbuildthat; If you do your due diligence, you’ll find bullion dealers that have GREAT prices but nick you pretty hard for shipping and insurance to make up for the GREAT prices, so shop around. ANY of the reputable dealers will get you your product, regardless. I know Ken has a no advertising policy, but you asked a specific question and I will give you a specific answer, check out Northwest Territorial Mint in addition to the ones Ken mentioned. For product, keep it simple. For gold, I only buy U.S. Gold Eagles and they are denominated in 1/10, 1/4, 1/2 and 1 ounce coins. Don’t buy ingots as you can’t prove to me what it is and what it is worth with out an assay. The eagles have United States on them and while not common in public, you would have less difficulty persuading someone to take them as opposed to a Krugerrand or Austrian Philharmonic…i.e. wtf is that??? Also don’t put ALL your money in gold (unless you have a specific need of dense wealth transportation), buy some JUNK silver coins (pre 65 U.S. silver coins except nickels) as most people know that they are silver, and that they are U.S. coins (repeat of above). They come in bags ($1000 face value), 1/2 bags and 1/4 bags. This allows for smaller transactions that would be very clumsy with a 1 ounce gold coin. Also educate yourself about the gold and silver coins (wts, dimensions etc.) and get a “Fisch”, a dial caliper and a scale if you envision doing a significant barter/PM trade business in the future. Survive well. Enjoy.
Good advice, but nothing Ken hasn’t already been beating the drum about for a long time now. Nice to have reinforcement from the high profile guys though.
@ TripodXL & Ken: Hey guys thank you very much, I truly appreciate your advice, that’s the exact information that I was looking for. I’ll probably start researching this weekend, and make a decision at some point next week. and I know that no one can really knows, but in your personal prepper opinion, how long do you think it will take for the economy to go from where it is now to a total collapse? Thanks again.
As you know, that is impossible to answer with accuracy. Having said that, there are scenarios that could prolong the dollar (a Euro collapse while those folks flee to the dollar, etc.) however any of those will be temporary and postpone the inevitable. It’s so hard to say since this is a GLOBAL event and all of them (us) are inter-dependent upon what happens with each-other’s sovereign debt/currency, commitments and actions. For example, China could pull a rabbit out of it’s hat and prolong it further. Or it could take the opposite stance and not help the dollar… The point is, America and its currency is weaker than ever and the dollar appears to be rapidly losing its place (good faith upon the government, etc.) as it is further diluted. The S could hit the fan in months or it could take a few more years. I really don’t know. All I know is that I presume that it will be sooner than later, and am preparing accordingly. I hope that I am wrong.
@Ididn’tbuildthat; Wow! What a question. Not that I wouldn’t ask the same thing. What Ken says…but, there are exceptions. If there is an attack on Iran, it could be SOON! Even if, it could just be a SLOW BURN TO THE GROUND, which is my biggest fear as it creates the SHTF scenario, but (and I know this sounds bad) it leaves too many angry people alive to create havoc, therefore it is harder to survive. If the lights just turned off, 80-90% of the population would die in 8-10 weeks, period. It’s a lot easier to survive if there are fewer people. That’s just a fact, not that I wish for that. My opinion is that we will be the last to suffer a worldwide economic collapse, and WE will therefore be held responsible for it. To answer your question (or not) it could be in the next 3 weeks (not AS likely) to 3-5 years (most probably) to 5-10 years (more likely than 3 weeks). The difficulty with your question is that it gives you a point in time, which if it doesn’t happen, gives you doubt about prepping versus, not prepping fast enough, if that is the case. Hope the lack of definitiveness helps with your decision making process. Survive well. Enjoy.
@ TripodXL & Ken: Hahaha, yeah, I thought that would get some feedback. I happen to agree with the idea that if you put time frames on a disaster that you’ve prepared for, and then it comes to pass, that you’ll get discouraged from preppering further. I also agree that it can’t hurt to be prepared even if nothing happens at all. It does feel like everything is coming to a boiling point. Iran/Israel, China/Japan, North Korea/South Korea, etc. I hate to state the obvious, but no good can come of this. One of our enemies are bound to take advantage of our economic weakness. Anyways, thank you both very much for your advice on the gold/silver, and sharing your thoughts on this stuff. It’s very beneficial to beginners like myself to know where more experienced preppers stand on some of these issues.
Good luck and God bless.
@idbt, “I also agree that it can’t hurt to be prepared even if nothing happens at all”
I absolutely agree with that statement. ‘Being prepared’ is simply a part of a way-of-life that dovetails with a spirit of independence, liberty and the desire to be responsible for one’s self and family. This would be ‘normal’ to our ancestors, but unfortunately is an unknown to so many today. If nothing happens, nothing is wasted. You are insured of living.
@Ken; And well said, sir. Survive well. Enjoy.