Food for thought this week, and it is to stick up for a fellow competitor of mine in the gold business Peter Schiff;
Peter can talk economic circles around anyone at CNBC except the guy who was a former bear on CNBC Rick Santelli where I respect the views of both. First off, I give Santelli credit for turning bullish on the market and not being a one sider of the equation. As someone who sells gold for a living (one of my companies), I know how hard it is to go against mainstream thinking of gold bulls, but I have no regrets, and have come out more bullish this year than any of the last 8 on gold and silver. But one has to look at both sides and I try to do that. No more. The next dip, and I do think we get one last one still unfortunately, is the last. CFA David Brady says the same deflation risk is there too. “There is a risk of short-term deflation if stocks plummet to new lows, which could drag metals and miners lower, but given the expected response from the authorities in terms of “stimulus on steroids”, I would not expect that to last for too long.” https://www.sprottmoney.com/Blog/history-rhymes-gold-and-silver-are-the-new-tina-david-brady.html The problem with his conclusion though is the EURO is also in trouble. You can’t have a dollar crash without a EURO shooting higher. This is the part that most don’t understand. Is the EURO better off than the dollar? I hardly think so. The EURO has Italy issues now, Turkey, and well, pretty much everyone including the engine of Europe, Germany. Somehow the PIIGS have been forgotten too, but I imagine not for long. Europe is at negative rates and can’t stimulate as their economy pushes on a string.
I was influenced in my early economic studies to think outside the box when it comes to the mantra of crashing dollar and gold to the moon, as well as how the dollar has lost 95% of its purchasing power since 1933 (notice how that number never changes?) But these guys who say such things will eventually come out claiming victory no matter what the dollar does because gold will rise against all currencies. The pricing of currencies in each other is the illusion.
When Santelli goes bear, listen up. But Peter Schiff seems to be bearish most of the time and even said in the last podcast I listened to that he is still a bear even tough the markets were hitting new highs. I understand this both from a monetary and economic perspective, but yes, for the bulls out there, we still have a record breaking economy each year coupled with the consumer side of record breaking debt and future obligations. The CBO is projecting the debt to hit $29 trillion in 10 years. (When has the CBO ever projected anything correctly?). With trade wars going on, the U.S. consumer will have to spend more and that will put a dent in the U.S. economy no matter how you slice it. But the U.S consumer has more debt today than before the last financial crisis. No one is telling the story of what could come next, but the 2 words “deja vu” come to mind.
But CNBC needs to let a smart guy like Peter Schiff’s point of view out there. They just can’t will the market up forever with guest after guest talking up stocks. CNBC missed the entire bubble (and so did the Fed mind you), leading up to the last crash. Schiff didn’t.
Peter was the only gold bull they had on when CNBC continually mocked gold (I have the videos) and now that gold is going up again, do they go to Peter Schiff to ask his opinion? No. Why? Because he is negative U.S. stocks possibly. Schiff also said that Fox News won’t have him on either. What’s up with that? Oh. Donald Trump is in office. Can’t have anyone saying anything bad about the economy with a Republican in office. But hey, they keep those gold dealers as advertisers, paying their bills while ripping off all their viewers.
See: https://www.smgov.net/departments/cao/Content.aspx?id=29440
Was interviewed twice by Santa Monica city attorney Adam Radinsky leading up to that lawsuit and they got $6 million for investors from Goldline International.
I was interviewed by LA deputy city attorney Steven Son who’s office leading up to their office suing Lear Capital. The guy in the picture of that link is someone who watched one of my videos on the 1.5 ounce coins that Lear Capital was selling to investors, (allegedly) blatantly (my opinion as an expert in the industry) ripping investors off and I suggested he contact the LA city attorney’s office (and had sent others there too). The LA city attorney’s office finally got the message and they ended up inviting this guy to be their star victim the day they announced the lawsuit.
What do all these things have in common?
1. CNBC’s bread is buttered by the billions the mutual fund industry takes in fees from hard working investors like you who have 401k’s that don’t offer a choice of investment more than what the investment house offers, typically mutual funds with high fees. These are also the advertisers on TV and guests CNBC continually has on to tell a one sided story. Peter Schiff? Not invited. Eric Sprott? Not invited.
2. Fox News needs to protect the reputation of the President and big money that runs media doesn’t want anyone on who would bad mouth the economy or the U.S. stock market. This is a disservice to those watching as well. Fair and balanced means listening to both sides point of view on the issues.
But let’s be real, who can expect anything good to come from the media?
We are lucky to have the internet to read whatever we want whether the claim of bias by social media companies is true or not.
Peter Schiff deserves to be heard but CNBC won’t put him on. I have chosen to be an independent voice in America because I know mainstream media, both sides (since we saw what they did to Ron Paul leading up to the 2006 election) won’t allow an independent thinking intellectual person deter their agendas. But they will happily take the money from the hands that feed the fee based financial services industry and from unscrupulous gold companies that ripoff their viewers.
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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