JRE 1145 · July 17, 2018

Peter Schiff

businesspoliticseconomicstechnologyphilosophy

Who is Peter Schiff?

Peter Schiff is an American businessman, investment broker, author and financial commentator. Schiff is CEO and chief global strategist of Euro Pacific Capital Inc. He also hosts his own podcast called “The Peter Schiff Podcast” available on iTunes and at SchiffRadio.com

Topics and Timestamps

01Peter Schiff explains why he believes the US dollar is fundamentally flawed and heading for collapse
02Discussion of inflation, government spending, and how the Federal Reserve's policies are unsustainable
03Schiff argues that gold and alternative currencies represent better stores of value than fiat money
04Conversation about the stock market bubble and why traditional investments may not protect wealth
05Peter breaks down how average Americans are being hurt by monetary policy without realizing it
06Debate over whether economic collapse is inevitable and what people should do to prepare
▶Peter Schiff explains why he thinks the US dollar is doomed0:05:30
▶Discussion of government spending and how it's unsustainable long-term0:18:45
▶Schiff makes the case for gold as a store of value0:32:15
▶Joe and Peter debate whether economic collapse is actually coming0:47:00
▶Schiff discusses how Fed policy hurts average Americans without them realizing it1:04:30

The Show

Peter Schiff comes on JRE 1145 to talk about one of his favorite topics: the impending economic crisis he believes is coming to America. Joe and Peter dive deep into monetary policy, government spending, and why Schiff thinks the dollar's days are numbered. Schiff has been making these predictions for years, and while some haven't materialized on his exact timeline, he doubles down on the fundamental economics he sees as broken.

The core of Schiff's argument centers on the Federal Reserve and government spending. He explains how the Fed's quantitative easing and low interest rates have created artificial conditions that can't last forever. When the music stops, Schiff argues, the consequences will be severe. He points to rising national debt, trade deficits, and the fact that America is essentially living on borrowed time and borrowed money from other countries.

Joe pushes back at various points, asking reasonable questions about why Schiff's predictions haven't come true yet and whether the economy is actually as broken as he claims. Schiff responds that timing the market is difficult, but the direction is inevitable. He talks about gold as a hedge against currency debasement and why he thinks holding dollars long-term is a losing bet.

The conversation gets into the weeds on inflation, purchasing power, and how regular people are getting poorer in real terms even if they think they're getting wealthier. Schiff argues that wage increases and stock market gains are illusory if you factor in real inflation and currency devaluation. It's a fundamental disagreement with mainstream economics and market cheerleaders.

Schiff also discusses his own business at Euro Pacific Capital and how he positions clients' portfolios for economic turmoil. He's been consistently bearish for a long time, which means he's been wrong about timing, but he's convinced the underlying logic is sound. The episode is a good representation of Schiff's worldview: the system is broken, the collapse is coming, and you better prepare accordingly.