OMG! Steve Liesman to Peter Schiff : " You Have Been Wrong!

[newbitech]

He was wrong in the short term. That was my point.

I don't know man, the "dollar bull" that everyone keeps saying has gored schiff looks somewhat choppy and unsustainable to me. Aug 2006 had the dollar locked into a 4 year bear market that was very close to generational lows as recent as 8 months ago. I am pretty sure P.S. was bearish on the dollar back in 2001-2002 as well. So its not so much that Peters short term timing was off, he never tried to predict the dead cat bounce or the current 8 month dollar bear market rally. But in context of time, I am pretty sure all the people who are trying to find fault in Peter's investment strategy are in fact LATE to Peters party. That's too bad. The charts prove that Mr. Schiff has been correct for YEARS.

 

[Imperial]

Peter Schiff has been wrong on a few things because he looks at the long-term and the goal rather than the in-between process.

We have to remember that leading up to the actual recession there was deflation in the system. All the artificial capital the fed and treasury have pumped into the system have managed to uphold the system. When we have an economic collapse, prices will decrease if it happens soon enough. The problem is going to be if the collapse doesn't happen on our terms, like now. If it happens with China or the Middle East pulling out of the dollar, we could see Zimbabwe I think.

 

[newbitech]

We still have nearly a quadrillion dollars trying to unprint itself. The Fed has only pinted an extra $11 Trillion to go.

Thats only $990 Trillion more dollars to print until we get Monetary Inflation.

derivatives and de-leveraging. The only problem that I have with that theory is that the 1 quadrillion is not fungible. We say its 1 quadrillion in nominal amounts, but what if the value is only 1 trillion dollars? Then we have just leveraged up inflation 11x's. Where do you stop trying to paper over valueless asset to cure bad debt? 20x's? 30? 100? We have no idea what is going on in that derivative market. It's not the FED that needs to set those prices and do the unwinding. If the fed steps in and doesn't get the price or rates exactly right, we could end up with 1quad X2 in the other direction. THATS when the hyper inflation kicks that Peter is predicting.

That happens overnight, just look at the recent 300bln treasury boondoogle we saw earlier this week. a mere fraction of papering over and the dollar leveraged down 5%. Have fun with that.

 

[newbitech]

Peter Schiff has been wrong on a few things because he looks at the long-term and the goal rather than the in-between process.

We have to remember that leading up to the actual recession there was deflation in the system. All the artificial capital the fed and treasury have pumped into the system have managed to uphold the system. When we have an economic collapse, prices will decrease if it happens soon enough. The problem is going to be if the collapse doesn't happen on our terms, like now. If it happens with China or the Middle East pulling out of the dollar, we could see Zimbabwe I think.

I am pretty sure that if you go back in time, the long term trend has always been inflation. The fed since 1913 has expanded the money supply to keep up with the growing economy. They always see to expand it a little too much each time so that now our dollars are 3% of what they were before the fed began monkeying around. Thats the wealth transfer. that little extra get scraped off the top and causes the real inflation.

The deflation we are seeing is only a small bounce in the dollar value over the long term trend. Its a distraction. The problem was never deflation. If you go back and look at the .com boom bust, that was no deflation. That is when money expansion was starting to get out of control. The market tried to correct it, but the fed stepped in and propped it up with inflation. The market forced it down. The fed stepped in again but this time, its too late, its completely out of control. It will look like deflation all the way up until the point you can't buy anything in dollars anymore. Then it will become extreme inflation almosts overnight as all we will have left here in the USA to trade with is the flood of dollars that everyone is throwing away to get their hands on anything that can be produced in THIS country.

 

[Feelgood]

Too much wisdumb for my taste, from those asshats.