In our special focus on Gold & Precious metals, we spoke with analyst Peter Schiff of Euro Pacific Capital. While Mr. Schiff is a gold analyst, he talked to us a little bit about the current economic crisis in broader terms and what it’s going to mean for the world at large.
According to Mr. Schiff, “the global economy…is going to be better off without having to support the US economy.” He claims that whole idea of countries lending resources to the US and supplying the US with resources was predicated on the idea that the health of global economy depends on the strength of the American consumer. According to Mr. Schiff, the current financial crisis is going to prove this to be a fallacy- which will lead to a boom in global markets, that begins- unfortunately- with inflation in the US and around the world.
Schiff sees this outcome as inevitable, and that the US is going to have to “learn what it means to save and produce and save and it’s going to be a very difficult transition.” that will be fought tooth and nail by the government.
When asked about whether the shift to the new administration was going to help the US economy, Mr. Schiff had this to say:
Mr. Schiff: No. They’ve just made it worse. As far as I can tell, Barack Obama is committed to a course of total economic destruction. He doesn’t realize that. He doesn’t understand what the problem is, and he doesn’t know what the solution is. He thinks that this collapse is the problem. However, this is the consequence of the problem; this is the tough medicine working. The problem is the bubble economy that we lived under for many, many years and any attempts to try to re-inflate it are not only destined to fail, but they’re going to make the situation much worse.
For the complete Gold and Precious Metals issue, including a complete overview of this sector and how its performing in this turbulent climate, as well as stock picks, click here.
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