(Encore) GoldSeek.com Radio: John Williams, Peter Schiff, David Morgan and Peter Grandich
By: Chris Waltzek, GoldSeek.com Radio
-- Published: Tuesday, 27 December 2016 |
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VIDEO Featured Guests John Williams, Peter Schiff, David Morgan & Peter Grandich encore show Show Highlights Respected rogue economist, John Williams of Shadowstats.com says the Great Recession of 2008-2009 is still underway, contrary to the mainline media. Although the official national unemployment rate is steady at under 5%, the true unemployment rate is at least 4 times as high at 23%. The slight of hand requires an epic cover-up on a grand scale. John Williams outlines how the PTB accomplished the feat and the economic implications. Discouraged workers are no longer counted due to changes in the unemployment calculations making the economy in worse shape than reported. When the true inflation rate is used to deflate GDP numbers, the US has been in an unofficial recession for 16 consecutive years. Free trade has positive theoretical economic benefits, but deleterious ramifications for many high quality domestic jobs. Ultimately the economic fallout will impact the Greenback, which will collapse sending the yellow metal to at least $10,000 and perhaps many fold higher. Case in point, in Venezuela recent reports show that a silver coin suddenly buys $250 worth of groceries. Peter Schiff, Chairman of discusses the Fed's reaction to the threat of higher inflation. SchiffGold.com With a quarter point rate hike expected in Dec and possibly 2 more in 2017, policymakers are concerned that prices are moving up to quickly. Inflation is typically a positive for the PMs markets, e.g., the 1970's inflation / PMs rally. Real interest rates will remain negative, constraining the US dollar and encouraging gold / silver purchases. Bond bears are in control - the sector could crater much further, requiring sizable QE activity by the Fed to contain the toxic debt. Dollar bulls may find themselves trapped, as officials are forced to ramp up QE and lower interest rates. If bonds continue to decline, the cost of financing stock buyback related debt will soar, reducing demand for US shares and lowering equities prices. The liberated funds will fuel the uptrend in the $CRB commodities index despite the dollar breakout, suggesting that PMs could soon find a price floor. Additional blowback from higher rates includes the potential for a 20%+ housing price decline, as homedebtors struggle to make payments. Until the forward looking housing starts index declines abruptly, the uptrend will remain intact. The election shock reaction in the PMs shares may be overdone presenting opportunities in the Euro Pacific Gold fund, EPGFX. David Morgan a.k.a. "The Silver Investor" from the Morgan Report gives a detailed overview of current silver market conditions. The time may be approaching to start adding to core silver positions, the market correction may soon pass. Both the guest and host agree: 90% silver US coins, pre-'65 make the ideal investment, (Buy here). The Silver Investor's #1 Rule of silver investing, when all else fails there's silver, for instance, in the aftermath of a hurricane, ATM outages, etc. The recent addition of the Yuan to the IMF reserve SDR could be a game changer for currency hegemony and a big plus for precious metals investors. Eventually, David morgan expects the PTB to return the global currency system to de facto money - gold and silver. A widely diversified portfolio including a solid core of precious metals investors is advisable.
The nascent precious metals bull market remains intact, according to Peter Grandich of Peter Grandich and Company. Although policymakers could hike rates to 0.75-1.00%, the affect will be minimal. The big economic wild card remains loose monetary policy, which includes negative interest rates, forcing investors to chase stock / bond market yield. Years of positive equities returns camouflages the risks to typical investors. 5 US money center banks account for nearly $250 trillion in derivatives. The enormous leverage could expose the US financial sector to another 2008-2009 like credit fiasco. The recent selloff appears to be the result of forced paper liquidation, which could ignite a launch to $1,400 gold before year-end. Unfortunately, a key impetus sending the sector higher could be societal fallout following the November elections in 2017.
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-- Published: Tuesday, 27 December 2016 | E-Mail | Print | Source: GoldSeek.com
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