Peter Schiff - The Market Rollover, QE3 Bottom & Gold

作者預期, FED 好快會推出 QE3, 所以金價會升, 不過美元會跌 !

kingworldnews.com

With tremendous volatility in global stock markets, and gold on the move, today King World News interviewed Peter Schiff, CEO of Europacific Capital, to get his thoughts on what lies ahead. Schiff discussed stocks, gold and what central planners are up to, but first, here is what Schiff had to say about what is happening in key markets: “Well, we keep getting more weak economic data, which is validating my perspective that we never really had a recovery at all. We simply juiced the economy up on stimulus, and as the stimulus high wears off, the hangover sets in.”

Peter Schiff continues:

“We’re seeing that today with weak jobless numbers.  We also have the weakness of the Philadelphia Fed Study.  So the market is just rolling over as it’s coming to grips with the fact that the fantasy investors believed in is just that, fantasy.  It’s not reality.

Gold at least is finally having an up-day.  It’s up $30 to $40 today.  It still hasn’t recouped all that it’s lost in the last couple of weeks, but I think it will as investors start to realize that QE3 is coming...

“The Fed has already said that if the economy needs it (QE), it’s going to get it.  And the economy is addicted to it, I mean this economy needs QE the way a heroin addict needs another fix.

Gold is oversold.  It had a pretty big drop in a short period of time.  I think a lot of people have been prematurely negative and a lot of people have called it quits on the gold market because of the apparent loss of momentum.

People expect gold to go up all of the time.  If all of the sudden you see some problems in Europe and gold doesn’t go up, people say, ‘See, we’ve got to sell it.’  The JP Morgan loss is now $3 billion, not $2 billion.  That might get people to be more nervous about the financials.

You are not going to wake up one morning and find out that your gold coins have somehow gotten involved in some kind of derivative trade that has blown up.”

Schiff also added:  “I don’t think the downside is going to be enormous (in stocks).  As I said, the weak economic data, and weaker stocks, put pressure on the Fed because the Fed looks at the stock market as a barometer of the economy.

As the market digests the weakening economy and the lower market, then you start to get the optimism for the release, the fix, which is QE3.  So I think QE3 puts a floor (somewhere) beneath the market. 

But I do think the overall weakness of the US economy is going to put a ceiling on the market.  So, I’m not looking for a huge run up in stocks, but I’m not looking for a collapse.  But I am looking for a collapse in the dollar at some point because more QE is definitely bad for the dollar.”