Peter Schiff Warns Of "Too Big To Pop" Bubble - "Everybody Is Going To Get Wiped Out!"

Tyler Durden's picture

via Greg Hunter's USAWatchdog.com,

Money manager Peter Schiff correctly predicted the financial meltdown in 2008.

Now, 10 years later, what does Schiff see today?  Schiff says,

“I predicted a lot more than just the stock market going down back then.  I predicted the financial crisis, but more importantly, I predicted what the government would do as a result of the financial crisis and what the consequences of that would be because that’s where we’re headed. 

 

The real crash I wrote about in my most recent book is still coming...

 

This is the third gigantic bubble that the Fed has inflated, and when this one pops, it’s not going to be ‘the third time is a charm.’  It’s going to be ‘three strikes and you’re out.’ 

 

I think this bubble is too big to pop.  I think it’s the mother of all bubbles, and when it bursts, there is not a bigger one that the Fed is going to be able to inflate to mask these problems, meaning we can’t kick the can down the road anymore.”

This time, the crisis is going to hit everyone in the wallet. Schiff goes on to say,

“I think the problem we are going to be confronted with is going to be much worse than a financial crisis.  It is going to be a dollar crisis, and it is going to be a sovereign debt crisis where the bonds people are worried about are not some sub-prime mortgages...

 

It’s going to be the U.S. government that people are worried about and the solvency of the U.S. government and the Treasury bonds.  If it’s a dollar crisis and people are worried about the dollar, the only thing worse than owning a dollar today is owning the promise of being paid in dollars in the future. 

 

I don’t think we have the courage to default and admit to our creditors that we don’t have the money and we can’t repay.  I think we will create all the money that we need so we can pretend to repay, but what we end up doing is wiping out the debt with inflation.

So, how long can it go on? Schiff says,

“How high can the debt go?  I don’t know and you don’t know...

 

How many straws can you put on a camel’s back?  You don’t know until you put that final straw that’s one too many and you break his back.  So, can we go to $25 trillion in debt?  Maybe.  At some point, we are going to break the back of the camel with all this debt.  Then we are going to find out how much debt we can pile on, and it’s not going to be pretty. 

 

Everybody is going to lose.  Everybody is going to get wiped out who has been partying in the stock market, the bond market and the real estate market.  The dollar is going to tank, and purchasing power is going to get wiped out.”

Inversely, Schiff says it is the same with the suppressed gold and silver markets. Schiff contends,

“They can’t keep doing it, and it will end.  It’s just like how much debt can we take on.  It’s not an unlimited amount.  We will know when we get there. 

 

How long can they keep the price of gold suppressed?  We will know when we get there.  At some point, the price is going to explode because there is real physical buying, and all that paper selling can’t camouflage that...

 

People don’t trust fiat currencies . . . . More and more people are looking for alternatives, and the real alternative is gold.  When they embrace it, it’s going to overwhelm central banks’ ability to suppress the price.  In the meantime, enjoy the gift that they are giving.”

Join Greg Hunter as he goes One-on-One with money manager and financial expert Peter Schiff, founder of Euro Pacific Capital...

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zorba THE GREEK's picture

I'm not going to get wiped out because all my wealth is in physical PMs

NoDebt's picture

Japan just called me.  They want to know why they haven't hyper-inflated yet, given they are the tip of the spear when it comes to insane debt levels using pretty much any metric you can cite.

Central banks don't give a shit about market prices.  There are no markets any more.  They give a shit about controlling everything.  And they will own a controlling interest in every large corporation in the world after the next "crisis" hits.  

It's taken 100 years to get to this point.  They've almost got it nailed down.  One more "crisis" ought to do it and they'll own everything that matters.  

Mycroft Holmes IV's picture

The trick to riding a good wave is knowing when to get off to catch the next one.

But at the same time, it’s better to bail early than to get crushed.

Socratic Dog's picture

Keep in mind that when he says "central banks" he means "jews".

Dickguzinya's picture

Keep in mind, when you disparage Jewish people, you remind everybody what a scum bag you are, have been, and will always be.

eatthebanksters's picture

I just put my entire net worth into my Nicehash Bitcoin account last week so I know I'm safe!

DownWithYogaPants's picture

Even if you have precious metals you're probably going to take a huge hit.

Likely the Deep State at a minimum is going to come to you and say "Where is my 80% cut on your profit?" 

......nevermind that it is all inflationary gains. You know how they think.

And at worst they'll brand you a criminal and confiscate by slow or fast means.  Likely will be slow means.

What I am planning for is if I ever get any PMs will be to hold long long long beyond on the other side of any crisis where they com into play when they have relaxed again. ( We'll be lucky to see that ).  Otherwise it will be to give to my children and 30 years in future they can move it and get back the pruchasing power that the FedGov / DeepState / Bankster Rulers of All have stolen.

jvetter713's picture

Don't kid yourself.  If you don't own any PM's by now, you never will.

 

And regarding your comment about them coming for their 80% cut...I think it's probably safe to say that there will be a lot of dead tax collectors lying around should that happen.

N2OJoe's picture

Agreed, DWYP. History shows that this is how governments operate so be prepared to hold them for the long run or have a black market buyer at the ready.

DC Beastie Boy's picture

6000 years of history for precious metals doesn’t lie

Just saying

Funn3r's picture

Save your energy. There are some very smart ZH users and the comments section could be a great place except it's deliberately swamped by morons who turn everything into nigrrz, jooz, imigrentz. 

Actually "morons" is wrong I should say paid shills. Vested interests don't want ZH people making the truth easily visible. 

Socratic Dog's picture

I see.  So, it's just a coincidence most all central bankers are jews.  Or that the central banks are owned by jews.  Just a coincidence.

Now if, perchance, it wasn't a coincidence, what might it signify?  Would you be comfortable with it?

Twee Surgeon's picture

Keep in mind he is a jew, just like his Dad, who was a lifelong tax protester and died in a Prison Hospital. handcuffed to a bed, of (Pneumonia ?) at the age of (88 ?) courtesy of the IRS. I forget the details but I bet Pete Schiff doesn't.

Caloot's picture

His father is a hero. Seriously.

Tapeworm's picture

I found a cheap copy of his old man's treatise on taxes. I have not gotten around to read it along with a few hundred other books that I got on the cheap, and not so cheaply.

 

 

 Peter is a real piece of work. If he had any sense at all he would have hitched along on the old ZeroHedge term of "BTFD".

 Anyone that was foolish enough to put money with this fellow is regretting such nonsense. He cannot even get the reliability of a stopped clock.

 

DownWithYogaPants's picture

His father truly is a hero.  Not all jews are the problem.  It is the ZioBankers that are the problem.  Most of them are normal people like my friend Ray.  When I say normal I mean NY City normal which is not particularly normal and they guy just does not stop talking.

bolo man's picture

Simply said, no one else then trendmaker cannot be sure of the right time for bailing out.

Ghordius's picture

fine comment, but with a problem, here:
"Central banks don't give a shit about market prices".
it's a language issue, really. what exactly do you mean by that?
the FED(s)? or all the CBs?

it's the same language usage problem we encounter here with words here like "the West" or "NATO" or even "the world", at times, often used as the same as "the US"

Peter Schiff is describing an issue with the Dollar, and dollar-denominated markets. where he sees "the action", roughly. I advice you keep "the action" separate from "the reactions", which may wary, strongly

to put it simply: past support is no guarantee for future support (aka "Currency Wars")

HRH of Aquitaine 2.0's picture

Sure, until wifey goes shopping on QVC or HSN and you get the bill!

Hongcha's picture

Trade one for a can of dog food.

They will find a way to crash the thing and leave the mouthbreathers holding the bag.  They will make it multi-use; crash, blame a foreign power, start a creeping war.

They won't wait for it to explode - the air will be let out.

They will have their cover and just let the unwashed roiling masses fight it out while they watch.

Trick will be to see the signs and also to have already been prepared.

Mustafa Kemal's picture

"I'm not going to get wiped out because all my wealth is in physical PMs"

You can do alot worse. Add a little a piece of land. shelter, and a source of water, and you will do better

pluto the dog's picture

and you can buy what with your gold when the crash comes, 12000 chickens? gold will be useless when the shit hits the fan!

Caloot's picture

R u fkng kidding me. Doesn't it even remotely interest u that all the world's govts hoard the shit. Take china.  Or the US with fort  knox. How you don't see that the whole game is to fool u into giving them your gold.   Or taking it out right.  This whole, it's a relic, is their propoganda  completely brainwashing u into devaluing it  Are u completely blind to all of human history. Maybe it's just silly sarc I don't hear or something.   

pelican's picture

Let me guess, his solution is buy gold. Yawn

atomp's picture

Wrong! We're all going to be RICH, just like Zimbabweans.

wisehiney's picture

Schiff

Such a serious demeanor

Why do you never drop us a joke

Amongst all of your bullshit

The likes of you

And the audience created by and for

You

Are there any left that place much significance

On any click baiter?

 

wisehiney's picture

fyi

I am a fan

Even have his book

I just know whassup

DownWithYogaPants's picture

Wrong! We're all going to be RICH, just like Zimbabweans.

You mean Nigerian rich?

ZIRPdiggler's picture

You guys are all retarded.  Tyler needs to ease up on the retard sandwiches cuz you dopes are talking like all the other internet apocalyptic FUD lunatics whose lawn chairs are permanently parked at the Jim Jones punchbowl. This campground is closed for maintenance. Peter Schiff understandably shouts "the dollar is going away! the dollar is going away!"  And sure! that's true in the Austrian world where Peter lives but what are the outcomes when the ENTIRE SYSTEM is rigged by the very people who are making up the rules as they go along?  It's all optics intended to buy confidence and it could possibly work forever, you dumbasses.  No one will ever lose confidence in the dollar as long as they are spoonfed excuses and profits to help them believe a lie. The covert purpose of the central bankers is to deceive the public as they simultaneously provide vehicles for traders to piggyback (i.e. shorting the VIX) to keep them just as addicted to the easy "profits" as a slavic sex-slave heroin zombie.  Likewise, there is something for the trader's counter-parties in this insanity:  The corporatocracy will continue to float bloated balance sheets that depend on infinite stock buy-backs, just so long as they can continue to put points on the earnings scoreboard. Economics 101:  all parties involved here are incentivized to keep the surreal system going forever.  That is why all you gold-tards are wrong, it is why Peter Schiff is completely wrong about his predicted outcomes.

ZIRPdiggler's picture

They are limited only by the cost and acquisition of paper and ink and printing.

Stuck on Zero's picture

Schiff should know that all retail investors already know this is a bubble that will crash but they are all going to get out just before it crashes.

CNONC's picture

Yeah, that's what I, and every other residential builder/developer said in 2005 and 2006.  We all new it was going to crash, but being in the business and smarter than everybody else, we would get out before that happened.  HaHaHaHa.  Good thing I knew how to build houses.  It made fixing up the van down by the river a whole lot easier.

 

Caloot's picture

+1000 van down by the river.   I'm here to tell you that you won't amount to Jack Squat.   Eating a steady diet of government cheese and living in a van down by the river.

earleflorida's picture

china and russia and india will do just fine!

RationalExuberance's picture

Then you should move to Russia or China or India. Do it. 

bolo man's picture

Why change for those countries then act for better financial policy at home? Too lazy??

August's picture

Please, let's not pretend India is a Major Economy.

earleflorida's picture

yeah, and lets not pretend its pop. is approaching china's

by 2020 the pair s pop. will be 3 billion +/+

 

idontcare's picture

The only thing that bothers me about Peter is that he's been singing the same tune since 1995.  We've had plenty of pullbacks, but the world hasn't come to an end and the markets have always roared back to new highs.

Davidduke2000's picture

maybe you don't know about the PPT or plunge protection teams, but that's not how free markets work.

If you want to live in a rigged system and take a chance 90 to 10 is up to you as only 10% of people who play the rigged market can make a living, the 90% will lose it all, but the numbers will still show the markets are doing great.

I am sure you'll live long enough to teach your nieces about risk and rigged markets.

ZIRPdiggler's picture

Cryptocurrencies provide the only free market available today.  It is more than ironic (and moronic) that all the austrian school whiners and gold bugs who piss and moan about manipulation all day, find yet more creative bullshit reasons to not participate in cryptocurrency market. I guess then, they'd have nothing to bitch about since complaining seems to be their primary vocation.

Davidduke2000's picture

I sure do not envy you crypto lovers, as it will say on your crypt, crypto lover committed suicide after losing it all. 

Mine Is Bigger's picture

Yes. Anyone stupid enough not to move to Bitcoin or PMs in a timely manner will be wiped out.

911bodysnatchers322's picture

Or bitcoin is a trick run by Peter Thiel and the shadow faction of the CIA with AI bot armies repurposed to flash trade behind the exhanges as an effective gatekeeping and pricefixing since people cannot high speed trade, nor skip fees, nor flash trade like algo empowered AI bot armies that are running on PRISM and DWAVE supercomputers

If you think bitcoin is real, you're a real fool

It would appear to be the currency of choice of ai robots, but it could equally be a way to fool you into exchanging your dollars for worthless crypto coin built on a bubble of graft and gaslighting (confidence), and is simply a store of excessive input cost and not real value (it's a store of sunken cost into technology and sunken cost of excessive energy from petroleum, mostly)

If you really want to be smart and believe in crypto, diversify with crypto but don't neglect gold and silver just in case

They are a good buy right now. And they are real things that don't disappear when hard drives are destroyed or the lights go out

DownWithYogaPants's picture

Your dentures fell out grandpa.

Reading your text I get the feeling from your psycholinguistics you are not technical.

Davidduke2000's picture

I just dumped a young friend because she is too stupid to understand risk, she became too arrogant and wanted to teach me about bitcoin yet she was living off my money that I earned from being cautious and wise.

Next, another young one will come and replace her as money is very tempting when you hate to work.

Millennials, can't live with them and can't live without, they're too pretty and young and broke.

ZIRPdiggler's picture

Hitlary should eat a bag of dicks; stat.

Iconoclast421's picture

You might not be too far from the truth. It might be at a $250 billion market cap, but it probably only costed $10 billion to pump it up this high. And if someone with that deep of pockets were to dump $10 billion into it, they could sell at any time and make $15 billion (to cover taxes) so they would get out unscathed and everyone else would be boned.

911bodysnatchers322's picture

Or bitcoin is a trick run by Peter Thiel and the shadow faction of the CIA with AI bot armies repurposed to flash trade behind the exhanges as an effective gatekeeping and pricefixing since people cannot high speed trade, nor skip fees, nor flash trade like algo empowered AI bot armies that are running on PRISM and DWAVE supercomputers

If you think bitcoin is real, you're a real fool

It would appear to be the currency of choice of ai robots, but it could equally be a way to fool you into exchanging your dollars for worthless crypto coin built on a bubble of graft and gaslighting (confidence), and is simply a store of excessive input cost and not real value (it's a store of sunken cost into technology and sunken cost of excessive energy from petroleum, mostly)

If you really want to be smart and believe in crypto, diversify with crypto but don't neglect gold and silver just in case

They are a good buy right now. And they are real things that don't disappear when hard drives are destroyed or the lights go out