Peter Schiff was on RT’s Boom Bust to talk about the latest jobs figures, the price of oil, the Swiss gold initiative, and the many uses of physical gold.
Video Length: 00:28:01
Follow along with this partial transcript:
“I think the kind of jobs we really need are in production. We’re adding all these jobs in retail, trade, and hospitality. People get jobs as bartenders, or waiters, or they work in a hospital. These are not the jobs that people can support a family on, that they can buy a house on, that they can save for their retirement. We need productive, higher-paying jobs. Unfortunately, as long as the Fed is artificially stimulating the economy with cheap money, we’re never going to get those type of jobs…
“I don’t think this decline in oil prices is going to be permanent. I think motorists can enjoy the savings while they last, but I think what’s really driving the oil market is this perception that the US recovery is real, and that we’re going to be raising interest rates. Whereas, Europe and Asia, they’re still in recession; they’re going to be doing quantitative easing. So people think the dollar is going to rise in an environment of global weakness. So they’re looking for a big reduction in demand for oil. That’s really what’s driving the price down.
“I think that everybody has got this wrong. I think the US economy is much weaker than people believe. Rather than the Fed raising interest rates next year, they’re far more likely to launch another round of quantitative easing. That’s going to be a game changer for the US dollar and for the price of oil…
“I think [the failure of the Swiss gold initiative] is ironic, and maybe it’s going to mark the low point for gold. We’ll see. Gold sold off below $1150 on the announcement, even though it was highly expected – pretty much nobody thought the Swiss were going to do the right thing and pass this. But the crazy thing is how many people were warning the Swiss how reckless and crazy this would be. The establishment was out in force. The mainstream, the bankers, the investment firms, telling the Swiss how dumb they would be to back their reserves even one-fifth in gold, [and that] they should have 100 percent of their reserves in euros and dollars. As if there’s any real value there.
