00:00
joining me now is economist Peter Schiff
00:02
founder of Euro Pacific Capital and the
00:03
host of the Peter Schiff show which is
00:05
available on YouTube and podcast and
00:08
many people may remember him or if not
00:10
you definitely got to see the video from
00:12
2007 2008 because he was the man who was
00:15
literally laughed at on cable television
00:17
by all the other financial pundits when
00:19
he was warning that the housing market
00:21
was about to collapse and so many people
00:24
wish they would have heeded his warning
00:26
so I want to get him on the show to see
00:28
what other kind of warnings he has and
00:30
to talk about the strange economic
00:32
situation that we're in now with the
00:34
coronavirus and now with these growing
00:36
civil unrest across the country so Peter
00:40
what's a forefront on your mind now with
00:43
everything that's going on what warnings
00:46
do you have that you hope people will
00:48
now listen to well you know if you
00:51
recall it wasn't just the housing bubble
00:53
that I was warning about or the imminent
00:56
crash in real estate prices but it was
00:58
the financial crisis that that real
01:01
estate price collapse was going to cause
01:03
and so not only was I worried about that
01:08
crisis and bank failures and the
01:10
bankruptcy of Fannie and Freddie but I
01:12
was worried about what the government
01:14
was going to do in response to the worst
01:17
recession since the Great Depression and
01:20
ten percent unemployment and trillion
01:22
dollar budget deficits because I knew
01:24
all this was coming and and what I
01:27
forecast was that the government would
01:29
double down on the policies the failed
01:31
policies that inflated the housing
01:33
bubble that rather than acknowledging
01:35
their mistakes and going down a
01:37
different path that they would try to
01:40
reflate the bubble and that's exactly
01:42
what they did they slashed interest
01:44
rates down to zero and left them there
01:47
for a long time and they did
01:48
quantitative easing and as a result we
01:52
inflated a much bigger one than the one
01:55
that popped into eight and now I am
01:59
warning about the far greater economic
02:01
crisis financial crisis that is about to
02:04
finally result from that much bigger
02:07
bubble and that's where we stand right
02:09
now except this is going to be a much
02:11
bigger crisis they
02:13
what happened in 2008 I mean it's
02:15
already begun the recession that we're
02:17
in now is gonna be far deeper and far
02:20
longer-lasting than the one that we had
02:22
then the main difference is going to be
02:25
the government's not going to be able to
02:26
reflect the bubble it's gonna try but
02:29
what its gonna do is crash the dollar
02:31
and so what we're gonna have is not only
02:33
a deeper recession but a big increase in
02:37
consumer prices something that we didn't
02:39
have we dodged that bullet last time
02:41
around we didn't get you know CPI going
02:45
way up but this time we're gonna have a
02:48
lot of unemployed people who are gonna
02:49
be paying a lot more money for basic
02:51
necessities so this is going to be
02:53
stagflation only the stagnation part is
02:56
really depression and the inflation
02:58
potentially can even be hyperinflation
03:00
so it's going to be much much worse than
03:03
the milder case of stagflation we had in
03:05
the 1970s now from in a five-year period
03:08
from I think 78 to 82 we had
03:11
approximately 48 percent or 50 percent
03:13
inflation basically can I mean are you
03:16
expecting a 50 percent inflationary rate
03:18
within a year what is hyperinflation to
03:22
you and how long does it go at what
03:26
point does it stop yeah I mean I don't
03:28
really know like if there's a cut-off
03:31
between when does high inflation
03:33
officially become hyperinflation mean
03:35
does it have to be why more republic
03:37
Germany or Zimbabwe right when you're
03:39
talking about wheel barrels with
03:41
trillions of dollars right before it's
03:43
hyperinflation or you know what if
03:45
inflation is just 10 percent 20 percent
03:47
a year for several years in a row I mean
03:49
that is really really bad I don't know
03:51
if you call that hyperinflation or not
03:54
but whatever we're gonna get it's going
03:56
to be very very disruptive and and the
03:59
thing is that the only way the Federal
04:02
Reserve will be able to prevent it from
04:04
becoming hyperinflation right so even if
04:07
we get 10 percent or 20 percent annual
04:10
increases in the cost of living the only
04:12
way to prevent that from turning into
04:14
something much worse right is gonna be
04:17
for the Fed to dramatically you know
04:19
reduce money supply and tighten up on
04:21
policy by selling all the bonds that
04:24
it's been buying and allowing interest
04:26
rates to rise dramatically but of course the cost
04:29
there is gonna be horrific because we
04:32
all have so much debt because the
04:34
Federal Reserve kept interest rates
04:35
artificially low for so long everybody
04:38
loaded up on debt and the only reason
04:41
that people can even service that debt
04:43
forgetting about trying to repay it
04:44
but it's only serviceable at you know
04:48
zero percent interest rates where the
04:49
rates are really low well what happens
04:51
if in order to rein in inflation that
04:53
the Fed let get out of control rates
04:56
have to go to ten percent or 20 percent
04:57
like they did in 1980 they had it they
05:00
went to 20 percent well what happens you
05:03
know I mean we have a twenty five and a
05:05
half trillion dollar national debt it'll
05:07
be thirty trillion maybe by next year
05:09
what happens if we have to pay ten
05:11
percent interest on that that's three
05:13
trillion dollars a year I mean that's a
05:15
hundred percent of what the government
05:16
collects in taxes I mean how are you
05:18
gonna beat a situation where every
05:20
nickel of tax revenue is just to pay the
05:23
interest on the debt and you have
05:24
nothing left for anything else I mean
05:25
obviously this is gonna be a massive
05:27
collapse when the Fed is finally forced
05:30
to allow rates to go up not only are all
05:32
the big banks gonna fail that we bailed
05:34
out but the depositors are gonna lose
05:36
their money because there's no money to
05:37
bail them out you're gonna have massive
05:40
defaults of debt including the federal
05:42
government the federal government will
05:43
have to default on Treasuries that's the
05:45
only way to avoid hyperinflation is for
05:48
the government not to pay because that
05:49
the Federal Reserve prints enough money
05:51
to allow the government not to default
05:54
well then the money is gonna have no
05:55
value because we will have
05:56
hyperinflation so at this point is there
05:59
even any way to stop it I know you and
06:00
others know it's been 12 years that I've
06:02
been familiar with your work you warning
06:04
about these things you should do this
06:06
the government should do this the
06:07
Federal Reserve should do that the
06:08
Treasury should do this they're not
06:09
doing it it's almost like lecturing
06:11
somebody who's 400 pounds to stop eating
06:14
and they're not stopping eating and the
06:15
heart attack is just around the corner I
06:17
mean is there even any way to avoid this
06:20
at this point or are we gonna see you
06:23
know third world is the once great
06:25
United States gonna turn into
06:27
essentially a third world country of the
06:30
likes of which the world has never seen
06:33
I think we already are a third world
06:35
country we're just not living like one
06:36
we still have the standard of living of
06:38
a first world country but we have the
06:40
economic dynamics of a third-world
06:43
country and that were not a
06:44
manufacturing economy anymore I mean
06:46
we're living off of what everybody else
06:48
manufactures and we're consuming or
06:51
borrowing rather what the rest of the
06:53
world saves America is the world's
06:54
largest debtor nation if you look at the
06:58
other creditor nations those are the
07:00
industrial nations I mean we're in a
07:02
list of debtors right where we owe the
07:03
world a lot more than the world owes us
07:06
I mean at one time America was the
07:08
world's wealthiest creditor nation in
07:10
fact as late as the early 1980s we were
07:13
the world's biggest creditor nation now
07:15
we owe more than all the other debtor
07:17
nations of the world combined it's just
07:20
that we've been able to live beyond our
07:21
means because we create the world's
07:23
reserve currency out of thin air and
07:25
we're able to use it to buy all the
07:27
products that everybody else produces
07:29
and because we have the reserve currency
07:31
we're able to borrow at very very low
07:34
interest rates but all of this is going
07:35
to come to an end I think it's going to
07:37
come to an end soon to answer your
07:39
question no there is no way to avoid
07:41
this right I mean either we can bring
07:44
the crisis on ourselves or we can wait
07:48
until the world forces the crisis upon
07:50
us now of course by waiting for the
07:53
world to do it it's going to be much
07:54
worse but no politician wants to go out
07:58
of their way to confront the problem now
08:01
when they can kick the can down the road
08:02
and get it past the next election so
08:05
that's what the game is now it's about
08:07
what can we do to delay the day of
08:10
reckoning because it's going to be so
08:11
bad that we just want to postpone it
08:14
even though success in postponing it is
08:18
actually failure because the more you
08:20
succeed in postponing the crash the
08:22
worse the crash is going to be when it
08:24
finally hits but from political perspective
08:27
hey they'd rather have a worse clap
08:30
crash later than any crash now so that's
08:32
what we do and then you have a lot of
08:34
people who are delusional in that they
08:37
believe that since we haven't had a
08:38
crash yet that we never will
08:40
right they point to people like me who
08:42
have been warning about these problems
08:45
for years or even decades and they say
08:47
well you say look everything is fine
08:49
look the Dow Jones is at a record high
08:50
you know so what are they talking about
08:53
we can borrow as much as we want we never have
08:56
to repay the debt we don't have to save
08:58
we don't have to manufacture the trade
09:00
deficits mean nothing or at the budget
09:01
deficits you know they can grow to the
09:03
sky we can print as much money as we
09:05
want it doesn't matter where the balance
09:07
sheet is right because nothing bad is
09:09
gonna happen because nothing bad has
09:11
happened well bad things have happened
09:13
they just don't understand the source
09:15
but the collapse yeah the real crash
09:18
hasn't happened yet but that doesn't
09:19
mean it's not gonna happen and by the
09:21
time it does happen it's too late to
09:23
worry about it or do anything about it
09:24
how does the average investor or the
09:27
average American avoid getting
09:28
completely wiped out I mean most workers
09:30
have a 401k some sort of an retirement
09:34
plan and IRA things like that even if
09:36
they're not sitting on a lot of cash
09:38
savings they you know you're responsible
09:41
Americans have been putting money away
09:43
in a ra for perhaps 30 40 years what's
09:47
gonna happen to that money or is that
09:49
gonna hyper inflate and become part of
09:52
the part of the waste essentially well
09:55
most people are gonna get wiped out
09:57
financially I mean that's just what's
09:58
gonna happen I mean if you want to go
10:00
back and look at the 1970s as an example
10:03
only this was gonna be much worse than
10:06
the 70s but during the 1970s you saw a
10:09
huge decline in the value of the dollar
10:11
right the the dollar lost about
10:14
two-thirds of its value during that
10:15
decade measured against other currencies
10:17
like the Dortch mark the Japanese yen
10:20
the Swiss franc
10:21
but measured in terms of gold the dollar
10:24
lost even more value right at the
10:26
beginning of the decade gold was $35 an
10:29
ounce at the end of the decade it was
10:30
850 so that is a huge loss of purchasing power
10:35
that's why prices went up so much during
10:37
the 1970s that's why you had all that
10:39
inflation was because we destroyed the
10:42
value of the dollar and the the genesis
10:45
of that destruction was really the 1960s
10:47
with the deficits that we ran in the
10:49
1960s to fight the Vietnam War the war
10:53
on poverty going to the moon you know we
10:56
did a lot of things that we didn't pay
10:58
for we borrowed money now it was tame
11:00
compared to what we're doing now but
11:02
there was a price to pay for that
11:04
profligacy and we paid it in the 70s
11:07
you know Americans suffered in fact
11:10
that's one of the reasons that so many
11:11
women entered the workforce in the 1980s
11:14
who were not working in the 1960s
11:16
because in the sixties married women
11:19
didn't have to work because their
11:20
husbands made enough money to support
11:22
them but by the end of the 70s that
11:24
they're paid the husband's paycheck had
11:26
lost so much value that the wife had to
11:28
get a job that was the only way that
11:29
they could make ends meet and a lot of
11:32
people probably had to delay their
11:33
retirement plans because money they
11:35
thought was gonna go a certain amount
11:36
didn't because prices went up well
11:39
that's what's gonna happen you're a Gold
11:41
Bug you're the president of shift gold
11:44
you sell gold I understand in in
11:45
Manhattan are you recommending that
11:48
people just dump all their money into
11:50
gold you know if people have taken that
11:52
kind of advice back in 2008 they
11:54
would've missed out on the stock market
11:56
gains over the last ten years as there
11:57
was a recovery maybe President Trump
11:59
sort of held the damn back from bursting
12:01
and his trade deals and deregulating
12:05
sort of was an unforeseen blessing you
12:08
know to sort of this supposed dooms
12:10
there's what what should people do with
12:14
their with their money I mean well first
12:16
of all you know I've never been
12:17
recommended that people put all their
12:19
money into anything and I don't
12:20
recommend that people put all their
12:22
money into gold and silver they should
12:24
certainly put some of their money into
12:25
gold and silver and by the way if you go
12:27
back to the year 2000 right that
12:29
timeframe the last 20 years buying gold
12:33
is actually better than buying the SP
12:35
even with the dividends that you would
12:37
have earned on the sp500 just holding an
12:40
ounce of gold for the past 20 years and
12:41
selling it today actually gives you a
12:43
better return and I think you know over
12:46
the next 10 years you're gonna see gold
12:49
outperform the S&P 500 but I don't tell
12:53
that tell people to just buy gold and
12:54
silver I mean you should have you know 5
12:56
10 % at least in physical gold and
12:59
silver but I do believe that you should
13:02
have good portfolios of foreign stocks I
13:04
mean foreign stock portfolios did very
13:06
well in the 1970s as the US stock market
13:09
was decimated by inflation and went
13:11
nowhere in nominal terms but got
13:13
clobbered in real terms
13:15
but people made money in the Japanese
13:17
stock market or in the German or the
13:19
Swiss stock market so we
13:21
invest money for our clients around the
13:23
world in markets where I think you're
13:25
gonna see an appreciated currency
13:28
relative to the US dollar and where I
13:29
think we get much better valuations in
13:32
their stocks than what's available in
13:34
the US market so we get better dividend
13:36
yields and we're investing in sounder
13:38
economies that are not on the verge of a
13:40
complete economic collapse which is what
13:42
we're about to experience here in the
13:44
United States so the key is to avoid
13:48
getting wiped out through inflation
13:50
right most people are and you know you
13:52
look at all of the money that's being
13:55
printed right now right we we've had
13:57
this huge increase in government
13:59
spending in the last year right since
14:01
kovat although government spending was
14:03
already ramping up under under Trump
14:06
before covin but now it's just kind of
14:08
gone ballistic right so we're spending
14:11
unprecedented we're gonna have a budget
14:13
deficit of maybe three four trillion
14:15
dollars right this year I mean
14:16
incredible - budget deficit and but
14:21
where's that money coming from right I
14:23
mean the government is spending all this
14:24
money who's paying for it who's getting
14:26
the bill right the idea is that well
14:28
nobody's getting the bill right nobody's
14:29
taxes are being raised in fact people's
14:32
taxes are being cut so how we have
14:35
paying for all this government this
14:37
massive increase in government spending
14:38
you don't get all this government for
14:40
free somebody's got to pay the cost the
14:43
idea is now well nobody pays for it gets
14:45
the fed is just gonna create the money
14:46
well okay well what happens when the fed
14:48
just creates money out of thin air
14:50
because the Federal Reserve doesn't
14:51
produce any products it doesn't provide
14:53
any services it just creates money right
14:56
and so if there's no additional goods
14:58
and services just a bunch of money all
15:00
that happens is the money that already
15:02
exists loses value so now when people
15:05
get that money that the Fed printed and
15:08
now they can buy stuff they can only buy
15:10
stuff because the people that had money
15:12
before can buy less because now we have
15:14
to increase prices so that that the the
15:17
greater quantity of money you know can
15:19
buy the the same quantity of goods and
15:21
in fact right now because of the
15:25
economic shutdown not only are we
15:28
printing more money but we're producing
15:29
less stuff we're providing less services
15:32
people that used to be employed making
15:34
things
15:35
and providing goods and services are our
15:37
home doing nothing and just cashing
15:39
government checks and so the way we're
15:42
paying for all this government is with a
15:44
massive inflation tax the government is
15:47
gonna steal the purchasing power of
15:49
anybody who has US currency and it's
15:52
that stolen purchasing power that
15:54
everybody is spending now so if you
15:57
don't want to be taxed to death by
15:59
inflation if you don't want to see the
16:01
value of everything that you've worked a
16:03
lifetime to save if you don't want to
16:05
watch that implode which is what's going
16:07
to happen right when prices are going up
16:09
it's not really prices that are going up
16:11
it's the value of your money that's
16:12
going down and so now you need more
16:14
money to buy the same stuff so if you
16:16
want to avoid that tax you need to get
16:19
out of the dollar before the bottom
16:20
drops out before people realize what's
16:23
gonna happen and you could take your
16:24
dollars and that's what I'm helping
16:26
people do get rid of their dollars and
16:28
buy real money which is gold and silver
16:30
or exchanges or dollars for foreign
16:33
currency and then use that foreign
16:34
currency to buy foreign assets foreign
16:37
stocks foreign bonds and so once you're
16:39
in those other assets the US government
16:42
can't tax you with inflation they can
16:44
only tax the people who hold US currency
16:46
so if you hold gold then you avoid that
16:50
tax if you own real assets outside the
16:52
United States you avoid that tax but if
16:54
you own US Treasuries muni bonds
16:56
corporate bonds anything that's tied to
16:59
the US dollar that pays a coupon in
17:01
dollars you're gonna get wiped out you
17:04
are gonna be bearing the cost of all the
17:06
bailouts and all the stimulus we don't
17:08
want to pay it and you got to do
17:10
something now what is the recent unrest
17:13
done to change your forecast because
17:16
when the Occupy Wall Street movement
17:17
started and with 2011 I think it was you
17:21
know they started calling for massive
17:23
socialist welfare programs largely
17:27
peaceful you know kind of looking back
17:29
on that compared to this mass rioting of
17:32
just complete anarchists who hate this
17:34
country who can't be reasoned with
17:36
what is has this done to your forecast
17:40
for you know what's gonna happen to the
17:43
once great United States
17:45
yeah well certainly we've kicked the can
17:48
down the
17:49
Road for many more years than I thought
17:51
right when I was writing my first book
17:53
crash-proof and I wrote that back in
17:54
2006 I didn't think we'd be in 2020 uh
17:59
where we are now I would have thought
18:01
that the real crash which was the title
18:03
of a book that I wrote later I think
18:04
came out in 2013 I would have thought
18:06
that that would have happened already
18:07
but we did succeed in in postponing the
18:10
day of reckoning and so now it's gonna
18:11
be much much worse but I think what's
18:14
really compounding the problem is the
18:17
the political shift that the nation has
18:20
had and I think it really started with
18:23
the 2016 election not with the election
18:26
of Trump but what I thought was really
18:28
significant was how well Sanders did in
18:30
the primary and and how mainstream his
18:34
socialist policies actually became
18:37
within the Democratic Party now those
18:40
policies are mainstream in the
18:42
Republican Party in fact I think even
18:44
Bernie Sanders is surprised at how far
18:47
the left the Republicans have already
18:49
moved uh and so the political dynamic
18:53
has really really shifted we now have a
18:55
Democratic Party and a socialist party
18:57
right and I think the Socialist Party is
18:59
probably gonna prevail in the next
19:01
election and you already have this mood
19:04
in the country like like like in the
19:07
Occupy Wall Street days only worse where
19:09
there was a sense that the financial
19:12
crisis and the Great Recession was the
19:14
result of capitalism like there was too
19:17
much capitalism too much greed and we
19:19
just needed more government and we and
19:21
we would have been okay and that was the
19:23
the opposite the read the we had a
19:26
bubble because of the Federal Reserve
19:28
and because of Congress Fannie and
19:29
Freddie I mean it was moral hazard and
19:31
artificially low interest rates that
19:34
combined to inflate the housing bubble
19:36
that resulted in the financial crisis
19:38
and the bailouts of the banks was not
19:41
capitalism capitalism would have allowed
19:43
banks to go under they would have
19:45
allowed people to lose money that's what
19:46
should have happened we should have had
19:48
more failures in more bankruptcies but
19:50
we didn't have capitalism we had
19:51
socialism we had the government bailing
19:53
out the bad actors and so we compounded
19:56
all the problems and so this crisis as I
19:59
said is gonna be much worse the
20:00
recession is going to be far deeper
20:02
far more people are going to lose their
20:04
jobs but they're also going to have to
20:05
deal with a much higher cost of living
20:07
and I think people are gonna again blame
20:11
capitalism they're gonna say you see we
20:14
told you capitalism doesn't work look at
20:16
this disaster right and of course the
20:18
disaster was because of government
20:20
interference with capitalism but it's
20:22
the capitalism it ends up getting a
20:24
blame for the damage that socialism does
20:26
but then the solution is always what we
20:28
just need more socialism and so this
20:30
time we can end up going all-in on
20:32
socialism and what we're seeing now
20:35
right the protests and the riots and the
20:38
looting is just a small taste of what's
20:42
going to happen and we're already seeing
20:44
politicians and businesses caving in to
20:47
the demands right all of a sudden now we
20:49
have to you know do all this to combat
20:52
you know this this systemic racist
20:54
threat that doesn't actually exist right
20:57
and now all of a sudden we need
20:59
reparations or whatever it is 14
21:02
trillion dollars is what Robert Johnson
21:04
is saying mayor Garcetti in Los Angeles
21:07
said he's cutting the funding of the
21:08
police department by a hundred or a
21:10
hundred and fifty million dollars so
21:13
less police it is like an Orwellian
21:16
backwards world that we're living in so
21:19
it you know if this hyperinflationary
21:21
scenario unfolds in the next 5-10 years
21:25
15 years I mean are we gonna see an
21:28
emergency
21:30
you know levy on people's 401ks so
21:33
anybody who you know the retiree folks
21:35
who have a few hundred thousand dollars
21:37
in their IRA are gonna get 10% of it
21:38
siphoned off or we're only gonna come
21:41
from well again they don't have to do
21:43
that they just print it right so as they
21:45
print money they steal the purchasing
21:47
power the money you have so they don't
21:49
have to take your money they just take
21:51
your purchasing power that's the danger
21:53
of the monetary system that we have now
21:55
right they don't actually if they don't
21:57
physically have to take the money away
21:59
from you they can just create as much
22:01
money as they want and spend it alright
22:03
but the houses they just catch up
22:04
because let's say in a one-year period
22:06
if the dollar piper inflates to you know
22:08
50% in one year then all of a sudden the
22:11
people who are making $20 an hour are
22:13
making the equivalent of 10 now they
22:15
can't pay their
22:17
so then their boss is gonna have to the
22:20
owner of that company is gonna have to
22:21
up the optin how does that work because
22:23
it's sort of like a tit for tat right I
22:25
mean how how does the how do the wages
22:28
catch up well they never they never
22:30
catch up that's the problem they always
22:32
go further and further behind so yes
22:34
wages will rise in hyperinflation but
22:38
just not nearly as much as the price of
22:40
other goods right wages are just a price
22:42
of labour right but those prices will
22:44
not go up nearly as much and of course
22:47
in the when the economy is devastated by
22:49
hyperinflation a lot of the employment
22:51
opportunities are gonna vanish so if you
22:53
don't have a job it doesn't matter that
22:55
wages are going up if you're not earning
22:57
any of those wages at all so you have a
22:59
lot more people that are unemployed that
23:00
have zero wages right all they get is
23:03
whatever stipend the government creates
23:05
for them but you can never get out of it
23:07
and and and you're impoverished that's
23:10
there has never been a society that has
23:12
gone through hyperinflation where it
23:14
hasn't impoverished the nation it's not
23:16
like there's any way that you could just
23:18
well you know my prices went up tenfold
23:20
so just pay me 10 times as much and
23:22
we're all ok it doesn't happen and you
23:25
wipe out you know the savings if you
23:26
wipe out the savings of a society you
23:28
destroy the ability of that society to
23:30
invest and grow so it really is a
23:33
crippling I mean it's it's you know it's
23:35
like losing a war I mean it really is a
23:37
devastating economy I mean so are you
23:40
visioning a scenario where like farmers markets
23:44
sort of pop back up and there are people
23:46
selling food that they've grown on their
23:48
farms for literally physical silver and
23:52
gold coins for because the dollar will
23:54
be so worthless that nobody wants to use
23:56
it or the price fluctuates so much or
23:58
its dropping so dramatically over a
24:00
30-day period that within a month the
24:03
price of goods changes so much that
24:05
people won't don't want to accept it
24:06
what I mean well oh that is certainly a
24:09
possibility I mean there's no question
24:11
and you should be prepared for that you
24:13
should hope that doesn't happen but you
24:15
better have some silver coins in your
24:17
house because if we do get the
24:20
hyperinflation right what I think is
24:22
going to happen initially as prices
24:24
really start to rise the politicians are
24:27
gonna try to scapegoat greedy businessman or
24:30
appleís or speculators you know the way
24:32
Nixon did in the 1970s you know
24:35
commmunity and so the landlords were to
24:37
blame for everything the evil landlords
24:39
and the the adult locators so what's
24:42
gonna happen is the government is going
24:44
to impose price controls the government
24:47
is gonna make it illegal they'll say
24:49
it's price gouging right you can't raise
24:51
prices right your prices are fixed or
24:53
whatever that is and so the minute that
24:55
happens you're going to have widespread
24:57
shortages of goods because the prices
25:01
are gonna be artificially low so those
25:02
goods won't be available legally the way
25:05
they'll be available is illegally on the
25:07
black market right because if you really
25:09
want to buy stuff right you know you can
25:12
do it but you can't do it legally
25:13
because then the the merchant is gonna
25:15
get arrested or punished so you have to
25:16
go illegally and of course if their
25:19
transactions are gonna be illegal what
25:21
are they gonna be denominated they're
25:23
not gonna be in money that the
25:24
government can track I mean you're not
25:25
gonna be able to sell your goods for
25:27
dollars or take a credit card when
25:29
you're breaking the law
25:30
selling it so I think people are gonna
25:32
be selling in silver or gold are gonna
25:34
be bartering or you know they couldn't
25:36
in theory take cash but I don't think
25:38
they're gonna want cash because if the
25:40
dollar is losing value so rapidly and
25:43
you have goods that have real value
25:45
let's say you are a farmer and you're
25:46
selling some food why are you gonna give
25:48
away your food for pieces of paper that
25:50
by the following day could be worth
25:52
nothing and you had real valuable food
25:54
so when that when paper money really
25:56
starts losing money rapidly businesses
25:59
can't afford to accept it in exchange
26:00
for their valuable goods so they have to
26:03
exchange it for something that's also
26:04
valuable that's not going to lose its
26:07
purchasing power so the farmers are
26:09
gonna want to sell their produce right
26:11
and get paid in silver so then they can
26:13
use that silver to buy the things that
26:15
they need I mean what good is it if they
26:17
sell you some food and then you give
26:19
them some paper and by the time they try
26:20
to spend it nobody will take it because
26:22
it's lost so much value so you get an
26:24
under underground economy in real money
26:26
you know and and you know that is a
26:29
worst-case scenario but that may happen
26:31
how do we avoid it at this point because
26:34
like I've said everyone keeps kicking
26:35
the can down the road nobody wants to do
26:37
what actually is necessary no
26:41
politicians gonna get reelected if they
26:43
simply say what needs to be done or do it I
26:46
guess president Trump sort of problem
26:47
may be the last hope sort of holding the
26:49
dam back from bursting maybe if he gets
26:51
really I mean Trump a lot of people look
26:53
Trump is a politician like anybody else
26:55
I mean he is making political decisions
26:57
nothing Trump does is really for the
26:59
good of the country it's all politics he
27:01
wants to get reelected and he's playing
27:03
ball I mean he's not draining a swamp
27:04
he's you know part of the swamp I mean
27:07
his mop is a lot deeper now that Trump
27:10
is there I mean I think Trump has a
27:12
different style than a lot of career
27:14
politicians but the substance is all the
27:16
same all the decisions are politically
27:18
motivated they're not economically
27:20
motivated but the answer question he
27:22
puts America first of all of his
27:23
anti-globalist legislation now stop
27:25
that's that's just talk that's just
27:27
campaigning he's not putting America
27:29
first he's putting his reelection first
27:31
that's what he's putting first it's you
27:33
know now I agree that you know he wants
27:36
things to look better while he's
27:38
president because he thinks it reflects
27:40
better he doesn't want to have to go
27:41
through a big cleansing of the economy
27:44
on his watch and get blamed for it and
27:47
of course you know he was claiming that
27:49
we had the greatest economy in the
27:50
history of the world when that wasn't
27:52
even close to the case I mean maybe we
27:54
had the biggest bubble in the history of
27:55
the world but we didn't have anywhere
27:57
near the strongest economy he knows that
27:59
an all-time low for food it was at an it was at a low
28:05
based on the way we measure it now I
28:07
mean it's been a lot lower in decades in
28:10
the past when we had a more honest way
28:12
of measuring unemployment in fact when
28:15
Trump was a candidate for president he
28:19
called out the phony unemployment
28:21
numbers that the Obama administration
28:23
was touting when Obama was saying the
28:24
unemployment rate is 5% Trump said the
28:27
real rate is 30% or 40% so all of a
28:30
sudden he's president and now
28:31
unemployment 4% and that's the real rate
28:33
what happened to the 20% or the 30% you
28:36
know from you know before he was elected
28:38
I mean so these numbers mean nothing the
28:41
reality is the American economy is a
28:42
shadow of what it used to be
28:45
it's a hollowed out I mean a lot of the
28:47
criticisms that Trump had were valid
28:49
except a minute he was elected he became
28:52
a champion of everything he criticized
28:54
you know the trade deficits got bigger
28:56
under Trump they didn't go down
28:58
right he was one of his big things was
29:00
we got a we got a strength to trade
29:01
deficit it got larger not smaller the
29:04
budget deficits got bigger he said oh we
29:06
have too much debt well now we have much
29:08
more you know he he was he was critical
29:11
of the Federal Reserve because their
29:12
monetary policy was too easy as soon as
29:15
he became president he began criticizing
29:17
him because he said they were too tight
29:18
and he wanted the Fed to be political
29:21
the way they were for what way they were
29:23
for Obama so do you think as an outsider
29:26
he comes in he says what he thinks needs
29:28
to be done or what really should be done
29:30
but then now that he's the captain of
29:32
the ship he sort of realizes that the
29:34
ship is malfunctioning it's leaking it
29:36
he can't do what he wanted to do because
29:40
it's just impossible and so I was trying
29:43
to just prevent the shell from sinking
29:45
the best that he can well it's gonna
29:48
sink no matter what he's just hoping
29:50
that he gets off before it does right
29:52
that's what all politicians do but so
29:55
the problem is when when Trump campaign
29:57
he never actually talked about what
30:00
needed to be done he was accurate in his
30:03
assessment about the problems and
30:05
because he was speaking candidly about
30:07
how bad the problems were that resonated
30:10
with a lot of voters who had been
30:11
spoon-fed lies about how great things
30:13
were right the media the Obama
30:15
administration wall street was talking
30:18
about this great recovery right but the
30:20
average guy wasn't experiencing that
30:22
recovery because it didn't exist on Main
30:24
Street maybe it existed on Wall Street
30:27
thanks to the Fed but a lot of the
30:28
resources that were that were propping
30:30
up main wall street were siphoned off of
30:33
Main Street by that monetary policy so
30:36
when Trump laid it out cold about how
30:39
bad the US economy was and how you know
30:41
we had to disintegrate it over the years
30:43
and that America was no longer the great
30:46
nation that it used to be that was a
30:48
true statement and Trump just said look
30:50
elect me and I will make America great
30:53
again I'm not a career politician I'm
30:55
gonna do what it takes to make this
30:57
country great I'm gonna do what the
30:59
career politicians refused to do and so
31:01
that was a great message I voted for
31:03
Trump all right a lot of people voted
31:04
for Trump because they liked that
31:05
message but Trump never actually said
31:09
what needed to be done right and what
31:11
needed to be done was massive cuts in
31:14
government spending but Trump did not
31:15
campaign on that he didn't say I'm gonna
31:17
elect me i'ma cut Social Security
31:19
I'm gonna cut Medicare he didn't talk
31:21
about making government smaller he
31:23
talked about cutting taxes which is the
31:25
fun part but in order to cut taxes you
31:28
have to cut government spending because
31:30
taxes fund government spending and if
31:32
you cut taxes but keep spending well how
31:34
do you pay for the government because
31:36
the real cost of government is what it
31:38
spends so what you really need to do is
31:40
think of government spending is taxation
31:42
because every dollar the government
31:44
spends we need to pay for it and if the
31:47
government doesn't collect the taxes
31:48
that it has to create inflation and so
31:50
we're gonna pay for the difference with
31:52
a loss of purchasing power for our money
31:54
which is what's happening so when Trump
31:56
gets into office and he finds out that
31:59
the only way to really make America
32:01
great again is to make government small
32:03
again that the reason America was so
32:05
great in the past was because we had a
32:07
tiny government that really didn't
32:09
consume much in the way of resources so
32:11
we had a strong economy because we
32:12
didn't have all these taxes we didn't
32:14
have all these regulations but then he
32:16
gets to Washington and he realizes that
32:18
these are all these special interest
32:19
groups that want all that government
32:21
spending that want all those programs
32:23
that want all that regulation and he's
32:25
not willing to challenge the status quo
32:27
and he doesn't want to disappoint voters
32:30
by telling them you can't have this
32:32
government money the country does that
32:34
can't afford it so he couldn't actually
32:37
do anything to make America great again
32:39
so all he could do is get the bubble
32:42
bigger and pretend that that was making
32:44
America great again so that's all he did
32:46
right we just continued the policies of
32:49
Obama under Trump which was a
32:51
continuation of the policies of Bush so
32:54
all we did is we got the stock market to
32:56
go up right and we created some more
32:58
fake prosperity and now Trump became a
33:01
champion of that fake prosperity the
33:03
same fake prosperity that he rightly
33:05
criticized as a candidate now he
33:07
embraced it and said oh look you see how
33:09
successful I am look we have a new high
33:12
in the Dow but as a candidate he said
33:14
who cares about the Dow it's a bubble
33:16
ignore the stock market it's not ready I
33:18
don't know if I would call you know
33:20
unemployment at an all time
33:22
I know you dispute those numbers but I
33:24
mean just anecdotally I know tons of
33:26
people who have been very prosperous
33:28
over the last few years we're seeing
33:29
some manufacturing returning to the
33:31
country we're seeing our deals right no
33:34
we're not seeing on Spelling's the auto
33:36
industry is no it's not where the auto
33:39
industry is a disaster yes we had a
33:42
bubble in auto loans thanks to the Fed
33:45
but GM and and Ford which is the only
33:48
two American automobile companies left
33:49
are gonna go bankrupt again you know
33:52
they were bailed out once before and
33:53
they're probably gonna get bailed out
33:54
again because they're probably headed
33:56
for bankruptcy again but no
33:58
manufacturing hasn't returned that's a
34:00
myth we continue to lose manufacturing
34:03
jobs under Trump I mean amazing service
34:06
jobs I mean everybody's using instacart
34:08
now and all of these sort of new you
34:11
know energy is neither created nor
34:12
destroyed right the scientific axiom but
34:14
isn't that true of jobs and all these
34:16
people like Andrew Yang who are saying
34:17
that 30 percent of the jobs are gonna
34:20
disappear I mean that's not really true
34:22
because nobody could have anticipated
34:24
that companies like Facebook and Twitter
34:26
would bomb out like I am NOT somebody
34:28
who believes that prosperity and
34:30
automation is what's destroying jobs no
34:33
it's government regulations and and
34:35
taxation and spending look even before
34:38
kovin 19 even before we lost all the
34:41
jobs that were created since 2008 but
34:44
even before this recession started job
34:47
creation under Trump was slower than it
34:50
was under Obama right and all that
34:53
happened is the trend that was in motion
34:55
for falling unemployment under Obama
34:59
continued under Trump he didn't bend the
35:02
curve and we continued to create the
35:04
same low quality part-time service
35:07
sector jobs under Trump that we were
35:10
creating under Obama that didn't change
35:12
the only thing that really changed is
35:15
that the stock market made a new high
35:17
and why did that happen because the Fed
35:20
went back to printing money they say
35:22
went back to rate cuts and quantitative
35:23
easing and they did that in 2019 they
35:27
did that a year before kovin 19 came
35:30
around so the Fed already had to rescue
35:33
the Trump economy because it was in
35:36
because it was phony it was even it was
35:38
in a bigger bubble than the one that he
35:40
inherited from Obama but he I guess he
35:44
realized that he had no choice
35:45
politically if all he cared about was
35:47
getting reelected then he couldn't do
35:50
what was necessary to make America great
35:52
again so instead he did what was
35:55
expedient to get to keep the bubble up
35:57
inflating so maybe he can get a second
36:00
term but I don't think it's gonna work I
36:02
mean I think if Trump really cared about
36:04
the country he would have tried to do
36:07
something in his first year when the
36:09
Republicans had the house and the Senate
36:11
what he should have done is what I
36:14
suggested he should have refused to sign
36:16
an increase in the debt ceiling and had
36:19
he done that he would have forced the
36:21
government to dramatically cut
36:23
government spending and brought about a
36:25
balanced budget in his first year the
36:26
President had the ability to do that
36:28
there is no way that they would have
36:30
been able to override his veto there
36:32
would have been enough Republicans who
36:34
would have taken advantage of that to
36:36
really shrink government spending but
36:38
instead that didn't happen I mean we you
36:40
know we increased government spending
36:41
dramatically and cut taxes at the same
36:43
time so you know we poured gasoline on a
36:46
fire that's all we did
36:47
couple more things I want to get into
36:49
and I appreciate your time and Peter
36:51
shifts the host of his own YouTube
36:52
channel and you can check it out over at
36:54
the Peter Schiff channel and since we're
36:57
talking about inflation and monetary
36:59
issues and a lot of people are wondering
37:00
and myself included about Bitcoin I know
37:03
your stance on Bitcoin but I want to
37:05
kind of have you share it with the
37:06
audience I do not know that much about
37:09
Bitcoin obviously a lot of people are
37:11
pointing to that as an alternative
37:13
currency and you are you're not exactly
37:17
a big fan of Bitcoin can you can you
37:20
tell us why yeah well because I don't
37:23
believe that story I don't believe that
37:25
Bitcoin is digital gold
37:27
I think it's fool's gold and I think the
37:30
price is eventually gonna collapse but
37:32
certainly the people who are in Bitcoin
37:34
and own Bitcoin have a strong motivation
37:37
to try to convince other people that it
37:40
is digital gold and that they should buy
37:41
it because that's the only way the price
37:43
is gonna go up is if more people buy it
37:45
because you can't actually use Bitcoin
37:48
to do anything right it's not
37:49
used as a meeting of exchange it you
37:51
know doesn't circulate as a payment
37:53
people just hoard it all right but there
37:55
are retailers that accept a Bitcoin
37:57
bitpay and all of these sort of yeah but
38:00
that's intermediaries now they don't
38:02
accept it like my company shift gold
38:04
right we in theory accept Bitcoin right
38:07
we work with bitpay
38:08
but what bit pay is is it's an
38:12
intermediary so what happens is let's
38:14
say somebody wants to buy some gold from
38:16
ship gold they want to buy $10,000 worth
38:18
of gold alright if they have at today's
38:21
market value 10,000 worth of Bitcoin
38:24
right they can go to my website ship
38:26
gold and go to the the link to bitpay
38:30
and bitpay will buy their bitcoins from
38:34
them and pay and give them dollars and
38:38
then they use those dollars to buy gold
38:41
so it's just an intermediary step where
38:44
you're selling one asset to get dollars
38:46
and then you're using the dollars to to
38:50
buy gold well you could you know you
38:51
could sell stock somebody can call their
38:53
broker and sell their shares of IBM and
38:55
then get cash and then use that cash to
38:58
buy ship gold that doesn't mean they're
39:00
using their IBM stock to buy gold know
39:02
they're selling their IBM stock and
39:04
they're using the cash proceeds to buy
39:07
gold and that's what's happening all the
39:08
companies that use bitpay bitpay is just
39:11
helping people sell their bitcoins so
39:13
they can get cash and then use that cash
39:16
to buy whatever they're gonna buy but
39:18
it's just one step away from actually
39:20
then instead of using an intermediary
39:22
from it being the actual medium of
39:26
exchange I mean it does have many of the
39:28
properties of money it's fungible it's
39:31
divisible it's portable I mean well it
39:35
doesn't have yeah it doesn't have the
39:36
most important quality which is
39:39
intrinsic value in and of itself I mean
39:43
money is supposed to be a commodity
39:44
right that's where money came from but a
39:46
dollar doesn't or the paper doesn't have
39:48
intrinsic value any yeah but okay but
39:50
you're you're you're you're jumping a
39:52
step ahead of yourself so first if
39:53
you're talking about money versus
39:55
currency right so money right is a
39:57
marketable commodity it's by definition
40:00
the most marketable commodity so what
40:02
happened was
40:02
when we when people use barter right
40:05
people would exchange one good for
40:07
another good or one service for another
40:09
service from for good but that was
40:11
cumbersome like if I was a chair
40:12
manufacturer and you were a tailor and I
40:15
wanted to get one of your suits well
40:17
what if you didn't want one of my chairs
40:18
I mean how we gonna exchange I mean I
40:21
got chairs or you know you got suits but
40:24
people discover that hey what if we
40:26
everybody exchanges for gold because
40:29
gold is a valuable commodity every you
40:31
know people use gold and all sorts of
40:32
things but gold has all these properties
40:35
that make it good money that clothing
40:37
doesn't have or weed or oil I mean gold
40:40
as a commodity has all these
40:41
characteristics that lend it to being
40:44
money better than other commodities and
40:46
so gold became money now what bitcoin
40:48
did is it copied all of those qualities
40:50
that gold had that made it the best
40:53
commodity to serve as money but it
40:56
doesn't have any of the commodity
40:57
qualifications that you need to even be
41:00
catered for money because there's no
41:02
actual value to the Bitcoin itself it's
41:05
just about I'm gonna buy it because
41:07
somebody else will buy it and someone
41:08
else will buy it and it's just a pyramid
41:10
scheme
41:11
now maybe true for some of the Bitcoin
41:13
people who want to get rich off of it
41:14
but some of the die-hard libertarian
41:16
folks want to get the central bank's out
41:18
of the monetary system they want the
41:20
government not to have a hand in it so
41:22
ever in theory and again I don't know
41:23
much about it I don't own any Bitcoin it
41:25
seems like an interesting idea
41:27
I see them going to $10,000 I'm like I
41:31
don't know if I would want to invest in
41:33
that or could invest in that I know
41:34
friends of mine who think that one
41:36
Bitcoin can't even be divided they think
41:38
it's like a dollar so I don't know you
41:40
know a lot of people don't know maybe
41:41
that much about it I certainly again
41:43
don't I mean you divide it but look this
41:50
is a pipe dream that some libertarians
41:52
have that this is the solution to
41:55
getting rid of central bank's look if
41:56
you don't want central banks we already
41:58
have gold you don't have to reinvent the
42:00
wheel we have real money that we could
42:02
use we have gold we have silver we don't
42:04
have to send that across you know the
42:06
country or around the world like you I
42:09
mean it as easily as you can perhaps a
42:12
Bitcoin and I got I'm not like a Bitcoin
42:13
fan and I'm
42:15
yes I don't know who owns this yeah the
42:18
reason that you can send it is because
42:20
it has no substance it has no real value
42:22
so ultimately the fact that I can send
42:24
it someplace is gonna be meaningless
42:26
when nobody wants it I mean because
42:28
there's nothing that you could do with
42:29
it I mean you could you if it wasn't for
42:31
governments governments are pretty
42:32
powerful but you can have gold stored
42:36
someplace and I can digitally transfer
42:39
my ownership to you instantly you know
42:42
for free so it's not hard to move gold
42:45
ownership around the world it's much
42:46
easier now than it used to be back when
42:48
we had fiat currency or paper currency
42:51
that was backed by gold now we can have
42:53
a digital currency backed by gold it
42:54
would work even better
42:55
so that's possible but when you have
42:58
digital currency backed by nothing now
43:00
you're back to fiat which is the point
43:02
that you made about hey but you know
43:04
dollars don't have any intrinsic value
43:06
so why do they work well they don't
43:08
really work that's the problem right
43:10
well they do work because people believe
43:11
in it but then the fear is that it wants
43:13
to once people stop believing in at the
43:15
house of cards collapses so zazen is
43:17
there's a faith in that or as long as
43:19
it's society or community agrees that
43:22
that is the medium of exchange then it's
43:25
sort of it does function at least for a
43:26
period of time yes it does function for
43:29
a period of time and then it doesn't
43:30
right and the main reason that the
43:32
dollar is successful is because once
43:34
upon a time the dollar was defined as
43:37
gold it was gold then we had paper that
43:40
was back by gold and so initially the
43:43
currency in the United States even
43:44
though the currency itself was paper it
43:46
was backed by gold and so over time we
43:49
gradually we took that backing away and
43:51
people continued to use the paper as if
43:54
it were backed by gold but you have this
43:56
long tradition of use you have all these
43:58
contracts and dollars you have rents you
44:01
have bonds insurance policy you have a
44:03
whole economy that is predicated on
44:06
dollars and you have a US government
44:07
that imposes taxes on every American
44:10
citizen and the only thing they accept
44:13
in payment is US dollars so there is a
44:15
real demand for dollars even though they
44:17
have no intrinsic value if you don't
44:19
want to go to jail every year you need
44:21
to accumulate dollars so you can send
44:23
the US government their cut of what
44:25
you've earned so you do have this
44:27
built-in demand
44:28
for the currency but over time the
44:31
dollar keeps losing value right it's not
44:33
a good store of value like gold is and
44:35
all fiat currencies eventually collapse
44:38
I just think that bitcoins life cycle is
44:41
gonna be a lot shorter right because it
44:43
didn't have that long tradition that you
44:46
know the Federal Reserve Note had and
44:47
there was never built around Bitcoin you
44:51
know all of these payments I mean people
44:53
don't get paid their salary in Bitcoin
44:57
landlords don't you know collect rent in
44:59
Bitcoin I mean you know Bitcoin is not
45:02
you know there aren't all these
45:03
companies borrowing and issuing notes
45:06
and Bitcoin I mean we're not using it
45:07
right it's just what Jamie Dimon was a
45:10
was you know downing Bitcoin now isn't
45:12
JPMorgan getting involved in it or
45:14
they're there they're doing something
45:16
the only way that any of these big Wall
45:19
Street firms have got involved is simply
45:22
to allow trading in Bitcoin to take
45:25
place so that they can make a commission
45:27
or benefit from it I mean they're not
45:29
investing in it themselves they're not
45:31
you know recommending it to their
45:33
clients but look hey if there's people
45:34
dumb enough to trade Bitcoin and Wall
45:37
Street thinks they can make some money
45:38
on the action well they'll try to get in
45:41
on it one of the game you know rings one
45:44
of my main concerns and let me know if
45:45
you have any answers to this Peter or
45:47
anybody in the comments watching this is
45:49
the people who make the software for the
45:52
Bitcoin wallets that connects to the
45:53
blockchain and gets the private key and
45:56
the public key I mean you know if you
45:58
have a problem with your PayPal or your
46:00
venmo or your checking account or
46:01
something like there's at least a
46:02
customer service there's the FDIC that
46:05
ensures it who do you go to if the app
46:09
your wallet has a glitch in the software
46:11
and it just open anymore right and they
46:14
you know I create you know I thought
46:18
that happened I had a wallet that I got
46:20
and I you know a this guy Erik Voorhees
46:24
and if you've heard of him he's you know
46:25
I went in a Bitcoin world and so I did a
46:29
debate with him at the Soho Club in New
46:31
York goes a reason I think or you know
46:34
sponsored it it was Bitcoin versus gold
46:36
of course I was the gold guy he was a
46:38
Bitcoin guy and so after the debate we
46:41
went out to dinner
46:42
and he set up a Bitcoin wallet for me
46:44
and he transferred me $100 worth of
46:48
Bitcoin at the time and I sent him back
46:50
$50 so he kind of like he let me keep 50
46:53
you know with my wallet so he's set it
46:55
up for me and you know he never told me
46:58
the password or the seed phrase whatever
47:00
you're supposed to have all I remembered
47:01
is he gave I had a pin and I thought
47:03
that pin was my password right because
47:05
every time I opened up my wallet to
47:07
check my Bitcoin I would type in this
47:09
pin anyway what happened was not too
47:12
long ago somebody kind of called me out
47:14
on on Twitter or on you know hey Peter
47:17
you really have a bunch of Bitcoin you
47:19
know I heard you own Bitcoin and you're
47:20
just trashed you got I said no I don't I
47:22
don't like you know like a hundred
47:24
dollars worth because I actually had I
47:26
had gotten some somebody gave me some
47:28
ether and somebody gave me some Bitcoin
47:31
cash because I had the wallet so
47:32
somebody so I had like a hundred dollars
47:34
total of these three crypto currencies
47:36
and so I said look this is all I got I
47:38
said if you want to see here's my wallet
47:40
I put my wallet address out there and
47:43
somebody who knows somebody said well
47:45
what's your address I'll give you this
47:46
guy Anthony Pompey ah no I call this guy
47:49
pomp he was gonna give me a hundred
47:50
dollars worth of Bitcoin if I just put
47:52
my address out there so I said okay
47:54
here's my address now of course he never
47:56
actually gave me the hundred dollars but
47:58
a bunch of other people gave me Bitcoin
48:00
and so I ended up with about a quarter
48:02
of a Bitcoin a third of a Bitcoin which
48:04
at the time was worth a couple of grand
48:06
maybe 2500 bucks right all of a sudden I
48:08
hat people gave me the Bitcoin for free
48:10
so then one day I wanted to look at it
48:13
and I couldn't get into my wallet
48:15
anymore and my pin didn't work and so
48:18
what I found out was this the wallet had
48:20
updated with some new software and so my
48:23
pin didn't work so now I had a I
48:25
couldn't use the pin now I needed my my
48:27
password well I didn't know my password
48:29
I only know the pin I contacted Eric he
48:32
didn't remember I didn't know the seed
48:33
phrase so my bitcoins are gone I can
48:36
never retrieve them right so I mean so
48:38
that's that's partly I mean you know if
48:40
you don't have all this if you make a
48:42
mistake then you can easily lose them
48:45
obviously if I forgot my pin for my bank
48:47
account I go bad in my bank I show my ID
48:49
they give me a new pit right if that's
48:52
impossible to happen with your money in
48:55
a bank but you know
48:56
you can suddenly lose some will argue
48:57
that that's good because then nobody can
48:59
you know the government can't even get
49:00
it you can't be taxed for it etc I
49:03
stopped paying attention to it when it's
49:05
when I started getting seeing the for
49:07
King I sort of wrap my mind around it a
49:09
couple years ago and then and then it
49:11
Forks and then the forks fork again and
49:14
then just when I think I understand and
49:15
now they get this debate over the miners
49:17
and who's going to carry which kind of
49:20
crypto and then there's the Bitcoin cash
49:22
and others the Bitcoin VC and the bit
49:24
and I'm just like okay I'm with Bitcoin
49:29
apart from its lack of intrinsic value
49:31
is it actually is very expensive if I
49:34
actually wanted to transfer you $1 worth
49:36
of Bitcoin or two dollars for the
49:38
Bitcoin I mean the cost is prohibitively
49:40
high I mean it's okay if I wanted to
49:42
send you ten thousand dollars worth but
49:44
if I wanted to buy something small it
49:46
would it's too expensive and it takes
49:48
much too long I mean it takes hours and
49:50
hours for the transfer to take place so
49:52
it's not an efficient medium of exchange
49:55
even if it was stable which it's not
49:57
that's the other problem is you can't
49:59
price goods and services in Bitcoin
50:01
because the price can fluctuate too
50:03
dramatically in too short a period of
50:04
time so patron desert costs are a debate
50:07
which is what where the forking comes in
50:09
with Roger veers camp and the Bitcoin
50:12
cash and he's trying to make it an
50:13
actual medium of exchange and then the
50:15
other there the Bitcoin core or whatever
50:17
the heck it's called now are the people
50:18
where they see it as you know digital
50:20
gold is a store of value instead of a
50:22
media of them exchange which you know so
50:25
you have those two different camps and
50:27
you know it looks like one of them is
50:29
winning out and it's become a mess I
50:31
stopped paying attention the problem is
50:33
you can't store what you don't have
50:35
right Gold is a store of value because
50:37
of the value of gold right Gold could be
50:40
used in jewelry it can be used in
50:43
industry it's used in electronics it's
50:46
used in medicine it's the most useful
50:48
metal on the periodic table all right so
50:51
it is a very valuable commodity in and
50:54
of itself right and the beauty of gold
50:57
is that it doesn't decay it doesn't
51:00
tarnish and so a year from now 100 years
51:03
from now the gold that I have today will
51:05
be just exactly the same even if I take
51:09
gold and I make
51:10
into a piece of jewelry they can melt
51:13
that jewelry down in a hundred years and
51:14
it's exactly the way it was before it
51:16
was melted down to make the jewelry none
51:18
of its characteristics are diminished at
51:21
all by the fact that it spent some time
51:23
you know as a necklace or whatever it is
51:26
so gold has all this value that you can
51:28
store for future use but Bitcoin has no
51:31
value it has no I can't do anything with
51:34
my Bitcoin today and so I can't do
51:36
anything with it tomorrow now I can give
51:38
it to somebody else if they want it but
51:41
what if they don't want it anymore
51:42
because the only reason somebody wants
51:43
it is because they think they can give
51:45
it to somebody else and the reason you have a hole but
51:48
people that want is they think they're
51:49
gonna get rich look there are a lot of
51:51
people who think Bitcoin which is now
51:53
you know you know it's what nine to ten
51:56
thousand is the price of Bitcoin right
51:58
and there are a lot of people that think
52:01
there's gonna be 50 thousand a hundred
52:02
thousand a million dollars in Bitcoin so
52:05
they're ha telling right there holding
52:06
onto these bitcoins because they think
52:08
they're gonna get rich and the reason
52:10
they think they're gonna get rich is
52:11
because people who bought Bitcoin at ten
52:13
cents or a dollar or five dollars they
52:15
got rich right people that got in early
52:18
and put in a bunch of money or even a
52:20
small amount of money based on where it
52:21
is now the guys that got in really early
52:23
they got rich right now you have other
52:27
people that are getting in thinking
52:28
they're gonna get rich too they're not
52:30
they're gonna go broke right because the
52:32
people that got in early need to cash
52:34
out to actually convert their paper
52:36
profits into actual profits and so the
52:40
early adopters need to convince the
52:42
newbies that they're gonna get rich too
52:44
if they pay ten thousand dollars for
52:47
these bitcoins that they bought for 100
52:49
bucks or two hundred bucks whatever they
52:51
paid but it's not gonna happen the
52:53
people that are buying now or just the
52:54
bag holders right when the music stops
52:56
the bottom is gonna drop out and this
52:58
whole thing is gonna implode it's all
53:00
just one big bubble that's all it is
53:02
Peter if people want to listen to more
53:04
of your creative financial metaphors
53:07
which I find extremely entertaining tell
53:10
everybody where they can spine the Peter
53:11
Schiff show yeah so I knew my own
53:14
podcast the Peter Schiff show you can
53:17
listen to it iTunes you know or any
53:19
place that has podcasts online I do them
53:23
now lie to video on my youtube channel so you
53:26
can subscribe to the peter schiff
53:27
schiff report on my youtube channel i've
53:30
got about three hundred and forty
53:32
thousand is subscribers now so you can
53:34
join that and you know and get a note on
53:37
youtube every time i post one of these
53:39
so either way i'm doing usually two or
53:42
three a week sometimes more a lot of it
53:43
depends on what's going on on the market
53:45
if there's some really breaking news
53:47
that I really feel like I got to chime
53:49
in on oh I'll do I'll do a podcast but
53:54
you know so you can won't listen to
53:55
those but more important to than just
53:58
listening is doing something acting you
54:02
know and because as I said I think a lot
54:04
of people are gonna get wiped out and
54:06
and I want to help spare as many people
54:09
from that faith fate as possible plus I
54:13
also want to be somewhat instrumental in
54:20
the political argument that is going to
54:23
follow this collapse because again
54:25
you're gonna have the camp that is gonna
54:28
blame it on capitalism and say we need
54:30
more government and then you're gonna
54:32
have my camp that's gonna say no this is
54:34
what government did to us right this is
54:36
because of the Federal Reserve and big
54:37
government and what we need is honest
54:40
money and we need less government and so
54:42
I want the people in that camp to have
54:45
resources not to be broke right so the
54:47
more people that not only listen to what
54:50
I have to say but act on it and preserve
54:53
their wealth I think people who have
54:55
real wealth in five or ten years are
54:57
going to be in a much better position to
54:59
help move the country in the direction
55:02
that it needs to go then if they're
55:05
broke themselves right if I mean it it's
55:07
like if I get enough people on a
55:09
lifeboat then we can help the people who
55:11
are you know drown and get out of the
55:13
water but if you're drowning too because
55:15
you you know you what would how you
55:16
gonna help anybody you're just trying to
55:18
stay afloat yourself so people have got
55:21
to you know follow the advice that I'm
55:23
giving as far as getting out of the
55:25
dollar avoiding this tax getting gold
55:27
and silver having portfolios of quality
55:30
foreign assets outside the United States
55:32
so that you can repatriate your wealth
55:35
right when everything collapses if you
55:37
got all your money safely out of the US
55:39
and into gold you can use your resources
55:42
in a productive way to help rebuild the
55:44
country I mean what I mean what are you
55:46
gonna do if you're just as broke as
55:47
everybody else so listen to what I have
55:50
to say get X again enter educated and
55:53
encourage other people encourage your
55:55
friends your coworkers
55:56
hey listen to what Peter Schiff has to
55:57
say because most of what you're hearing
55:59
in the mainstream media is a bunch of
56:01
nonsense bunch of propaganda right I
56:03
mean the only thing spreading faster
56:06
than Cova 19:00 these days is ignorance
56:09
particularly economic and financial
56:10
ignorance and it's being spread by the
56:12
mainstream media so get more people to
56:15
listen to what I have to say read some
56:17
of the books that I've written you know
56:19
you go to you know you find them on on
56:21
Amazon but also become a client you know
56:26
protect your wealth and if you have you
56:27
know friends or family members encourage
56:29
them to contact your pacific capital and
56:32
and and move some money here especially
56:34
retirement money people who have IRAs or
56:36
401k or pensions right this is money
56:38
that you're planning to live on in the
56:40
future well your money is gonna retire
56:42
long before you do unless you do
56:44
something now to protect it and that's
56:47
what I'm trying my best to do for as
56:49
many people as I can
56:50
well we know how fake the political and
56:53
cultural issues are on the mainstream
56:55
media and I'm sure that the financial
56:56
news is just as fake so thanks for
56:59
sharing your insight with us Peter and
57:00
unlike the Peter ship was right video
57:03
back in 2008 I certainly hope you're
57:04
wrong but it doesn't the indicators
57:07
aren't looking very good so thanks again
57:10
for your time sir
57:11
sure thing I mean you can hope I'm wrong
57:13
but don't bet that I'm wrong that's a
57:15
good point thanks again