Tuesday, November 5, 2013

And meanwhile, on Bloomberg, Peter Schiff is still a loony

Bloomberg - Goldbug Schiff counters Goldman. Vicious, merciless hatchet job on Peter Schiff from Isaac Arnsdorf at Bloomberg. Mazel tov, buddy, you've made my favourites list!

I mean really, just read some of this:
He shows off $50 gold chips, to be used when paper money becomes worthless, a prediction repeated on his daily two-hour radio show broadcast from his basement studio to 68 stations in 30 states and 50,000 listeners online.
Hoo boy. Peter Schiff has a basement studio where he broadcasts about a coming collapse in paper money? Number one, I really should damn well set up a studio of my own if it's that easy (and yes I have the experience and training necessary); and number two, so this means Schiff is little more than another Alex Jones?
That’s just the beginning: Schiff said he would “be amazed” if the U.S. dollar didn’t collapse and gold failed to skyrocket before President Barack Obama leaves office in 2017.
Prepare to be amazed, Peter Schiff!
They also scoffed in 2006 when he predicted on television that housing prices would plunge, lenders would go bankrupt and stocks would plummet, as they did two years later.
Stopped clock etc.
“I’m waiting for the dollar crash, I’m waiting for the real crisis to hit that I know will benefit gold,” Schiff said Oct. 18 over lunch of spinach-and-beet salad and stewed rabbit in the sun room after the radio show. “The longer it takes, the longer I have to wait for that payday. But the longer it takes, the bigger that payday is going to be.”
Gee. It almost sounds like he's going to get off on other people's misery and despair.

And like he's certain that the greatest minds of US economics will be unable to avert a catastrophe. Maybe cos he knows he's so much smarter than them?
“They should take him seriously -- he was right with a lot of other ones,” Ron Paul, the former Republican Representative from Texas who has called for abolishing the Federal Reserve and auditing the U.S. gold depository at Fort Knox, Kentucky, said by phone on Oct. 23. Schiff was an economic adviser to Paul’s presidential campaign in 2007.
Endorsement from Ron Paul? That's another identifying characteristic of the typical right-wing Teatard wackaloon.
Gold bugs, investors who buy the metal as protection against a collapse in financial assets, fail to understand that the Fed’s pumping money into the economy only offsets banks’ tighter lending and stockpiling cash, Goolsbee said. Until credit conditions return to “normal,” there’s no danger of inflation, he said.
Not specifically about Schiff, but a great paragraph to add in here since it addresses the basic blind spot of the goldbugs: you don't get massive inflation from what the Fed's been doing.
Schiff began his radio show, which he calls “the gold standard in talk radio,” in 2010, around the time of his failed run for the Republican nomination for U.S. Senate from Connecticut. He finished third with 23 percent of the votes, behind Linda McMahon and Rob Simmons.
"I lost the Republican primary to the wife of the owner of the WWF, so I'll bounce back by making a radio show in my basement." Yup, still not surprising me.
Assumptions like [Goldman Sachs' Jeff] Currie’s on why investors have lost faith in gold as a store of value are false, according to Schiff. The economy is only growing because of government spending, so debt continues to swell, he said.
So Schiff's an austerian. Also, he thinks he's smarter than the head of commodity research at Goldman Sachs.
Schiff’s listeners call in wanting to know how to prepare. Mike from St. Lucia asked about a $1 trillion treasure allegedly hidden in a New Mexico mountain, that if found would make a dent in the national debt.
So Schiff's listeners are loonies. Got it.
Ellen from New York asked whether to save pennies minted prior to 1982 because the copper is worth more than one cent. “Can’t-lose investment,” Schiff replied.
That reminds me of the loonie from Doomsday Preppers who kept buying rolls of dollar coins from the local bank and fishing thru them to find ones that had been minted with some silver in them. Except with copper, which is 98% cheaper than silver.
Luke from Cincinnati asked if he should spend his $5,000 savings on gold or silver, bought through Schiff’s company. “I like both metals,” the host said.  
Use the force, Luke! The force of stoopid!
Schiff, who was born in New Haven, Connecticut, studied finance and accounting at the University of California, Berkeley, and began his career as a financial consultant with Shearson Lehman Brothers.
OMG, he doesn't even have an excuse for his ignorance.
In November 2011, Schiff visited Occupy Wall Street protesters in Manhattan’s Zuccotti Park to “represent the 1 percent [and] see if I can have a dialog with the other 99 percent.” The debate, recorded by the libertarian journal Reason, lasted almost two hours.
As an aside, what's it like to have sex with a Libertarian?

Terrible. It takes far too long, you lose interest after the first five minutes, he gets angry if you don't go along with absolutely everything he says, he never lets you finish, and it all leaves you profoundly unsatisfied.

Oh, plus the libertarian always invites other guys to join in.
Peter Schiff says he admires the Austrian school of economists including Friedrich Hayek and Ludwig von Mises
See? Invites other guys to join in.
In the dedication to the 2009 revision of his book “‘Crash Proof: How to Profit From the Coming Economic Collapse,’’ Schiff credited his father ‘‘whose influence and guidance concerning basic economic principles enabled me to see clearly what others could not.’’
Gee. You could have profited tremendously in 2009 if you'd simply gone long the S&P 500. Did he suggest that?
Irwin Schiff has long advised people that they didn’t have to pay income tax, and is serving a 13-year sentence in the Federal Correctional Institution in Fort Worth, Texas, for tax evasion.
Ah. I can see where the son gets it from.
“If I say this is going to happen and then it all happens that way, but the markets react differently because they don’t really understand what just happened, that was my mistake in overestimating the intelligence of everybody else to figure stuff out,” he said.
Ah! So the market is stupid for not following Schiff's grand plan! Well, that does make it very difficult for him to justify investing in the market, right? After all, the market is too stupid to do what he thinks it's supposed to. And thus, obviously, the problem is with the market. And not with Peter Schiff.

Again, Isaac Arnsdorf, congratulations on a masterful work, and send me a link to a photo so we can build a shrine to you here at the blog. You are a wonderful young fellow, and I eagerly await your upcoming Bloomie article on Marc Faber.


  1. Oops got cut off there. The market doesn't do what Schiff demands and the IRS doesn't do what Schiff's daddy demands.. see a pattern there?

    1. It must be frustrating when the universe does things that Ludwig von Hayek says it's not supposed to do.