Quoted Text

Economic Reality Bites
by Peter Schiff

Many people became convinced that data releases earlier this year indicated that "recovery" in the U.S. was imminent. But as I have been saying for months, this evidence would ultimately be shown to be as reliable as sightings of Bigfoot. Lots of people claim to say they have seen it, some even produce plaster footprints, but in the end all we have is a guy in an ape suit. The economic recovery, that has been discussed so loudly and often in recent months, will be shown to be similarly mythical.

A torrent of recent economic data now reveals weakness, and investors are beginning to take notice. Today's release of the May jobs report showed a paltry 69,000 jobs created during the month, far below consensus estimates. Not only did the current month disappoint, but the June numbers were also revised down by 49,000. This release follows yesterday's downward revisions of first quarter GDP growth from 2.2% to 1.9%. Also lost in the headlines was that the savings rate dropped to 3.4% in April, the lowest rate since December 2007. This shows that Americans may need to deplete their already meager savings just to keep their heads above water as the U.S. economy sinks back into recession.

The bad news sent stocks swooning. The latest sell off brings the S&P 500 down close to 10% from its levels in early April. On the other hand, bonds have reached record highs as investors seek safety in treasuries. However, I believe that treasuries will turn out to be the Facebook of safe havens. Before Facebook went public everyone wanted a piece of the action. But once the allure wore off, and people realized they owned shares of an overhyped company with unreliable earnings and a sky high valuation, the shares quickly lost a good deal of their appeal. Despite the best efforts of the media to declare the end of gold's appeal, the metal continues to shine. Today's reportalso sent gold up nearly 4 per cent. Gold is now down just 3 per cent from May 1, a period that has been horrific for other asset classes.

Oil prices continue to slide as traders brace for a fall-off in global demand that will come from the return of a global recession. What these traders fail to understand is that the recession will likely be resisted by central banks around the world with massive money printing. Such action will be much more likely to push oil prices back up to levels higher than those seen before the recent downturn. Yes recession means consumers will use a lot less oil, but inflation created by the central banks means that they will likely pay a lot more to purchase it.

In recent months as turmoil bubbled across the debt markets of Europe, the United States had beckoned as a safe haven. But in truth, the problems are as bad, if not worse, on this side of the Atlantic. Ironically, America has not had to deal with its day of reckoning because lesser problems surfaced first in Europe. But when Europe comes to some modest resolution of its problems, or when bond investors realize they have jumped from the frying pan into the fire, there will be no hiding from the unresolved problems here.

As the intoxicating effects of Fed stimulus wear off, the hangover is setting in. To delay the pain, I believe that there can be little doubt that the Fed will unleash its next round of stimulus, in the form of QE3. My guess is the Fed has always known more QE was needed but it has been waiting for the most politically palatable time to announce it. That "stunner" can't be far off with the data so bad and the elections so near.

Eventually more people will figure out just how precarious America's fiscal position truly remains. That's when interest rates will finally rise in the U.S. There is no way to justify record low interest rates in this country given our atrocious fiscal position. I believe interest rates here should approach levels comparable to the more indebted European countries. Once it becomes obvious just how many dollars the Fed is prepared to print to stave off recession, people running into treasuries today will likely suffer buyer's remorse. When they rethink their assumptions, as buyers of the Facebook IPO clearly have, the Fed will then become not just the buyer of last resort, but the buyer of only resort. Then the Real Crash may finally be upon us.

Quoted from Box A Rox

Cicero  and Cic's  BFFL Druggy Rush both hopes he fails!

Quoted from CICERO

Not a Rush fan... Just grounded in reality.  You can deny reality and HOPE all you would like, it won't change it.  

Obama's economic recovery, as real as Bigfoot.

Quoted from Tommy

And you are an excalibur level douche nozzle.
Anybody want to see this piece of sh*t's source for this crap?

Read the first line of Cicero's post, then read the first line of the first post on the board in this link.
http://www.stormfront.org/forum/t891533/

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Peter David Schiff (pronounced /ˈʃɪf/; born March 23, 1963) is an American businessman, investment broker, author and financial commentator. Schiff is CEO and chief global strategist[1] of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut[12] and CEO of Euro Pacific Precious Metals, LLC, a gold and silver dealer based in New York City.[13]
Schiff frequently appears as a guest on financial television and is often quoted in major financial publications. He is host of The Peter Schiff Show, a radio show broadcast on terrestrial and internet radio. He is a frequent guest on internet radio[14][15][16] as well as the host of the former podcast Wall Street Unspun.[14][17] In 2010 Schiff ran as a candidate in the Republican primary for the United States Senate seat from Connecticut.[18]
Schiff is known for his bearish views on the dollar and dollar denominated assets, while bullish on investment in tangible assets as well as foreign stocks and currencies.

Quoted from Tommy

"Tommy, how many white supremist websites did you have to go to until you found the Schiff article linked to it?"  

None. Because as most 10 year olds can tell you, all that has to be done to find any of the astonishing drivel you post, is to highlight a line or two, copy, and feed it to Google.

Quoted from CICERO

But you had trouble locating the original article?  Between hands full of petroleum jelly while watching the gay bestiality porn, call a 10 year old to help you find the original articles.  

Quoted from Tommy

I didn't even look for the original.
I'm not going to waste my time just because some inbred white supremacist said I should.

Quoted from Tommy

No, I don't think the bible is racist, nor am I
It is historical fact that Jesus Christ was not white, and looked nothing like the image of Christ that dimwits like yourself think they see in their toast, or the mold on their bathroom wall.