I have transcribed an interesting portion of Peter Schiff's latest internet radio show below. To hear the complete show, click here.
There are many other interesting parts I wish I had time to transcribe, for example at 27:27 Schiff explains why he believes that interest rates will eventually rise dramatically.
At 7 mins, 45 secs:
“Lots to talk about, oil prices, new record highs. We’re over $118 a barrel. People seem amazed at this. But if you go back and listen to the very first episode of Wall Street Unspun, and they’re all on my website, you’ll see how low oil price were, and I have been predicting a rising prices every step of the way. I’ve been extremely bullish, I’ve forecast these moves. I continue to forecast higher oil prices. And it’s amazing that so few people make the connection between all the central banks printing money and oil prices going up.
On CNBC, I think it was yesterday, maybe this morning, they were talking about a story which was written, I forget which paper it was, in which the author of the piece basically was saying that there’s a connection between the Fed’s low interest rates and rising commodity prices, and that the Fed needs to stop lowering rates in light of what’s going on with commodity prices.
And the announcer, I think it was Becky Quick at CNBC said oh that’s kind of a stretch here, to try to make a connection because corn prices and Ben Bernanke’s monetary policy. I mean can you image that? She thinks it’s a stretch. It’s no a stretch at all, it’s exactly why they’re going up. She thinks it’s a stretch to think that monetary policy influence prices? It’s ridiculous, it shows how ignorant… and these are the people that are on television giving financial advice, and they’re completely clueless. They act like they know what they are talking about.
A lot of people are coming on these shows and saying that, ‘oh you know there’s no reason for oil prices to be so high, there’s no shortage of oil.’ Well yes, there is no shortage of oil, but there’s no surplus, and that’s what shows you that the price is right, because the market is clearing. People are buying this oil. These aren’t speculators. The oil isn’t sitting in some warehouse in some storage bins owned by speculators. The oil is being consumed, it’s being used. Even though people are buying futures contracts, the oil is being delivered into the market -- in all of these contracts there’s delivery. The hedge funds aren’t taking delivery of the crude, they’re rolling into a further contract. And somebody is taking delivery; the market is absorbing these prices. This is the market at work. Prices are rising, they are responding to the new equilibrium, because additional demand is being created by the Fed creating money, and by the ECB and the Bank of China and Bank of Japan. Everybody is printing money. So prices have to rise. It’s amazing that they can’t get the connection between the two.”
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