ATH INCOMING Peter Schiff Warns "The Whole Economy Has Imploded Collapse Coming"

[peonminer]

Submitted by Tyler Durden on 12/07/2015 12:17 -0500

We’re broke. We’re basically living off of debt. We’ve had a huge transformation of the American economy. Look at all the Americans now on food stamps, on disability, on unemployment.
 
The whole economy has imploded… the bottom hasn’t dropped out yet because we’re able to go deeper into debt. But the collapse is coming.

Fundamentally, America is worse off now than it was pre-crash. With the national debt rising unabated and money being printed out of thin air without reprieve, it is only a matter of time.

Schiff notes that while government statistics claim Americans are saving again and consumers seem to be spending, the average Joe Sixpack actually has a negative net worth. But most people don’t even realize what’s happening:

I read a statistic… The average American has less than a $5000 net worth… it’s pathetic… we’re basically broke… but in fact it’s much less… If you actually took the national debt and broke it down per capita, the average American has a negative net worth because the government has borrowed in his name more than the average American is able to save.
 
…
 
What’s happening is pretty much what we would anticipate. I don’t see from the data any real economic recovery, certainly not in the United States.
 
We’re spending more money, but it’s not because we’re generating more wealth. We’re generating more debt. We’re using that borrowed money to consume and so temporarily it feels that we’re wealthier because we get to spend all that money… but we have to come to terms with paying the bill.
 
The bills are going to come due. Right now interest rates are being kept at zero which makes it possible to service the debt even though it’s impossible to repay it… at least we can service it. But once interest rates go up then we can’t even service it let alone repay it.
 
And then the party is going to come to an end.

http://www.zerohedge.com/news/2015-12-07/peter-schiff-warns-whole-economy-has-imploded-collapse-coming

ALL TIME HIGH INCOMING

BTCitcoin is about to moon!

 The world economy just got canned! BTCitcoin is more valuable than ever right now! The price will soon reflect!

On Monday, the price of U.S. oil dropped below 38 dollars a barrel for the first time in six years.  The last time the price of oil was this low, the global financial system was melting down and the U.S. economy was experiencing the worst recession that it had seen since the Great Depression of the 1930s.  As I write this article, the price of U.S. oil is sitting at $37.65.  For months, I have been warning that the crash in the price of oil would be extremely deflationary and would have severe consequences for the global economy.  Nations such as Japan, Canada, Brazil and Russia have already plunged into recession, and more than half of all major global stock market indexes are down at least 10 percent year to date.  The first major global financial crisis since 2009 has begun, and things are only going to get worse as we head into 2016.

Analysts at Goldman Sachs are even more pessimistic than that. According to Business Insider, they are saying that we could eventually see the price of oil go below 20 dollars a barrel…

At OPEC’s meeting on Friday, member countries decided to set its production level at 31.5 million barrels per day, and did not agree on what the new limit should be.

After OPEC’s meeting, commodity strategists at Goldman put out a note saying that oil prices could plunge another 50% in the coming months, as the oil market tries to rebalance the supply and demand situation.

That may sound really good to you, especially if you fill up your gas tank frequently.  But the truth is that plunging oil prices are exceedingly bad for the U.S. economy as a whole.  In recent years, the energy industry has been the primary engine for the creation of good jobs in this country, and now those firms are having to lay off people at a frightening pace.  Not only that, CNBC’s Jim Cramer is warning that many of these firms may actually start going under if the price of oil doesn’t start going back up soon…

Former global macro fund manager Raoul Pal says there’s now a 65% chance of a global recession.

What amazes me is that so many people out there cannot see what is happening even though the next great crisis has already started.  The evidence is all around us, and yet so many choose to be willingly blind.

Instead of fixing our problems after the last crisis, we just papered them over with lots of money printing and lots more debt.  And of course all of this manipulation just made our long-term problems even worse.  I really like how Peter Schiff put it recently…

What’s happening is pretty much what we would anticipate. I don’t see from the data any real economic recovery, certainly not in the United States.

We’re spending more money, but it’s not because we’re generating more wealth. We’re generating more debt. We’re using that borrowed money to consume and so temporarily it feels that we’re wealthier because we get to spend all that money… but we have to come to terms with paying the bill.

The bills are going to come due. Right now interest rates are being kept at zero which makes it possible to service the debt even though it’s impossible to repay it… at least we can service it. But once interest rates go up then we can’t even service it let alone repay it.

And then the party is going to come to an end.

Indeed – the party is coming to an end, and a new financial crisis is playing out in textbook fashion right in front of our eyes.

Hopefully you are already prepared for what is coming next, because it is going to be extremely painful for the U.S. economy.

http://beforeitsnews.com/alternative/2015/12/guess-what-happened-the-last-time-the-price-of-oil-plunged-below-38-dollars-a-barrel-3254062.html

Brent and U.S. crude settled at or near February 2009 lows in belated reaction to the Organization of the Petroleum Exporting Countries' (OPEC) policy meeting on Friday which ended without an agreement to lower production.

"Price-wise, the market could be going for max pain after this," King said.

http://www.reuters.com/article/us-global-oil-idUSKBN0TQ03V20151208

Stocks have given back nearly half of Friday's big gains following a steep sell-off today for oil and industrial metals. The energy sector by far has been the biggest loser among the 10 industrial sectors in the S&P 500 after crude oil prices plunged to a seven-year low.

http://www.nasdaq.com/article/stocks-sell-off-as-oil-plummets-to-seven-year-low-cm551132

BTCitcoin officially FULL BULL MODE

Sorry Lambie. Your central banky facade is about to come to an end. Forever.

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[Cconvert2G36]

Are you going to spam this on every thread?

[Alley]

Nothing there says bitcoin will increase.

[The Sceptical Chymist]

Not saying that global economies don't have problems right now, but I view anything Peter Schiff says as basically him wanting to sell you precious metals.  The PM hucksters have been crying wolf for way too fucking long now, and the economic collapse is...still...just around the corner.  Here it comes, wait for it! 

Eh.  I'm tired of waiting.  And I will dance in the streets when he's the first one wiped out and is eating his leather shoes under a bridge.

[peonminer]

Are you going to spam this on every thread?

Re-posted in the everything bullish thread, the wall observer, and an individual thread for topic specific discussion. I'm done re-posting. Discuss your views on the topic if you would like.

[Cconvert2G36]

Are you going to spam this on every thread?

Re-posted in the everything bullish thread, the wall observer, and an individual thread for topic specific discussion. I'm done re-posting. Discuss your views on the topic if you would like.

Peter Schiff:

"I don't see bitcoins as an alternative to gold," he said. "If anything, [the creators of bitcoin are] modern-day alchemists, but you can't make gold digitally. It's no better than a fiat currency."

http://www.cnbc.com/2013/11/12/peter-schiff-calls-bitcoin-bubble-tulip-mania-20.html

[peonminer]

Yeah, he's invested so much into shilling gold that he's probably at a huge loss right now. Pissed and scared. Just as he should be. I bet you anything, he has invested in Bitcoin by now. That article is over two years old. Many big names have begun supporting Bitcoin and cryptocurrency in general. The world is evolving at an exponential rate. It's amazing to watch it all unfold. Bitcoin is the 'disrupting force' of central banking and fractional gold reserve. Yeah, he's hodling now too.

[chesthing]

If you believe economic collapse is coming, buy lots of ammo, food and fuel. Nobody is a gonna give a fuck about crypto or anything else other than the bare necessities of life and defending them.
Don't forget about booze.

[suda123]

If you believe economic collapse is coming, buy lots of ammo, food and fuel. Nobody is a gonna give a fuck about crypto or anything else other than the bare necessities of life and defending them.
Don't forget about booze.

Yea thats my point, if we were even getting to a point where we use gold and silver, guns and food are the only things to worry about, I read stories on depression in estonia, gold was traded for ammunition.

Even talks in other forums saying there just going to rob people with gold anyways.

[chesthing]

If you believe economic collapse is coming, buy lots of ammo, food and fuel. Nobody is a gonna give a fuck about crypto or anything else other than the bare necessities of life and defending them.
Don't forget about booze.

Yea thats my point, if we were even getting to a point where we use gold and silver, guns and food are the only things to worry about, I read stories on depression in estonia, gold was traded for ammunition.

Even talks in other forums saying there just going to rob people with gold anyways.

Don't underestimate fuel - people will be shot over it.
Bitcoin will be the last thing people will give a fuck about.
Everybody better hope it doesn't happen, including bitcoiners.

[Mervyn_Pumpkinhead]

Peter Schiff:

"I don't see bitcoins as an alternative to gold," he said. "If anything, [the creators of bitcoin are] modern-day alchemists, but you can't make gold digitally. It's no better than a fiat currency."

http://www.cnbc.com/2013/11/12/peter-schiff-calls-bitcoin-bubble-tulip-mania-20.html

Exactly! But that's what most of the bitcoin fanboys are all about. They're not about changing the current financial system, where the few leech on the backs of many. They are about changing the system, so the only thing that would change, would be them getting to the position of becoming the new leeches. For them, the artificial scarcity part is the most attractive part of bitcoin to drool over. They don't care that the entire idea/technology could be advanced further then their personal petty greed. They can't see that the future is not about making "early adopters" rich, because their contribution to society is meaningless. They can't understand that lottery players will remain poor while dreaming of easy riches.

To me, this is the ugliest part of bitcoin. The hypocrisy that plagues most of the people who are involved with bitcoin. Most technical minded people are busy developing new "alts" that could overcome the problems that stop bitcoin in becoming a practical currency. The rest are.. well... just cheerleading and hoping that their artificially scarce digital numbers will become more and more valuable.

[hunnaryb]

Global Macro economy has such a big impact on Bitcoin. This isn't just news to fuel a short term pump.

[NorrisK]

If you believe economic collapse is coming, buy lots of ammo, food and fuel. Nobody is a gonna give a fuck about crypto or anything else other than the bare necessities of life and defending them.
Don't forget about booze.

Yea thats my point, if we were even getting to a point where we use gold and silver, guns and food are the only things to worry about, I read stories on depression in estonia, gold was traded for ammunition.

Even talks in other forums saying there just going to rob people with gold anyways.

Don't underestimate fuel - people will be shot over it.
Bitcoin will be the last thing people will give a fuck about.
Everybody better hope it doesn't happen, including bitcoiners.

And how long do you think your fuel will be good for? That stuff has an expiry date of around a year or so. Than all the additives have gone bad and your fuel will only run in tractors.
Might be good after a couple of months though, when the reserves are completely empty, but food and weapons will be #1 and #2 for sure. Solar panels and windmills might also become really valuable.

[The Sceptical Chymist]

Dude you guys are watching waaaay too much Walking Dead.

[suda123]

Dude you guys are watching waaaay too much Walking Dead.

tbh he may be relating it to movies, but I read real stories from collapses and how they go, guns and ammunition, and food are the best.

[QuintLeo]

We're not even close to broke - our ratio of Debt to GNP is at an all-time high, but we're not even close to the ballpark of countries that have defaulted like Greece.

 On the other hand, if most folks AND OUR DAMNED TAX AND SPEND GOVERNMENT OF THE LAST 40+ YEARS doesn't start making some effort to reign in the debt, we might get there in 2-3 decades.

[Elwar]

The price of oil going down stimulates the economy more than anything the Fed could do.

[Wekkel]

The price of oil going down stimulates the economy more than anything the Fed could do.

It severally affects the 'flow' in the system. Flow is more important than the price of the SPX or the level of debts. Flow is everything.

[kwukduck]

People have been shouting 'Collapse of the economy soon!" For over two decades now... not going to happen.

[ROT13]

Just sold all my BTC for bottlecaps