I really enjoy listening to and reading the economic thinking of Peter Schiff. He is the author of Crashproof and The Little Book of Bull Moves in Bear Markets and his articles, video blogs, and links to other articles can be found at europac.net. Schiff’s message is sobering-the government and the federal reserve are responsible for creating artificial bubbles in our economy (think tech stocks in the 90s and Condo’s in 2005) that will eventually pop (NASDAQ down 80%, condo’s you can’t sell). When those bubbles pop there is pain and the government tries to ease the pain by blowing air into the exploded bubble in the form of easy money and low interest rates. The danger of those low rates and the printing of money is that the dollars we have in our wallet will eventually be only worth the cloth they are printed on (i.e. 100s and 1s will basically be the same thing). Yikes!
Schiff’s advise is to position yourself so that the coming crash of the American dollar will not bankrupt you. His stratedy is to avoid any adjustable rate debts (no credit card debt, no home equity loans, no adjustible rate mortgages), own physical precious metals (gold, silver, platinum, copper), own mining company stocks, and own foreign denominated dividend paying stocks (companies in other countries that pay you in their currencies). Check out his popular YouTube video, “Peter Schiff was Right” and let me know what you think of his strategies.
