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Euro Pacific Capital CEO Peter Schiff on why there is still reason to be concerned about the economy’s outlook.
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Markets are much calmer now that -- plan is coming out of Europe and China that could help bail -- the eurozone so will investors.
Focus more what's happening here in the US.
Peter Schiff is the CEO of Euro Pacific Capital he's joining us now live from new or -- said Peter.
We started to look at what's happening here in the US fewer people are asking if -- see a double dip recession certainly after yesterday's bullish move in the market before feeling better are you.
Well I might be but the country is and I think you -- the numbers that you just mentioned.
The fact that the savings rate is now down of the lowest level since December of 2007.
That shows -- this phony growth is coming from its spending more money that we don't have you know the GDP numbers that we got this week.
The reason there was up a a decent number two and a half was because consumers spent more.
But now you know where they got the money they borrowed it and the other problem is some of the money they're spending is because they're not making their mortgage payments.
And I think some of the spending is coming from the fact that people have so much credit card debt they figure you know what the hell they're not gonna paid anyways they might as well buy more stuff.
And I think another reason that they're spending more as his prices are going up.
So you know I don't think this is good news.
Appear you got to face -- relative most people are making their payments on time and most people or in fact deal whether credit cards in a good way not in a bad way so isn't it conceivable.
That despite all the bad news and I don't deny what you say there's a lot of bad news out there.
But there's still a lot of good news -- recognize any other.
No I don't I don't see any good news I got a big government today that the GDP numbers it came out.
They're claiming now that after fifteen quarters we finally recouped what we lost during the Great Recession that we fully recovered.
But how can that be you have millions and millions of people that are still unemployed.
Do you really believe that American workers -- that much more productive that we can have the same level of economic output.
We had any in December of 2007.
-- millions of fewer workers I don't think so I just think it's all of illusion I think it's traded by governor I think inflation is a lot bigger.
-- the government admits in the GDP is actually a lot lower and if you actually look at the other statistics.
During the Great Recession.
According to the government.
I household income drop by two and a half percent during that period of time but since the recovery began household income has dropped by seven and a half percent adjusted for -- okay.
How could Americans be doing worse in the recovery -- in the recession well.
As David said there is bad news out there certainly but we should let people know that -- as gloomy as you often sound you've found many ways to make money what are you investing in Peter well you know on the investigate Goldman still I don't know I mean you know you've got these incredible plays of things like the Chinese coal companies that manage to make a lot of money you that's what -- called Euro Pacific how much Euro how much Pacific.
Yeah -- not that.
Many heroes these days -- of the Euro the Euro is going up as I've been forecasting but a lot of people are talking about the fact that today.
The US dollar hit another all time record low against the Japanese yen.
So the dollar is weak and it would be a lot weaker if the Japanese word foolishly intervening which is what a lot of other countries are doing but yes I think there is opportunity around the world think about all the products that were buying somebody had -- make them so there are there is actually economic growth going -- -- other countries I think it's gonna improve.
When those other countries stop lending us money.
And start using that money for themselves and so there is opportunities I think -- people by money invested other stock markets in fact is huge rally we've had.
In the stock market -- last month.
It's much bigger outside the United States and in the United States -- -- when you.
Factor in the foreign exchange OK Peter I wanna shift gears here for second because there's a viral video out that I'm sure -- see you probably have somebody do with putting -- really.
But it's getting a lot I guess -- you actually.
-- never gonna shy guy you've never been reticent about confronting somebody -- you disagree with.
You did that with the Occupy Wall Street crowd one person in particular let's take a look at that get your reaction.
-- at 150 people how many people do you employ.
You Martin Smith of hybrids and employed -- hundred -- -- look look -- look -- at the property.
Did not know that it could not see airlines -- -- years.
I'm still advisors sticking up for the got you've -- or -- love it how how did you get out of there alive feeder.
Well you know they they were pretty civil -- mean there are a lot of people that or argue with me but there was no violence you know.
I EI the a couple of people you know reach doubted -- -- but not -- and in the threatening -- way.
-- -- ought to get Tom I was there for about three hours may -- little bit more so you -- a lot of a lot of the conversation is on the cutting room floor right now but I didn't produce the videos are a lot of people around they're taking videos but I do believe that we're gonna get a lot more footage up there's -- you can see.
Also was exchanges in their entirety -- because they are pretty lively.
But Peter is that why you didn't make it to our high school reunion last weekend that I was that Peter and I went to the same high school Beverly Hills High School don't give away your -- -- -- that I -- thirtieth groups of double -- they can see how -- I -- at -- -- -- Another cat out of the fact.
I believe what I call Nina thought of -- lot younger than -- right Peter let this -- there are right.
I don't all the other reason is because I'm gone back to California again I'm gonna be there I'm speaking to UCLA November -- that actually do and an economic debate may be guys -- coverage should be pretty live.
Calculated.
In order routing -- right away -- -- without our New Orleans you know right now cited -- I would've -- to come out their lives hopefully you said hello never.
I told everybody how well -- doing investing in Zimbabwe platinum Peter thank you pays make it -- an old call pledged in -- -- up.
-- at -- -- thanks a lot.
