Peter Schiff on the Fed, Rand Paul, and the Next Financial Crisis

"The bubbles are pretty much everywhere," says investment guru and radio host Peter Schiff, CEO of Euro Pacific Capital. "They are in the stock market, they are in the bond market, they are in the real estate market, they are in the U.S. dollar."
Schiff sat down with Reason's Matt Welch while at FreedomFest 2015 to discuss the dollar, his support of Rand Paul, and his argument that we are already living in another stock bubble.
"The mainstream-the investors, the government, central banks-they never see a crisis until after the fact. And then they go back and they say, 'Well nobody could have possibly predicted this. This was a complete random occurrence that had nothing to do with our policy,'" says Schiff. "They never understood the cause of the bubble that burst in '08. They didn't understand the Fed's role in creating it, so they don't understand that the Fed is simply exacerbating all the problems that everybody believes they solved."
About 13 minutes.
Hosted by Matt Welch. Edited by Joshua Swain. Cameras by Meredith Bragg and Paul Detrick.
For our interview Schiff on Puerto Rico and Greece
Go to Reason TV for downloadable versions. Subscribe to Reason TV's KZbin Channel to get automatic updates when new stories go live.

[@Randsurfer]

I've heard Peter say it so many times but it really captures the essence: "We need to go from a borrow and spend economy to a save and produce economy." That is what separate America now (on its descent) from America before (on its ascent).

[@erikmunoz55]

Peter Schiff has taught me more about economics and finance than UC Irvine did. Thank you, Peter. Peter is a hero to me.

[@fhhfgj]

Erik Munoz HERE HERE!!!

[@njyankeesfan]

Erik Munoz I'm a journalism major and history minor, but I really want to try to learn more about economics. Schiff is great.

[@erikmunoz55]

njyankeesfan good luck, man.

[@MakMuk]

Erik Munoz Schiff does not know anything about economics. He believes consumption slows the economy since it's the opposite of savings.

[@jepkratz]

Mak Muk Consumption via debt funding is essentially spending tomorrow's income today, which society wide, is long term unsustainable, and bubble formative with what should be obvious downside risk problems. In a real (non-debt based consumption addicted) economy, savings are the monetary basis for productive lending or capital formation which in turn is the basis for job creation that provides incomes out of a share of gross profits. Schiff isn't against consumption per se, people will fill needs and wants, but is against over consumption fueled by debt on the personal or governmental level. If you're coming from a Keynesian or Monetarist economics perspective, of course Schiff sounds crazy, however, it is the Keynesians and Monetarists who've gotten us where we are today, up to our eyeballs in unsustainable debt, unfunded liabilities, and unsound money.

[@RandPaul2016LLC]

Peter Schiff stands with Rand! Do you #StandwithRand?

[@JesusIsUnstoppable]

None of these people can save you. Blessed are they who put their trust in Jesus.

[@JessChristopher]

Yes sir

[@shedendpussys]

Love ReasonTV. They give people with "unpopular" opinions a decent chance.

[@alexjones4275]

Boy you are an idiot. Reason is funded by the KOCHS you idiot!!! So many idiots like you in the world lol.

[@pacearrow4620]

I am here from the future! YEAR 2020 HOLY SHIT! Things are so so much worse!! PETER SCHIFF IS RIGHT

[@dudeonyoutube6763]

god i love youtube, didn't know peter schiff was so smart

[@55erwin]

This does not have enough views, more people need to know this !!

[@dawidvanhuffel3427]

yea Eric. for the last month I'm watching Peter S. on a daily basis on KZbin. He knows what he is talking about.

[@ClassASurfacing]

Matt, First you are awesome... Second, Peter has predicted more than 1 bubble. He was on top of the DotCom monster.

[@LacusTheDestroyer]

class A surfacing You have no evidence that Peter called the tech bubble.

[@TheMadArab412]

LacusTheDestroyer Prove he did not...

[@TheMadArab412]

LacusTheDestroyer So now you understand how idiotic you sound... You go around sounding off "He did not call anything!!!" "BLAH BLAH BLAH GIVE ME PROOF!!!" If you actually did a little digging instead of being a bloviating jackass you would find the evidence you so seek. So, prove he didn't...

[@LacusTheDestroyer]

The_Mad_A-rab It is impossible to prove something _didn't_ happen. The burden of proof lies with the individual making the positive claim. I have done my research, and I can't find a single shred of evidence that Peter Schiff called the tech bubble. Neither can you, and that's why you haven't posted any.

[@MakMuk]

class A surfacing Schiff has predicted 3000 of the last 2 bubbles. He is always predicting bubbles and financial crises. *12 Ways Schiff Was Wrong in 2008* money.usnews.com/money/blogs/the-ticker/2009/01/26/peter-schiff-right-on-the-crisis-wrong-on-investing

[@healthhavencom]

13 minutes of economic sanity how rare is that

[@hunati31]

Chances are Much better here on KZbin than on fake news (all) tv.

[@tuckerave1]

How can you think Peter is wrong? He just speaks facts.

[@MakMuk]

tuckerave1 He does not speak facts and he does not understand economics.

[@HonestAnalysis]

Scott Walker: Pesident Rand Paul: Vice President Peter Schiff: Treasury Secretary Trey Gowdy: Attorney General Sheriff Clarke: Director of the FBI Mike Rowe: Department of Labor Allen West: Department of Defense... Any others?

[@RocketmanRockyMatrix]

Gary Johnson as president

[@RocketmanRockyMatrix]

Secretary of Homeland Security - Frank Serpico Secretary of Commerce - Walter E Williams Secretary of Education - Ben Chavis ( formerly American Indians Charter School) Secretary of State - Jesse Ventura or Ralph Nader Secretary of Treasury - Thomas Sowell

[@MilwaukeeF40C]

Honest Analysis Kool Kieth, Rap General Chief Executive plus Exquisitive

[@GenVictoria]

President: Rand Paul Vice President: Carly Fiorina I like Scott Walker, but cannot imagine him handling any foreign affairs.

[@erikmunoz55]

President: Rand Paul Vice President: Justin Amash Secretary of Treasury: Peter Schiff Attorney General: Judge Andrew Napolitano

[@garrettlees]

Peter the Great! One correction -- or clarification, rather -- Peter, we _can_ make these things. We _can_ manufacture and produce whatever we want. It's that our government _won't let us_ !!

[@cesartorres8928]

He'll yeah, paul+Peter= strongest America of all time. .. the perfect equation

[@Sluggishbeef6]

Ron Paul 2024!

[@furyofbongos]

America, from land of the free to the land of illusion.

[@robcinq-mars9155]

Absolutely correct. What we need for the general public is a single graph showing all of the financial liabilities of the US Government comparing that to it's income. Right? Wouldn't that communicate the severity and reality of the situation to the general population?

[@seanrobbins6176]

Damn! Peter is so perceptive & so articulate in explaining his ideas!

[@soapbxprod]

Hooray for Matt Welch and Nick Gillespie and Peter Schiff! And the Mises institute and Tom Woods and... and... too many names to list except for MURRAY ROTHBARD! Thanks, you mensches! LOVE YOU!

[@Peteruspl]

"No more heroin for 'murica" - now that would be an interesting (and suicidal) motto for a political campaign.

[@michaelwheeler1735]

Don't take Peter's word for this if you doubt it just ask yourself some simple questions: Why have interest rates been frozen low for so long if the economy is healthy? Why have wages not grown for so long if the economy is so healthy? Why are so many Americans on food stamps if the economy is healthy? Why are all political candidates running on a campaign of fixing the economy if it's so healthy? Why does Washington have a destabilizing campaign against any country that threatens the monopoly of the mighty US dollar? Use your common sense when you figure out who's selling the snake oil.

[@MakMuk]

Michael Wheeler Interest rates are not frozen. The 10 year treasury has ranged been between 1.3% to 3.8% the past 5 years. What do you mean by "healthy?" The Fed has kept interest rates low because inflation is low and the economy is not at full employment. The US dollar does not have a monopoly. Get y our facts straight.

[@bonitaroache73]

Absolutely well put, Michael Wheeler! The facts and the reality speak for themselves and you can't fool all of the people all of the time, that's not going to work. I'm happy that I've completely woken up and I'm educating myself. There's going to be a run for the exit when the American taxpayers finally figure it out, it's too obvious. I'm happy to have prepared early than too late. I'm also happy that I won't bear responsibility for having supported or gone along with any of this insanity either.

[@DavidVonR]

Mak Muk interest rates should be determined by the market, not by central planners.

[@MakMuk]

David Suspended Interest rates are determined by the market. The Fed merely buys and sells bonds. The market sets the rate (unless the bank is borrowing from the Fed).

[@maxvonberg7866]

Everything that Mr. Schiff was saying in this interview has turned out to be true - the debt is higher than ever, productivity is lower, Government spending is out of control, and the inflation (currently at about 8%) is just getting started.

[@paradiselosing]

inflation now just under 10%....

[@ScottyBleez]

[@andypeterson2126]

honest sound money, transparent markets, limited goverment....chocolate, potato chips mmmmmmm what was I talkin about?

[@kimjameson7979]

After listening with an objective, non-critical ear, there is much in what he perceives that is scary truth. When other countries are returning to a bullion based currency, which actually have value, the U.S. is still clinging to the notion that an I.O.U. is acceptable "coin of the realm." Throw borrowing to pay prior debt service into the mix and the spiral could get ugly. How long can a person transfer balances between credit cards and get away with it before bankruptcy ends the roll? My bet is on beer, food and shoes, the things people absolutely need.

[@dimitriosfreedom9282]

You're spot on. All paper currencies are debt instruments or IOU's. We all simply shuffle worthless piece of paper or electronic digits around.

[@AntonioKowatsch]

The interviewer kind of looks like Dave Rubin (just with glasses).

[@briggsley]

I'm not there yet!

[@karthik1107]

Thank you. I am 75% cash now. Waiting for next high to unload all, and exit.

[@JimmyCools66]

So, how it went?

[@allysagilbreath]

I love that- ‘I’d rather be wrong until I’m right, than right until I’m wrong.’ So true! So sad that the vast majority of the population don’t understand what keeps them on the lowest levels of the socioeconomic ladder. I’m not sure how I can keep the value of my money, because the entire market is so manipulated. I am thinking that gold is probably the best option at this point, but that makes it’s harder to access in the case of an emergency.

[@FreedomDragon]

go Rand Paul !!! #libertarian #PresidentPaul #freedom #JusticeOrElse #hearus #REVOLUTION #peace

[@bigfletch8]

In the event of the coming crisis, what good s gold, as it is no longer backing any currency. If people need to cash it in during such events, there will be a lot of gold chasing cash (you cant spend gold day to day no more than you can spend copper), which will surely bring the price down, so is this not another case where cash will be king? In the event of a one world currency, surely there will be no value in gold, other than for its intrinsic value...which I would think, would be dramatically reduced.?

[@royalwins2030]

I like Peter and think he's generally right. however I would note its quite easy to predict a tragedy if you constantly warn about one. eventually that tragedy occurs one way or another

[@ddannydaniel3340]

wrong, if the foundations are good there cant be a tragedy the type he warns of.

[@RiquezaSinLimites1T]

jannet Yellen had rised interest rates. What does it means?

[@garrettlees]

Raising interest rates is no longer possible. We have too much debt.

[@TheMadArab412]

What is Peter correct about this time???

[@TheMadArab412]

jeff rosenberg San Diego??? Wow you burned me. You unhinged racist..

[@lilboyblue3000]

I wonder what she will say if they do raise rates. Then if she reduces balance sheet i will be surprised if she did.

[@debateme8955]

Lmfaooo this is more relavent today than ever before.

[@augustvervloet8886]

9:32 - 10:41

[@garrettlees]

You got it bro. The best part.

[@KaspaKings]

One of the only honest Jews in finance.

[@robertcrego3997]

If the "political third rail" issues of entitlements are reformed, useless/redundant agencies are eliminated, overpowered agencies reigned in, and the subsidy machine destroyed, the U.S., with current revenue, could potentially pay off the debt in fewer years than most might think. Raise your hand if you think this will happen in your lifetime. If you've not raised your hand but would like to see it, contact your representatives and encourage other to do so as well.

[@MakMuk]

Robert Crego Sovereign debt is not "paid off." It's reduced relative to GDP. Interest expense as a % of GDP is at a 50 year low.

[@MakMuk]

The Shadow Broker Really? Why don't they eliminate social security, medicare and medicaid? That's what the puppet masters want. Fact is the puppet masters are the ones shaping your understanding of America today.

[@MakMuk]

The Shadow Broker Hahahaaha........what a twisted argument regarding entitlement spending. I never said the representatives were the puppet masters. I know the crap you are parroting. The goal of the puppet masters is to discourage voters. The puppet masters are the ones filling your head with nonsense. Anyone who thinks the puppet masters support entitlement spending has been duped by the puppet masters.

[@LetsGetitBoah]

+Mak Muk Puppet master are the ones shaping your understanding of America Today? Then why are you restating what they say? Why are you on their side of the economic debate we have here? You're saying what they say, but then playing as if you are not one of them. Are you delusional?

[@tunafishjoe]

So when is the next housing bubble?

[@austinluepkes8129]

Gordon Tendick right meow

[@barbaraalvstad8640]

When will the bubbles pop?

[@Sluggishbeef6]

Partly in early 2020😂 good ol hindsight

[@MrSilverfish12]

Everyone should look at what australia is doing. I think its 100 times worse than americas monetary policy.

[@silkhead44]

7 symbolizes change...beware...7th year of a decade is often a panic year

[@brendanbrown2236]

TED NUGGENT FOR PRESIDENT !!!! Peter Schiff will be the National financial Advisor

[@kevinw6359]

Peter Schiff for President.

[@depecheddurand]

why can`t we put him as our chairman of finance

[@johnisaacfelipe6357]

There shouldn't even be a department of Commerce,

[@udmbfckx2916]

Although I also learned from this guy and I am also a fan (except for his take on Bitcoin), his prediction, as well as Paul Krugman's when Trump won in 2016 has fallen flat. Four years later I am sitting here typing this and the Economy is doing pretty good. Regardless, if it where up to me, the Fed would be eliminated as the Paul's have always been right about this issue (not audit it, END IT).....Cryptocurrencies seem to be at least a partial alternative for now.

[@Samsgarden]

I like Schiff. Wrong on Rand.

[@CountArtha]

3:25 - Why couldn't we just repudiate all the debt that is owed to the Fed itself, and default on the rest? It's not like our creditors can _take_ their money back.

[@vitortakara7090]

bcz that tanks the valor of your currency, if a country repudiates their debt the confidence in your currency is hit and it causes foreign debt holders to sell your debt making it harder to accrue more debt, it imediately will cause inflation making all your exports cheap and all your imports expensive it technically impovishes your people but if you are 9k in debt what is better? the bank telling you u can't get more debt and forcing you to pay or you finding another bank to laon you another 90k so u can pretend you aren't poor a little longer

[@redtroika8264]

We should start a petition to raise interest rates and end QE and reduce the Fed's balance sheet.

[@briankrol7051]

That is already happening. The FED is finally doing the right thing

[@redtroika8264]

Not enough and too slow. The rigging continues.

[@ddannydaniel3340]

SKYE!, welcome to 2020.

[@asherahhelmsley211]

lmaooo this is the same guy that said we will have 5000 dollar gold.

[@4anewdeal190]

asherah helmsley he also said hyper-inflation, currency crisis, dollar collapse, DOW/GOLD 1:1, 20%+ U3 unemployment, world decouple from US, etc.

[@dukerwong3900]

I believe if America wants to be rich fast or much faster, many ways there to be able to achieve and achievable fast as amazingly fast, because we are America and only one country will be able to earn the exact means of America. Any country can copy America as much as they want in easy ways or harder ways. However, the name of America has only one. Which means the importance of the name and the best reputations of the name and most trusted name in the world. Unfortunately if we are realized our best previliges of the name of " The America " or not??? Because our country's reputed name has been estaestablished on the fairness, generosity, honesty, good credit, the equality of the opportunities, Americans' own hard working, high levels of the educations, America's own foundations and decades of the strong economy and defense capabilities. We are not a brand new sudden rich, our strong financial foundations has built up on the unbeatable Capitalism system of the liberty and entrepreneurship and constitutions and unbeatable rules of the laws and unbeatable of the western finacial essence by America's own accumulated successful economical experiences. This is why if we want, we will and absolutely can create the unbeatable economical miracles to stunn the world to the level of the wide opened mouth with amazing suprized eyes. Because if America have made many other countries rich and richer, why can't we make our own country richer as a piece of the cake 1st? It just depends on our thinking logic to create America's own prosperity by our own most logical well-known foundation of the Capitalism system. We must be strong and firm in our own America's foundations of the Capitalism system of the liberty and entrepreneurship and constitutions. We should make sure our country's own bank system be strictly regulated by the priciples of the honesty, playing cards by the rules, be regulated for the healthy loan systems...etc. instead of regulate our entrepreneurships excessively. Because the banks are the country's financial arteries of the life. If banks play the tricks or ignore the rules of the laws, we shall take it seriously, because if the arteries of the country is having the problems, the whole country can be paralyzed. We just can't be afforded the risks for the country's prosperity. We also must make sure that any countries where expect our respect and for fairness must be the same way to treat us as we did to them. Because if we don't return the same ways that others treated to us, it's just not courteous. We can....., we..., we..., we..., we...etc., as many as we should to make our own country be successful as quick as we can. Because only America's own economy is successful, we'll be able to be safe, and prosperous. If America is rich enough, we'll be able to enjoy a much better life and help the world better. America is a country for the paradise of the middle-class people. Middle-classed paradise life have been built up the booming economy, the booming economy would will be relied upon the private sector's sucssess. The sucssess of the private sectors are relied on the large, middle and numerous small businesses' healthy growing, not any other way around. Because our country's own foundations and constitutions have made sure that we America is an absolutely Capitalism system country of the liberty and entrepreneurship and constitutions. The private sector's sucssess are the job creators as well as the foundations of the stock market, or...etc. So we people must understand that only the private sector's sucssess will make people's job stabilities and life insurance for the living as well as to the peoples who prefer to make living by investment of any kind. If our country is drying financially, especially we must maitain our private sectors are healthy now, because we just can't afford to make sure both sides are dried financially. Because if we wait until that time, just too late, the unnecessary loss will doom America, once earned the glory name of the Capitalism system of the liberty and entrepreneurship and constitutions. This is why we must not promote the envy environment, it doesn't work, envy environment will only lead us to the cruel and much poorer Communism ideologies system. If we want to be able to live a much better life, only our own foundations of the Capitalism system of the liberty and entrepreneurship and constitutions will work and work the best. Printing the money will not help the economy, only devalued the America's dollars and cause the inflations.

[@shooglechic]

From a medical standpoint when a wound is ineffected, you have to reopen it and remove the puss--essentially speaking.

The Federal Reserve, aka white west has locked horns with the east... 0% interest trying to kick this dead dog economy into gear... sadly the educational system is not producing individuals to take advantage, it will only last so long.

[@dragunov815]

Good grief.

[@gottago1052]

Five years later no collapse yet Peter!!

[@juanfelipe8484]

Huh? You serious?

[@jahnimai]

We don't print our money; we borrow from the global monopoly, the Federal Reserve just like all the world's central banks. We'd owe our own treasury and benefit from interist

[@PimpMatt0]

Fed prints 85bn a month. That's so people can take loans from commercial banks. Commercial banks give back when they get bonds. QE does the opposite. Fed buys bonds and treasury bills now so it's cheap money.

[@jahnimai]

Right on; now to do like our Constitution says: mint coins of silver or gold. Hare Krishna & Happy 2016

[@por_siempre]

+Jackie Joseph I think you know gold an silver warranty for money doesn't exist, (since Nixon) beacuse the size of the economy is bigger than the gold available on Earth, and while you have to work very hard to get money, FED only has a handwheel to create money without any limit, they create computer money, they just choose how many zeros goes after the first figure, 6 or 9 zeros today?? Interest is something dangerous, because (in my opinion) loans create a virtual economy or virtual state of acomplisment out of time line, speed up profits, but speed up problems as well, we can't go faster than physics limits.

[@jahnimai]

So you know what most don't. Some how we need to unite, a global non-profit trust may work. We need to be able to have some Higher Power to unite around. Sane spiritual science of self realization is needed to know the peak perfection of human life. Sectarian divide & killing each other for Halburton ect. is crazy. Best blessings & prosperity is Nature's way. Krishna will help or what Name is real makes sound vibration incarnation that settles the mind so we can purify the space; become re-awakened to eternal, blissful spirit-souls. Equality, love, justice are all nonphysical. We do not benefit by letting ill minds destroy our full multi-dementional life.

[@andrewmorgan8170]

No need to worry, peer to peer currency will take over within 10 years. #crypto

[@AnCapDog144]

Too bad he's way off the wrong on bitcoin and crypto currencies.

[@briankrol7447]

Funny Peter mentions snake oil since he makes a living selling it

[@jeffufcfanaticrosenberg]

fuck off troll. snake oil as in the 2008 mortgage meltown. dickface

[@briankrol7447]

Where is gold 5k, where is the hyper-inflation? Where are double-digit interest rates? Gold stocks at generational lows, silver in the crapper, Chinese stocks down down down, foreign currencies on their knees in front of king dollar. The man is Bernie madoff Jr.

[@easya3335]

Brian Krol People just still believe the Fed has a real exit strategy and the recovery is real. Once they wake up..

[@jeffufcfanaticrosenberg]

Alex J no they dont. if they sell rates will spike. bond mkt will be destroyed. now if rates go up they will be screwed on debt. plus losses on the mbs

[@masterandkerranginparticul4324]

if welfare is soooo bad, then why does germany do so well being a welfare state, with health care and everything provided for the whole society, not only for priviliged individuals and the rich ... you may love your unhindered capitalism and weak government but including social elements in politics and society can be very beneficial and it works, if done correctly ... the financial crisis we experience nowadays are mostly a product of unreglemented financial markets that creates, in its contemporary form, havoc and hell and a whole lot of pressure for most of the people, especially those whio are really hard working ... now keep blaming poor stigmatised individuals that receive benefits, but its not gonna solve the problem to kick downwards, and bowing down timidly to those habiting the top ranks in the capitalists society ... this is pathetic ..

[@camel595]

Nope

[@williams3711]

Typical doomsayer... nothing more