A reader says I am wrong and Schiff is right

Peter Schiff gave excellent advice at at the right time – he told his Boomer listeners to buy Gold 20 years ago at 300 bucks – and then told them to HODL.

He’s speaking to his age group and there’s nothing wrong about that.

Old guys that listened to him are happy and liquid; and that’s why they still listen.

He was right, you are wrong.

Regards,

Putrid

Mr. Schiff kept his listeners in gold mining shares, and for 20 years he was shilling the precious metals miners. They topped out in 2006, but had a double-top in 2011. He shilled miners and anti-dollar investments. Gold is not as liquid as most of those shilling it claim it to be.

Owning physical gold in the post-9/11 world presents many potential problems to those who wish to liquidate. I know first hand when I began to liquidate my gold holdings in 2011 to buy rental properties. Make sure you properly file with the US Treasury and IRS, the banks now report any transaction over $10,000.

He has been a one-string banjo, because he completely failed to properly read this new system and interpret the best courses of action. Moreover, his advice doesn’t generate any income (except for him).

He was begging his followers ten years ago to HODL (another term conjured up from Arlington and McLean) at $1,800-$1,900, and was promising $5,000 gold and $100 silver. Imagine the broken hopes and dreams. Gold today is below $1,800 as I write. He totally misread every aspect of this new post-2008 system.

How do I recommend making money from rising commodity prices? I say we own farm and ranch land and lease it out. I make the passive income, so I don’t have to charge for advice, and strive to be financially independent. Schiff’s listeners stare at the gold chart, take tax losses on their miner portfolio, and hope to somehow make cap gains on their gold coins.

Those of his long-term followers who are still alive are now receiving S.S. benefits, medicare, and government benefits, while they stack coins and wait for the impending collapse. All the while this system is transforming right in front of them. Schiff was out again recently, running cover for his transgressions, which were nothing more than economic logic errors. He just says he misjudged the Fed’s ability to print money. If he sees it that way, he will never understand how this new system works.

Don’t analyze this under a logic fallacy. Don’t trap yourself by drawing up a false dilemma. I support gold; I always have and always will. I recommend 10% holding. In fact, in 2010, my portfolio was comprised of 75% gold and silver, with real estate comprising 25%.

While gold is a monetary metal, and it historically tends to follow the rise in money stock measures LONG TERM, something else is ailing it. But once again, Schiff is clearly misreading these warnings and is failing to comprehend this system’s functioning…

Schiff has been unable to see how bitcoin is quickly replacing gold as a monetary asset class to the younger generation. The boomers have gold and the younger folk have their cryptos. Ever wonder why gold is failing here?

Schiff relies on his followers and their confirmation biases. I guess there’s a  lid for every pot, and since truth is now relative, Schiff is correct and I am wrong.

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13 thoughts on “A reader says I am wrong and Schiff is right

  1. It’s probably been discussed ad nauseam however in an impending collapse, the last thing anyone would need is digital currency that relies on electronic equipment to transfer, that cold, displaced, hungry and thirsty people want. Well unless the impending collapse is just eon old fear mongering. Society never completely stops and everything recovers such as the latest Covid pandemic collapse. Of course for the time being, Bitcoin keeps going up as long as the collapse is just always impending.

    1. It’s very clear by now that the powers-that-be want people to channel their money into Bitcoin. I have never seen an asset in which people know very little about, receive so much notoriety, free publicity, and great press as has Bitcoin.

      Bloomberg and MarketWatch gush over it. CNBC discusses it all day long. All of the major newspapers and websites keep graphs and charts in real-time on the price action.

      If someone looking at this is still saying that Bitcoin was burped up by Satoshi Nakamoto they are deluding themselves. All of these false opposition groups seem to support Bitcoin. Every time somebody gets the shaft financially speaking, they’re controlled leaders always say to buy Bitcoin. At what point does someone who is willfully ignorant take notice? Talk about confirmation bias.

      Cryptocurrencies are the most perfect asset in the post 9-11 and Patriot Act world. People really are stupid and they deserve the slavery they receive.

      But don’t confuse my commentary with an adverse recommendation. Bitcoin does have its place in a post dystopian world. It will outperform gold, but both need to be recorded with the authorities now. They can definitely run an audit ex post facto on bitcoin transactions and if you receive a fail to file letter you can go to jail and have a lien put on your properties. The Men in Black uniforms with log Rams blowing down your door are the type of people you will meet in a post 9-11 world. Don’t get cute and sassy and think that Bitcoin is a way out of the system.

  2. https://www.investopedia.com/terms/p/patriotact.asp

    I tend to forget that many of my readers are younger and may not recall many of the laws passed in the wake of the 9/11 manufactured terrorism attacks. Of course, the most important ones that affect us are the Patriot acts, which were passed shortly after 9/11. The powers-that-be attempted to pass these in the wake of the Oklahoma City bombing, but the Senate read the provisions and rejected it without a vote. Thesw same Powers manufactured 911 and the acts passed with barely a whimper. Read this investopedia.com commentary regarding the Patriot acts and its implications in the world of Finance. You will soon see that you and I are the enemies. The so-called anti-laundering provisions and the $10,000 cap in holding cash is aimed directly at you and me and those who wish to remain anonymous and use cash. Read the commentary all the way down to the end.

    https://www.investopedia.com/terms/p/patriotact.asp

  3. “Owning physical gold in the post-9/11 world presents many potential problems to those who wish to liquidate. I know first hand when I began to liquidate my gold holdings in 2011 to buy rental properties.”

    Can you elaborate? Trying to learn here. Thx.

    1. As a citizen, my primary concern regarding 911 had less to do with the towers falling and more to do with our permanent loss of financial privacy. The implementation of the Patriot acts change the whole financial landscape for the average person here in the United States. One of the main functions of the Department of Homeland Security is to work with the US Treasury and IRS to track-and-trace all large transactions. Initially transactions above $10,000 in cash were all recorded with the US Treasury. I had to fill out a form at the bank to declare the cash and its purpose. But subsequently, the government realized that people were circumventing this requirement and began to track transactions in aggregate that exceeded $10,000.

      Many of the gold dealers and such now require Social Security numbers. They keep permanent records of the transactions and will quite often turn them over to auditors. What I am trying to say here is that the anonymity factor of owning gold and silver no longer is valid. This was all done away with post 911. I had to pay a sizable cap gains tax between 2011 and 2014 on my gains in Precious Metals. I made certain that my recorded revenue and gains were congruent with what my bank statements. The Patriot Act allow for all of this tracking and tracing that did not occur prior to 9/11. The technology is in place now for the government authorities to work together to reconcile our transactions with our bank statements, credit and debit cards, and our tax returns. This technology advancements allow the government to be able to better track our spending to determine if we are trying to get away with something.

      Transaction privacy post 9/11 is much more difficult now. Patriot Act legislation was designed squarely to help the government to be able to track & trace our financial transactions, not fight terror. It is continually being refined.

    2. Two banks called me during my gold transaction days to quiz me. Guess who told them to do that? Their management who would report to the Feds.

      During my crypto trading days, I had another bank audit the checking account I used to debit and credit the crypto trading.

      All that comes from the Patriot act legislation. You better have the right answers.

  4. “I say we own farm and ranch land and lease it out.”

    A large part of the agenda appears to be total control of the food supply (& the land that produces it), thus long term it seems food production that competes with big-ag may be a risky endeavor. Any thoughts?

    1. Sounds good to me. This is why I prefer to own the farm/ranch land. I figure that by owning the land, we let the farmers do all the heavy lifting and take all that risk while we just skim rental income. It’s more simple on our end. Maybe big ag will lease our land. When I talk about this land, I mean for rural residents to buy a chunk nearby with another or more investors directly in an llc. Always look around for the best deals and entertain seller financing. Those living nearby will hear of the best deals before out of towners.

    2. At this point I wouldn’t worry about expropriation risk. Most people will lose their land, because they took on too much debt, while they bought all the farming toys they saw on YouTube and the farm shows. They have to buy the bug pickup trucks and live the lifestyle. The monetary system is effective enough at making people cough up their assets without having to resort to expropriation.

  5. Even those in the Austrian camp have said that monetary theory is in a crisis. Nothing predicted by the Austrians Economists has come to pass. I might be wrong but I think it that is still the case. The day of reckoning may come but we might all be dead by then.

    1. Indeed. We have to face the sobering reality that the post-2008 system is a different one that what we used to analyze. Australian economists are slowly realizing this. The whole concept of a free market in interest rates and organic demand for debt is the centerpiece of their logic. Most of the pre-2008 theories no longer apply.

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