To 321gold home page

Home   Links   Editorials

Jobs Report and the Dollar

Peter Schiff
Posted Aug 9, 2010

Today's
[Friday's] disappointing payroll report reveals that the U.S. economy has failed to respond to the massive fiscal and monetary stimuli that have flooded the nation over the past two years. Not only is the news bad for job seekers and political incumbents, but it's also a strong signal for traders to flee the U.S. dollar. The malaise in the U.S., where stimulus is still the word of the day, stands in contrast to active recoveries in Europe and Asia, where governments are actively removing stimulus.  As a result, we are now headed for the eighth consecutive weekly decline in the Dollar Index.

Inspired by comments this week from St. Louis Fed President James Bullard, it is now widely accepted that the continued domestic weakness will cause the Fed to significantly expand stimulus efforts through so called "quantitative easing."  The printing of trillions of dollars to purchase of government debt will put serious pressure on the value of the dollar.

With the monetary cards now so clearly on the table, currency traders have placed their bets, and the smart money is quickly running away from the Greenback. The falling dollar is reigniting the commodities market. On Monday oil busted through the $80 price ceiling that had held since May. Any additional breaks to the upside may be considered one of the unforeseen "negative shocks" of which Fed President Bullard warns. If the government fears the "recovery" will be further impinged by higher energy prices then look for "quantitative easing" to become both the driving force of our economic policy and poison that finally kills the dollar.

###

Click here to buy Peter Schiff's best-selling, latest book, "How an Economy Grows and Why It Crashes."

For a more in depth analysis of our financial problems and the inherent dangers they pose for the US economy and US dollar, you need to read Peter Schiff's 2008 bestseller "The Little Book of Bull Moves in Bear Markets" [buy here] And "Crash Proof 2.0: How to Profit from the Economic Collapse" [buy here]

For a look back at how Peter Schiff predicted the current crisis, read his 2007 bestseller "Crash Proof: How to Profit from the Coming Economic Collapse" [buy here]

buy now

buy now

buy now

buy now

published
Feb 26, 2007
published
Oct 6, 2008
published
Sep 22, 2009
published
May 3, 2010

More importantly, don't wait for reality to set in. Protect your wealth and preserve your purchasing power before it's too late. Discover the best way to buy gold at www.goldyoucanfold.com, and subscribe to our free, on-line investment newsletter.

Aug 6, 2010
Peter Schiff
C.E.O. and Chief Global Strategist
Euro Pacific Capital, Inc.
1 800-727-7922
email: pschiff@europac.net

website: www.europac.net
Archives

Mr. Schiff is one of the few non-biased investment advisors (not committed solely to the short side of the market) to have correctly called the current bear market before it began and to have positioned his clients accordingly. As a result of his accurate forecasts on the U.S. stock market, commodities, gold and the dollar, he is becoming increasingly more renowned. He has been quoted in many of the nation's leading newspapers, including The Wall Street Journal, Barron's, Investor's Business Daily, The Financial Times, The New York Times, The Los Angeles Times, The Washington Post, The Chicago Tribune, The Dallas Morning News, The Miami Herald, The San Francisco Chronicle, The Atlanta Journal-Constitution, The Arizona Republic, The Philadelphia Inquirer, and the Christian Science Monitor, and has appeared on CNBC, CNNfn., and Bloomberg. In addition, his views are frequently quoted locally in the Orange County Register.

Mr. Schiff began his investment career as a financial consultant with Shearson Lehman Brothers, after having earned a degree in finance and accounting from U.C. Berkley in 1987. A financial professional for seventeen years he joined Euro Pacific in 1996 and has served as its President since January 2000. An expert on money, economic theory, and international investing, he is a highly recommended broker by many of the nation's financial newsletters and advisory services.

321gold Ltd