Monetary Cards on the Table
Peter Schiff
Posted Aug 10, 2010
In a commentary about a month ago, I described how the economic world seemed to be drifting into two opposing camps: the Washington-based "Stimulators," who insist that more government debt is the best means to end the financial crisis, and the Berlin- and London-based "Austerians," who argue that debt is the crisis itself. If recent economic data and currency movements can be considered votes of confidence, then the Stimulators should be sweating. Moreover, these recent signals should provide economic analysts and investors with a road map for the future.
To start, the latest economic news for the US has been bleak. Although 2Q GDP figures show the economy to be "expanding" by 2.4%, the pace is little more than half the average rate over the previous two quarters. What's worse, US debt levels are expanding faster than GDP.
As everyone with a credit card knows, it's easy to expand spending if you charge it. But even this borrowed growth has failed to make a meaningful dent in persistent US unemployment. The just-released July payroll report shows the American economy shed another 131 thousand jobs, marking three full years of private sector layoffs.
Almost lost in the news is the disappointing reversal of US trade flows, which in May unexpectedly widened to the highest level in 18 months. In other words, the weaknesses that pushed our economy into crisis in the first place show no sign of abating.
In countries which have decided that further government economic stimulation will produce more harm than good, the story is markedly different.
The remainder of this article and even more in-depth analysis of other investment topics are available in the August edition of my newsletter, The Global Investor. Click Here for complimentary access.
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Aug 9, 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
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