Special Guest: Peter Schiff is CEO & Chief Global Strategist of Euro Pacific Capital.
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. Berkeley in 1987. A financial professional for over twenty years he joined Euro Pacific in 1996 and has served as its President since January 2000. He is also Chairman of SchiffGold, a precious metals dealer based out of Manhattan. An expert on money, economic theory, and international investing, Peter is a highly recommended broker by many leading financial newsletters and investment advisory services. He is also a contributing commentator for Newsweek International and served as an economic advisor to the 2008 Ron Paul presidential campaign. He holds FINRA Series 4, 7, 24, 27, 53, 55, 63 & 65 licenses.
A 21 Minute VIDEO
"Governments finds all sorts of ways of repressing their citizens and certainly do it for the banking system. In America today if you have a bank account you have no privacy anymore. Your banker is basically an unpaid spy working for the government trying to monitor your activities for anything suspicious so they can turn you into the government!"
"Inflation is a form of repression. If you save in the fiat currency the government creates, it will lose value over time as it orchestrates a deliberate plan of depreciation of the medium of exchange. So therefore you have continuous inflation. Of course to the extent you earn any money the government represses you by seizing a good portion of it with Income Tax, Inheritance Tax, The Payroll Tax etc. There all sorts of ways that the government seeks to repress us!"
Bail-Ins & a Cashless Society
Bail-ins are a function of government deposit schemes which really don't work! When these government insured banks fail, rather than having to just create a lot of money they will resort to the bail-in where they dispense the loses among the depositors. Actually (the later) is the right thing to do! We shouldn't have any government insurance for bank deposits! If you deposit your money in a bank and that bank fails, your deposits SHOULD BE at risk! In fact if we had deposits at risk we would have a much sounder banking system like we had before the invention of deposit insurance during the Roosevelt era!"
Peter Schiff points out that not all countries have these deposit schemes and the ones that don't have healthier banking institutions because now you have the market forces reigning in risky banking activity because "when people have to assume the risk of their deposits they do their homework! Banks then compete with each other based on SAFETY".
Bitgold and Euro Pacific Bank
"I don't think bitcoin is going to work!"
"The fatal flaw of bitcoin is that there is no true intrinsic value there! There is nothing behind it, like when you have gold."
"People find it cumbersome. How do I spend my gold? It is very easy to spend it bitcoin but how do I spend gold? I solved that problem a few years ago at my bank (Euro Pacific Bank).. which is a 100% reserve bank that doesn't make any loans. We simply charge fees for our services."
"Right now our service is a prepaid service ... but what is coming is a one step process. BitGold copied what I was doing. They are now offering the same type of pre-paid debit card that I have been offering for three years."
"What I am doing, and this change will likely take place in the next 30-60 days is we will have the first true gold backed debit card!"
There is much more in this video on coming world of gold backed debit cards.