Peter Schiff: ‘Nobody Is Prepared For The Long-Term PAIN That’s Coming’

by | Apr 11, 2018 | Commodities, Conspiracy Fact and Theory, Headline News | 10 comments

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    Peter Schiff has been saying that this is a bear market for a few weeks now, and it looks like president Donald Trump may have just gotten the same memo. While Trump said some investors may feel some “short-term pain” in the market, but Schiff says it’s actually going to be long-term pain.

    According to Seeking Alpha, Trump says any short-term market pains will all be worth it because we will get long-term gain, referring to the benefits we’ll reap when we win the trade war. In his most recent podcast, Peter said that’s not at all how it’s going to play out, though.

    “We’re going to have short-term pain and then the pain is going to get worse in the long-run,” Schiff said.  Schiff is a financial and market analyst who predicted the 2008 recession. But Schiff says the bigger problem, is that nobody is ready for any pain at all.

    Schiff says that the real problem is the government itself. Policymakers aren’t willing to take the steps necessary to reap long-term benefits. Those steps would have to include a major cut in government spending, a cut in entitlements, cutting defense spending, and shutting down government agencies and government departments. And we couldn’t agree more.  Government spending is out of control and people struggle to get by with the tax burden levied on them, and that will only worsen when a Democrat takes power.

    There would be some short-term pain that would deliver some long-term gain. How about if the Fed normalizes interest rates and lets the bubbles collapse, lets people lose money, lets the markets restructure? That is short-term pain for long-term gain. That is what a real free-market recession is like. Let the government get out of the way. Let the central bankers get out of the way, and let the free market correct the imbalances and create a good foundation where we can build a lasting, sustainable, viable recovery.

    But Schiff says that’s not what President Trump is all about. He’s about avoiding the short-term pain by kicking the can down the road, just like every other president in modern history.

    This is a time bomb. The debt keeps going up. Every day we’re closer to the crisis. Every day there is more and more debt, right? And so, every day that goes by, we’re one day closer to the debt imploding.

    Schiff went on to detail what will go wrong if the Fed decides to make a move that no one is expecting.

    Normally the markets are forward-looking. They discount things that they think are going to happen. Well, if you don’t think something is going to happen, how can it be discounted? So, it’s when the markets are blindsided, when they’re surprised, that’s when you see the biggest moves because they didn’t get discounted in advance. You can’t buy the rumor and sell the fact if you’ve never bought the rumor because you don’t know there’s a rumor or you don’t believe it. So when the fact happens, nobody is positioned for it. Nobody is prepared for it. And that’s where we are in the gold market. That’s where we are in the gold stock market, in the bond market, in the US stock market. Nobody is prepared for any of the things that are going to happen because nobody believes that they are going to happen.

    And Schiff says don’t get too attached to your tax cut if you actually benefited from it.  Once the Democrats take the White House and both houses of Congress, those tax cuts will not only go away but be raised substantially to pay for even more democrat government spending.



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      1. We have a “special consul” running amok tearing up the Constitution, on the verge of a Democratic sweep in November,most likely an impeachment of a president for who knows what, rule of any kind of law suspended,and for some reason,we’re supposed to be mad at the Chinese and Russians.I am not waiting for the Dem sweep in November,I’m buying ammo and mags NOW before the prices hit gas prices.

      2. Schiff keeps saying the same basic things. He’s most likely correct too. Like a clock that always reads properly twice a day, his 2nd turn around the dial is almost here as well. Say whatever we want, the debt, the control of our economy by non-USA forces via the Fed, a President who wants to win a beauty contest and is not a true conservative no matter how much better he may be than the evil witch he defeated, the world situation on the brink of its own multi-prong collapse points…. only a fool would think this mess can go on much longer. Me? I’m getting ready to order some more ammunition.

      3. This is my plan.

        Raise interest rates .00001%.
        Each year subtract one zero thus in

        2019 interest rate = .00001% increase
        2020 interest rate = .0001% increase
        2021 interest rate = .001% increase
        2022 interest rate = .01% increase

        2023 interest rate = . 05 % increase
        2024 interest rate = .1% increase
        2025 interest rate = .15% increase
        2026 interest rate = 2% increase
        2027 interest rate = 2.5% increase
        2028 interest rate = 3% increase
        2029 interest rate = 3.5% increase
        2030 interest rate = 4% increase

        __ this plan would allow people with variable loans/second mortgage to pay down the principle on the variable loan and thus avoid losing their home as has happened in the past.

        __ I would take other measures such as removing compound interest from student loans. Then working to get them paid off. And outlaw compound interest on student loans.

        __ I would secure the border.

        __ I would stop giving aid to illegals.

        __ I would end all foreign aid.

        __ I would give white South Africans sanctuary in the U.S. if in danger, to work farms here.

        __ I would give financial aid to very high IQ women as incentive to have children.

        __I would Provide services intended to reduce births of severely disabled and retarded.

        __ I would invest in genetic engineering to improve the intelligence, morality, health and athleticism of the general population. Otherwise China takes over the 21st Century.

        __ I would rebuild through incentives American manufacturing.

        __ I would start a work program and rebuild the bridges and highways.

        __ I would return to classical education

        __ I would end affirmative Action
        __ I would allow freedom of association
        __ I would stop women from entering the military as combat soldiers
        __ I would give men a government bonus incentive to keep their wife home if they have children.

        __ I would do everything I could to see that the USA does not suffer more pain.


        • I would do a lot more seriously harsh things to clean shit up but in the end, we would be as free as possible in this shitty political landscape. I would have many enemies because PEOPLE FOR THE MOST PART DON’T WANT TO BE FREE. Pain BEFORE pleasure, freedom isn’t free. We have never been free. But introducing responsibility and self control into society will give us the best chance…

        • What would happen if, by executive order, we just terminated the fraudulent home loans and the fraudulent student loans?
          all student loans are forgiven and erased. shouldn’t have been made anyway. they were debt traps.
          same with home loans. free and clear, title is yours.
          I have to figure that would be huge for the economy and a big blow to the banks. colleges would take a huge hit and have to down size. (snowflake coarses would have to disappear. i don’t think soros could support all of them) trades would explode.
          public schools might take a hit just because more mom’s might opt to stay home.

          • I think you are right about trades. It’s really too bad that trade schools aren’t in favor. Perhaps there needs to be more of them and more available. A skilled tradesman can certainly rake in good earnings. Most of them make as much or more per hour than I ever will (yes, I have a college degree–no debt; paid as I went).

      4. I I I, me me me, my my my…pretty high on yourself there?

        • I’m high on pine nuts! 😛

      5. Only thing that really scared me was the idea of dems
        in the white house again.. and having taken the house and senate ?
        Gods, they’ll be shipping muzz in by the thousands daily to further the one world crap and death of America.
        If the bubbles pop, I have little to loose.

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