Peter Schiff: “We’re In A House Of Cards That The Fed Built”

by | Dec 20, 2018 | Headline News, Peter Schiff | 32 comments

Do you LOVE America?


    Economic analyst Peter Schiff, who accurately predicted the 2008 recession said recently that we are not in a bear market. Instead, “we’re in a house of cards that the Fed built.”

    Schiff is referring to the Federal Reserve, the United States’ central bank that answers to no one, has no competition, and has been responsible for every depression and recession since its inception. Schiff, who is the chief executive of Euro Pacific Capital, a longtime gold bug and market pundit, has been putting the upcoming economic disaster squarely on the shoulders of the Fed -very much where that blame belongs.

    “I’m watching the U.S. economy implode from the beach,” Schiff told MarketWatch during a recent phone interview from a beach in Puerto Rico. “We’re in a lot of trouble,” he said. Schiff has often been considered “polarizing”  to Wall Street pundits because he calls the Fed out for their destruction of the economy and that’s just not something most want to hear.  The prominent investor should be worthy of investors’ attention, however, because his prescient calls ahead of the 2008 financial crisis, which earned him plaudits as one of the few able to spot a global economic crisis emanating from the housing market, were correct as  MarketWatch reported.

    Schiff says that after a decade of “easy money” policies, such as money printing and low interest rates, the Fed has set up an economy unable to cope with a rise in rates. Schiff added that the inflation that has taken hold in the lofty prices of stocks and other assets and predicts will gradually shift to higher prices for consumers, who are already feeling their wallets burn thanks to the trade war. The other big problem is that Americans are broke.  Any interest rate hike could push debt-laden and cash-strapped Americans to the brink forcing them to choose which bills will get paid.


    Meanwhile, the most recent reading showed that the 12-month rate of inflation was flat at 2%  (as measured by Federal Reserve’s preferred PCE) or personal consumption expenditures, gauge.  Yet most think it’s higher after noticing an uptick in their grocery bill for example. And as the interest rate goes up, servicing debt becomes more expensive, and that a huge concern for the heavily indebted American.  “Markets are starting to crack as this debt is getting more expensive to service,” Schiff said. “We built this gigantic bubble on this unprecedented amount of cheap money and quantitative easing, and now the hangover will be much worse,” Schiff said.

    Schiff says it won’t matter what the Fed does Wednesday (policy makers hiked the rates as expected), with a rate increase of a quarter percentage point anticipated. “I think what’s going to happen is the Fed is ultimately going to take rates back to zero,” he said. Schiff says the problem is that the Fed and the vast majority of the American public (thanks to the propaganda spewed by the talking heads in the mainstream media) don’t realize just how bad the economy is and how close the everything bubble is to bursting. “They don’t realize how bad the economy is just like they didn’t realize how bad it was in 2007,” Schiff said.


    It Took 22 Years to Get to This Point

    Gold has been the right asset with which to save your funds in this millennium that began 23 years ago.

    Free Exclusive Report
    The inevitable Breakout – The two w’s

      Related Articles


      Join the conversation!

      It’s 100% free and your personal information will never be sold or shared online.


      1. Strike at the root causes of inflation in order to control the damage. For example, land speculators drive up the cost of certain acreage to be used for development. This is why it is impossible to buy homes in California yet extremely affordable in Kentucky. The materials are identical yet the home prices can exceed 10-15 to 1. That is artificial inflation of which the BULK was due to land speculation. It’s a form of “tulip mania”.

        Why do jobs go to certain states and not to others? Aha…the dirty little secret of political payoffs to divert tech companies to places that are already full of inflated real estate to justify this extortion.

        And then, this benefits apartment owners who know there is no way to own a home in California so people are forced to live in apartments. That is the antithesis of the Founding Fathers’ wishes and the opposite of the American Dream.

        As soon as you destroy home ownership, you enrich a few and destroy the middle class by design through intentional inflation. Then you created the wealth of the rich who then can use these inflated holdings as collateral to finance new real estate sales.

        Banks reap enormous profits this way.

        • _______ 11/22/1910

          _______ 11/22/1963

          In 1910 a secret meeting between powerful men discuss how to get Congress to vote for a private Central Bank which they will own with Rothschilds.

          In 1963 Kennedy is shot.

          How they mock their victims? Or, is it just an interesting coincidence?


        • Mara,
          I know you really like Kentucky.
          My wife has a lot of family there.
          However “That is artificial inflation of which the BULK was due to land speculation” isn’t the real problem of Left coast property costs. The problem is that there isn’t as much build-able private land as you would think and what you can build on is highly regulated, by political means towards forcing people into “peoples” housing.
          I have a personal rule(which is my problem) of never living more than 50 miles from a large body of salt water. Thus I have lived close to the Pacific ocean for most of my life. So I’m familiar with the zoning and local circumstances that drive West coast prices through the roof. It also means I’ve had to tolerate the most disgusting Liberal governments in America.
          Prices are not due so much to speculation as it is due to politics and the belief of Democrats that people should live in strictly controlled environments as most people are idiots(eg. Democrat voters).
          BTW it is now winter, and it is 76 degrees, cloudy and very wet today. I could if I wish, drive 30 miles to a beach where it is sunny and go body surfing.
          Mele Kalikimaka!

          • Relik thanks for your great advice & comments on SHTF. To all our fellow American CITIZENS, Mele Kalikimaka (Merry Christmas) and Hauoli Makahiki Hou (Happy New Year).

        • Population has a big impact on land values. Population density in Kentucky for 2017 was 113 persons per square mile. California 254. Arizona 62. When you consider how much land in California is in National parks and eliminate that from the available acreage, it’s gonna be even more crowded in Cali and AZ. AZ has a large amount of FS & BLM land; and that doesn’t include Indian Reservations.

          Then there is climate. The climate of most of Cali is moderate with snow only in the mountains. And until, say about 2000, the quality of life in Cali was quite good with lots of attractions and distractions.

          And Kentucky ??? It has Churchill Downs and the Charlotte Hornets. And Ft Knox, its primary tourist attraction. 🙂

      2. There is a GoFundMe site to fund the wall.

        We The People Will Fund The Wall
        ht tps://

        over $4 million in four days

        • Even if we -the people- fund it, you will still have to get the government to actually build it.

        • The elite that brought 20 million illegals here will be glad to know “We the People” are building a wall to retain their workforce.:)

        • The wounded vet will be on Fox news tonight at 10pm eastern time.

          Let’s put our money where our mouth is.

        • Foolish people. Millions more wasted. No money, donated or not, can go directly to build a wall. It goes into the general fund and the congress appropriates where they want it to go. And it won’t be a wall.

      3. I’m Ready to go home..

        • Go Home? Before the “fun”s even started?

          Better strap yourself in real tight… brother.

      4. It has been a steady roll of higher prices across the board. Taxes and higher fees is the capitalist way, only now shorter intervals between the excessive gouging on steroids. A system set up to eventually fail. What a scam to destroy a nation from within!

        • A system set up to eventually fail is proved by history to be the …socialist one. Just remember USSR and all Eastern European countries were socialism system destroyed these countries from within, not by war. North Korea, Cuba and Venezuela are a living proof that socialist system is bad for people, but a haven for the socialist top leaders.

      5. Play the blame game all you want. Everyone has someone to blame for the way things are: Tories, Democrats, Socialists, Libertarians, migrants, Republicans, the banks, the EU, Israel, the Rothschilds, Donald Trump, China, Russia, etc, etc. Choose your favorite villain but don’t expect thing to go anywhere but down. The exponential function and diminishing returns have taken hold. Too few easily accessible cheap resources divided up between too many consumers equals less for all.

        There are no solutions for this dilemma, only more pain, more suffering, and more death. Have a wonderful day.

      6. schiff is so damn negative, and RIGHT!


      7. A stopped clock is right twice a day.

        IMHO that describes Mr Schiff.

        His stick is gloom and doom but does not say when except tomorrow, but its always tomorrow.

        I invested with his company for more than a decade and made nothing. Paid a bunch of broker commissions and taxes on dividends, when I sold my holdings it was less than what I invested.

        I can’t say I am happy nor that I could recommend him or EuroPacific in any regard.

        • problem with THIS clock is that when it’s right NEXT time, it will be the end of U.S…….and he will be PERMANENTLY right.

      8. The FED didn’t build that. Remember Obamy’s speech-

        ‘ You didn’t build that. We built that.’

        • No, the FED built that with zero interest rates. 🙂

      9. No amount of prepping will save you, we’re in God’s hands now.

      10. In the last year or two before the Great Depression, the market grew two to three hundred percent. Miss out on that and you area fool.

        Just be aware of the moment when everyone thinks the market can’t fail, then get out.

      11. At this point I’ve finally given up on Trump. Now the latest is the pending government shutdown which is not about border security. Nope. It’s about feeding Trumps ego and having a monument so he can claim a wall for his legacy.

        The taxpayers are going to foot the bill for the wall. MX never agreed to pay for it. There are no tricks to squeezing the money from them.

      12. simple solution-default on the debt:
        your payments go away
        nobody will lend to you in the future-so you will have to live within your means

      13. Federal Reserve Act Sec 10 #2
        2. …
        Upon the expiration of the term of any appointive member of the Federal Reserve Board in office on the date of enactment of the Banking Act of 1935, the President shall fix the term of the successor to such member at not to exceed fourteen years, as designated by the President at the time of nomination, but in such manner as to provide for the expiration of the term of not more than one member in any two-year period, and thereafter each member shall hold office for a term of fourteen years from the expiration of the term of his predecessor, unless sooner removed for cause by the President.

        President Trump has CAUSE due to the destruction of 1/5-1/6 of the entire wealth of the Market…by design by raising rates precipitously and catastrophic negligence…perhaps even the greatest intentional sabotage ever committed in the USA.

      14. Anybody know any good interviews about the Monday price action ?

        Yes I know it’s Christmas day so some market commentators may be opening presents.

        But come on, Eric King is Jewish – he does some great interviews.

        I thought the combination of Mnuchin’s Sunday Dec. 23 Twitter, about calling a meeting of the Plunge Protection Team (President’s Working Group on Financial Markets), AND the Christmas Eve price action – down 2%+ in 3 1/2 hours –

        very entertaining.

        Would love to see some market commentators start commentating. I don’t mean CNBC, I mean Rick Rule or Eric Sprott or Andrew Maguire.

        Seems like … something is going on in the equity markets.

      15. And Monday Dec 24 With only 1/2 day of trading it dropped another 600 !!!

      16. In the long run , schiff is correct . However the scenario he predicts is taking a long time to play out. In the meantime one still has to live one’s life. odd that Schiff is spending time in PR , a place that spent itself in to a debt hole it is still trying unwind. Still holding onto the PM’s I bought 10-15 years ago

      Commenting Policy:

      Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.

      This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.