Peter Schiff Was Right – Taper Edition

Posted by Peter Schiff - Euro Pacific Capital

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Over the last few weeks, as the overwhelming majority of economists, reporters, and Wall Street insiders expressed certainty that the Fed would begin to taper its QE program, I did my level best to make the public understand that the Fed would do no such thing. As a result, last week’s “surprise” announcement provides us with fresh confirmation that most market pundits remain clueless about the true state of our economy. I knew, as they seemed not to, that the Fed is caught in a stimulus trap that will require them to keep the monetary spigots wide open. For my efforts I was treated to another round of snickers, eye rolls, and outright dismissals. You would have hoped that they would have learned better by now. 

Fortunately all their dazzlingly wrong predictions are caught on tape. In retrospect it makes for hilarious viewing. Click below to view. 

Unfortunately, they have failed to learn anything from their mistakes. The same pundits that were revered before their colossal miscue are still afforded equal respect. The markets still believe the popular consensus that a Fed taper will arrive in October, or maybe by January at the latest. In contrast, I believe that we are now stuck in a state of permanent QE.   But these views remain in the lunatic fringe. How many more times will the markets have to get it wrong before an alternate reality is considered?   In the end it will not be the Fed that voluntarily tapers by easing up on the monetary gas pedal, but an adverse reaction in the currency and bond markets than forces the Fed to slam on the breaks.


About Euro Pacific Capital

UnknownFounded in 1997 and headquartered in Westport, Connecticut, Euro Pacific Capital, Inc. is a full-service, registered broker/dealer specializing in foreign markets and securities. Euro Pacific Capital makes direct purchases of select foreign shares, on selected foreign exchanges, in contrast to buying domestic pink sheet listings of the same securities. Through personal discussions with Euro Pacific brokers, our clients receive advice about the importance of diversifying their portfolios to include foreign securities that may simply not be offered by the typical U.S.-based full service or discount brokerage firm. See The Euro Pacific Difference.

Peter Schiff, the firm’s founder and CEO, is known for his vocal and unpopular bearish views of the U.S. economy, voiced prior to the 2008 financial crisis, many of which were outlined in his 5 bestselling books, including “Crash Proof: How To Profit From The Coming Economic Collapse.” Mr. Schiff leads our experienced and diverse team of managers, researchers, consultants and support staff – a team that is literally scanning the globe for investment opportunities – by endeavoring to deliver the highest possible value for our clients.
Euro Pacific Capital has grown to include six regional branches – Westport, Connecticut; New York, New York; Boca Raton, Florida; Scottsdale, Arizona; Newport Beach, California; and Los Angeles, California – over sixty investment consultants, a team of research analysts, and three divisions – Retail Brokerage, Wealth Management and Capital Markets.