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发帖数: 3096 | 1 Is America Heading Towards a Collapse Worse Than 2008 and Europe?
http://finance.yahoo.com/
According to author and investor Peter Schiff, the U.S. economy is heading
for an economic crash that will make 2008 look like a walk in the park.
Stimulus programs can delay this day of reckoning, but only for so long and
only at the expense of making the eventual meltdown much, much worse.
Schiff, who famously warned investors about the housing and financial crisis
in his 2007 book Crash Proof, says the Fed's palliative efforts during the
housing meltdown have made the next crisis inevitable.
"We've got a much bigger collapse coming, and not just of the markets but of
the economy," Schiff says in the attached clip. "It's like what you're
seeing in Europe right now, only worse."
In this nightmare scenario detailed in The Real Crash: America's Coming
Bankruptcy, the current economic pause is actually the beginning of a
material slowdown or recession into year end. At that point, the Federal
Reserve will unleash a third round of Quantitative Easing — weakening the
dollar without jump-starting the economy. As a result of dollar weakness,
import prices rise, pressing the margins of corporate America. Lower margins
lead to heavy layoffs, sending millions of workers into unemployment during
a time when they can least afford it. Banks fail, housing collapses, and
taxes are raised in a futile effort to give the tapped-out government the
capital to try yet more futile stimulus.
"That's when it really is going to get interesting, because that's when we
hit our real fiscal cliff, when we're going to have to slash — and I mean
slash — government spending," says Schiff.
Those cuts will not be at all unlike the draconian austerity measures in
Greece, with programs like Social Security and Medicare being dramatically
cut or possibly disappearing entirely. The easiest way to put it, is that
everything you don't think could possibly happen in America will come to be.
"Alternatively, we can bail everybody out, pretend we can print our way out
of a crisis, and, instead, we have runaway inflation, or hyper-inflation,
which is going to be far worse than the collapse we would have if we did the
right thing and just let everything implode," he offers.
So what should investors do to protect themselves? Schiff has three
suggestions:
1. Get Out of Treasuries
The U.S. dollar is going to get trashed in Schiff's scenario. Locking in a
yield on a government 10-year bond of 1.5% is a paltry return in the first
place. Should inflation tick up to even 5%, a level much lower than that
seen in the early 1980s, bond owners would have 3.5% less buying power at
the end of every year. If they go to sell the bond, they'll only find buyers
at a much lower price than what they paid.
2. Own the Right Stocks
With bonds and the dollar bearing the brunt of the pain, Schiff says stocks
will outperform dramatically, provided you own the right ones. Exporters and
multi-national corporations will benefit from a weak dollar. Better still
would be to buy foreign stocks and avoid the U.S. entirely.
3. Buy Silver and Gold
Schiff says the recent weakness in these precious metals is just a pause as
we wait for the other shoe to drop. Most of those on Main Street haven't
even taken positions yet in gold or silver. Once they start dropping bonds
and looking for a place to hide, the price of these metals will soar.
Are you preparing for a major U.S. market and economic meltdown? Let us know
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