Peter Schiff : AMERİCAN ARMAGEDDON INEVITABLE 2017

Peter's brilliantly timed 2006 0:04 trade against the housing market 0:06 inspired the book and the Academy 0:08 award-nominated movie the big short but 0:12 now a decade after Peter first predicted 0:15 the subprime mortgage meltdown 0:18 he's issuing an even more serious 0:20 warning the warning concerns a category 0:24 five hurricane ready to make landfall as 0:28 you're about to discover the united 0:30 states federal government will soon be 0:33 forced into default in fact Peter says 0:37 in his latest bestseller the real crash 0:40 that Armageddon is inevitable so he and 0:43 I have joined forces to deliver an 0:46 important warning to Americans 4 2016 0:48 much of today's content has never been 0:52 released to the American public before 0:54 now including financial proof that the 0:57 federal government is already completely 1:00 insolvent last resort manipulations by 1:04 the Federal Reserve actions just taken 1:07 have now moved the day of reckoning even 1:09 closer the likelihood of a system-wide 1:12 failure over the next 12 months is very 1:16 real now I want to be absolutely clear 1:19 on something right from the top 1:21 nothing can prevent the crisis at hand 1:24 from occurring every emergency fiscal 1:27 measure has already been exhausted and 1:30 policymakers at the highest levels of 1:32 government have begun preparing 1:34 themselves and their families for 1:37 financial Armageddon many of them in 1:40 fact are following the strategies Peter 1:42 outlines in his book the real crash 1:45 there's still time for americans to 1:47 prepare to which is why i'm calling on 1:50 the one man who accurately forecasted 1:53 the 2008 financial crisis peter schiff 1:56 to throw mainstream America a lifeline 2:00 yet again 2:01 Peter's now-famous first book 2:03 crash-proof included very specific 2:06 strategies that any ordinary taxpaying 2:09 American could have used to make 2:11 millions door into that 2:13 thousand eight chaos but the stakes are 2:16 even higher in his latest book the real 2:18 crash now a word of caution before Peter 2:23 and I peel back the layers of the coming 2:25 crisis be ready to feel outraged 2:28 troubled and frankly scared 2:32 imagine a world where the banks have 2:34 frozen your assets and the government 2:36 can provide basic services like police 2:40 and fire rescue 2:41 well you can still avoid becoming 2:44 collateral damage 2:45 Peter's urgent warning to Americans here 2:50 you sent a letter to investors dated 2:52 august 22nd 2006 and it you describe in 2:57 detail a housing bubble on the verge of 2:59 bursting even gave investors a blueprint 3:02 for profiting from such a crisis how it 3:05 wasn't too short the homebuilders you 3:07 said the greatest opportunities would 3:09 line the downward spiral the financial 3:11 sector now needless to say you were 3:14 eerily prophetic but did you understand 3:16 Peter just how right you'd be not only 3:18 understand how right I was going to be 3:20 but I actually expected something much 3:22 worse to happen as a consequence and I 3:25 still expect that because what happened 3:27 in 2008 wasn't the end of the crisis it 3:30 was just the beginning but you know in 3:32 looking back at the prior bubble in the 3:36 stock market at the time I recognize the 3:39 difference between the stock market 3:41 bubble and the real estate bubble 3:42 because in the stock market bubble 3:44 people were speculating with our own 3:46 money in the real estate bubble they 3:48 were speculating with somebody else's 3:50 money it was the banks was the lenders 3:52 and so my blueprint for profit was too 3:56 short the mortgages themselves Wall 3:59 Street had created these packaged 4:01 products of mortgages particularly the 4:03 subprime mortgages which were bundled in 4:05 a way to create the illusion that these 4:08 mortgages were ultimately high credit 4:11 quality in fact many of these subprime 4:13 mortgages were rated triple-a but of 4:16 course some of them were rated much 4:18 lower than that and it was the lower 4:19 tranches that we were recommending 4:22 shorting and in fact that was the first 4:25 letter in a series of three that 4:27 sent out trying to get people interested 4:29 in the hedge fund that we were 4:31 establishing specifically the short 4:33 subprime mortgages and in fact trying to 4:36 find investors for my hedge-fund i 4:38 accepted an invitation from the Western 4:41 Regional Mortgage Bankers Association 4:43 which was a group of three thousand 4:46 mortgage bankers i went there in later 4:48 2006 to talk about the coming collapse 4:51 in the mortgage market and the housing 4:53 bubble and try to find investors for my 4:56 hedge fund and you can see on youtube 4:59 you can see the entire one-hour 5:02 presentation but what you can't see on 5:04 youtube is the workshop that I gave 5:07 subsequent to that speech which was 5:11 specifically on the hedge fund that we 5:13 had created to short subprime mortgages 5:16 and of the people who attended my 5:18 workshop 5:19 maybe they were 50 to 60 of the people 5:21 out of the 3000 that came only one 5:23 investor invested in that hedge fund 5:26 then you know they wrote a book about 5:28 that trade in fact more recently turned 5:30 into a movie the big short but imagine 5:33 3,000 people having the opportunity in 5:36 the mortgage industry too short subprime 5:38 mortgages a year before they collapsed 5:41 and only one individual with the 5:43 foresight to take advantage of it and my 5:45 warnings were specific i didn't just say 5:47 oh we're gonna have a crisis i went into 5:49 every specific detail of what the 5:52 problem was and what was going to happen 5:54 and i have yet to see anybody write an 5:57 explanation of the 2008 financial crisis 6:01 in hindsight that is better and more 6:03 accurate than what i wrote before it 6:05 happened 6:06 Peter how did you see this crisis coming 6:09 a full year but perhaps a little bit 6:11 more than up the president Wall Street 6:13 Congress how did you see that crisis 6:15 coming when no one else could see it 6:17 well I saw a lot earlier than 2006 you 6:20 can go back to the internet and look at 6:22 the extensive writings ah from 2004-2005 6:27 in which i described in every detail the 6:31 housing bubble and how it was being 6:33 inflated and what the source of the 6:36 problem was my I blamed mainly the 6:38 Federal Reserve I blamed alan greenspan 6:40 and they're low interest rates but I 6:42 went into all the problems in the 6:44 appraisal industry into securitisation 6:46 industry i went to the problems with 6:48 fannie mae and freddie mac in fact one 6:50 of the predictions I made back then and 6:52 I repeated that in my original book a 6:54 crash-proof was that both Fannie and 6:56 Freddie would in fact go bankrupt and 6:58 that's exactly what happened what i 7:00 wrote about was that after the housing 7:03 bubble burst and we have this financial 7:04 crisis instead of learning from its 7:06 mistakes and recognizing its role in 7:09 creating the crisis the government would 7:11 double down on those mistakes that we 7:12 would have the easiest monetary policy 7:14 ever that the government would try to 7:16 reflate the housing market and the stock 7:18 market which i also wrote would go down 7:20 with with the housing market 7:22 I didn't know what they were going to 7:23 call it they ended up calling a 7:24 quantitative easing 7:25 I just knew that they were going to do 7:26 it and I knew that the result of that 7:29 would be dramatic that the crash that i 7:32 was writing about in that book and was 7:34 not the 08 crash that was the precursor 7:38 to the crash the real crashes the one 7:40 that's still coming 7:42 it's the one that is the consequence of 7:44 all of the policies that the government 7:46 has pursued ever since the late 7:48 financial crisis that gets us to your 7:50 latest book Peter the real crash in 7:52 which your warning investors that the 7:54 real crash is still yet to come 2008 was 7:58 just the tremor before the earthquake in 8:00 fact you say that Armageddon is 8:02 inevitable 8:03 now the next government shutdown won't 8:05 be theoretical it'll be real home values 8:08 will plummet jobs will disappear credit 8:10 will dry up the dollar will crash in the 8:12 government cannot be depended upon to 8:15 provide basic services like police and 8:17 fire rescue to me it feels just like 8:19 it's 2007 early 2008 all over again I'm 8:23 screaming as loud as I can about this 8:25 looming economic hurricane that's just 8:29 off the coast and nobody can see it 8:31 coming and nobody wants to give me even 8:33 any credit even though I was right 8:35 before the average American is 8:37 ill-prepared for everything I mean that 8:38 is the consequence of all this bad 8:40 monetary policy about the moral hazards 8:43 of the United States government I mean 8:44 Americans are not prepared at all for 8:48 the events that are about to unfold and 8:49 if you go back and you look at the 8:51 footage of the Great Depression you see 8:53 how civil them 8:54 Americans were how how orderly people 8:56 waited in soup lines you know and bread 8:58 lines or whatever I mean that's not 9:00 America today I mean we have a in 9:03 America people who feel entitled and are 9:06 dependent i mean when they first 9:08 introduced welfare in the Great 9:10 Recession and they call that relief 9:12 people were embarrassed to take it 9:14 didn't want to admit it and some people 9:16 actually paid the money back they felt 9:18 so guilty about having gotten money that 9:20 they didn't turn I mean we don't have 9:22 that type of ethic 9:24 ah those type of rugged individuals in 9:27 America today we've got the sauce 9:28 society that thinks that they're older 9:31 living and when this collapse comes I 9:33 mean you that they're going to be 9:35 blaming somebody and you know yeah it's 9:37 gonna be it's gonna be dangerous 9:39 especially in in some of our cities uh 9:42 you know you see how they react to minor 9:45 problems i mean even you see how they 9:47 celebrate you know when a team wins the 9:49 Super Bowl or the World Series you get 9:50 rioting and looting imagine what would 9:52 happen if there was a genuine economic 9:54 crisis imagine what's going to happen in 9:56 our cities if the dollar collapses and 9:59 then we have shortages of goods because 10:00 the government imposes price controls or 10:03 what if there's rolling blackouts 10:04 because the governor's rationing power 10:06 because that's what the government might 10:07 do I mean we had gas lines in the 10:09 nineteen seventies because the 10:11 government didn't allow the market to 10:13 function and they put in price controls 10:15 well you think we're any smarter now 10:17 no I mean we're dumber so we're going to 10:19 repeat those mistakes so imagine what's 10:21 going to happen in this country when 10:23 there are shortages of basic goods 10:25 shortages of food shortage of energy so 10:28 give it to me straight Peter when you 10:30 factor in the nation's entitlement 10:32 programs you and I both know that the 10:34 national debt actually exceeds a hundred 10:36 trillion dollars tell me is America 10:39 already insolvent we're absolutely 10:41 insolvent I mean that's one of the main 10:42 reasons that the Fed kept interest rates 10:44 at zero for so long and even though 10:47 they've nudge them up slightly 10:49 they're still practically zero and the 10:51 reason for that is because America has 10:52 so much debt that we can't afford to pay 10:55 a market rate of interest if we were 10:57 forced to we would have to default and 10:59 of course you're right the actual bonded 11:01 debt which is now about 19 trillion and 11:04 it's rapidly heading to 20 trillion that 11:06 is the tip of an inch 11:07 warmest iceberg the true totality of 11:10 America's liabilities dwarf the official 11:13 debt it is closer to a hundred trillion 11:15 when you account for unfunded 11:17 liabilities and social security and 11:19 medicare you look at all the off budget 11:21 items the government has guaranteed all 11:24 the dead of Fannie and Freddie all the 11:26 bank accounts all the pensions all the 11:28 student loans you look at all these 11:30 contingency liabilities and you know 11:32 we're completely broke and when you've 11:35 borrowed more than you can repay default 11:38 is inevitable 11:39 the only question is how do we do it do 11:41 we do it honestly by admitting were 11:43 broke and restructuring the debt meaning 11:45 that people don't get paid a hundred 11:47 cents on the dollar including people who 11:49 are expecting to get social security 11:51 checks or government pensions being told 11:53 that they're not going to get what they 11:55 were promised because the country is too 11:57 broke to afford it or our politicians 11:59 going to try to paper over their 12:01 inability to pay with a printing press 12:03 is the Federal Reserve going to monetize 12:06 all this debt are they going to print 12:07 all this money and I i believe that it's 12:10 going to be the latter i think that that 12:11 is exactly what they're going to do 12:12 they've laid a foundation for that they 12:15 call it quantitative easing as if it's a 12:17 good thing and I think we're getting 12:18 ready to have a lethal dose of 12:21 quantitative easing and then I think 12:23 we're gonna have a dollar crisis 12:24 Americans need to take this seriously 12:26 you know if you are caught off-guard if 12:28 you were blindsided by 2008 don't be in 12:31 that predicament again this time around 12:33 make sure that you are prepared offer 12:36 this coming economic Armageddon the 12:39 United States recently passed a very 12:42 troubling milestone the national debt 12:44 now exceeds the value of the entire US 12:47 economy any homeowner underwater on 12:50 their mortgage knows what happens when 12:53 you owe more than the value of your home 12:55 and none of the outcomes are good 12:58 America has to borrow every month just 13:00 to pay the 86 billion dollar interest on 13:03 its debt more than fourteen percent of 13:06 all government revenue is now being 13:09 sucked up by interest payments to keep 13:12 up the government's illusion of solvency 13:14 policymakers are quietly refinancing the 13:18 debt to the tune of billions of dollars 13:20 ever 13:21 three week imagine extending the 13:23 mortgage on your house to 80 years 13:26 well the Treasury secret rollover 13:29 mission has extended the length of 13:31 america's debt to levels never witnessed 13:34 before in history something i believe is 13:36 unconstitutional their behavior is 13:39 shockingly similar to how the bank's 13:42 twisted and contorted subprime mortgages 13:45 ahead of the collapse of the housing 13:46 market now the first casualty in all of 13:50 this will likely surprise you 13:52 it's something near and dear to 13:54 Americans in fact most of us regarded as 13:57 our greatest national treasure warning 14:00 what Peter reveals next might be 14:03 difficult to hear but just try to keep 14:06 this in mind the devastating events to 14:08 follow will also trigger the greatest 14:11 legal transfer of wealth ever witnessed 14:15 Peter and I want to make sure you're on 14:17 the right side of history when it 14:19 happens so the recovery we've been 14:23 hearing about its artificial it's not 14:25 real but its not recovering all we 14:27 haven't recovered from anything we've 14:29 just gotten sicker 14:30 this is the biggest bubble the federal 14:32 reserve has ever inflated and the 14:34 consequences for the average American 14:36 when it bursts are going to dwarf 14:38 anything that was experienced in the two 14:40 prior bubbles 14:41 everybody knows I in there you know in 14:44 our hearts that the country is in a lot 14:47 more shape than the leaders are 14:48 pretending i mean the Federal Reserve 14:50 wants to pretend that everything is 14:52 great right that their problems that 14:54 they're their policies to solve the 14:56 problem but the economy is in worse 14:57 shape than ever mean there's never been 14:59 a recovery 15:00 we're at the end of the recovery people 15:03 are worse off than at the beginning but 15:04 that is the truth for most Americans so 15:07 far during the recovery their net worth 15:09 of God down there real incomes have gone 15:12 down their deaths have gone up there in 15:15 worse shape financially than they were 15:17 when the recovery began and so what kind 15:19 of recovery is that where you get sicker 15:21 the extent of this recession is going to 15:24 be much more obvious when the lifelines 15:27 run out i mean right now people have a 15:29 reprieve in the form of cheap gas that's 15:32 not going to last 15:33 they're still able to borrow money 15:35 credit is still flowing the government 15:37 is still making it possible for 15:39 americans who don't have the income to 15:41 survive to borrow to make up the 15:44 difference so that they can still pay 15:46 their bills but their net worth certain 15:48 parts are negative but I think soon in 15:51 this coming crisis that borrowing 15:53 ability is going to go away and 15:56 Americans are going to be left with 15:58 their incomes which are going to 15:59 continue to diminish and a 16:00 cost-of-living that's going to continue 16:02 to rise and that's going to impoverish a 16:04 large segment of our society superiors 16:08 saying that the Federal Reserve 16:09 particularly will fire up its printing 16:11 presses again and when that happens 16:13 it'll be the kiss of death for the 16:15 dollar America's national treasure dead 16:18 absolutely you see what the government 16:20 is going to conclude incorrectly they're 16:22 going to say that their policy work it 16:25 just wasn't big enough that quantitative 16:27 easing was the right medicine they just 16:29 didn't have a large enough dose you know 16:31 that's what Paul Krugman has always been 16:32 saying that we just needed more stimulus 16:35 the problem was we didn't take on enough 16:37 new debt the government spend enough 16:38 money so i think we're going to go 16:40 all-in on stimulus and quantitative 16:42 easing we're gonna load the boat the 16:45 government is going to prepare what I 16:46 believe is going to be a lethal dose of 16:48 stimulus we're going to overdose on it 16:50 right and what's going to be the 16:52 fatality is going to be the dollar and 16:55 the whole government bubble which is you 16:59 know reflected in the value of the 17:00 dollar the value of the bond market all 17:02 that is going to come collapsing down 17:04 and the confidence that people had in 17:06 the institution of federal reserve is 17:08 going to be gone 17:09 finally you know people are going to see 17:11 it for what it is and see the dollar for 17:13 what it is and I think we're going to 17:14 lose our status as being the issuer of 17:17 the world's reserve currency and I think 17:19 that's going to be a profound change in 17:22 the american standard of living here 17:25 tell our viewers why the dollars the 17:27 loss of the world's reserve currency is 17:28 so devastating 17:30 the only reason the dollar became the 17:32 world's reserve currency was because it 17:34 was backed by gold and all he was it 17:36 backed by gold it was redeemable in gold 17:38 if you took your dollars to the Federal 17:40 Reserve they gave you gold at a fixed 17:42 exchange rate for a while that was 35 to 17:45 what Nixon to value a couple 17:47 times in it i think it was about 40 to 1 17:49 before we went off the gold standard 17:51 completely in 1971 but that is why the 17:54 dollar became the world's reserve 17:56 currency and of course when the dollar 17:58 was the reserve currency it was because 18:00 America had the world's biggest trade 18:02 surpluses we were the world's largest 18:04 creditor nation everybody wanted dollars 18:06 we were the low-cost producer of 18:09 high-quality manufactured goods are 18:11 goods were being consumed all over the 18:13 world everybody wanted our stuff and 18:15 they needed dollars to pay for it but we 18:17 are the mirror image of our former self 18:19 we are now the world's biggest debtor we 18:22 borrow from everybody the poorest 18:23 countries in the world lend us money for 18:25 the world's biggest debtor nation we 18:26 have the biggest trade deficits in the 18:28 world and we don't give any we don't 18:29 promise to pay any goal for our dollars 18:32 so this system is going to come to an 18:33 end and with it is going to be the 18:35 artificially high standard of living 18:37 that Americans have enjoyed and of 18:39 course our standard of living has 18:40 declined over the decades but it's about 18:43 to go over the edge of a cliff 18:44 Peter as you've mentioned already this 18:46 is where it really gets scary you say 18:48 the dollar would collapse wiping out all 18:50 savings and sending consumer prices into 18:52 the stratosphere 18:54 I think you even said that walmart would 18:56 seem like neiman marcus absolutely 18:59 ironically so far the dollar has been 19:02 the primary beneficiary of the 19:05 government government policy we've had 19:06 this rally in the dollar because so many 19:08 people around the world actually believe 19:10 that our problems have been solved and 19:13 that the economy is in good shape and 19:14 defensible raise interest rates but i 19:16 think this is the that the biggest 19:18 sucker rally that the dollars ever had 19:21 because just as the dollars about to be 19:23 destroyed literally people piled into it 19:26 i mean it's the most crowded speculative 19:28 trading on Wall Street is is buying into 19:31 the dollar but once up people recognize 19:33 the gravity that mistake i think it's 19:36 going to be very sharp and quick ride 19:38 down for the dollar and that is going to 19:39 be a game-changer 19:41 thanks Peter we can expect more bank 19:43 failures in the real crash well 19:45 unfortunately all the banks that the 19:47 government dog too-big-to-fail back in 19:49 the OS financial crisis 19:51 well because we bailed them all out 19:53 instead of letting them fail which is 19:54 what we should have done now those banks 19:56 are bigger than ever and the problems 19:58 are bigger than ever 19:59 so if they were too big to fail before 20:00 what are they now 20:02 and so I don't believe the government is 20:04 going to let any of the banks fail me 20:06 they think that the one mistake they 20:07 made was letting Lehman Brothers 20:09 collapse letting Lee McPhail was the one 20:11 thing they did write everything else 20:13 they did wrong so I don't believe the 20:15 government's gonna let the bank's 20:16 collapse i think they're gonna print 20:17 enough money to make sure that it's the 20:19 value of the dollar that collapses 20:21 instead of the bank's so what does that 20:23 mean that means that you don't lose your 20:24 deposits right when you go to the ATM 20:26 machine the money is going to come out 20:28 the problem is you're not going to buy 20:30 very much with it and that is a bigger 20:32 problem i would rather lose some of my 20:34 money but have the money retain most of 20:36 his value then retain all of my money 20:38 that's lost most of its value 20:40 I mean imagine how bad the 2008 20:42 financial crisis that men had there been 20:44 no bailouts right had the government 20:47 allowed more banks to fail and it would 20:50 have been worse but then the problems 20:52 would have been solved and we would have 20:54 enjoyed a real recovery one that is 20:56 sustainable 20:57 instead we've just got into another 20:59 bubble and we've made all of the 21:01 problems that caused the last financial 21:03 crisis infinitely worse and now the 21:06 governor has put itself in a position 21:08 where it won't be able to balance out 21:10 the next time because it's the 21:11 government itself that's going to have 21:13 the crisis it's the government is going 21:15 to be insolvent because the crisis is 21:17 going to be in the dollar and by 21:19 extension into treasury bond market so 21:21 when the government is broke when the 21:23 government needs a bailout there's 21:24 nobody there they that kicking that can 21:26 finance it 21:27 everybody will say we just dodged a 21:29 bullet right the government saved us it 21:30 was going to be so horrific but thanks 21:33 for the government but you know what if 21:34 it was gonna be that horrific the 21:36 government didn't save us 21:38 it's still there that crisis is still in 21:40 our future because the government save 21:42 us for anything 21:43 what did the government do they delayed 21:45 the inevitable 21:46 they postponed the day of reckoning but 21:48 by making all the problems that we have 21:50 to reckon with worse so it was going to 21:53 be worse than the great depression 21:54 without the government acting now it's 21:56 going to be even worse than that because 21:57 the government acted Peter and I've 22:00 talked at length about the coming great 22:02 depression and we both believe that this 22:05 one the one ready to make landfall will 22:08 be far worse in the depression of the 22:10 1930s that is 22:12 because in the coming crisis Americans 22:15 won't have the benefit of falling prices 22:17 see cheaper groceries and consumer goods 22:21 provided much-needed relief to people 22:24 who lost their jobs in the nineteen 22:26 thirties but this time with a crashing 22:29 dollar instead of getting the comfort of 22:31 falling prices americans will have to 22:34 suffer the agony of rising prices a bit 22:38 later Peter will tell you why you should 22:40 be stockpiling ammunition as it stands 22:43 now despite the fiscal arson that US 22:46 policymakers have committed on its 22:48 people the deception of a strong dollars 22:51 holding the past 18 months have 22:54 witnessed a rally in the dollar but the 22:56 following chart unmasks the illusion 22:59 despite Americans enjoying more 23:01 purchasing power than they've had in 23:04 almost fifteen years it's never taken 23:07 longer for a single unit of currency to 23:10 move through the US economy Americans 23:12 are scared business owners and consumers 23:15 alike and they're holding onto their 23:17 dollars you're probably scared to i know 23:21 i am that's why it's never been more 23:23 important to begin trading your 23:25 historically overvalued dollars for 23:28 other assets that will soon enjoy 23:30 dramatic valuation explosions your 23:33 dollars will never buy you more than 23:36 they will right now as Peter reveals in 23:39 this next section the Federal Reserve 23:41 just attacked America again I don't 23:44 believe they did it on purpose but 23:46 history will likely view the feds latest 23:49 measure as an economic Pearl Harbor the 23:52 real crash is now gaining momentum with 23:55 every passing second keep in mind as 23:58 you're watching that your artificially 24:00 strong dollars could make you very 24:02 wealthy as the crisis vaults Peter the 24:07 federal funds rate has been pinned near 24:08 zero since the financial crisis but the 24:11 Fed just raise rates for the first time 24:13 since june of 2006 so the Fed is finally 24:16 taking action but do they know that by 24:18 raising interest rates 24:19 they've just unleashed an economic Pearl 24:21 Harbor 24:22 well I think they're definitely 24:24 concerned 24:24 learned about what's going to happen and 24:26 i think their way under estimating the 24:28 severity of what they've unleashed 24:30 but the fact that they waited seven 24:32 years to raise rates shows you just how 24:34 worried they are in fact when 2015 began 24:38 the Fed kept assuring everybody that 24:41 before the end of the year the economy 24:43 would be strong enough for a rate hike 24:44 and they waited until two weeks before 24:46 the year ended their last meeting in 24:48 December to reluctantly nudge interest 24:51 rates up from zero 2.25 the point five 24:55 but they did so in the face of horrible 24:58 economic data it's obvious that the 25:01 economy is much closer to the next 25:03 recession then you know the early stages 25:06 of recovery which is normally when the 25:09 Fed begins to raise interest rates right 25:11 normally when an economy is emerging 25:13 from recession the Fed starts raising 25:15 rates when the economy is very strong 25:17 when you have a lot of pent-up demand 25:19 but here the Fed waited so long to raise 25:21 rates that the recovery is basically 25:23 over and the next recession is about to 25:26 begin and I think again when we begin a 25:29 recession with interest rates just 25:31 barely above zero there's not a lot of 25:34 room to cut them you say that all it 25:36 would take is for interest rates to 25:37 return to historical mean and that would 25:40 tip us into chaos that is is that still 25:43 accurate 25:43 well I think it would take even less 25:44 than that I don't leave i think that it 25:46 would happen even before we got to a 25:49 historically normal level of interest 25:51 rates because we haven't historically 25:52 abnormal amount of debt service that is 25:56 the problem and of course the American 25:58 economy has grown as a function of debt 26:01 finance consumption but Americans are 26:03 broke 26:04 they can't borrow any more and pretty 26:06 soon our creditors are going to realize 26:08 that and they're not going to want to 26:09 lend anymore Peter now this next point 26:12 is going to scare the hell out of a lot 26:13 of Americans but you consider us 26:15 treasuries to already be subprime assets 26:18 at this point 26:18 well absolutely you know one of the 26:21 reasons that I understood the problem in 26:24 subprime mortgages is because I knew 26:26 that a lot of the people in fact all the 26:28 people who were taking advantage of 26:29 subprime mortgages were using 26:31 adjustable-rate mortgages meaning that 26:33 the interest rates on their mortgages 26:35 could rise and in fact most of these 26:37 more 26:37 witches were started with what they used 26:39 to call a teaser rate where you had an 26:41 introductory very low rate of interest 26:43 on your mortgage and that meant a lot of 26:45 people who otherwise couldn't qualify 26:47 we're able to qualify because they could 26:49 make the teaser payments but I knew that 26:52 eventually those rates would reset to 26:54 levels that the borrower's couldn't 26:56 afford and then they would end up 26:58 defaulting well the government has done 27:00 the same thing the united states 27:02 national debt is like one gigantic 27:04 adjustable rate mortgage to a subprime 27:06 borrower who is not going to be able to 27:09 pay if interest rates rise we've got 27:12 this teaser rate right now thanks to the 27:13 Fed but if interest rates go up the US 27:16 government is in the same position as 27:18 the subprime borrower with lots of debt 27:21 that they can't afford to pay Peter 27:22 China's Treasury holdings have fallen 27:24 about 200 billion dollars as it raises 27:26 money in support of its flagging economy 27:28 and stock market this would be the first 27:30 time the China's pull back from 27:32 treasuries on an annual basis 27:34 scary isn't it I think it's the 27:36 beginning of a huge process it's not 27:38 just going to involve china but it's 27:40 going to involve all of America's 27:41 overseas creditors particularly in the 27:43 emerging markets who were major buyers 27:45 of our debt when the Fed was doing 27:47 quantitative easing one and two 27:49 that's what kept the dollar from really 27:50 imploding I was all the dollars in 27:53 treasuries that were being purchased by 27:54 our trading partners in order to sustain 27:56 their trade surpluses with the United 27:59 States but i don't think they're gonna 28:00 make the same mistake twice i don't 28:02 think there's going to be a currency 28:03 world war 2i think those countries are 28:06 going to surrender and America is going 28:08 to ultimately win the currency war which 28:10 means American citizens lose because 28:12 when you win a currency war you destroy 28:14 your own people because your currency 28:16 collapses and within down and with your 28:18 falling currency goes your standard of 28:20 living because our standard of living is 28:22 America is dependent on what the dollar 28:25 will buy because most of the things that 28:27 Americans by are not made in America 28:29 they're made someplace else and the 28:31 reason we're able to get them is because 28:33 we're able to exchange the dollars that 28:34 we print for the goods that everybody 28:37 else produces but when people don't want 28:39 the money we're printing we're not going 28:40 to get the goods that they're making and 28:42 Americans are gonna have to go without 28:43 things that up until now we take for 28:45 granted 28:46 iíve understood this thing from the 28:48 beginning and now we are at the final 28:50 piece of this 28:51 also we're finally arriving at the real 28:54 crash that I have been warning about 28:56 since the beginning and it's important 28:58 that people recognize you know take a 29:00 look at how many things that i have said 29:02 and i have written that have already 29:04 come true you know and why would this 29:06 final piece be any different 29:08 all right Peter it's time let's give our 29:10 viewers an idea of what the real crash 29:12 will look like when it hits now a stock 29:15 market collapse will spark the panic 29:17 right you know twice in the last 15 29:19 years the u.s. stock markets been cut in 29:21 half and certainly in the absence of 29:24 massive money-printing you know huge 29:26 round of quantitative easing is going to 29:28 happen again but i do believe that the 29:30 Federal Reserve may intervene in time to 29:33 prevent the stock market from collapsing 29:36 but only at the expense of the dollar 29:38 and then ultimately the bond market the 29:40 Fed can't save everything and if the 29:42 said that is going to save the market 29:44 and try to save the real estate market 29:45 as well then they have to sacrifice the 29:48 dollar but of course if the dollar 29:50 collapses then it might not matter that 29:53 your stock portfolio didn't go down 29:54 because if it stays if the stock market 29:57 stays the same and the dollar goes down 29:58 well you still lost because your stocks 30:01 are priced in dollars so the market 30:02 would have to go up dramatically in 30:04 order to keep you whole and I don't 30:06 think there's any way they're going to 30:07 get the market to rise enough to offset 30:10 the loss of the value of the dollar in 30:12 which your stocks are priced too so much 30:14 like it's hidden crash it's not it's not 30:16 overtly apparent but it's still 30:18 happening 30:19 yes and I think you'll be able to see 30:20 the crash better if you measure it in 30:22 something that's more objective 30:24 something that the Federal Reserve can 30:25 create and that would be gold never the 30:28 important thing is not what the stocks 30:30 are worth in terms of the dollar because 30:32 the dollars a moving target you don't 30:34 know what the dollar is going to be 30:35 worth the dollar isn't any real wealth 30:37 it represents a claim on well so the 30:39 question is what can you buy with your 30:41 dollars a better way to value stocks is 30:45 to price them in gold because gold is 30:47 real money gold has real properties and 30:51 there is a long history of the stock 30:53 market priced in something as stable as 30:56 gold and if you go back historically 30:58 when the market gets to about 20 21 31:01 right that's a very expensive stock 31:04 market and I 31:05 team 29 the dow jones was about 20 31:08 ounces of gold but when it bottomed out 31:10 in 1932 the dow was down to one ounce of 31:13 gold was a huge class now the stock 31:16 market didn't get back up to 20 ounce of 31:18 gold again until nineteen sixty-six and 31:21 then it went back down to one else in 31:23 1980 so it made the round trip in 1980 31:26 the stock market was the same price an 31:29 ounce of gold as it was in 1932 now in 31:32 two thousand during the height of the 31:34 stock market bubble the dow was worth 40 31:37 ounces of gold unprecedented now during 31:41 the ensuing bear market that really 31:43 ended around 2008-2009 I think the dow 31:46 jones got down around eight ounce ago 31:49 maybe a little less but right now it's 31:51 recovered and that ratio is around 16 21 31:54 now I don't think it's gonna make it to 31:56 20 21 again out what I do think we're 31:59 going to take out that low of around 32:01 eight to one or 71 wherever we were back 32:03 then and I think we're going to revisit 32:05 the one-to-one ratio again that we were 32:09 at at the depths of the Great Depression 32:10 in 1932 and at the end of the 1970s bear 32:16 market in 1980 remember the stagflation 32:18 airy period of the nineteen seventies 32:20 brought the bow back down to one ounce 32:22 of gold so I think we're going there 32:24 again I think the dow jones is gonna 32:26 trade for one ounce of gold 32:28 I just don't know what the price is 32:29 going to be I mean is it going to be 32:31 with the doubt 5,000 and gold 5,000 is 32:35 going to be with a Down 10,000 gold the 32:37 10,000 could be about 20,000 and gold 32:40 20,000 see the important thing is not 32:42 where they meet but that they do meet 32:44 the real crash will feel like a 32:47 rollercoaster ride through hell 32:49 only a precious few will survive the 32:52 crisis and still behold even fewer will 32:56 parachute out of the crisis richer and 32:59 happier as a result America's power base 33:03 and policymakers are already protecting 33:06 themselves and their families many of 33:09 them are following the strategies Peter 33:11 outlines in the real crash like Warren 33:14 Buffett Donald Trump Carly Fiorina Rand 33:18 Paul and 33:18 Ted Cruz ask yourself are you truly 33:22 prepared for what's coming because the 33:25 real crash will be far more serious than 33:28 a financial crisis if you think that 33:31 only those with invested assets will get 33:33 hurt the real crash will impact you even 33:36 worse what we do without Social Security 33:39 or pension check what will you do when 33:42 there's no food on the shelves for 33:44 police to protect you and your local 33:46 bank was burned to the ground 33:48 how about when a desperate government 33:50 seizes your financial assets there isn't 33:54 an American alive outside of the armed 33:56 forces who can possibly be prepared to 33:59 live through such a doomsday scenario as 34:02 Peter told me offline you won't have to 34:05 travel to a poor country like Jamaica or 34:07 Haiti to go on vacation you'll soon be 34:11 living in 1 Peter with the bankrupt 34:14 government what happens to entitlement 34:16 programs like Social Security Medicare 34:17 Medicaid food stamps unemployment 34:20 benefits fannie and freddie gone well 34:23 you know those benefits those 34:25 entitlements are the reason the country 34:27 is bankrupt then first of all nobody is 34:29 entitled to anything you're not entitled 34:31 to somebody else's money i mean you're 34:33 entitled to what you earn yourself but 34:35 you're not entitled to what somebody 34:37 else turns and of course the government 34:38 maintains the illusion that some of 34:41 these entitlement programs are actually 34:42 funded you know the social security 34:44 trust fund but there is no trust lenders 34:46 nothing there every dime that the 34:48 government has ever collected and social 34:50 security taxes has already been spent 34:53 right they spent it going to the moon 34:55 right fighting the war on poverty 34:57 fighting the vietnam war fighting that 34:59 the war on terror beam that money is God 35:02 yes the government has replaced it with 35:03 an IOU to itself but that's not really 35:06 you can't write yourself a check and 35:09 then count your uncashed check as an 35:10 asset right if I by a government bond 35:13 that's an asset to me because it's a 35:15 liability to the government but the 35:17 government can't own its own bond and 35:19 claim it as an asset because it's also 35:20 an offsetting liability so the trust 35:23 funds have never been there 35:24 the entitlement programs are run based 35:27 on the same principles as a Ponzi scheme 35:29 that's all it is 35:30 you know and you're not entitled 35:32 to the proceeds of a Ponzi scheme as 35:34 long as the government can keep up the 35:36 charade 35:36 it's going to pretend that these are 35:38 solvent programs but eventually they're 35:40 gonna implode and ultimately again I 35:43 think what happens is in order to avoid 35:45 the political embarrassment of having to 35:47 admit that there's no money and that we 35:49 can't afford to make the payments 35:51 they're just going to run the printing 35:52 presses meanwhile a lot of people now 35:54 record numbers of people are taking 35:55 disability early from social security so 35:58 the whole thing is broke in fact right 36:00 now the government is already paying out 36:02 more and social security benefits and it 36:04 collects in taxes and that's during this 36:06 so-called recovery 36:07 what's going to happen in the next 36:08 recession know if you think this was a 36:10 bad recovery of course this is the 36:12 weakest recovery ever when you get a 36:14 load of the next recession that the 36:15 recovery is this bad weather you see 36:17 what's in store 36:18 so this whole thing is going to implode 36:20 I mean the government is trying to keep 36:21 it going 36:22 by pretending there's no inflation you 36:24 know the the colors didn't go up at all 36:26 so last year people on social security i 36:29 think for the first time didn't get an 36:30 increase in their benefits for inflation 36:32 because the government claims there is 36:33 none 36:34 well I mean that like can only go on for 36:35 so long but what they're really doing by 36:38 pretending there's no inflation is 36:40 cutting social security benefits but 36:41 they're gonna have to cut a lot more in 36:43 fact are basically going to eliminate 36:45 them completely by either honestly 36:47 by not paying or you know means testing 36:50 program or dishonestly by just printing 36:53 so much money as to render the benefits 36:55 worthless please warn our viewers puter 36:57 that although the national debt gets all 37:00 the headlines dead at the local levels 37:02 of state levels the municipalities 37:04 sometimes in often cases those are even 37:06 more scary than where national debt is 37:08 yeah and the municipalities of course 37:10 you know they can't print any money i 37:12 mean they can only pay their bills to 37:14 the extent that they can collect the tax 37:16 revenue and you know they've also taken 37:18 on a lot of debt during the era of cheap 37:20 money you know they local politicians 37:23 have been able to spend a lot more money 37:25 that they then the otherwise could have 37:26 spent if interest rates were at normal 37:29 levels so they've taken on incredible 37:31 amounts of debt and of course a lot of 37:33 these cities rely on their higher income 37:35 earners are as their tax base right and 37:38 the tax bases have been eroding but a 37:40 lot of these higher income earners are 37:42 going to have those high incomes anymore 37:43 and so the taxes are going to be there 37:45 and there are a lot of local government 37:47 said that rely on this for they rely on 37:50 a property tax revenue that's not going 37:52 to be there when the property prices are 37:53 collapsing or the people just don't have 37:55 the money to pay the taxes i mean if the 37:57 if the taxpayers broke he can't send in 38:00 a check and if the local government 38:02 can't collect tax revenue that it can't 38:04 pay the interest on its bonds he can't 38:06 pay the principal in the bonds mature 38:07 and so that's going to happen for our 38:09 cities 38:10 ah throughout the country and our 38:12 state's and of course you have a lot of 38:14 problems and you think about a lot of 38:16 our cities we have some of the 38:17 wealthiest neighborhoods very close to 38:20 some of the poorest neighborhoods and 38:22 this is going to be a big problem out 38:24 when everything comes you know comes 38:26 collapsing down Peter would a desperate 38:28 US government attempting to service its 38:30 debt sees personal assets of americans 38:34 were to go into their bank accounts 38:35 would go into therefore own case good we 38:38 know desperate people do desperate 38:39 things is something Americans have to be 38:41 worried about as foreigners decide they 38:43 don't want to buy Treasuries and as the 38:45 US government is looking for more buyers 38:48 they made force Americans to do it i 38:51 think it's possible that in the future 38:53 the government might force you in order 38:55 to maintain the tax benefits of your IR 38:58 area pension or 401k they may require a 39:02 certain percentage of that account be 39:03 invested in us treasuries now I think 39:06 obviously something like that would be 39:07 unconstitutional but you know during a 39:09 crisis the Constitution goes out the 39:11 window in fact is out the window without 39:12 a crisis there's really no limit to what 39:14 the government could do because the 39:16 Supreme Court doesn't care they just 39:18 rubber-stamp whatever it is they do the 39:20 Constitution really doesn't protect us 39:21 from government anymore 39:22 I the way it was supposed to but believe 39:25 me whatever the government is forcing 39:26 you to buy is the last thing that you 39:28 want to buy what would you say to the 39:30 people considering buying gold Peter I 39:32 mean the best way to own gold is to take 39:34 physical possession of it i mean i think 39:35 people should have told you know in 39:38 their house they should have it in their 39:40 own save for hidden someplace safe but 39:42 you also should have some gold stored 39:44 offshore in your name your goal whether 39:47 it's in Switzerland or Singapore or you 39:51 know Australia there are good safe 39:53 depositories for your gold I think you 39:55 should diversify where you have your 39:57 goal i think one place I wouldn't 39:59 it is in a safety deposit box at a bank 40:01 because if the government ever 40:02 confiscates that's the first place 40:04 they're gonna look I mean if you've got 40:06 gold in a bank and the government 40:07 somehow you know tries to nationalize 40:10 there makes it illegal to own it you'll 40:11 never get that gold out of that Bank and 40:14 I mean they'll be a government agent 40:15 will open every box and they find the 40:17 golden there they might arrest you all 40:19 of us Peter even me assume that the 40:21 government will always be able to 40:22 provide basic services without further 40:25 borrowing power 40:26 what about Police Fire Rescue Postal 40:28 Service does it all grind to a halt 40:30 remember the government doesn't actually 40:32 have any wealth it only has what it 40:34 takes for the productive members of 40:36 society but the productive members of 40:38 society have been shrinking because 40:40 American politicians have made all sorts 40:42 of promises they can't keep they made 40:44 promises the bondholders but they've 40:46 also made promises to government 40:48 employees with respect to pensions or 40:50 just every American with respect to 40:52 social security and medicare but the 40:53 money isn't there and think about this 40:55 you know if the government's are broke 40:58 you know that's including the local 41:00 governments I mean they can't you know 41:02 get the tax revenue and so if they can't 41:06 pay the police department are they going 41:08 to be on duty right if the government's 41:10 don't have the resources to pay the 41:12 police right are they going to be there 41:14 to protect you 41:15 they're going to be protecting their own 41:16 families why are they going to be on the 41:17 job when there's nothing in it for them 41:20 that's why it's very important for 41:21 people to be prepared 41:23 don't rely on the government to protect 41:24 you rely on yourselves because those 41:27 government policeman uh maybe too 41:29 preoccupied protecting their own 41:31 families to work for free 41:33 protecting somebody else's puter as you 41:36 know Wall Street daily his headquarters 41:38 in baltimore maryland and we all know 41:40 what happened in Baltimore I lived 41:42 through those riots they were scary i 41:43 could smell the smoke in the air 41:45 there's just panic on the streets I 41:47 never thought I'd see in America like 41:49 that but I definitely did that day you 41:52 see more of this happening in some of 41:54 our major cities 41:55 absolutely and of course on a much 41:56 larger scale those were localized 41:58 problems and those weren't economic 42:00 problems i mean those were more 42:02 political but if you get something that 42:04 really hits home out where the goods 42:07 that people take for granted are just 42:09 are just not available right where 42:11 people can't 42:12 the food that they need or the 42:14 electricity or the gasoline if goods are 42:17 really in short supply 42:18 it really could get into a situation 42:20 where everybody is going to have to rely 42:22 on their own ability to protect 42:25 themselves which is you know one of the 42:26 reasons that you know people should be 42:28 prepared now I mean you know you you 42:30 should have uh you know weapons to 42:33 protect yourself in one of the reasons 42:35 that gun control would be you know so 42:37 dangerous is so many people will be left 42:39 defenseless I mean people need to be 42:41 able to defend themselves that's why i 42:43 recommend for a long time the only 42:44 people I you know keep the guns but they 42:47 keep enough ammunition because I think 42:49 ammunition is going to be in very short 42:50 supply and you know you know you might 42:52 have a gun but gravity bullet something 42:53 you do not study any good 42:55 I and so you know i recommend a long 42:58 time i use stock pilot I mean worst case 43:00 scenario you can barter them you know 43:01 you can trade with somebody they're 43:03 gonna have value but they might have a 43:05 lot of value if you actually need to use 43:07 them on you know when you have plus when 43:09 you buy a gun you hope you never use it 43:11 I mean you know that mean that that's 43:12 what that's what you should unless you 43:13 know you're a hunter but you never want 43:15 to use your gun in self-defense that's 43:16 the last thing you want to do but I tell 43:19 you the worst thing is not having a gun 43:20 that you don't need it's needed a gun 43:22 and not having one 43:23 you don't want to be in that situation 43:24 ammunition prices have already tripled 43:28 and industry analysts warn that prices 43:31 could triple again in the face of a 43:33 shortage 43:33 however a recent price pullback has 43:37 delivered an opportune time to begin 43:39 stockpiling in the real crash ammunition 43:43 could become a means of currency as 43:45 bullets carry intrinsic value again it's 43:48 never been more important to 43:50 strategically trade your overvalued 43:53 dollars for other assets ready to 43:55 explode in value 43:56 it's unlikely that your dollars will 43:59 ever be worth more than they're worth 44:01 this very moment think of the coming 44:04 crash like a mousetrap 999 out of a 44:08 thousand Americans believing what the 44:10 president the Federal Reserve and 44:13 Congress are telling them will 44:15 voluntarily walk straight into the trap 44:17 and never come out but one out of every 44:21 thousand will be clever enough to eat 44:23 the cheese and 44:25 walk away feeling satisfied in the 44:28 subprime mortgage meltdown every 44:30 American home owner got hurt as the real 44:33 estate market endure a devastating 44:36 revaluation still a handful of people 44:39 got richer as a result Peters first book 44:43 crash-proof proved prophetic and offered 44:46 investors very specific instructions to 44:49 grab the cheese without spring the trap 44:52 his latest book the real crash it's even 44:56 harder 44:57 of course it has to hit harder the 45:00 dollars revaluation has the potential to 45:03 do more damage than a terrorist attack a 45:06 thousand times bigger than 911 45:09 Peter you say even if you don't think of 45:12 yourself as an investor you need to 45:14 start paying more attention to your 45:16 wealth or an unconventional times the 45:19 federal be printing so much money that 45:21 your dollars could become worthless in 45:23 fact you say when the dollar crashes 45:25 walmart will seem like neiman marcus is 45:28 there still time for americans to 45:29 prepare for the coming crisis absolutely 45:32 in fact because so many people are 45:34 confused about what's going on so many 45:36 people have embraced the dollar and have 45:39 confidence in what the Federal service 45:41 created you have a situation where real 45:43 money gold and silver are you know 45:46 extremely undervalued and so while 45:49 prices are going to be going up for 45:50 people who have dollars prices are will 45:53 be collapsing for people who have real 45:55 money so there's still an opportunity 45:56 for people to accumulate legitimate 45:59 savings to get real money while it's 46:02 cheap and hold onto it until it's dear 46:04 until it's valuable because once people 46:06 realize that this is a bubble and the 46:08 dollar starts to implode people are 46:10 gonna be scrambling to convert those 46:12 claims to wealth to actual wealth 46:14 let's talk about the stock market you 46:16 say in your book you're an investor and 46:18 part of your job as an investor is to 46:20 find mistakes and errors and miss 46:22 pricings that are that are occurring out 46:24 there similarly there'll be some of 46:25 those mispricing and errors happen again 46:28 this time 46:28 well there already are and I i do 46:30 believe that there will be stocks that 46:33 investors can own that will do a good 46:37 job of preserving real value but you 46:40 can't just randomly by the major indexes 46:42 because there's a lot of companies that 46:43 are going to go bankrupt 46:45 I in in this real crash and so you want 46:48 to own the companies that are uniquely 46:50 positioned to preserve wealth and 46:53 preserve purchasing power and of course 46:54 many of those stocks are not even found 46:56 in the US stock market I think investors 46:58 really have to have a global perspective 47:00 and you know have to look at other 47:03 countries because not all countries are 47:05 the same 47:05 I mean there are many countries that are 47:07 not nearly in the same type of trouble 47:09 that we are mean I i look for countries 47:11 where they have a free market principles 47:14 i look for countries that have more in 47:16 common with America of the past then 47:19 America does with itself I mean it's not 47:21 the country that's important it's the 47:23 free market principles that are embraced 47:25 and if you find countries that have free 47:27 markets that have sounder monetary and 47:29 fiscal policies that have fewer 47:31 regulations and lower taxes on those are 47:34 better countries in which to invest and 47:36 there are stocks and other assets that 47:38 you can own in other countries that I 47:41 believe will deliver a substantial gains 47:44 in real purchasing power to American 47:47 investors who have the foresight to buy 47:49 these assets now I with their overvalued 47:52 US dollars know a lot of people talk 47:53 about it's cheaper to take a vacation 47:55 abroad right now because the dollars up 47:57 and it's true it is cheaper to take a 47:59 vacation vacation only lasts for a short 48:02 period of time and then it's over but 48:04 rather than just taking application i 48:06 use your overvalued dollars to buy 48:08 assets abroad that you will have forever 48:11 that will provide returns in perpetuity 48:13 because once the dollar collapses are 48:16 those overseas assets are going to be 48:17 very expensive and most Americans won't 48:19 be able to afford them but you can buy 48:21 them now while they're technically on 48:23 sale because of are overvalued currency 48:25 and the currency is only overvalued 48:28 because it's in a bubble because 48:29 speculators around the world have no 48:31 idea what's about to happen just like 48:34 they had no idea what was about to 48:35 happen in 2008 or no idea what was about 48:38 to happen in two thousand so they've 48:40 made a mistake they have overpaid for 48:42 the dollar and if you've got dollars 48:44 then you can use that to your advantage 48:45 because you can take those overvalued 48:48 dollars and accumulate quality 48:50 since around the world that you're going 48:51 to need in the aftermath of the crisis 48:54 that's coming is the key to identify the 48:57 companies that aren't relying on the 48:59 American consumer to fund its growth 49:01 absolutely i mean you don't want to own 49:03 a company that is dependent on Americans 49:05 are for its revenue because Americans 49:08 are dependent on credit and that credit 49:10 is going to dry up i mean the day the 49:13 days of the American consumer are our 49:15 number and so you really want to own 49:17 companies that are going to be able to 49:20 sell into the emerging consumers you 49:22 know the people who have been producing 49:24 all of the goods that we've been 49:26 consuming and have been saving and 49:28 loading us all the money to pay for it 49:29 and I believe that as Americans get poor 49:32 they're going to be other people who get 49:34 a lot richer 49:35 I mean this is not a zero-sum game I 49:37 mean the factories are going to 49:38 disappear all the consumer goods are 49:40 still going to be produced what's going 49:42 to change who gets to enjoy the 49:44 consumption of those goods 49:45 I mean we've been enjoying it for a long 49:47 time we've had this ride on the global 49:49 gravy train but this is going to come to 49:51 an end but i think people who have been 49:53 working hard in other countries who have 49:55 been watching Americans in a gorge on 49:57 the fruits of their labor they're going 49:59 to reclaim their their fruits for 50:01 themselves and I think as our standard 50:03 living declines their standard of living 50:06 is going to rise and so you can join 50:08 them you don't have to be on the losing 50:09 end we know the dollars crashing Peter 50:12 dollar-denominated bonds are even worse 50:15 than investing in the dollar correct 50:18 well sure I mean the only worsen the 50:19 dollar is a promise to pay you the 50:21 dollar in the future which is all the 50:23 bond is and again ironically everybody 50:26 is taking refuge in the dollar right 50:28 there running toward the blast instead 50:30 of away from it i mean everybody thinks 50:31 the dollars King I yet the dollars about 50:35 to be knocked off its throne which from 50:37 an investment perspective makes sense 50:39 right the market generally is setting 50:41 everybody up for what they don't expect 50:43 and so everybody is now up buying the 50:47 dollar taking refuge from the storm in 50:49 the dollar when the dollar is the 50:51 epicenter of the storm they're actually 50:52 when they're in the dollar in the eye of 50:54 a hurricane 50:55 you just don't realize it right but 50:57 pretty soon you know that that 50:58 hurricanes gonna move and you're going 51:00 to be smack dab in the middle of that 51:02 hurricane you're not going to be 51:04 you're not gonna be in the eye but that 51:05 does give the investor the opportunity 51:08 to take advantage of other people's 51:09 naivete other people's our mistakes 51:12 which is the way you really make a lot 51:15 of money and investing is recognizing a 51:18 mistake that everybody else is making 51:19 and then you position yourself to be in 51:22 the right place when everybody who's 51:24 making that mistake figures it out 51:26 Peter you found a few healthy dare i say 51:29 thriving micro economies hiding inside 51:32 of certain foreign markets now the 51:34 industry's you've identified have a moat 51:36 around them that is fundamentals that 51:37 will protect them from the American arm 51:40 again how's that even possible 51:42 well when the financial crisis hit in 51:44 2008 the reason that we suck the entire 51:47 world into our crisis was because it 51:50 resulted in a huge rise in the dollar 51:52 which was at an all-time record low when 51:54 the crisis began and then all of a 51:56 sudden this big rise in the dollar cause 51:58 the liquidity drain in a lot of other 52:00 economies and it caused creditors to 52:03 tighten up and then debts were 52:05 defaulting and of course we had spread 52:07 our toxic paper all around the world i 52:09 mean we were borrowing from everybody 52:10 and so all of our bad mortgages were on 52:12 the banks balance sheets of all sorts of 52:14 banks not just American banks but i 52:16 think this time around with the dollar 52:18 collapsing it's going to have the 52:20 opposite effect instead of pulling 52:21 everybody down we're going to liberate 52:23 everybody i think some of these 52:25 economies are going to flourish in the 52:26 aftermath of a dollar crisis and so this 52:29 is gonna be a whole new world and so if 52:30 you're invested in the countries that 52:32 are going to benefit from this 52:34 realignment of global wealth and 52:36 purchasing power then you can make a 52:37 tremendous amount of money 52:39 Peter in your book you've identified a 52:40 country an investable country that's 52:42 already gone through this have already 52:43 done a complete 180 they already had a 52:45 financial crisis years ago and now 52:47 they're sitting on the doorstep of great 52:49 prosperity tell us a little bit about 52:51 that country 52:52 yeah history is replete with examples of 52:55 countries that have basically gone 52:57 bankrupt as a result of big government 52:59 but once in awhile countries recognize 53:02 the source of their problems as 53:04 government and they take the appropriate 53:06 measures to reverse the damage and and 53:09 so to the extent that you abandoned 53:13 those principles and start dismantling 53:15 government privatizing your industry's 53:17 right 53:18 repealing regulations lowering taxes 53:21 particularly taxes on income on 53:23 inheritance and if you move towards a 53:25 free market then you can create the 53:27 conditions for lasting prosperity and 53:29 there are countries are where they know 53:32 they've already paid the piper they've 53:33 already done the hard part and now 53:36 they're positioned to reap the rewards 53:39 Peter in your book the real crash you've 53:40 also had identified a couple of 53:42 countries that are resource-based 53:43 countries now with these depressed price 53:45 levels these are highly investable areas 53:48 of the world we want to be positioned 53:49 incorrect absolutely there are countries 53:50 now that have tremendous natural 53:52 resources that right now due to the 53:54 artificially high value of the dollar 53:56 and the anticipation that the dollar 53:58 will continue to rise and that interest 54:00 rates will continue to to rise and hurt 54:03 a lot of the consumers of those 54:05 commodities in the developing world are 54:07 you have some really good opportunities 54:09 because I believe that these 54:10 resource-based economies will be 54:12 invigorated when the dollar collapses in 54:14 particular I think a lot of the 54:16 countries that are going to benefit most 54:18 from a weak dollar are going to see a 54:20 huge increase in their demand for 54:22 resources of all materials as they use 54:25 their new-found purchasing power to buy 54:27 products for themselves instead of 54:29 producing products for the United States 54:31 and I think a lot of those products are 54:33 going to be very resource-intensive and 54:35 I think when billions of people enter 54:36 the middle class their demand for 54:38 resources is going too far eclipsed the 54:41 resources that Americans are now two 54:42 ported to to consume so i think a lot of 54:45 these resource-based economy's the right 54:46 economies are going to be 54:48 well-positioned for tremendous gains in 54:51 in their assets when this transition 54:54 takes place here in your book you've 54:56 identified another country that's a 54:58 beneficiary very small government but 55:00 also is riding the way from China tell 55:02 us a little about that one 55:03 yeah well you've got countries that are 55:05 uniquely positioned to benefit from 55:08 really the emergence of the chinese 55:10 economy and the Chinese consumer I mean 55:12 think about the birth of the American 55:15 consumer in that the you know that 55:18 during the industrial revolution or the 55:20 late stages of that you know we're going 55:22 through something like that i mean 55:23 they're sure there's problems in China 55:24 and people want to focus on the problem 55:26 but you 55:26 the look beneath the superficial 55:28 problems actually see the dynamic change 55:31 that is taking place in the economy that 55:33 used to really be a communist country 55:35 that are now in many maze is it weighs 55:37 is freer than the United States there 55:39 are more free market principles 55:41 underlying the Chinese economy 55:43 then in the American economy and the 55:45 transition is profound and it is going 55:47 to deliver an extraordinary again I to 55:51 the standard living and that's already 55:52 taken place but there are countries a 55:54 couple of countries that are uniquely 55:57 positioned to benefit from this because 55:59 they don't shackle on their industries 56:01 and are individuals with all kinds of 56:03 cumbersome regulations and taxes they 56:06 have no true freedom and they're free to 56:09 take advantage of these opportunities 56:10 but you're free to invest in these 56:12 countries and take advantage of those 56:13 opportunities will return your book the 56:15 real crash you have also identified a 56:17 country with a long history of sound 56:19 money and you see that continuing into 56:21 this country saw immediate future 56:23 tell us a little bit about what's 56:24 happening there yeah you know almost 56:26 every country to some degree has 56:28 abandoned those principles and everybody 56:30 is kind of buying into the inflation 56:33 mentality of the Keynesian where we need 56:35 inflation we need a weak currency but I 56:37 think as those principles are rejected 56:39 certainly the countries that have a 56:41 history of sound money will reimburse 56:44 those principles and I think to their 56:45 benefit the biggest problem has been 56:48 that we haven't had a real monetary 56:50 system ever since the u.s. went off the 56:52 gold standard 1971 what we have now does 56:54 not work what existed prior to that did 56:57 and i think that we're going to go back 56:59 to what work and there are certain 57:01 countries certainly that are much better 57:02 position to do that and do it earlier 57:04 than others 57:05 let's talk about gold Peter falling 57:08 prices and force a slew of junior miners 57:10 offline you believe this could trigger 57:13 one of the biggest short squeezes ever 57:15 explain to our viewers why 57:17 well I think that it's some of the best 57:18 values that exists exists in the 57:21 gold-mining second you look at the price 57:24 of gold mining stocks minh most gold 57:26 mining stocks today or significantly 57:28 cheaper than they were 15 years ago at 57:30 the end of a 20-year bear market when 57:32 gold was under three hundred dollars and 57:34 outstanding gold is close to 1100 today 57:36 yet gold stocks or are half for more 57:39 even less than where they 57:40 when Cole was under 300 I and of course 57:43 a lot of mining exploration has stopped 57:46 I mean there's really no capital in the 57:47 industry 57:48 everybody is bearish everybody thinks 57:50 gold is going to collapse and of course 57:52 when everybody thinks one thing and and 57:54 they're wrong 57:55 there's tremendous opportunity for 57:56 people who are right and i think there's 57:58 some great bargains in the gold mining 58:01 sector of course gold itself is 58:03 undervalued but gold-mining stocks even 58:05 more so because they reflect all the 58:07 negative sentiment on gold so they don't 58:09 reflect what the price of gold is 58:11 trading out today but the much lower 58:13 price that everybody assumes it will be 58:14 trading at in the future so even if gold 58:17 prices just stay the same gold stocks 58:19 have a long way to go but certainly if 58:21 you buy the right ones I mean I you know 58:23 some of them could go bankrupt in this 58:25 environment but the ones that don't I 58:26 think we're going to return my enormous 58:28 profits to the people who had the 58:30 foresight to buy them 58:32 I hope you found Peters warning to 58:34 America without for unfunded liabilities 58:38 and social security and medicare you 58:40 look at all the off budget items the 58:43 government has guaranteed all the dead 58:44 of Fannie and Freddie all the bank 58:46 accounts all the pensions all the 58:48 student loans you look at all these 58:50 contingency liabilities and you know 58:52 we're completely broke and when you've 58:55 borrowed more than you can repay default 58:58 is inevitable 58:59 the only question is how do we do it do 59:01 we do it honestly by admitting were 59:03 broke and restructuring the debt meaning 59:06 that people don't get paid a hundred 59:07 cents on the dollar including people who 59:09 are expecting to get social security 59:11 checks or government pensions being told 59:14 that they're not going to get what they 59:15 were promised because the country is too 59:17 broke to afford it or our politicians 59:19 going to try to paper over other 59:21 inability to pay with a printing press 59:24 is the Federal Reserve going to monetize 59:26 all this debt are they going to print 59:27 all this money and I i believe that it's 59:30 going to be the latter i think that that 59:31 is exactly what they're going to do 59:32 they've laid a foundation for that they 59:35 call it quantitative easing as if it's a 59:37 good thing and I think we're getting 59:39 ready to have a lethal dose of 59:41 quantitative easing and then I think 59:43 we're gonna have a dollar crisis 59:44 Americans need to take this seriously 59:46 you know if you were caught off guard if 59:48 you were blindsided by 2008 don't be in 59:51 that predicament 59:52 and this time around make sure that you 59:54 are prepared offer this coming economic 59:57 Armageddon the United States recently 60:01 passed a very troubling milestone the 60:04 national debt now exceeds the value of 60:06 the entire US economy any homeowner 60:09 underwater on their mortgage knows what 60:12 happens when you owe more than the value 60:14 of your home and none of the outcomes 60:17 are good 60:18 America has to borrow every month just 60:21 to pay the 86 billion dollar interest on 60:23 its debt more than fourteen percent of 60:26 all government revenue is now being 60:29 sucked up by interest payments to keep 60:32 up the government's illusion of solvency 60:35 policymakers are quietly refinancing the 60:38 debt to the tune of billions of dollars 60:40 every week 60:43 imagine extending the mortgage on your 60:44 house to 80 years 60:46 well the Treasury secret rollover 60:49 mission has extended the length of 60:51 america's debt to levels never witnessed 60:54 before in history something i believe is 60:56 unconstitutional their behavior is 60:59 shockingly similar to how the bank's 61:02 twisted and contorted subprime mortgages 61:05 ahead of the collapse of the housing 61:06 market now the first casualty in all of 61:10 this will likely surprise you 61:12 it's something near and dear to 61:14 Americans in fact most of us regarded as 61:18 our greatest national treasure warning 61:20 what Peter reveals next might be 61:23 difficult to hear but just try to keep 61:26 this in mind the devastating events to 61:28 follow will also trigger the greatest 61:32 legal transfer of wealth ever witnessed 61:35 Peter and I want to make sure you're on 61:37 the right side of history when it 61:39 happens so the recovery we've been 61:43 hearing about its artificial it's not 61:45 real right it's not recovering all we 61:47 haven't recovered from anything we've 61:49 just gotten sicker 61:50 this is the biggest bubble the federal 61:52 reserve has ever inflated and the 61:54 consequences for the average American 61:56 when it bursts are going to dwarf 61:58 anything that was experienced in the two 62:00 prior bubbles 62:01 everybody knows are in there you know in 62:04 our hearts that the country 62:06 is in a lot more shape than the leaders 62:08 are pretending i mean the Federal 62:10 Reserve wants to pretend that everything 62:12 is great right that their problems that 62:14 direct their policies to solve the 62:16 problems but the economy is in worse 62:17 shape than ever mean there's never been 62:19 a recovery 62:20 we're at the end of the recovery people 62:23 are worse off than at the beginning but 62:25 that is the truth for most Americans so 62:27 far during the recovery their net worth 62:29 of God down there real incomes have gone 62:32 down their deaths have gone up there in 62:35 worse shape financially than they were 62:37 when the recovery began and so what kind 62:40 of recovery is that when you get sicker 62:41 the extent of this recession is going to 62:44 be much more obvious when the lifelines 62:47 run out i mean right now people have a 62:49 reprieve in the form of cheap gas that's 62:52 not going to last and they're still able 62:54 to borrow money credit is still flowing 62:56 the government is still making it 62:58 possible for americans who don't have 63:00 the income to survive to borrow to make 63:03 up the difference so that they can still 63:05 pay their bills but their net worth 63:08 certain parts are negative but I think 63:11 soon in this coming crisis that 63:13 borrowing ability is going to go away 63:16 and Americans are going to be left with 63:18 their incomes which are going to 63:19 continue to diminish and a 63:20 cost-of-living that's going to continue 63:22 to rise and that's going to impoverished 63:24 a large segment of our society superior 63:28 saying that the Federal Reserve 63:29 particularly will fire up its printing 63:31 presses again and when that happens it 63:34 will be the kiss of death for the dollar 63:35 America's national treasure dead 63:38 absolutely you see what the government 63:40 is going to conclude incorrectly they're 63:42 going to say that their policy work it 63:45 just wasn't big enough that quantitative 63:47 easing was the right medicine they just 63:49 didn't have a large enough dose you know 63:51 that's what Paul Krugman has always been 63:53 saying that we just needed more stimulus 63:55 the problem was we didn't take on enough 63:57 new debt the government spend enough 63:59 money so i think we're going to go 64:00 all-in on stimulus and quantitative 64:03 easing we're gonna load the boat the 64:05 government is going to prepare what I 64:06 believe is going to be a lethal dose of 64:08 stimulus we're gonna overdose on it 64:11 right and what's going to be the 64:12 fatality is going to be the dollar and 64:15 the whole government bubble which is you 64:19 know reflected in the 64:20 value of the dollar the value of the 64:21 bond market all that is going to come 64:23 collapsing down and the confidence that 64:26 people had in the institution of the 64:27 Federal Reserve is going to be gone 64:29 finally you know people are going to see 64:31 it for what it is and see the dollar for 64:33 what it is and I think we're going to 64:35 lose our status as being the issuer of 64:37 the world's reserve currency and I think 64:39 that's going to be a profound change in 64:42 the american standard of living here 64:45 tell our viewers why the dollars the 64:47 loss of the world's reserve currency is 64:49 so devastating 64:50 the only reason the dollar became the 64:52 world's reserve currency was because it 64:54 was backed by gold and all he was at 64:56 backed by gold it was redeemable in gold 64:58 if you took your dollars to the Federal 65:00 Reserve they gave you gold at a fixed 65:02 exchange rate for a while that was 35 65:05 216 and evaluate a couple of times and i 65:08 think it was about 40 to 1 before we 65:10 went off the gold standard completely in 65:12 1971 but that is why the dollar became 65:15 the world's reserve currency and of 65:16 course when the dollar was the reserve 65:19 currency it was because America had the 65:21 world's biggest trade surpluses we were 65:23 the world's largest creditor nation 65:25 everybody wanted dollars we were the 65:27 low-cost producer of high-quality 65:29 manufactured goods are goods were being 65:32 consumed all over the world everybody 65:34 wanted our stuff and they needed dollars 65:36 to pay for it but we are the mirror 65:38 image of our former self 65:39 we are now the world's biggest debtor we 65:42 borrow from everybody the poorest 65:43 countries in the world lend us money 65:45 where the world's biggest debtor nation 65:46 we have the biggest trade deficits in 65:48 the world and we don't give any we don't 65:49 promise to pay any goal for our dollars 65:52 so this system is going to come to an 65:54 end and with it is going to be the 65:56 artificially high standard of living 65:57 that Americans have enjoyed and of 65:59 course our standard of living has 66:01 declined over the decades but it's about 66:03 to go over the edge of a cliff 66:05 Peter as you've mentioned already this 66:06 is where it really gets scared you say 66:08 the dollar would collapse wiping out all 66:10 savings and sending consumer prices into 66:13 the stratosphere 66:14 I think you even said that walmart would 66:16 seem like neiman marcus absolutely 66:19 ironically so far the dollar has been 66:22 the primary beneficiary of the 66:25 government government policy we've had 66:26 this rally in the dollar because so many 66:28 people around the world actually believe 66:30 that our problems have been solved 66:33 and that the economy is in good shape 66:34 and the feds gonna be able to raise 66:36 interest rates but i think this is the 66:37 the the biggest sucker rally that the 66:40 dollars ever had because it just as the 66:42 dollars about to be destroyed literally 66:45 people piled into it i mean it's the 66:47 most crowded speculative trading on Wall 66:49 Street is is buying into the dollar but 66:52 once up people recognize the gravity 66:54 that mistake i think it's going to be 66:56 very sharp and quick ride down for the 66:58 dollar and that is going to be a 67:00 game-changer 67:01 thanks Peter we can expect more bank 67:03 failures in the real crash well 67:05 unfortunately all the banks that the 67:07 government dub too-big-to-fail back in 67:10 the elite financial crisis 67:11 well because we bailed them all out 67:13 instead of letting them fail which is 67:14 what we should have done now those banks 67:16 are bigger than ever and the problems 67:18 are bigger than ever 67:19 so if they were too big to fail before 67:21 what are they now 67:22 and so I don't believe the government is 67:24 going to let any of the banks fail me 67:26 they think that then one mistake they 67:27 made was letting Lehman Brothers 67:29 collapse letting Lee McPhail was the one 67:31 thing they did write everything else 67:33 they did wrong so I don't believe the 67:35 government's gonna let the bank's 67:36 collapse i think they're gonna print 67:38 enough money to make sure that it's the 67:39 value of the dollar that collapses 67:41 instead of the bank's so what does that 67:43 mean that means that you don't lose your 67:45 deposits right when you go to the ATM 67:46 machine the money is going to come out 67:48 the problem is you're not going to buy 67:50 very much with it and that is a bigger 67:52 problem i would rather lose some of my 67:54 money but have the money retain most of 67:56 his value then retain all of my money 67:59 that's lost most of its value 68:00 I mean imagine how bad the 2008 68:03 financial crisis that men had there been 68:04 no bailouts right had the government 68:07 allowed more banks to fail and it would 68:10 have been worse but then the problems 68:12 would have been solved and we would have 68:14 enjoyed a real recovery one that is 68:16 sustainable 68:18 instead we've just got into another 68:19 bubble and we've made all of the 68:21 problems that caused the last financial 68:23 crisis infinitely worse and now the 68:27 governor has put itself in a position 68:28 where it won't be able to balance out 68:30 the next time because it's the 68:32 government itself that's going to have 68:33 the crisis it's the government is going 68:35 to be insolvent because the crisis is 68:37 going to be in the dollar and by 68:39 extension into treasury bond market so 68:41 when the government is broke when the 68:43 government needs a bailout there's 68:44 nobody there they make it that can make 68:46 it 68:46 finance it everybody will say we just 68:48 dodged a bullet right the government 68:50 saved us it was going to be so horrific 68:52 but thanks for the government but you 68:54 know what if it was gonna be that 68:55 horrific the government didn't save us 68:58 it's still there that crisis is still in 69:00 our future because the government state 69:02 us for anything 69:03 what did the government do they delayed 69:05 the inevitable 69:06 they postponed the day of reckoning but 69:08 by making all the problems that we have 69:10 to reckon with worse so it was going to 69:13 be worse than the great depression 69:14 without the government acting now it's 69:16 going to be even worse than that because 69:17 the government acted Peter and I have 69:20 talked at length about the coming great 69:22 depression and we both believe that this 69:25 one the one ready to make landfall will 69:28 be far worse in the depression of the 69:30 1930s that is because in the coming 69:33 crisis Americans won't have the benefit 69:36 of falling prices see cheaper groceries 69:40 and consumer goods provided much-needed 69:43 relief to people who lost their jobs in 69:45 the nineteen thirties but this time with 69:49 a crashing dollar instead of getting the 69:51 comfort of short subprime mortgages a 69:53 year before they collapsed and only one 69:56 individual with the foresight to take 69:58 advantage of it and my warnings were 70:00 specific i didn't just say oh we're 70:02 gonna have a crisis i went into every 70:04 specific detail of what the problem was 70:07 and what was going to happen and i have 70:09 yet to see anybody write an explanation 70:12 of the 2008 financial crisis in 70:15 hindsight that is better and more 70:17 accurate than what i wrote before it 70:19 happened 70:20 Peter how did you see this crisis coming 70:23 a full year but perhaps a little bit 70:25 more than up the president Wall Street 70:27 Congress how did you see that crisis 70:29 coming when no one else could see it 70:31 well I saw a lot earlier than 2006 you 70:34 can go back to the internet and look at 70:36 the extensive writings ah from 2004-2005 70:41 in which i described in every detail the 70:45 housing bubble and how it was being 70:47 inflated and what the source of the 70:50 problem was my I blamed mainly the 70:52 Federal Reserve I blamed Alan Greenspan 70:54 and their low interest rates but I went 70:56 into all the problems 70:58 and the appraisal industry into 71:00 securitisation industry i went to the 71:02 problems with fannie mae and freddie mac 71:03 in fact one of the predictions I made 71:05 back then and I repeated that in my 71:07 original book a crash-proof was that 71:10 both Fannie and Freddie would in fact go 71:11 bankrupt and that's exactly what 71:14 happened what i wrote about was that 71:15 after the housing bubble burst and we 71:18 have this financial crisis instead of 71:20 learning from its mistakes and 71:21 recognizing its role in creating the 71:23 crisis the government would double down 71:25 on those mistakes that we would have the 71:27 easiest monetary policy ever that the 71:29 government would try to reflate the 71:31 housing market and the stock market 71:33 which i also wrote would go down with 71:35 with the housing market 71:36 I didn't know what they were going to 71:37 call it they ended up calling a 71:38 quantitative easing 71:39 I just knew that they were going to do 71:41 it and I knew that the result of that 71:43 would be dramatic that the crash that i 71:46 was writing about in that book and was 71:49 not the 08 crash that was the precursor 71:52 to the crash the real crashes the one 71:55 that still coming 71:56 it's the one that is the consequence of 71:58 all of the policies that the government 72:00 has pursued ever since the LA financial 72:02 crisis that gets us to your latest book 72:05 Peter the real crash in which your 72:07 warning investors that the real crash is 72:10 still yet to come 2008 was just the 72:12 tremor before the earthquake in fact you 72:15 say that Armageddon is inevitable 72:17 now the next government shutdown won't 72:19 be theoretical it'll be real home values 72:22 will plummet jobs will disappear credit 72:24 will dry up the dollar will crash in the 72:26 government cannot be depended upon to 72:29 provide basic services like police and 72:31 fire rescue to me it feels just like 72:33 it's 2007 early 2008 all over again I'm 72:37 screaming as loud as I can about this 72:39 looming economic hurricane that's just 72:43 off the coast and nobody can see it 72:45 coming and nobody wants to give me even 72:47 any credit even though I was right 72:49 before the average American is 72:51 ill-prepared for everything I mean that 72:52 is the consequence of all this bad 72:54 monetary policy about the moral hazards 72:57 of the United States government I mean 72:58 Americans are not prepared at all for 73:02 the events that are about to unfold and 73:04 if you go back and you look at the 73:05 footage of the Great Depression you see 73:07 how civil Americans were how how orderly 73:10 people waited in soup lines 73:11 no and bread lines whatever I mean 73:13 that's not America today I mean we have 73:16 a in America people who feel entitled 73:19 and are dependent i mean when they first 73:22 introduced welfare in the Great 73:25 Recession and they call that relief 73:26 people were embarrassed to take it 73:28 didn't want to admit it and some people 73:30 actually paid the money back they felt 73:32 so guilty about having gotten money that 73:35 they didn't turn I mean we don't have 73:36 that type of ethic 73:38 ah those type of rugged individuals in 73:41 America today we've got the sauce 73:42 society that thinks that they're older 73:45 living and when this collapse comes I 73:47 mean that they're going to be blaming 73:49 somebody and you know yeah it's gonna be 73:52 it's gonna be dangerous especially in in 73:55 some of our cities uh you know you see 73:57 how they react to minor problems i mean 74:00 even you see how they celebrate you know 74:02 when a team wins the Super Bowl or the 74:04 World Series you get riding and looting 74:06 imagine what would happen if there was a 74:07 genuine economic crisis imagine what's 74:10 going to happen in our cities if the 74:11 dollar collapses and then we have 74:13 shortages of goods because the 74:15 government imposes price controls or 74:17 what is rolling blackouts because the 74:19 governor's rationing power because 74:21 that's what the government might do I 74:22 mean we had gas lines in the nineteen 74:24 seventies because the government didn't 74:26 allow the market to function and they 74:28 put in price controls well you think 74:30 we're any smarter now 74:31 no I mean we're dumber so we're going to 74:33 repeat those mistakes so imagine what's 74:35 going to happen in this country when 74:37 there are shortages of basic goods 74:40 shortage of food shortage of energy so 74:42 give it to me straight Peter when you 74:44 factor in the nation's entitlement 74:46 programs you and I both know that the 74:48 national debt actually exceeds a hundred 74:50 trillion dollars tell me is America 74:53 already insolvent we're absolutely 74:55 insolvent I mean that's one of the main 74:57 reasons that the Fed kept interest rates 74:58 at zero for so long and even though 75:01 they've nudge them up slightly 75:03 they're still practically zero and the 75:05 reason for that is because America has 75:06 so much debt that we can't afford to pay 75:09 a market rate of interest if we were 75:11 forced to we would have to default and 75:13 of course you're right the actual bonded 75:16 debt which is now about 19 trillion and 75:18 it's rapidly heading to 20 trillion that 75:20 is the tip of an enormous iceberg the 75:23 true totality of America's life 75:25 abilities dwarf the official debt it is 75:28 closer to a hundred trillion when you 75:29 account to do 75:31 Peter's brilliantly timed 2006 trade 75:34 against the housing market inspired the 75:37 book and the Academy award-nominated 75:39 movie the big short but now a decade 75:43 after Peter first predicted the subprime 75:46 mortgage meltdown 75:48 he's issuing an even more serious 75:50 warning the warning concerns a category 75:54 five hurricane ready to make landfall as 75:58 you're about to discover the united 76:00 states federal government will soon be 76:03 forced into default in fact Peter says 76:07 in his latest bestseller the real crash 76:10 that Armageddon is inevitable so he and 76:14 I have joined forces to deliver an 76:16 important warning to Americans 4 2016 76:18 much of today's content has never been 76:22 released to the American public before 76:24 now including financial proof that the 76:27 federal government is already completely 76:30 insolvent last resort manipulations by 76:34 the Federal Reserve actions just taken 76:37 have now moved the day of reckoning even 76:40 closer the likelihood of a system-wide 76:43 failure over the next 12 months is very 76:46 real now I want to be absolutely clear 76:49 on something right from the top 76:51 nothing can prevent the crisis at hand 76:54 from occurring every emergency fiscal 76:57 measure has already been exhausted and 77:00 policymakers at the highest levels of 77:02 government have begun preparing 77:04 themselves and their families for 77:07 financial Armageddon many of them in 77:10 fact are following the strategies Peter 77:12 outlines in his book the real crash 77:15 there's still time for americans to 77:17 prepare to which is why i'm calling on 77:20 the one man who accurately forecasted 77:23 the 2008 financial crisis peter schiff 77:26 to throw mainstream America a lifeline 77:30 yet again 77:31 Peter's now-famous first book 77:33 crash-proof included very specific 77:36 strategies that end 77:38 the ordinary taxpaying American could 77:41 have used to make millions door in 2008 77:44 chaos but the stakes are even higher in 77:47 his latest book the real crash now a 77:51 word of caution before Peter and I peel 77:53 back the layers of the coming crisis be 77:57 ready to feel outraged troubled and 78:00 frankly scared 78:02 imagine a world where the banks have 78:04 frozen your assets and the government 78:06 can't provide basic services like police 78:10 and fire rescue 78:11 well you can still avoid becoming 78:14 collateral damage 78:15 Peter's urgent warning to Americans here 78:21 you sent a letter to investors dated 78:23 august 22nd 2006 and it you describe in 78:27 detail a housing bubble on the verge of 78:29 bursting even gave investors a blueprint 78:32 for profiting from such a crisis that 78:35 wasn't too short the homebuilders you 78:37 said the greatest opportunities would 78:39 line the downward spiral financial 78:41 center now needless to say you were 78:44 eerily prophetic but did you understand 78:46 Peter just how right you'd be not only 78:49 understand how right I was going to be 78:50 but I actually expected something much 78:52 worse to happen as a consequence and I 78:55 still expect that because what happened 78:57 in 2008 wasn't the end of the crisis it 79:00 was just the beginning but you know in 79:03 looking back at the prior bubble in the 79:06 stock market at the time I recognize the 79:09 difference between the stock market 79:11 bubble and the real estate bubble 79:12 because in the stock market bubble 79:14 people were speculating with their own 79:16 money in the real estate bubble they 79:18 were speculating with somebody else's 79:20 money it was the banks was the lenders 79:22 and so my blueprint for profit was too 79:26 short the mortgages themselves Wall 79:29 Street had created these packaged 79:31 products of mortgages particularly the 79:33 subprime mortgages which were bundled in 79:35 a way to create the illusion that these 79:38 mortgages were ultimately high credit 79:41 quality in fact many of these subprime 79:43 mortgages were rated triple-a but of 79:46 course some of them were rated much 79:48 lower than that and it was the lower 79:50 tranches that we were right 79:52 commanding shorting and in fact that was 79:54 the first letter in a series of three 79:56 that i sent out trying to get people 79:59 interested in the hedge fund that we 80:01 were establishing specifically the short 80:03 subprime mortgages and in fact trying to 80:07 find investors for my hedge-fund i 80:09 accepted an invitation from the Western 80:11 Regional Mortgage Bankers Association 80:13 which was a group of three thousand 80:16 mortgage bankers i went there in later 80:18 2006 to talk about the coming collapse 80:21 in the mortgage market and the housing 80:23 bubble and try to find investors for my 80:27 hedge fund and you can see on youtube 80:30 you can see the entire one-hour 80:32 presentation but what you can't see on 80:34 youtube is the workshop that I gave 80:37 subsequent to that speech which was 80:41 specifically on the hedge fund that we 80:43 had created to short subprime mortgages 80:46 and of the people who attended my 80:48 workshop 80:49 maybe there were 50 to 60 of the people 80:51 out of the 3000 that came only one 80:53 investor invested in that hedge fund and 80:57 you know they wrote a book about that 80:58 trade in fact more recently it turned 81:00 into a movie the big short but imagine 81:03 3,000 people having the opportunity in 81:06 the mortgage industry to falling prices 81:09 americans will have to suffer the agony 81:11 of rising prices a bit later Peter will 81:15 tell you why you should be stockpiling 81:17 ammunition as it stands now despite the 81:20 fiscal arson that US policymakers have 81:23 committed on its people the deception of 81:26 a strong dollars holding the past 18 81:29 months have witnessed a rally in the 81:31 dollar but the following chart unmasked 81:34 the illusion 81:35 despite Americans enjoying more 81:38 purchasing power than they've had in 81:40 almost fifteen years it's never taken 81:43 longer for a single unit of currency to 81:46 move through the US economy Americans 81:49 are scared business owners and consumers 81:51 alike and they're holding onto their 81:53 dollars you're probably scared to i know 81:57 i am that's why it's never been more 81:59 important to begin trading your 82:01 historically overvalued dollars for 82:04 other assets that 82:05 will soon enjoy dramatic valuation 82:08 explosions your dollars will never buy 82:11 you more than they will right now as 82:14 Peter reveals in this next section the 82:17 Federal Reserve just attacked America 82:18 again I don't believe they did it on 82:21 purpose but history will likely view the 82:24 feds latest measure as an economic Pearl 82:27 Harbor the real crash is now gaining 82:30 momentum with every passing second keep 82:34 in mind as you're watching that your 82:35 artificially strong dollars could make 82:38 you very wealthy as the crisis involves 82:41 Peter the federal funds rate has been 82:44 pinned near zero since the financial 82:46 crisis but the Fed just raise rates for 82:48 the first time since june of 2006 so the 82:51 Fed is finally taking action but do they 82:53 know that by raising interest rates 82:55 they've just unleashed an economic Pearl 82:58 Harbor 82:59 well I think they're definitely 83:00 concerned about what's going to happen 83:02 and i think their way under estimating 83:04 the severity of what they've unleashed 83:07 but the fact that they waited seven 83:08 years to raise rates shows you just how 83:10 worried they are in fact when 2015 began 83:14 the Fed kept assuring everybody that 83:17 before the end of the year the economy 83:19 would be strong enough for a rate hike 83:21 and they waited until two weeks before 83:23 the year ended their last meeting in 83:24 December to reluctantly nudge interest 83:27 rates up from zero 2.25 the point five 83:32 but they did so in the face of horrible 83:34 economic data it's obvious that the 83:37 economy is much closer to the next 83:39 recession then you know the early stages 83:42 of recovery which is normally when the 83:45 Fed begins to raise interest rates right 83:47 normally when an economy is emerging 83:49 from recession the Fed starts raising 83:51 rates when the economy is very strong 83:53 when you have a lot of pent-up demand 83:55 but here the Fed waited so long to raise 83:58 rates that the recovery is basically 83:59 over and the next recession is about to 84:02 begin and I think again when we begin a 84:05 recession with interest rates just 84:07 barely above zero there's not a lot of 84:10 room to cut them you say that all it 84:12 would take is for interest rates to 84:14 return to historical mean and that would 84:16 tip us into chaos that is is that still 84:19 accurate 84:19 well I think it would take even less 84:21 than that i don't know i think that it 84:22 would happen even before we got to a 84:25 historically normal level of interest 84:27 rates because we haven't historically 84:29 abnormal amount of debt service that is 84:32 the problem and of course the American 84:34 economy has grown as a function of debt 84:37 finance consumption but Americans are 84:39 broke 84:40 they can't borrow any more and pretty 84:42 soon our creditors are going to realize 84:44 that and they're not going to want to 84:46 lend anymore Peter now this next point 84:48 is going to scare the hell out of a lot 84:49 of Americans but you consider us 84:51 treasuries to already be subprime assets 84:54 at this point 84:55 absolutely you know one of the reasons 84:57 that I understood the problem in 85:00 subprime mortgages is because I knew 85:02 that a lot of the people in fact all the 85:04 people who were taking advantage of 85:06 subprime mortgages were using 85:07 adjustable-rate mortgages meaning that 85:09 the interest rates on their mortgages 85:11 could rise and in fact most of these 85:13 mortgages were started with what they 85:15 used to call a teaser rate where you had 85:17 an introductory very low rate of 85:19 interest on your mortgage and that meant 85:21 a lot of people who otherwise couldn't 85:22 qualify 85:23 we're able to qualify because they could 85:25 make the teaser payments but I knew that 85:28 eventually those rates would reset to 85:30 levels that the borrower's couldn't 85:32 afford and then they would end up 85:34 defaulting well the government has done 85:36 the same thing the united states 85:38 national debt is like one gigantic 85:41 adjustable rate mortgage to a subprime 85:43 borrower who is not going to be able to 85:45 pay if interest rates rise we've got 85:48 this teaser rate right now thanks to the 85:49 Fed but if interest rates go up the US 85:52 government is in the same position as 85:54 the subprime borrower with lots of debt 85:57 that they can't afford to pay Peter 85:58 China's Treasury holdings have fallen 86:00 about 200 billion dollars as it raises 86:03 money in support of its flagging economy 86:04 and stock market this would be the first 86:06 time the china is pulled back from 86:08 treasuries on an annual basis 86:10 scary isn't it I think it's the 86:13 beginning of a huge process it's not 86:14 just going to involve china but it's 86:16 going to involve all of Americans 86:17 overseas creditors particularly in the 86:19 emerging markets who were major buyers 86:21 of our debt when the Fed was doing 86:23 quantitative easing one and two 86:25 that's what kept the dollar from really 86:26 imploding I was all the dollars in 86:29 treasury that were being purchased by 86:30 our trading partners in order to assist 86:33 in their trade surpluses with the United 86:35 States but i don't think they're gonna 86:36 make the same mistake twice i don't 86:38 think there's going to be a currency 86:39 world war 2i think those countries are 86:42 going to surrender and America





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