After Peter Schiff’s great internet fame of mid-to-late ’08 came the ridicule and furry of the bloggers and the WSJ. Sure the dollar surged and Schiff’s advice looked bad in early ’09. But he stayed consistant and asked his investors to stay the course and now…he looks like a prophet yet again.
If you have not already done so, please read Crash Proof by Peter Schiff. In the book he outlines why we had the dot.com boom, the housing bubble, and why they both HAD to fail.
He has been preaching the collapse of the dollar, the rise in gold and silver, and how investors can capitalize to get ahead of the game.
Well this week was sweet redemption as reported by Bloomberg:
The dollar declined beyond $1.41 against the euro for the first time this year as evidence the global recession is easing sent investors in search of assets with higher returns.
and this:
The dollar weakened 1.4 percent to $1.4136 per euro at 4:17 p.m. in New York, from $1.3941 yesterday, extending its decline this month to 6.4 percent, the biggest since December, when it dropped 9.2 percent. The dollar depreciated 1.7 percent to 95.24 yen from 96.85. The yen advanced 0.3 percent to 134.67 per euro from 135.04 yesterday.
The truth is the global economy is doing quite well and as I posted last week, our foreign creditors are catching on to “Our Lord and Savior” Obama’s plan to inflate our way out of debt.
International investors own about 51 percent of the $6.36 trillion in marketable U.S. government debt outstanding, up from 35 percent in 2000, according to data compiled by the Treasury.
South Korea is the latest holder of U.S. government debt to reduce its holdings. China, the largest foreign owner of Treasuries, said in March it was “worried” about its $767.9 billion investment and looking for assurances the value of its holdings would be protected. China has shifted holdings into bills from notes, more at risk when interest rates rise.
Virtually all of the losses Schiff’s clients experienced in late ’08 and early ’09 have been erased and many are now seeing serious growth.
Don’t worry, this is going to get much much worse before it gets any better-which means there is plenty of money to be made with the Peter Schiff approach to investing.