Why Peter Schiff Is Embracing The Fiscal Cliff

The fiscal cliff has been the chief worry of the U.S. economy as of late, as the uncertainty looming has created a volatile marketplace. Each political party has their own ideas on how to move forward, and the same can be said of individual analysts and experts. Famed gold bug Peter Schiff is no stranger to speaking his mind on the economy and what he thinks is the best course of action for the United States. And his most recent comments fall in line with his knack for bold and brash statements [for more economic news and analysis subscribe to our free newsletter].

In a time where so many are worrying about next year and the potential fallout from the fiscal cliff, Schiff is actually embracing it. “The truth is that, regardless of what you call it, going over the fiscal cliff is not the problem, it is part of the solution. Our leaders should construct a cliff that is actually large enough to restore fiscal balance before a real disaster occurs,” said Schiff. He went on to state that the cliff would lead to necessary cuts in government spending that would help put us on the right track.

Of course, going over the fiscal cliff would be political suicide for much of Washington’s top dogs, so it seems unlikely that congress will allow that to happen. Then again, the stalemate that has persisted for several years in our legislative branch means that a non-agreement is not totally out of the question [see also Gold and Silver ETFs Soar After Obama Re-election].

Schiff Navigates the Cliff

Commodity investing has been touted by a number of analysts as a great way to deal with the fiscal cliff; the dollar may endure a crisis and markets may get slaughtered, but real assets offer some of the most compelling investments in times like these. Schiff, not surprisingly, has chosen gold on multiple occasions to help a portfolio. He theorizes that the dollar will face major debasement and continued weakness, making precious metals like gold and silver especially attractive.

So what do you all think? Would gold be able to perform well if we go over the cliff, or is Schiff blowing smoke? Let us know in the comments below.

Don’t forget to subscribe to our free daily commodity investing newsletter and follow us on Twitter @CommodityHQ.

Disclosure: Photo courtesy of Mike Murphy. No positions at time of writing.

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Commodity HQ is not an investment advisor, and any content published by Commodity HQ does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities or investment assets. Read the full disclaimer here.

12 Responses to “Why Peter Schiff Is Embracing The Fiscal Cliff”

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  2. [...] The State Street SPDR Homebuilders ETF (XHB, A+) was one of the best performers, gaining a solid 2.01% on the day. Homebuilder stocks rallied into green territory as positive housing data served as a fundamental catalyst on the day. In addition to better-than-expected existing home sales, investors moreover cheered on an improving home builders’ index; this figure came in at 46, marking a noteworthy improvement in builders’ sentiment after coming in at 41 last month [see moreover Why Peter Schiff Is Embracing The Fiscal Cliff]. [...]

  3. [...] The State Street SPDR Homebuilders ETF (XHB, A+) was one of the best performers, gaining a solid 2.01% on the day. Homebuilder stocks rallied into green territory as positive housing data served as a fundamental catalyst on the day. In addition to better-than-expected existing home sales, investors also cheered on an improving home builders’ index; this figure came in at 46, marking a noteworthy improvement in builders’ sentiment after coming in at 41 last month [see also Why Peter Schiff Is Embracing The Fiscal Cliff]. [...]

  4. [...] Renewed optimism from President Obama that Congress would strike a deal before we drive off the “fiscal cliff” has been a major catalyst behind this week’s bounce, while encouraging housing market data [...]

  5. [...] Renewed optimism from President Obama that Congress would strike a deal before we drive off the “fiscal cliff” has been a major catalyst behind this week’s bounce, while encouraging housing market data has [...]

  6. [...] Renewed optimism from President Obama that Congress would strike a deal before we drive off the “fiscal cliff” has been a major catalyst behind this week’s bounce, while encouraging housing market data has [...]

  7. [...] Renewed optimism from President Obama that Congress would strike a deal before we drive off the “fiscal cliff” has been a major catalyst behind this week’s bounce, while encouraging housing market data has [...]

  8. [...] broad-based rally last Friday, price action has been lackluster on the equity front as resurfacing “fiscal cliff” woes  have once again opened up the doors for profit-taking. Economic data releases remain mixed, [...]

  9. [...] broad-based rally last Friday, price action has been lackluster on the equity front as resurfacing “fiscal cliff” woes  have once again opened up the doors for profit-taking. Economic data releases remain mixed, [...]

  10. [...] us. Besides the damages still felt by the financial crisis, diminished productivity gains and the looming fiscal cliff, Gross points out that are other glaring red flags that investors should keep their eyes on, as [...]

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  12. [...] us. Besides the damages still felt by the financial crisis, diminished productivity gains and the looming fiscal cliff, Gross points out that are other glaring red flags that investors should keep their eyes on, as [...]

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