Peter Schiff: Home prices are too high bid up by hedge funds and speculators

Peter Schiff: Largest Exodus from Workforce Since Stats Were Kept

"In April, almost a million Americans left the labor force in one month. I think that's the largest exodus from the labor force since they began keeping the statistics," economist Peter Schiff says, adding that he doesn't believe 280,000 jobs were created.

"Better than 80 percent of them potentially were just made up by the government because over 240,000 of the jobs were the result of the birth-death assumptions where the government simply assumes that new businesses were created in April and that they hired people," Schiff told J.D. Hayworth and Miranda Kahn on "America's Forum" on Newsmax TV.



"But they don't have any actual proof that any of this happened and it's the statisticians at the Bureau of Labor Department — everybody assumed that people hired more people in April because the weather got better," he added.

And that is why Schiff says that he doesn't "even believe the 280,000 jobs being created."

The other problem with the jobs report is the quality of jobs that were created, Schiff argues.

"They're most in low-paying, service sector type jobs, part-time jobs, temporary jobs," he explains. "They're not legitimate jobs where you can support a family, pay a mortgage, they're not indicative of a growing economy but of a weakening economy."

The CEO of Euro Pacific Capital says that the only answer to the economic woes is "to change the leadership in this country because all that we're doing now is digging the hole deeper."

Schiff doesn't think the federal reserve will respond by raising interest rates until the coming currency crisis demands it.

"That is ultimately going to force the Fed to do the right thing, but unfortunately, they will have waited far too long to do it, and we're going to have to suffer a lot more because of the Fed's incompetence," he added.

He says the best thing Americans can do is to invest in countries where their "central banks aren't acting as recklessly" and invest in gold and silver.

"Ultimately, the solution to our problems is going to involve a remonetization of gold," Schiff added. "But by the time they remonetize it, the price is going to be substantially higher than it is now."

Peter Schiff: Fed Easing Will Push Gold to $5,000

Gold has climbed 8 percent so far this year, and the party is just getting started, says Peter Schiff, CEO of Euro Pacific Capital.

The Federal Reserve will ultimately reverse the tapering of its quantitative easing (QE), which will send gold soaring, ultimately reaching $5,000 an ounce, he predicts.

"I believe the consensus expectation that the U.S. recovery is real and that the Fed will end its [QE] program and normalize interest rates is wrong," Schiff tells MarketWatch.

"When the Fed has to admit that its forecast of a sustained recovery is wrong, it will come to the aid of a faltering economy with even more QE. When that happens, gold will rally."

Other factors that will boost the precious metal are a weaker dollar and rising commodity prices, including oil, Schiff proclaims.

"Also, any major geopolitical concerns, particularly if there is a deterioration of the situation in Ukraine, will add to gold's appeal. I also expect renewed physical demand from emerging markets like India and China," he notes.

"Most likely prices have bottomed, as too many speculators are looking for lower prices," he adds. "The fundamental case for gold has also never been stronger. From a gold short seller's perspective, this will prove to be the equivalent of a perfect storm. Their losses will be severe."

Spot gold was at $1,303.10 an ounce early Monday, little changed from $1,302.84 late on Friday, while U.S. gold futures for June delivery were up 70 cents an ounce at $1,301.50.

Gold prices are expected to rise this week as investors seek haven investments amid the crisis in Ukraine.

"Gold went 'bid' as soon as there was violence and death,” Frank Lesh, broker and futures analyst with FuturePath Trading told the International Business Times. “A diplomatic and political standoff is enough to support gold, but it takes guns going off to propel it higher."

Gold – Get It While You Can! (Audio)

Peter Schiff's Predictions and Warnings For Economy In 2014

Many families around the world are not only waiting and hoping for a complete economic rebound, but they are now wondering if this economic rebound will ever take place. Most people know that the shrinking numbers of unemployed citizens and increasing numbers of available jobs inside the United States are inaccurate and slightly manipulated. Now, most economists are paying attention to the link between the economic problems of the United States and how these problems are effecting the global economy and the stock markets.

The Business News Network interviewed Peter Schiff, CEO and Chief Global Strategist for Euro Pacific Capital, to talk about the direction of the global economy in light of the economic problems in the United States. The first problem Schiff addresses is how the majority of stock brokers on Wall Street are in denial. There is plenty of mixed data about an economic recovery, but the stock brokers remain hopelessly optimistic about this data. They claim the U.S. economy is a glass that is "half full", as they advise others to ignore all the bad elements. They fail to admit any good elements are the result of a government stimulus, also known as quantitative easing, and not from an economic turn around.

Some will argue that quantitative easing had been helping the economy grow, but Peter Schiff states this is only an illusion. Schiff states that quantitative easing does not offer long term solutions for legitimate economic growth. It is similar to placing a simple band aid over a serious bullet wound. He even points out that most of the jobs created in 2013 were temporary jobs, and that there were still more jobs created in 2012 than in 2013. Schiff explains that quantitative easing is stimulating the stock markets and real estates, but it is actually stifling the rest of the economy.

Peter Schiff also warns that more of the same issues are to still occur in 2014, as the U.S. Federal government will cut the stimulus by $10 billion. Chance are, the U.S. Federal government may just continue to repeat this cycle of bailing out the economy until they fully understand that these actions will keep the United States in a recession. If this cycle continues to repeat, the U.S. economy can implode worse than it did in 2008.

Finally, Peter Schiff recommends that anyone looking to rise above this flailing economy should invest his/her money in gold, silver, emerging markets, and in stocks and businesses that are in countries other than the United States. These actions can help individuals to help themselves, while the U.S. Federal government plans to cut back on quantitative easing and the strength of the U.S. economy continues to be exaggerated.

Gold Will Rise When the Fed Reverses the Taper (Video)

Peter Schiff appeared on CNBC’s Futures Now to explain the bullish case for gold in the face of ongoing money printing by the Federal Reserve.

“People have sold off gold based on a false premise of a legitimate economic recovery and the Fed tightening. None of that is going to happen. We don’t have a legitimate recovery. The phony recovery is completely dependent on more QE, which is exactly what we’re going to get. Which is extremely bullish for gold. Cheap money is more bullish for gold than it is for stocks.”

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