Peter Schiff’s Response to CNBC Hit Piece Is Simply Awesome

Peter SchiffSchiff Fires Shots at CNBC

CNBC took Peter Schiff to task in an article posted an on the network’s web site last week, but Schiff decided not to lay low. What ensued is pure awesomeness from this gold bug.

Drafted as a critical journalistic feature, CNBC tore down Peter Schiff by cherry-picking one gold prediction at a time. Starting with Schiff’s “gold $5,000” prediction, CNBC highlighted two other predictions by Peter Schiff about gold that were “among the least prescient ever made on CNBC.” (Source: “The Peter Meter: Assessing Schiff’s predictions,” CNBC web site, December 20, 2015.)

Peter Schiff responded with a befitting rebuttal. Schiff cites the last two stock market crashes, saying the CNBC analysts who made a bullish call on the stock market, before the dot-com bubble of 1999 burst and the Great Recession of 2008 set in, have been more wrong than CNBC’s “Peter Meter.” (Source: “Ep. 126: CNBC Calls Me Out on Gold,” Peter Schiff’s YouTube channel, December 21, 2015.)

“Gold isn’t even down 40%. Now, think about this, twice in the last 15 years, the U.S. stock market lost more than half of its value. That means it was down more than gold.

“If you bought gold at $1,700, you didn’t lose everything, I mean, you’re still in the game. Yeah, maybe you’re down close to 40%, but you still have your gold. But if you bought one of those dot-com stocks that went to zero, you don’t have anything. You got wiped out. What about all the people that bought financials before the 2008 financial crisis that went to zero?”

Schiff says that he has been making bullish calls on gold when gold was still trading under $400, but CNBC refuses to give him credit for that. Instead, CNBC cherry-picked an unfavorable timeframe for comparison of gold prices to discredit him.

CNBC also criticized Peter Schiff for his wrong prediction on the rate hike and dollar collapse. This is what he had to say in response:

“[…] I said the Fed wouldn’t raise rates and they did. Well, what about all the people that expected them to raise rates in March or June or September? They were all wrong. I was right!

“[…] I never said from the beginning that it was impossible that the Fed would raise rates. I said that they could, that they might make that mistake, but that I didn’t think that they would because I thought it’d be too foolish to have to raise rates and then lower [them] back down. But I knew that it was possible that they could be that dumb. And they were that dumb.

“[…] This is all part of the pretense. This is the Fed just trying to pretend that they have confidence in the economy, so they can pretend that they are actually going to be raising rates four more times next year when they really didn’t even want to raise rates once this year.
“[…] It’s just going to blow up in their faces. And we are going to blow up the dollar, we’re going to blow up the bond market.”

Lastly, the CNBC Peter Meter article mentioned Schiff’s take on quantitative easing (QE). Schiff had maintained that QE wouldn’t help revive the economy. In response to his prediction on quantitative easing, Schiff said the following:

“[…] They are saying that the economy did revive and it did create jobs. Well, that’s not true. The economy hasn’t been revived. It’s lousy. There are a lot of other people that would agree. They are saying it’s the worst recovery ever. Most of their guests were looking for a strong recovery, including all the Fed officials. I was right to say that the QE wouldn’t work, because it hasn’t worked. Why do you think they did it three times?

“[…] It didn’t create jobs. Yes, the unemployment rate has come down, but not because QE worked, not because QE created jobs. It’s because millions of people left the labor force. That’s why the unemployment rate came down, or because millions more have accepted part-time jobs.”

Listen to the complete commentary here.