by Peter D. Schiff & John Downes
amazon.com/Crash-Proof-Economic-Collapse-Sonberg/dp/0470043601/ref=sr_1_1?ie=UTF8&s=books&qid=1224143826&sr=1-1
amazon.com/Crash-Proof-Economic-Collapse-Sonberg/dp/0470043601/ref=sr_1_1?ie=UTF8&s=books&qid=1224143826&sr=1-1
Peter Schiff on Crash Proof: amazon.com/gp/mpd/permalink/m9NA2D6ADKBP0
PRODUCT DESCRIPTION The economic tipping point for the United States is no longer theoretical. It is a reality today. The country has gone from the world's largest creditor to its greatest debtor; the value of the dollar is sinking; domestic manufacturing is winding down - and these trends don't seem to be slowing. Peter Schiff casts a sharp, clear-sighted eye on these factors and explains what the possible effects may be and how investors can protect themselves. For more than a decade, Schiff has not only observed the U.S. economy, but also helped his clients reposition their portfolios to reflect his outlook. What he sees is a nation facing an economic storm brought on by growing federal, personal, and corporate debt, too-little savings, a declining dollar, and lack of domestic manufacturing.
Crash-Proof is an informed and informative warning of a looming period marked by sizeable tax hikes, loss of retirement benefits, double digit inflation, even - as happened recently in Argentina - the possible collapse of the middle class. However, Schiff does have a survival plan that can provide the protection that readers will need in the coming years.
CUSTOMER REVIEWS Peter Schiff, son of American patriot Irwin Schiff, has written a very useful book that can not only assist you to take the concrete steps necessary for financial survival, but also change your individual psychology toward the storm on the horizon that is rapidly gathering strength. Today, we have the illusion of prosperity, and the sooner we break through that delusional state, the sooner we can prepare for darker days.
At this point, there are so many possible triggers for the Second Great Depression, it's striking that it has not already begun. The sub-prime meltdown may just be such a trigger that brings down the house of cards, once it becomes more clear which entities actually hold all the risk created as part of the Housing Bubble. Wall Street, sub-prime lenders, and the large banks have been ingenious in their ability to push risk onto other parties, but it's not clear if the counter-parties will have the ability to weather the defaults. Thus, the risk may yet reside with the banks, which normally would have been more restricted in the number of loans they could create by more traditional standards. So much debt has been created, and so much risk obfuscated, that it is hard to imagine our present illusion of prosperity can be maintained much longer.
Mr. Schiff breaks through our modern mythology by shattering these illusions, and here is where he shines best. A bear's bear, Mr. Schiff steps down from the towers of the economic elite to provide analogies that can be readily digested by more casual readers. The analogy of the Asians and the American trapped on an island together is apropos, as it reveals much about the true state of international trade. The Dollar Bubble heavily distorts trade in favor of America, which benefits disproportionately from the inflated value of the dollar.
Mr. Schiff also understands very well the entitlement crisis brewing, and aptly names Social Security a Ponzi Scheme. Most people in Generations X and Y understand that we're the bagholders scheduled for the Ponzi Scheme, but many Baby Boomers love to be delusional about this tragic farce, thinking it's a form of savings rather than our government writing worthless IOUs to itself and lying to the American people. They think Gen X "owes" it to them! Ha Ha! The sooner we can end social security, the sooner we can start saving real money with real assets. Until then, we are slaves waiting for generational emancipation.
I remember the first time I heard Mr. Schiff speak on CNBC. The discussion was about inflation, and I couldn't help but notice Mr. Schiff's definition diverged significantly from the definition used by the brainless cheerleaders on CNBC, and for that matter, our government and most of Wall Street. The proper definition of inflation is "debasement" and secondarily, "an increase in the supply of money which causes a rise in prices" (Webster's 1982). Note the difference between these two definitions and the more commonly used definition today, which is simply "a rise in prices."
CNBC would have us believe that money supply doesn't matter when you can fool people into believing that the risks associated with exuberant money creation won't be felt by anyone, or only by parties "most able to bear that risk." How convenient! What the government doesn't want you to know is that the Federal Reserve creates inflation, and both government and the Federal Reserve benefit from this inflation at everyone else's expense. In the history of every mania and crash, rampant money creation is behind the genesis of every one. Usually, it takes a unique form. In this case, it was the Housing Bubble. So, inflation and the Housing Bubble are intimately linked. As many have often pointed out, the Housing Bubble was needed to replace the Nasdaq Bubble that popped in 2000-2002.
Finally, the juicy part - how to survive. Mr. Schiff advocates foreign equities that are sound and pay excellent dividends, which due to the Dollar Bubble, might do very well. So long as there is sufficient domestic demand (abroad) after a currency revaluation, this appears good advice. Although, one has to wonder if the U.S. catches cold, would Asians follow?
Next, buy gold and silver, and mining shares. This is pretty standard advice from the "Gloom and Doom" crowd as we are sometimes named. Lastly, he recommends staying liquid, which generally means reducing debt and keeping assets in a form that can be readily converted from one type to another. He recommends leveraging overvalued home equity in other currencies and storing small amounts of imported goods likely to rise in price, and a few other measures.
The piggy bank on the cover is a nice touch, and the list of books for further reading is most helpful for those who have not already read many of the titles.
A very quick read, easy to understand, and very well put together. I highly recommend this book. -Patrick M. Hussey (Mar.07)
>Andrew Coonce says: Good review. When I first heard about Schiff's book, I read a negative review on Amazon, and, as a result, I almost didn't buy the book. The only reason I got it was because it was part of a 3-for-1 deal at the time. Man, am I glad I did that! I know enough economics and politics to recognize that his reasoning is sound and dead spot on. That's been confirmed by the fact that everthing he predicted in the book is now happening. I'm now a cleint of Europacific Capital, and I've made some pretty sweeping changes in my investments. I've been trying to tell family and friends about the book, and about what's coming, but they pretty much don't listen. I only wish I had read the book a year earlier.................... (Jun.29-08)
This book is nothing more that an overt advertisement for Peter Schiff's brokerage firm Euro Pacific Capital. There are no specific investment recommendations.
Here's the gist: The US dollar will collapse pretty soon. Schiff cites the usual suspects--- large trade deficit, large private and public debt held by foreigners, decimated manufacturing base in USA. 7 out of 10 chapters are a very generic rehash of these arguments. So you should have all of your assets in non-dollar investments (except 10-30% in gold and gold equities.) You should buy dividend paying foreign stocks through Euro Pacific Capital. Countries to consider are Canada, Hong Kong, Singapore, Japan and maybe some other pac rim countries. He particularly likes commodities. That's it. He says, "the stocks of the caliber we've been talking about will probably never need to be sold and will provide a lifetime of increasing income." If these stocks are so stable he could list 10 or 20 examples. Yet, not a single specific stock is mentioned in the book. For that contact Euro Pacific Capital. Did I mention Euro Pacific Capital? -M. Passey (Mar.07)
>a satisfied reader says: I disagree with this reviewers complaint (and SWT's agreement) that
PRODUCT DESCRIPTION The economic tipping point for the United States is no longer theoretical. It is a reality today. The country has gone from the world's largest creditor to its greatest debtor; the value of the dollar is sinking; domestic manufacturing is winding down - and these trends don't seem to be slowing. Peter Schiff casts a sharp, clear-sighted eye on these factors and explains what the possible effects may be and how investors can protect themselves. For more than a decade, Schiff has not only observed the U.S. economy, but also helped his clients reposition their portfolios to reflect his outlook. What he sees is a nation facing an economic storm brought on by growing federal, personal, and corporate debt, too-little savings, a declining dollar, and lack of domestic manufacturing.
Crash-Proof is an informed and informative warning of a looming period marked by sizeable tax hikes, loss of retirement benefits, double digit inflation, even - as happened recently in Argentina - the possible collapse of the middle class. However, Schiff does have a survival plan that can provide the protection that readers will need in the coming years.
CUSTOMER REVIEWS Peter Schiff, son of American patriot Irwin Schiff, has written a very useful book that can not only assist you to take the concrete steps necessary for financial survival, but also change your individual psychology toward the storm on the horizon that is rapidly gathering strength. Today, we have the illusion of prosperity, and the sooner we break through that delusional state, the sooner we can prepare for darker days.
At this point, there are so many possible triggers for the Second Great Depression, it's striking that it has not already begun. The sub-prime meltdown may just be such a trigger that brings down the house of cards, once it becomes more clear which entities actually hold all the risk created as part of the Housing Bubble. Wall Street, sub-prime lenders, and the large banks have been ingenious in their ability to push risk onto other parties, but it's not clear if the counter-parties will have the ability to weather the defaults. Thus, the risk may yet reside with the banks, which normally would have been more restricted in the number of loans they could create by more traditional standards. So much debt has been created, and so much risk obfuscated, that it is hard to imagine our present illusion of prosperity can be maintained much longer.
Mr. Schiff breaks through our modern mythology by shattering these illusions, and here is where he shines best. A bear's bear, Mr. Schiff steps down from the towers of the economic elite to provide analogies that can be readily digested by more casual readers. The analogy of the Asians and the American trapped on an island together is apropos, as it reveals much about the true state of international trade. The Dollar Bubble heavily distorts trade in favor of America, which benefits disproportionately from the inflated value of the dollar.
Mr. Schiff also understands very well the entitlement crisis brewing, and aptly names Social Security a Ponzi Scheme. Most people in Generations X and Y understand that we're the bagholders scheduled for the Ponzi Scheme, but many Baby Boomers love to be delusional about this tragic farce, thinking it's a form of savings rather than our government writing worthless IOUs to itself and lying to the American people. They think Gen X "owes" it to them! Ha Ha! The sooner we can end social security, the sooner we can start saving real money with real assets. Until then, we are slaves waiting for generational emancipation.
I remember the first time I heard Mr. Schiff speak on CNBC. The discussion was about inflation, and I couldn't help but notice Mr. Schiff's definition diverged significantly from the definition used by the brainless cheerleaders on CNBC, and for that matter, our government and most of Wall Street. The proper definition of inflation is "debasement" and secondarily, "an increase in the supply of money which causes a rise in prices" (Webster's 1982). Note the difference between these two definitions and the more commonly used definition today, which is simply "a rise in prices."
CNBC would have us believe that money supply doesn't matter when you can fool people into believing that the risks associated with exuberant money creation won't be felt by anyone, or only by parties "most able to bear that risk." How convenient! What the government doesn't want you to know is that the Federal Reserve creates inflation, and both government and the Federal Reserve benefit from this inflation at everyone else's expense. In the history of every mania and crash, rampant money creation is behind the genesis of every one. Usually, it takes a unique form. In this case, it was the Housing Bubble. So, inflation and the Housing Bubble are intimately linked. As many have often pointed out, the Housing Bubble was needed to replace the Nasdaq Bubble that popped in 2000-2002.
Finally, the juicy part - how to survive. Mr. Schiff advocates foreign equities that are sound and pay excellent dividends, which due to the Dollar Bubble, might do very well. So long as there is sufficient domestic demand (abroad) after a currency revaluation, this appears good advice. Although, one has to wonder if the U.S. catches cold, would Asians follow?
Next, buy gold and silver, and mining shares. This is pretty standard advice from the "Gloom and Doom" crowd as we are sometimes named. Lastly, he recommends staying liquid, which generally means reducing debt and keeping assets in a form that can be readily converted from one type to another. He recommends leveraging overvalued home equity in other currencies and storing small amounts of imported goods likely to rise in price, and a few other measures.
The piggy bank on the cover is a nice touch, and the list of books for further reading is most helpful for those who have not already read many of the titles.
A very quick read, easy to understand, and very well put together. I highly recommend this book. -Patrick M. Hussey (Mar.07)
>Andrew Coonce says: Good review. When I first heard about Schiff's book, I read a negative review on Amazon, and, as a result, I almost didn't buy the book. The only reason I got it was because it was part of a 3-for-1 deal at the time. Man, am I glad I did that! I know enough economics and politics to recognize that his reasoning is sound and dead spot on. That's been confirmed by the fact that everthing he predicted in the book is now happening. I'm now a cleint of Europacific Capital, and I've made some pretty sweeping changes in my investments. I've been trying to tell family and friends about the book, and about what's coming, but they pretty much don't listen. I only wish I had read the book a year earlier.................... (Jun.29-08)
This book is nothing more that an overt advertisement for Peter Schiff's brokerage firm Euro Pacific Capital. There are no specific investment recommendations.
Here's the gist: The US dollar will collapse pretty soon. Schiff cites the usual suspects--- large trade deficit, large private and public debt held by foreigners, decimated manufacturing base in USA. 7 out of 10 chapters are a very generic rehash of these arguments. So you should have all of your assets in non-dollar investments (except 10-30% in gold and gold equities.) You should buy dividend paying foreign stocks through Euro Pacific Capital. Countries to consider are Canada, Hong Kong, Singapore, Japan and maybe some other pac rim countries. He particularly likes commodities. That's it. He says, "the stocks of the caliber we've been talking about will probably never need to be sold and will provide a lifetime of increasing income." If these stocks are so stable he could list 10 or 20 examples. Yet, not a single specific stock is mentioned in the book. For that contact Euro Pacific Capital. Did I mention Euro Pacific Capital? -M. Passey (Mar.07)
>a satisfied reader says: I disagree with this reviewers complaint (and SWT's agreement) that
Schiff didn't supply specific recommendations on what stocks to buy. THis book will be in print for years and it would be irresponsible to suggest specific stock buys. Besides,as a licensed stock broker he is actually NOT ALLOWED
to do so unless he knows a person's specific financial situation. His goal was much more global and I think he did a good job. (Mar.07)
>Ron Kokish says: AN unfair review. Not only is it illegal for a licensed broker to make specific stock recommendations in a book, it's unfair to expect it. However, I've been a EuroPac client for two years during which, in spite of hefty 2% commissions the $100,000 I had them invest for me has turned into $153,000. Maybe it's luck. Or, maybe they are actually on to something. (May.07)
to do so unless he knows a person's specific financial situation. His goal was much more global and I think he did a good job. (Mar.07)
>Ron Kokish says: AN unfair review. Not only is it illegal for a licensed broker to make specific stock recommendations in a book, it's unfair to expect it. However, I've been a EuroPac client for two years during which, in spite of hefty 2% commissions the $100,000 I had them invest for me has turned into $153,000. Maybe it's luck. Or, maybe they are actually on to something. (May.07)
Why Brazilian currency? Brazil is the ONLY country on the planet that is energy self-sufficient, meaning it imports absolutely no oil from outside. In an otherwise darkening future, this means that their money and economy will likely only be side-swiped instead of t-boned.
Rats (even Chinese ones) know when to leave a sinking ship. Bill Gross just happened to bring it to our attention...on CNBC, no less! Some cheerleaders are worth listening to.
>Bruno says: 1. This is a book, not a magazine column. Any stock recommendation would be out of date soon.
2. HE wrote the book, why wouldn't HE tout HIS brokerage?3. One man's "no meat" is another man's "easy to understand". (Aug.07)
>P. Smith says: What is this dude smokin'? I searched long and hard to find someone who could make sense of this market for me. That guy is Peter Schiff. I have done every single thing he has suggested and am tremendously grateful I learned about him. I've become an evangelist, of sorts.
I'd be the first one to say Peter shamelessly touting his company would be obnoxiuos...but I didn't find it to be that way at all. In fact, a few times I wondered if Euro Pac could help me because Peter talks generically about where to buy foreign stocks. (Nov.07)
