Peter Schiff and EuroPac

[shisya]

What is the general consensus about Peter Schiff and his Europac's philosophies?

[aiki14]

I don't know what the general consensus is but here's my take.
Schiff's a smart guy and spot on when it comes to his views on the savings rate of Americans. And of course by spot on I mean he agrees with me.
His stance on regulation is overly libertarian in my opinion but as good or better than any other I have heard espoused by the punditry. His theories on the relationship between domestic production and consumption, as layed out in the Vienna School coincide with the libertarian political approach, and again in my opinion overly so. It is my natural inclination to lean this way so it's hard to be totally objective.
I think he is wrong on housing prices and mortgage rates as put forth in his commentary this morning. Here's a link to it and his previous commentary
http://www.europac.net/archives.asp#
His constant self promotion of his "calling the current economic collapse" is more than a little irritating. He "called" for the collapse in 1996 and it occurred in 2007/8. Calling the downside of the economic cycle is easy, eventually you'll be right because it's an oscillating system. His espoused reasons for the collapse were questionable at worst, and partial at best. Again it's hard to be totally objective as in this case I am diametrically opposite of him in my general market philosophy.

[shisya]

Thanks Aiki. I know can always on count on you here. Very appreciate it!.

I agree with you on his self promotion and he also tends to keep repeating himself, which kinda gets boring too.

However I am intrigued by his proposition of investing in forgein countries and in their dividend paying stocks. Although I do have a concern that considering most of these country's economy is based on americam consumption, if his dividend paying stocks can hold their own if America indeed does go down the drain as he claims it would.

As for his commentary today, strangely I dont see it on my itunes podcast...hmm

[madcowdisease]

Originally Posted by shisya

Thanks Aiki. I know can always on count on you here. Very appreciate it!.

I agree with you on his self promotion and he also tends to keep repeating himself, which kinda gets boring too.

However I am intrigued by his proposition of investing in forgein countries and in their dividend paying stocks. Although I do have a concern that considering most of these country's economy is based on americam consumption, if his dividend paying stocks can hold their own if America indeed does go down the drain as he claims it would.

As for his commentary today, strangely I dont see it on my itunes podcast...hmm

If we do have a collapse in the American monetary system I don't know that there will be much of a safe haven in foreign securities or currency. Most of the currencies of the world are fiat just like the USA's. Also, much of the rest of the world is controlled by the IMF and World Bank. You can trust that if the power brokers at the US Fed go down they're taking everyone else with them.

The one country that might be safe is Russia. With all the natural resources they have to back their currency and the fact they don't subscribe to the capitalist philosphies of the West make me think they may actually be a safe-haven should the whole thing come crumbling down.

Beware which foreign stocks you are buying. They can be rather risky as you have political and currency risk. Also, you won't be entitled to dividends with ADRs so that does not appeat to be a viable alternative as you stated your goal was to find foreign dividend payers.

If you want foreign exposure and want a big divvy look at BP. They aren't going anywhere and a dividend of over 7% is damn good in this environment.

[shisya]

Supposedly we are able to get dividends from the forgein stock. That is what Peter Schiffs whole selling point appears to be.

[smartinvestor30]

Originally Posted by shisya

What is the general consensus about Peter Schiff and his Europac's philosophies?

He's been right so far, although a little late (thanks to the government proping the economy up), but nonetheless spot on with his "predictions".

Check out his website www.europac.net

I read his first book and also became a gold bull (although i always had a thing for gold).

He believes in free markets. For example, in the case of the automakers, he would say that they should fail so a more profitable stronger company can emerge because that is what the market is asking for. Same with housing prices the market is saying that housing should go lower, if we keep trying to fix prices we will only delay the process, price fixing will only make things worse like with the NRA of 1933 (National Recovery Act) Look at my signature you see that blue eagle??

The truth is we don't know what prices should be, so we shouldn't try to set them. This is why Ludwig von Mises predicted the demise of socialism and ultimately why it did fail. I don't know how much you've studied economics but look into austrian economics. Google it. There even a pdf floating around out there called intro to austian economics. I'll post it for you:

http://www.sendspace.com/file/73adkf

[smartinvestor30]

Originally Posted by shisya

Supposedly we are able to get dividends from the forgein stock. That is what Peter Schiffs whole selling point appears to be.

No his selling point is that the USA is headed for hell in a handbasket. Yes you can buy dividend paying foriegn stocks. He says you can do it cheaply through europac but I'd rather buy things on my own. I'm looking to go up to 25% of my portfolio into Gold, some through gold coins (which I will keep at home) and through companies that store it for you (like in my signature below). I am also looking to put some about $$2500 into Japanese Yen, $2500 into GBP (german british pound) and some in HKD (hong kong dollar). I wouldn't dare do that through my Forex account because this dollar rally would wipe me out. You can fade this move in the dollar on leverage. I found an easier way through e-trade, just open a global trading account and you can convert the dollar into euros, gpb, hkd, cad, or yen.

[aiki14]

Originally Posted by smartinvestor30

No his selling point is that the USA is headed for hell in a handbasket. Yes you can buy dividend paying foriegn stocks. He says you can do it cheaply through europac but I'd rather buy things on my own. I'm looking to go up to 25% of my portfolio into Gold, some through gold coins (which I will keep at home) and through companies that store it for you (like in my signature below). I am also looking to put some about $$2500 into Japanese Yen, $2500 into GBP (german british pound) and some in HKD (hong kong dollar). I wouldn't dare do that through my Forex account because this dollar rally would wipe me out. You can fade this move in the dollar on leverage. I found an easier way through e-trade, just open a global trading account and you can convert the dollar into euros, gpb, hkd, cad, or yen.

By putting it into e*trade how do you get the benefit, do they pay out in other currencies? Eventually you're gonna be stuck with dollars, so why not just do forex plays where you can get the best conversion?
Also if your looking for amounts like that, you can go to a moneychanger and get the foreign currency. I do it with yen all the time. You might want to establish a prior relationship if you want to exchange reportable amounts to save on standing there filling out the paperwork.
In fact if your looking for $2500 worth of yen, and you're in the Philly area, I'll help you out myself for 25bps and a quad espresso.

This is gonna sound weird, but if you're holding gold in anticipation of collapse, how do you insure it, how do you secure it, do you take those costs into the accounting or do you even care about those costs, how do you anticipate the transacting of gold (or anything else) in a post collapse environment.

[smartinvestor30]

Originally Posted by aiki14

By putting it into e*trade how do you get the benefit, do they pay out in other currencies? Eventually you're gonna be stuck with dollars, so why not just do forex plays where you can get the best conversion?
Also if your looking for amounts like that, you can go to a moneychanger and get the foreign currency. I do it with yen all the time. You might want to establish a prior relationship if you want to exchange reportable amounts to save on standing there filling out the paperwork.
In fact if your looking for $2500 worth of yen, and you're in the Philly area, I'll help you out myself for 25bps and a quad espresso.

This is gonna sound weird, but if you're holding gold in anticipation of collapse, how do you insure it, how do you secure it, do you take those costs into the accounting or do you even care about those costs, how do you anticipate the transacting of gold (or anything else) in a post collapse environment.

Good questions. You end up paying about 2 cents over market, yes you will end up in dollars but once you convert it back it will be many more dollars.

I've been looking for a moneychanger but I don't know where to find one here in the Chicago area??

IF (key word) there is collapse I still think I will be able to sell out of gold. And wow as I'm typing this the dollar has taken a nose dive vs the Yen on the 15m, jumped 100pips in 20secs. I have a few ounces at home and some secured in a a vault in NY and in London. I never been through a collapse so I'm not sure how transactions would occur. Good question.

[aiki14]

Originally Posted by smartinvestor30

Good questions. You end up paying about 2 cents over market, yes you will end up in dollars but once you convert it back it will be many more dollars.

I've been looking for a moneychanger but I don't know where to find one here in the Chicago area??

IF (key word) there is collapse I still think I will be able to sell out of gold. And wow as I'm typing this the dollar has taken a nose dive vs the Yen on the 15m, jumped 100pips in 20secs. I have a few ounces at home and some secured in a a vault in NY and in London. I never been through a collapse so I'm not sure how transactions would occur. Good question.

Here you go on the currency exchange in your area.
http://www.wsce.com/services/foreigncurrency.asp

I have to admit I have never been through one either, but I did see the road warrior, it's gonna be a pain in the arse.