Peter Schiff Vs Nouriel Roubini Debate At SALT

Peter Schiff is the CEO and Chief Global Strategist of Euro Pacific Capital, an SEC-Registered Investment Adviser and a full service broker/dealer. He had a debate with another well-known pundit, Nouriel Roubini at the SALT Conference today. See VERY informal notes from that fight below.

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Peter Schiff Vs Nouriel Roubini Debate At SALT

Peter Schiff vs Nouriel Roubini Through the Looking Glass

A global macro forecast

Harold Ford Jr

Prime Minister George Papandreou (Greece)

Nouriel Roubini

Peter Schiff

HFJ – we need politicians to take risk right now

Peter Schiff — the US economy has NOT recovered from anything…we are getting sicker.  This is not a recovery.  Fed is just reflating assets, but the wealth effect is benefitting a small part of the population and hurting everyone else. The asset market would implode if fed took QE to zero, and it will be worse than 2008.  They have just excaberated the problems from 2008.  He discounts how much the weather has impacted the economy, and thinks the underlying issues are not good and the overall market is not healthy.  More QE’s than rocky movies, bc it DOESN’T work.

BUY GOLD.

The Fed can NOT raise interest rates to fight inflation bc the economy is so broke it would implode.  So the fed will not be able to fight inflation because the economy is

Roubini — next to peter I may be Dr Boom instead of Gloom. HAHA

risk of chaos in china is rising

if fed exits too soon, it could cause a major drawdown more issues coming from Putin, he wants more than just Ukraine –it will escalate in coming years

In typical fashion, Roubini was pretty bearish on the entire world.

Peter Schiff- deflation helps consumers bc prices fall a high stock prices tells you absolutely nothing about the economy or stock itself inflated asset prices is not the correct way

We need interest rates to rise, and the Fed is preventing this

The Fed will need to raise interest rates quickly when CPI starts to rise, and we could see 10% interest rates, but then the govt won’t be able to afford their debts and even pay the interest on it.

NR- i totally disagree with PS. He is completely wrong on deflation.  The US depression and Japanese depression was not good and growth was very stagnant.  It is complete nonsense he says.  PS trying to interrupt and laughing.

We have a slack in the goods market and labor market.  Wages are not rising, and no wage inflation, so we can’t get overall inflation.  Slack in commodities and real estate market.  The central banks have been aggressive bc they had to be.

Will the Fed make a policy mistake on the Exit?  This is the biggest risk.  We will not go above 4% interest rates until 2018/2019.  Not in a bubble today.  We could see a bubble in credit markets and real estate market, and then equities.

Peter Schiff–falling prices do not cause the depression.

Couldn’t even understand the last few minutes as PS and NR were trying to talk louder than each other and going back and forth.

The overall view of the crowd is bearish

Comments (8)

  • Richard Cranola

    This is truly a “Dumb and Dumber” debate … LOL !!

    May 14, 2014 at 4:35 pm
    • andrew ferguson

      No one has mentioned STICFLATION, when you have static inflation, there is no
      measurable inflation until the static forces are overcome, then suddenly you have
      10 or 20% % 30% inflation, 99 cents becomes $1.19, or $1.29, $2.99 becomes $3.99, etc.
      and then we’re screwed, then interest rates have to be raised, So forget 2% inflation
      it’s just another big lie. Andrew Ferguson

      May 14, 2014 at 6:10 pm
  • Joel center right politically

    Two right wing Amerikan fascists squaring off about fallacious right wing fascist macro economic theories. Ho hum. 😉

    May 14, 2014 at 7:32 pm
    • Wesley Marshall

      Come back and post when you actually know what you’re talking about.

      May 14, 2014 at 10:04 pm
      • Joel center right politically

        “he realized how easy it was to present an appearance of orthodoxy while having no grasp whatever of what orthodoxy meant. In a way, the world-view of the Party imposed itself most successfully on people incapable of understanding it. They could be made to accept the most flagrant violations of reality, because they never fully grasped the enormity of what was demanded of them, and were not sufficiently interested in public events to notice what was happening. By lack of understanding they remained sane. They simply swallowed everything, and what they swallowed did them no harm, because it left no residue behind, just as a grain of corn will pass undigested through the body of a bird.”
        ? George Orwell, 1984

        May 17, 2014 at 2:42 am
  • really?

    ps thinks that the us will print and print until qe and low interest long term debt lead to inflation. roubini is counting on the debt HAVING TO BE PAID BACK. that is the difference. in a way they can both be right. its purely political in how we handle deflation. i lose lots of respect for roubini with his defense of monetary policy as we keep digging bigger holes and only imbecils like the posts before mine think everything is fine as we almost have more debt vs. gdp then we did in 2007. if we don’t lower rates and add more debt, we implode, period! ps is saying that price decreases are good for the lower classes and he is right.

    May 14, 2014 at 9:14 pm
  • Johnny B Good

    Nouriel Roubini is a special needs person.

    May 15, 2014 at 12:56 am
  • Johnny B Good

    Nouriel Roubini I would rather hold Gold than your printed paper dollars.

    May 15, 2014 at 12:58 am

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