Peter Schiff: ‘The Dow will be worth one ounce of gold.’Submitted by ThermopolisWarr... on Sat, 06/28/2008 - 11:25
Peter Schiff: ‘The Dow will be worth one ounce of gold.’
June 28th, 2008 by Michael Nystrom
Peter Schiff, economic adviser to the Ron Paul for presidential campaign, was on Fox Business News on June 26th, the day the Dow dropped 358. Stuart Varney did him and all viewers a terrible disservice, repeatedly demanding that Peter Schiff make predictions about inherently unknowable things. How low will the Dow going to go? What is the real rate of inflation? What is the real rate of unemployment?, “Give me a number, give me a number!”, Varney foolishly demanded.
No one knows those numbers. All we know is that the figures the government is giving us on inflation and unemployment are inaccurate and low. We also know that the Dow is going down, to the point that it will one day be roughly equal to the value of one ounce of gold. Today the price of gold is around $900, and the Dow is around 11,350. Where will they meet? No one knows the exact level, but if history serves as any guide, meet (or at least come very close) they shall. If such a thing sounds impossible, realize that it has happened twice before. I don’t have the exact levels right now, but once was during the Great Depression with both gold and the Dow around 35, and once was more recent, in 1980, around the 850 level.
The above video demonstrates how the mainstream media’s business is not to inform, it is to distract. Rather than just try to understand what Peter Schiff is talking about, they call him a ‘conspiracy theorist.’ He is not.
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