http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/http://www.fxstreet.com/fundamental/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-10-13.htmlDear Friends, Through my weekly commentaries, I have always tried to share my honest insight into the behavior of markets and recommend strategies to help people preserve their wealth. As investors, many readers have benefited from my advice; but as Americans, they are frustrated that they have to look abroad for decent returns because Washington continues making a mess of things at home. I am too. As you may know, I have decided to run for U.S. Senate from my home state of Connecticut.Tue, 13 Oct 2009 07:21:33 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-10-13.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-07-09.htmlIn economics, as in many other “soft sciences,” facts are often overshadowed by theories. The dominant economic theory currently in vogue is that the massive government stimuli orchestrated by the Bush and Obama administrations would produce an economic recovery by the end of this year. Thus, it is no surprise that media cheerleaders have seized on the recent steep, but thinly traded, rally to find the facts that appear to fit the theory. From where do these talking heads draw this conclusion?Thu, 09 Jul 2009 07:24:51 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-07-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-07-02.htmlThrough its rhetoric and actions, the Obama Administration has made it clear that no matter the current or future costs, the federal government will not allow a collapse of the banking system. The resulting aura of certitude has, in turn, encouraged investors to roll the dice one more time. Some of these investors are likely trying to make good prior investment losses through speculative trading in U.S. equities. The surety of the government guarantee has sadly allowed them to overlook theThu, 02 Jul 2009 07:16:43 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-07-02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-29.htmlMisguided government policies have already dealt vicious body blows to our economy, but that hasn't stopped politicians this week from launching two new kicks to the groin: a national health insurance plan and a carbon emissions regulation system called “cap and trade.” Even if these plans could achieve their desired ends, which is highly unlikely, I would have hoped Washington would refrain from throwing more monkey wrenches into the economy until it shows some signs of resurgence. The lastMon, 29 Jun 2009 07:17:27 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-29.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-25.htmlWhile corporate earnings fell by some 38 percent in the first quarter, a dismal performance by just about anyone's reckoning, Wall Street took heart that the results were not as bad as the consensus estimates had predicted. Straws were frantically grasped. Buoyed by the resulting talk of “green shoots” and the hope of a relatively quick economic recovery, the Dow Jones Industrial Average surged nearly 40% from its lows. Since the crisis began, Wall Street cheerleaders and politicians haveThu, 25 Jun 2009 07:33:58 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-25.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-22.htmlHarry Browne, the former Libertarian Party candidate for president, used to say: “the government is great at breaking your leg, handing you acrutch, and saying ‘You see, without me you couldn't walk.'” That maximis clearly illustrated by the financial industry regulatory reforms proposed this week by the Obama Administration. In seeking to undo the damage inflicted over the past decade by misguided government policies, the new regulatory regime would ensure that the problems underlying ourMon, 22 Jun 2009 07:19:57 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-22.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-18.htmlThis week, the BRIC countries (Brazil, Russia, India, and China) conspicuously gathered in Moscow for their first-ever economic summit. Although these countries are divided by culture and geography, they are united by healthy economic growth and their concern about unprecedented levels of U.S. debt and the safety of their respective reserves. There can be no doubt that these emerging economic powers are trying to chart an economic path that will free them from dependence on the AmericanThu, 18 Jun 2009 07:36:58 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-18.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-15.html"Crony capitalism" is a term often applied to foreign nations where government interference circumvents market forces. The practice is widely associated with tin-pot dictators and second-rate economies. In such a system, support for the ruling regime is the best and only path to economic success. Who you know supersedes what you know, and favoritism trumps the rule of law. Unfortunately, this week's events demonstrate that the phrase now more aptly describes our own country. On Monday, theMon, 15 Jun 2009 06:52:48 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-15.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-03.htmlYesterday, after a painfully long death spiral, General Motors finally filed for Chapter 11 bankruptcy protection. Oftentimes, bankruptcy portends rebirth. Unfortunately, the politically-inspired GM plan holds no such possibilities. Under the current deal, the restructuring of GM will cost taxpayers some $100 billion (after the hidden costs of interest and refinancing are included). Even then, it is highly unlikely that GM will ever be competitive or that its debts will ever be repaid. FarWed, 03 Jun 2009 07:33:14 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-03.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-08.v02.htmlThis week, Team Obama took their dog and pony show on the road. Treasury Secretary Geithner went to China, Fed Chairman Bernanke to Capitol Hill, and the President himself began a Mideast tour in Saudi Arabia. This full-court press is not coincidental, and comes just as the federal government has begun unloading trillions of dollars in new Treasury obligations. The coordinated charm offensive is meant to assure the world-at-large that the United States can repay these obligations withoutMon, 08 Jun 2009 15:47:04 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-08.v02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-01.htmlDuring the height of New York City's financial crisis in the 1970's, President Gerald Ford had the good sense to turn down Mayor Abe Beame's request for a federal bailout. The refusal prompted the famous New York Post headline, "Ford to City: Drop Dead." More than 30 years later, as California Governor Arnold Schwarzenegger makes a similar plea to Washington, I hope President Obama will show similar restraint. Unfortunately, given Obama's recent string of unwise economic decisions, it's hard toMon, 01 Jun 2009 09:24:48 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-06-01.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-22.htmlWhile economists and real estate investors "celebrate" the slight deceleration in the pace of home price declines in the recent data, a quick look at home price trajectories over the past 100 and 50 years reveals little to cheer about and much to be feared. More significant than small month-to-month changes is the flow of home price patterns over decades. In his book Irrational Exuberance, Robert Shiller determined that in the 100 years between 1900 and 2000, home prices in the U.S. increasedFri, 22 May 2009 15:08:08 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-22.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-28.html"Socialism is the philosophy of failure, the creed of ignorance and the gospel of envy," said Winston Churchill. Although it inevitably lowers living standards, socialism feels good - at least at the outset - as "free money" flows in great abundance. Keep this in mind as we examine the "good news" about consumer confidence. Last week, it was reported that consumer confidence has seen an unexpected lift. In response, the sluggish stock market saw a manic 196-point rally. This mania overrodeThu, 28 May 2009 07:13:16 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-28.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-21.htmlAlthough well off their all-time highs, American stocks are now marginally up for the current year. In the past two months, the markets have recovered over 30 percent from last year's lows. But something just does not add up. In the first quarter of 2009, average U.S. corporate earnings were down over 30 percent. There is once again a serious disconnect between stock prices and economic reality. Perhaps these sleepwalking investors think that the 50 percent sell-off in 2008 was overdone andThu, 21 May 2009 07:48:49 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-21.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-18.htmlWhen, during the invasion of Iraq, the United States Government issued its famous deck of playing cards with the 52 arch villains of the Iraqi police state, Saddam Hussein's face adorned the Ace of Spades. If the Obama Administration wanted to engage in a similar public relations campaign for the real estate crisis, the top card should be reserved for Alan Greenspan. Yet in a speech this Tuesday before the National Association of Realtors, Sir Alan “the-bubble-blower” claimed that his lowMon, 18 May 2009 07:30:34 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-18.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-13.htmlAmerica is more than a country; it is the ideal of liberty. In economic terms, liberty translates into the entrepreneurial spirit of hard work, risk taking and self-reliance. And this spirit has made America rich beyond compare. Unfortunately, over the past four decades, much has been undone. Under the guise of a new, “social” justice, political leaders have turned our native ethics upside down. Profit-taking is now seen as gouging; success is greed; businessmen are predators. This creepingWed, 13 May 2009 09:21:16 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-13.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-11.htmlStrike up the band, boys, happy days are here again! Recently released short-term economic data, including unemployment claims, non-farm payrolls, home sales, and business spending, which had been so unambiguously horrific in February and March, are now just garden-variety awful. With the Wicked Witch of Depression now apparently crushed under the house of Obamanomics, the Munchkins of Wall Street have sounded the all clear, pushing the Dow Jones up 25% from its lows. But the prematureMon, 11 May 2009 08:56:00 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-11.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-08.htmlThis week, based on indicators of improving Chinese manufacturing activity, commodity and stock markets surged in the Pacific Rim. It appears that China's recession-fighting policies are being judged successful. The 41 percent rally in Chinese stocks in 2009 from the 2008 lows dwarfs the single digit rallies in the U.S. and Europe. With Western economies still sluggish, eyes are turning eastward for solutions to the global economic riddle. As such, recent hints at the direction of ChineseFri, 08 May 2009 07:35:35 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-05-08.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-30.htmlLast week, when the U.S. Treasury unveiled the basics of their lender "stress tests", the Fed concluded that "most U.S. banking organizations currently have capital levels well in excess of the amounts required to be well capitalized." Simultaneously, they also claimed that the banks needed more capital. Apparently the Fed has little understanding of irony. Why would our central bankers conclude that "well capitalized" banks need "more capital?" Quite possibly, they believe, as I do, that theThu, 30 Apr 2009 07:15:10 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-30.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-27.htmlWith much fanfare this week, Congress and the Administration began a series of actions designed to protect over-leveraged consumers from the high fees imposed by credit card lenders. As with most other initiatives devised by government, this policy will create a host of unintended consequences that will undermine the benefit the program hopes to create. Anyone who carries a credit card knows that billing practices have become much more aggressive, punitive, and seemingly arbitrary over recentMon, 27 Apr 2009 09:22:08 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-27.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-23.htmlOn April 20th, Bank of America announced a first quarter surge in earnings to $4.2 billion. At first blush, it looked like the kind of news that would ignite a stock market rally. Instead, the Dow closed down 289 points. Could it be that, despite the apparent good news, investors don't trust the banks or the economy? In recent months, the Administration has poured billions of dollars into those banks that it has deemed "too big to fail". B of A alone received some $45 billion. Perhaps now itThu, 23 Apr 2009 07:57:57 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-23.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-21.htmlTwo weeks ago, Daniel Hannan, the Member of the European Parliament from South East England, made headlines the world over with a blistering indictment of the policies of British Prime Minister Gordon Brown. For his reliance on deficit spending and monetary expansion to fight financial collapse, Hannan labeled Brown as the "devalued Prime Minister of a devalued government." Mr. Hannan cited the Governor of the Bank of England, who blew the whistle on the U.K.'s deep financial troubles, asTue, 21 Apr 2009 09:06:39 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-21.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-16.htmlRightly, the students of Austrian Economics have laid the blame for the current economic crisis squarely on the doorstep of the Keynesian policies of governments and central banks. However, in this case, there are other culprits involved, most notably the former titans of financial services. During this decade, major international money center banks from Wall Street to London and even to Zurich displayed unimaginable greed, reckless risk taking and gross negligence. Depositors, borrowers andThu, 16 Apr 2009 07:29:27 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-16.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-10.htmlApart from the obvious financial distress that the current economic crisis has inflicted on most Americans, perhaps one of the more irksome byproducts of the meltdown has been the inescapability of clueless economic blather. It's bad enough when so-called economists serve up the same Keynesian nonsense that has led us down the current cul-de-sac in the first place. At least those people have some incidental knowledge, however deeply flawed, of basic economic concepts. It's far worse whenFri, 10 Apr 2009 07:35:34 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-10.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-09.htmlLast week's gathering in London of the leaders of the 20 foremost economic countries in the world had been billed as the most important global financial meeting in more than 60 years. The stage had been set for hotly contested economic policies to be hashed out with the intensity of a Cold War arms negotiation. However, for most observers, the results of the G-20 failed to live up to the billing. Other than a masterful display of haute couture by the new American first lady, there are fewThu, 09 Apr 2009 07:42:56 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-06.htmlWhen elementary school kids want to escape the confines of their circumstances they pretend to be pirates, princesses, and Jedi knights. Now, with the relaxation of "mark to market" valuation rules announced yesterday by the accounting trade's self-regulatory body, our bankrupt financial institutions can escape their own reality by pretending to be solvent. The unraveling of our fairytale economy over the last few months has not yet convinced us that the time has come to put away childishMon, 06 Apr 2009 08:53:35 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-06.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-02.htmlThis week, the leaders and finance ministers of the 20 most economically important nations, or G-20, will convene in London to develop coordinated policies that they hope will prevent a worldwide depression. The leaders will also consider greater transnational regulatory oversight of the financial industry and the future of the U.S. dollar as the world's 'reserve' currency. By any reckoning, this meeting will be the most important international economic conference since Bretton Woods in 1944,Thu, 02 Apr 2009 08:13:42 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-04-02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-30.htmlFor a few fleeting, horrifying moments this past week the fault lines that underlie the global economic crisis erupted into plain view. With deft and quick effort leaders in Washington, Europe and Asia papered over the fissures and fears largely subsided. But the shock of plain truths which resulted in violent currency movements are the latest reminder that the 21st century economic order will bear little resemblance to the world we now know. The tremors began in Beijing, where a essay fromMon, 30 Mar 2009 07:59:17 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-30.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-26.htmlWith a series of coordinated pronouncements and media events, the Obama Administration has recently been trying to send a signal to investors. But the message received may not have been the one intended. Reading between the lines, the Administration is indicating the financial crisis has become so overwhelming to them that there is no alternative but to throw infinite amounts of taxpayer money at it until, they hope, it passes. But what if the very measures meant to hold the dike until theThu, 26 Mar 2009 08:17:05 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-26.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-19.htmlLast weekend, Ben Bernanke took an unprecedented gamble for a sitting Fed Chairman: he granted a long-form interview to 60 Minutes, America's most watched news program. There can be no doubt that the interview came about as the result of a coordinated strategy between the Obama Administration and the Federal Reserve. But was the decision to offer the public a rare look at the inner workings of the central bank an act of resolution or desperation? In the interview, Bernanke stressed theThu, 19 Mar 2009 10:31:14 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-19.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-16.htmlThis week, with his pronouncement that "credit is the lifeblood of a healthy economy," President Obama reiterated what has been one of his most common themes in diagnosing our economic problem. The president has relied on this bedrock belief to propose policies that place the restoration of credit as the highest priority. However, despite his seemingly earnest intentions, the president and his economic advisors have misdiagnosed the ailment. Savings, not credit, is the lifeblood of a healthyMon, 16 Mar 2009 10:50:40 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-16.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-12.htmlThis week Citigroup shocked Wall Street by announcing that the company would be profitable in the current quarter. At the same time, the Obama Administration indicated that it would be unlikely to nationalize American banks, preferring to provide low cost funding to encourage the private sector to buy distressed assets from the banks. The two developments sparked a vigorous rally in financial stocks, which had been drifting downward for weeks, caught in what appeared to be an unending deathThu, 12 Mar 2009 10:04:06 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-12.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-09.htmlTalk show host and conservative icon Rush Limbaugh recently ignited a firestorm of criticism for expressing his desire that Barack Obama should fail. Democrats, and even some Republicans, suggested that he had put aside his patriotism to wish for an economic collapse that would result in political advantage for conservatives. However, if you believe as I, and apparently Rush, that Obama's plans will prevent recovery, then wishing that they fail to become actual policy is the right thing to do.Mon, 09 Mar 2009 10:54:17 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-09.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-05.htmlWhen President Obama took over the reins of government just six weeks ago, he stood at a historic crossroads. His decision on which route to take will make a profound impact on the future of the American economy and its currency. He could have persuaded a frightened Congress to initiate a structural change that would transform the U.S. economy from its dependence on debt-fueled personal consumption back to a path of productive growth. Instead, he took the easy route: attempting to delay theThu, 05 Mar 2009 14:25:10 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-05.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-02.htmlIn his first televised speech before Congress, President Obama asserted that prosperity will return once the government restores the flow of credit in the economy. It may come as a surprise to him, but an economy cannot run on consumer loans. Furthermore, credit stopped flowing in the U.S. for a very good reason: there was no more savings left to loan. Government efforts to simply make credit available, without rebuilding productive capacity or increasing savings, are doomed to destroy what'sMon, 02 Mar 2009 12:58:42 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-03-02.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-26.htmlEveryone has been guilty, at one time or another, of ignoring a cold. Though you knew you were sick, you may have kept working hard, playing hard, and staying out late. Not until you were bed-ridden did you start drinking orange juice and taking your health seriously. The U.S. economy appears to be following a similar trajectory. We have consistently ignored serious symptoms to the point where our economy is nearly a terminal case. After ignoring and downplaying the inflating credit bubble forThu, 26 Feb 2009 08:50:44 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-26.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-23.htmlWith millions of homeowners now struggling to repay money they clearly never should have borrowed, our leaders have been righteously wagging fingers at predatory lenders who allegedly enticed innocent borrowers, and the country, into a financial snake pit. While the mortgage industry clearly deserves a good share of the blame, unindicted co-conspirators abound. The ringleaders are still at-large and are, in fact, busy hatching a plan to dwarf the earlier mistakes. Contrary to the messageMon, 23 Feb 2009 09:21:29 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-23.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-19.htmlLast week, when Congress passed its $787 billion stimulus package, the size of the plan caused many observers to forget the water that has already passed under the bridge. Fewer still are wondering what havoc will erupt when all this liquidity eventually washes ashore. The latest spending, signed into law yesterday by President Obama, came on top of $300 billion committed to Citigroup, $700 billion for TARP 1, $300 billion for the FHA, $200 billion for TAF and some $300 billion for Fannie andThu, 19 Feb 2009 10:05:11 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-19.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-16.htmlThere is nearly universal agreement that the opening salvo of the Obama Administration's campaign to restore health to the financial system, delivered this week by new Treasury Secretary Geithner, fell with a loud and ugly thud. The most common criticism is that the announcement was short on detail. What is abundantly clear, however, is that the new Administration intends to push spending back up to pre-crash levels and to fill the entire credit void that has disappeared into the black hole ofMon, 16 Feb 2009 09:21:53 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-16.htmlhttp://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-11.htmlIn a sign that may reveal much about the current deal-making environment in Washington, House speaker Nancy Pelosi has outmaneuvered the Obama Administration in the design of the massive $827 billion so-called Economic Stimulus Package. With the collusion of three moderate Republican Senators - Collins, Snowe and Specter - Pelosi may succeed in steering President Obama into supporting a package with which he may secretly disagree. Despite the Presidential rhetoric of change, the Pelosi plan isWed, 11 Feb 2009 09:54:31 GMThttp://www.fxstreet.com/fundamental/analysis-reports/schiff@europac.net (Euro Pacific Capital, Inc.)http://www.fxstreet.com/fundamental/analysis-reports/economic-commentary/2009-02-11.html