Episode 56 — Peter Schiff: Bet Your Assets He Likes Gold

Peter Schiff joins Paul for lunch at Dorado Beach to chat about currency, asset prices, and what is coming down the pipeline for America's economy. Peter is a successful investor, author, and host of The Peter Schiff Show. Before stepping into this interview, you'll hear Peter's 2006 CNBC's Kudlow & Company clip in which he predicts the economic downturn. 

Of all days to visit, Paul and Peter find themselves immersed in their conversation during a crypto bloodbath. Peter shares that the world of cryptocurrency is built on speculation and margin debt. With blood in the water, is this the tipping point for politicians to get involved? Will this interference lead to laws to protect people from the free market, or find itself as another means to punish capitalism? Peter does not like any of the thousands of alt-coins, but it sounds like crypto is less likely to be manipulated than traditional fiat currency. Peter has long been known for his love of gold. It's interesting to hear his argument for a national currency that marries block chain with his shiny gold standard. 

Peter and Paul make time to discuss inflated asset prices. The Feds believe that the wealth effect creates economic growth. Does it? Peter preaches that entrepreneurship and capital investment grow an economy. After years of 'monetary heroin', Peter reasons that we should let the free market work. Looking to the future, Peter shares that the dollar is the only limiting factor, and that our future lies in the hands of our creditors. Peter contends that a strong currency leads to competitive advantage, and that sound money is the foundation of any prosperous country.

Inflated asset prices affect pest control shareholders. Following the sale of a business, how can owners protect their assets? Peter advises on rearranging assets into international emerging markets. In regards to wealth management, Peter's company as well as BKD are a couple places Paul says to research.

Patrick missed the Dorado invite (or The Mex intercepted it). In the post-Peter cafe chat, Patrick asks Paul about alternate scenarios had the Federal Reserve not taken the easy way out. Is it time for economic rehab? Paul shares that during the financial crisis, Peter both made money and defended his thesis. From thesis to application, Paul makes a case for preparation over prediction. 

Paul also recommends watching Peter's Mortgage Bankers Speech from November 2006 and Why the Meltdown Should Have Surprised No One from March 2009

For more information on current market conditions and valuations, register for M&A Supernova: Navigating the Late Stages of the Pest Control Consolidation Boom

Co-Produced, Edited, and Mixed by Dylan Seals of hdaudiopost.com