By Jared Cummans
The fiscal cliff has been the chief worry of the U.S. economy as of late, as the uncertainty looming has created a volatile marketplace. Each political party has their own ideas on how to move forward, and the same can be said of individual analysts and experts. Famed gold bug Peter Schiff is no stranger to speaking his mind on the economy and what he thinks is the best course of action for the United States. And his most recent comments fall in line with his knack for bold and brash statements.
In a time where so many are worrying about next year and the potential fallout from the fiscal cliff, Schiff is actually embracing it. “The truth is that, regardless of what you call it, going over the fiscal cliff is not the problem, it is part of the solution. Our leaders should construct a cliff that is actually large enough to restore fiscal balance before a real disaster occurs,” said Schiff. He went on to state that the cliff would lead to necessary cuts in government spending that would help put us on the right track.
Of course, going over the fiscal cliff would be political suicide for much of Washington’s top dogs, so it seems unlikely that congress will allow that to happen. Then again, the stalemate that has persisted for several years in our legislative branch means that a non-agreement is not totally out of the question [see also Gold and Silver ETFs Soar After Obama Re-election].
Commodity investing has been touted by a number of analysts as a great way to deal with the fiscal cliff; the dollar may endure a crisis and markets may get slaughtered, but real assets offer some of the most compelling investments in times like these. Schiff, not surprisingly, has chosen gold on multiple occasions to help a portfolio. He theorizes that the dollar will face major debasement and continued weakness, making precious metals like gold and silver especially attractive.
So what do you all think? Would gold be able to perform well if we go over the cliff, or is Schiff blowing smoke? Let us know in the comments below.
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