By: Peter Schiff, CEO of Euro Pacific Capital
The
marginal economic strength that was described in the most recent GDP
release from Washington has caused many to double down on their belief
that the Federal Reserve will begin tapering Quantitative Easing
sometime later this year. While I believe that is a fantasy given our
economy's extreme dependence on QE, market observers should have learned
long ago that the Bureau of Economic Analysis (BEA) initial GDP
estimates can't be trusted. A perusal of their subsequent GDP revisions
in the last five years reveals a clear trend: They are almost twice as
likely to revise initial estimates down rather than up, and the downward
adjustments have been much larger on average.
As
a result of this phenomenon, an overall optimism has pervaded the
economic discussion that has consistently been unfulfilled by actual
performance. The government is continuously over promising and under
delivering. Unfortunately, no one seems to care.
http://news.goldseek.com/EuroCapital/1376064972.php
Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.