Isra-Mart srl: EEX natural gas and co2 trading results in augustPeter Schiff: get Gold, U.S. Economy will “never recover”

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Euro Pacific Capital CEO Peter Schiff said the telltale signs of another leg down to the phantom U.S. economic recovery has begun to emerge more clearly of late, capitulating the next layer of investors who now get the thesis of Schiff’s earlier warnings before everyone rushes to the precious metals counter—a la January 1980.

Further underscoring the Schiff thesis, the Swiss National Bank announced Tuesday its intentions to intervene in the Forex and halt the relentless rise of the franc at the 1.20 level against the euro, effectively slamming yet another door on the fingers of investors seeking capital preservation away from the coordinated U.S. dollar-euro debasement scheme.

Only days before the SNB announcement, Schiff stated in his Friday article, “The SNB even recently threatened to peg the franc to the euro. It’s as if survivors on one of the Titanic’s lifeboats were so confused and bewildered that they began tying their boat to the sinking behemoth out of a desire for a ‘stable relationship.’”

Many astute investors who frequent zerohedge.com believe the SNB may be preparing for another swoon in the euro. And the timing of such a move down against the dollar just prior to the FOMC meeting scheduled for Sept. 20-21 would be most fortuitous for the Fed in its scheme with chief tag-team partner the ECB to see-saw the two dominant reserve currencies to oblivion.

And with a little help from U.S. plant at the IMF, Christine Lagarde (another fortuitous appointment to replace euro-centric Dominique Strauss-Kahn), who has wasted no time publicly contradicting ECB chief Jean-Claude “Tricky” Trichet’s clean bill of health diagnosis of the state of European bank capital levels, it now appears the rigged game between the euro and dollar plays on in earnest.

With the latest SNB move, central planners on both sides of the Atlantic have now enjoined the Swiss into the growing globalist cabal, enslaving those holders of Swiss francs too daft or trapped to flee to the freedom inherent of gold. Some wonder whether the Swiss decision to formally un-peg its currency to gold at the time of the launch of the euro in 1999 foreshadowed a conspiracy of a one-world reserve currency to follow at a later time. Tuesday’s uncharacteristic action by the SNB to debase the franc so overtly only serves to fan those flames further.

Schiff, former candidate for U.S. Senate from Connecticut, pointed out on The Schiff Report that in addition to the ever-growing strong fundamentals for a higher gold price (especially now that the Swiss have joined the central bankers’ crack den), he believes a high-profile sentiment reading has just turned to a buy signal for accumulating gold now.

Schiff surmises that PIMCO Co-CEO Bill Gross’ recent flip-flop on the outlook for U.S. Treasuries—to, now, move higher in price (yield lower), from his earlier call for a top in Treasuries of 2.7% – 3.0% yields on the 10-year note during the late spring of 2011, could be a buy signal for gold and correspondingly a signal to sell U.S. Treasuries. In other words, Schiff thinks the long-awaited pop in U.S. sovereign debt is imminent.

“This [Bill Gross' revised call] may be one of the biggest capitulations ever, which could be a sign that the bond bubble is about to burst,” Schiff chuckled. Back in May-June, Schiff added, Gross believed that the U.S. economy was on the mend, “and thought a recovering U.S. economy would mean higher rates, which is why he wanted out of Treasuries.”

“Well the reason he now wants back in,” Schiff continued, “despite the fact that the yields are even lower (1.97% 10-year note) and the prices are higher than when he got out, is because now he is convinced that there is no recovery and so he wants to be in bonds.”

Schiff wrote in a piece on Friday, entitled The Last Haven Standing, “No longer is the U.S. dollar the default shelter; instead, gold, the Swiss franc, and the Japanese yen are the preferred assets.”

Well, we can eliminate the Swiss franc, now. And, as far as the BOJ is concerned, it, too, suffers from its own “Swiss problem,” with the yen being repatriated back from two decades of overseas flight into higher-yielding assets, in response to a rebuilding effort following the two-punch disaster of an earthquake and tsunami earlier this year. The reverse in yen flow could last a few years longer, some analysts have suggested. The BOJ has established a ceiling of 74-76 yen against the dollar since the tsunami and reported in August it would take further measures to stem the rise in the yen.

Therefore, investors are now left with record-low yields in the U.S. Treasury market and dollar-induced inflation still in the pipeline from QE2, QE2.5 and possibly more at the conclusion of the FOMC meeting of Sept. 21, at the earliest. For nearly a decade, Schiff’s ultimate point has been: Why wait to watch the last man standing in this phony currency war fall to the relentless punishment of the world’s true reserve currency, gold?