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Crash Proof Your Portfolio 
The author decries the devaluing of the dollar,
inflation and the looming trade deficits.
The book indicates that the USA is too dependent
upon foreign lending. Foreigners hold too many
Treasuries. Americans save too little and consume
too much in comparison to the rest of the world.
Our dependence upon foreign manufacturing contributes
to the trade deficit. The book shows how less
regulation, tax relief and more economic development
can turn things around. Computer models have become
highly productive in the area of design engineering.
Gold and precious metals are at an historic buying
opportunity. Demand for goods and services is artificial
when not productivity induced. An example of good debt
is capital formation connected to a thriving business.
Bad debt is money lent for excess or frivolous
consumption. An example would be taking out a second
mortgage on a house to finance a vacation.
Right now, Europe enjoys a balance of trade surplus.
The purchasing power of the Chinese is increasing at
a time when the dollar is falling. Canadian oil and gas
investments yield 12% or more. Hong Kong and Thailand
are also good investment arenas. Coal stocks are yielding
good dividends. As the dollar falls, gold and precious
metals rise. The ETF gold shares can be good investments;
however, investors may not have the same creditor priority
in bankruptcy according to the authors. Examples of good
gold ETFs are GLD and CEF (Central Fund Canada) shares.
The author believes that the USA should pursue a sound
money policy with limited government and less regulation.
Potential gold stocks worthy of investment are Newmont Mining
Corporation and Goldcorp.
Overall, the acquisition would be helpful in crafting an
investment portfolio to weather some market corrections
on the horizon. The extent of the market corrections will
depend upon investor perceptions as to government
responsiveness on a number of fronts. These historic
challenges include energy independence, debt management,
structural government spending, meaningful regulatory
compliance, the abolition of unnecessary regulations,
FDA protocol simplification and a host of other issues
too numerous to delineate in a finite review.
simply great
I have read many books on the current crisis by very famous people like Soros, Wiggins etc., they all go into convoluted discussions which are, in my opinion, non-sensical. This book calls a spade a spade. One can quibble with the definition of inflation and deflation. Maybe it is too aggressive in accusing the government of deception, bu I don't think so. But the facts are facts. It is written very well. A must read.
Simple language for a simple problem
Peter Schiff has a gift for making obvious that which eludes most of us, and putting it into simple language. For example, he points out our nation's debt to others, called a capital account surplus, is really a debt surplus, and this is financed by borrowing money from abroad. The government pretends to measure productivity with GDP, but GDP just measures debt-based consumption and inflation. Despite the Fed rhetoric, deflation is not bad at all: rising prices are normal in a healthy economy, as productivity rises.
This book points out what should be obvious, but what we as a nation forgot: true wealth is created by underconsumption and savings and capital formation that goes into making more productivity, not by our current way of borrowing from overseas to consume. Consumption does not create wealth, and our day of reckoning will come with a weak dollar and lower standard of living. How to prepare?
In the final 3 chapters, he outlines what can be done to survive the inevitable economic crash caused by overborrowing and overconsumption: invest in dividend-paying foreign stocks (you get the cash dividend plus appreciation of the foreign currency), and precious metals.
If you have never considered such an investment strategy, this book will wake you up.
I really like his simple language, his ability to foresee what eludes others (tech bubble, housing bubble), and his commitment to make money in ways that help other people. I read his website every day, so when the book came out, I ordered it before it was published. I've lent it to several friends already.
If you like this topic, also consider Bill Fleckenstein's The Age of Turbulence and Richard Duncan's more technical, The Dollar Crisis.
Give to Ceasar..
What belongs to Ceasar..I believe the saying goes.. Thank you Mr. Schiff for writing a very easy to understand, informative book. Mr. B is still trying to make the "Democracy Work" He probably skipped over that part in the book. In any case, I read your book after reading Financial Armaggedon, (evidently I'm slow to panic) Your works added the xtra touch & numbers needed to bring this crisis to life. I've watched you on Fox & was more than a little dissapointed at the way your "handled" on the Show.
reminds me of the way they "handled" Sen. Ron Paul during the debates. This is news that "They" definitely don't want you to know. I was a little dissapointed in the plugs you made for your Company, but there again, You were offering solutions for the problems at hand, a one stop shop so to speak. After listening to several of your radio messages (your not interruped as much)It's all starting to fall together. (No pun intended)I think this book should be recommended reading in every high school across the nation. Let those with ears listen..I Personaly don't think your far off the mark.
Eye Opener
My wife and I have seen the economic train wreck coming for a long time, but haven't known what to do about it. Now we see some kind of hope for our future. This is the first book I have read that ties all of the pieces together, explains what the consequences will be for the average person and gives practical recommendations. That's not to say there aren't other books out there that are just as good or better, and there are plenty of suggestions in the reviews, but for me this one really clicked. One main complaint I've read in the reviews is the book is just a plug for the author's own brokerage. To be fair, though, he also gives specific things to look for no matter what brokerage you use. That is the kind of thing you do if you genuinely want to help people, not just drum up business for yourself.
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