Frank Luntz: The Younger Generation is Losing Faith in Capitalism

Some big interviews on CNBC on Tuesday with some of the nation’s most powerful business leaders and investors had a common theme: what an Elizabeth Warren presidency would mean for the markets and corporate America. Frank Luntz, pollster and political strategist, joins “Squawk Box” to discuss Warren’s chances of winning.

Peter Schiff Has a Terrible Track Record But Gets Daily Air Time from the Media

The main stars of America’s financial trash TV are broken clocks and contrarian indicators who deliver the same sales pitch day after day, week after week, year after year. That is what salesmen do after all.

Once they have been finally called out for being completely wrong for years, they fight back by changing their talking points to focus on trivial rants, such as when the Fed is going to taper or raise interest rates.

Keep in mind that these talking heads focus on this type of nonsense as a way to distract from their investment failures and lousy predictions.

 

Schiff couldn’t even get this right. The guy is a complete failure, so why does the media promote him constantly?

 

Peter Schiff has become a very frequent participant in this media dog-and-pony show. Schiff receives interviews every day, and many times multiple times per day from every segment of the Jewish media, from CNBC and FBN, to Bloomberg.

He also gets quoted or discussed in in the Wall Street Journal, MarketWatch, Forbes, Fortune, The Financial Times, you name it.

Accordingly, Peter Schiff could be considered the male version of a “financial Kim Kardashian.”

For anyone out there who isn’t too bright, let me make sure you get the point. That was by no means a compliment. 

Think about it. Schiff runs a brokerage firm, Euro Pacific Capital.

So naturally one would expect him to discuss topics like compelling investment sectors and stocks, valuations, earnings, asset allocation strategies and so forth; you know, things competent financial professionals talk about. The same kinds of things an audience wants to hear about.

Even though he is really only a stock broker and not an analyst, he calls himself Euro Pacific Capital’s chief global strategist. But this too is only a superficial designation.

In my professional view, Schiff is really a marketing strategist because that is how he spends the majority of his time. I state this with complete confidence because I have been noting Schiff’s schedule for several years.

Regardless, surely Schiff has people to do “research” for him, letting him know what is going on, right?

Yet, he is constantly talking about trivial topics, like whether the Fed will raise rates over and over instead of talking about relevant issues.

Why might that be?

Maybe, his research results are complete dog shit.

Once you carefully examine Schiff’s track record as well as his record of investment performance and you will see why he has been focusing on trivial events instead of discussing investment and economic forecasts.

One of the economists behind Sen. Warren’s wealth tax defends the policy

Senator Elizabeth Warren is rising in the polls, grabbing the attention of many on Wall Street. Gabriel Zucman, one of the economists who helped design Senator Warren’s tax plan, and Andy Puzder, former CKE Restaurants CEO, join “Squawk Box” to discuss.

Time to ditch CNBC and get Real (Vision)

The key value that Real Vision adds stems from its “long-form documentaries, in-depth interviews and actionable analysis.” These contrast starkly with CNBC’s 60-second sound bites.

For example, Williams’ recent interview with David Stockman, Ronald Reagan’s former budget director, ran nearly 90 minutes.

Real Viewers who invested the time got an in-depth overview of how America’s 1971 default on its gold debts (which few CNBC viewers have even heard about) may be setting the stage for a colossal reset.

“Major media are perpetual bulls because this draws advertisers,” jokes Williams. “Imagine running a mutual fund ad right after an analyst says the market is overvalued. That wouldn’t work well. But we don’t run ads. So we can offer a wider range of opinions.”

Fed employees not allowed to speak to the press

With Real Vision broadening its content, Williams has increasingly focused on digging deeper into the Federal Reserve and the shady world of central banking. The process has heightened his conviction about the role that physical gold needs to play in investor portfolios.

That said, it hasn’t been easy. As John Maynard Keynes noted, central banks go to huge lengths to hide their primary roles as government tax collectors.

Federal Reserve employees, for example, are forbidden from speaking to the press. To make sure that they don’t, the Fed only hires the most obsequious candidates, from universities whose graduates have a reputation for towing the line.

The process works.

With the exception of Danielle DiMartino Booth, whose book Fed Up! appeared after the last financial crisis, the Fed—which some argue is running a colossal Ponzi scheme—has not had a major whistle blower in its 100+ year history.

The same applies to the big banks, which according to Keefe, Bruyette & Woods have paid nearly $250 billion in fines for fraudulent activities, without one of their key executives having “blown the whistle” to warn the public.

Williams, though not a journalist by training, has picked up a decent bag of tricks over the years.

For example, this week Real Vision ran a 90-minute interview with William White, an obscure former Bank of Canada, BIS and now an OECD official, who has been out of central banking for more than ten years.

CNBC journalists, who are only interested in sound bites, wouldn’t have given White two minutes of their time. Yet his importance cannot be overstated.

Williams knew that because White was no longer affiliated with the central banks (but remains connected with the key players), he was thus able to speak relatively candidly.

Central banks’ steady incompetence

White’s warnings—that central banks’ steady incompetence has dug them into a huge hole, that they are likely all working for themselves (as opposed to colluding, as some suspect) and that global debts will not be paid back—thus need to be taken with utmost seriousness.

White also reminded Real Vision viewers that he had worked closely with Claudio Borio, the current head of the economics department at the BIS, and suggested that the two thought alike.

This provides a strong hint that Borio’s commentaries during the coming months will be “must-reads” for all who are monitoring the international financial system.

A broad range of sources

Critics argue that viewers of CNBC and other mainstream media have more than made up their losses since the dot.com and housing bubble crashes.

However, that only applies to investors who were wealthy enough to hold on throughout and after the crises. Ordinary and poorer investors weren’t able to risk their remaining assets. Many left the market, never to return.

A market crash today would be particularly catastrophic to baby boomers, many of whom are simply too old to be able to wait out another boom-bust cycle. Hence the importance of Williams’ reasoning.

With consumer, business and public sector debts and most major markets all near record levels, investors do need to consult a broad range of sources.

But those who only have time to follow just one financial network should probably ditch CNBC and get Real Vision.