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Financial Media Has a Bitcoin vs Gold Battle on Its Hands

With the economy seeming to worsen, many are wondering if either gold or Bitcoin can provide a safe haven for investors as they weather the current financial storm.

And as recent GDP numbers and economic indicators continue streaming in much lower than expected, and inflation coming in higher, many economists think the country is headed for another recession. 

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Many say investors need to protect themselves.

Some say gold is a safe bet.

Others prefer Bitcoin, or digital gold.

Two weeks ago, FOX Business host Charles Payne hosted an impromptu debate between renowned gold bug, Peter Schiff, and one of Bitcoin’s most eloquent proponents, Natalie Brunell. Neither knew the segment would become a gold/Bitcoin debate, and they each offered their point of view respectfully.

As an encore performance, Brunell welcomed Schiff onto her popular Bitcoin YouTube program, Coin Stories, so they could expand their conversation into the macro state of the United States economy.

“A lot of the people who follow both of us, we agree on the problem, we agree on the fact that we need hard money again. And what they’re doing with the economy and interest rates and blowing up another sovereign debt bubble is the wrong thing to do,” Brunell began. “So talk to me about what you’re seeing right now as far as the economy, whether we’re going to hit a cliff and go over it. Finally hit maybe a debt spiral collapse. Or if you think we’re gonna manage to do that soft landing that so many analysts in the mainstream world are saying.”

“Well you know that I don’t think there’s going to be a soft landing,” Schiff responded. “And I don’t even know if it’s a landing, because if we crash I don’t think that constitutes a landing. But I think the economy is in far worse shape than the conventional wisdom would suggest. Certainly Wall Street, the Biden administration, the media are spinning the economy into something that it’s not.”

Schiff has been a long-time proponent of gold, even from the days before Bitcoin’s existence. And while he and Brunell may disagree on the usefulness of gold today, the two seem to have similar views on the causes for the American economy’s decline. They also share similar opinions about what may or may not be done to revive it to the vibrant state it enjoyed just a few years ago.

“I think the statistics are very misleading, especially if you just accept them at face value. A lot of the statistics that purport to support a strong economy I think are going to be revised down. I don’t even have any confidence that the numbers are going to hold up,” Schiff said.

“I’ve been pointing out, and you may recall, that the 2008 Great Recession wasn’t called until December of ‘08, and they said it started in December of ‘07. So they went back for an entire year and re-did all the data. And the data previously had shown that the economy was good and it was growing, and everything was great. And then they went back and said, you know what, all those statistics were wrong. We’ve actually been in a recession for an entire year.”

Interesting that Schiff sees the same playbook being used once again.

“There is a precedent for doing that,” Schiff said. “And I wouldn’t expect those type of revisions to come until after this election. There’s no way Biden’s going to come out and admit that we’ve been in a recession for the past year or two. But they may ultimately acknowledge that once the voters can no longer react to it.”

For years, Schiff has made the case for gold as the best protection against economic downturns and mismanagement. Brunell, on the other hand, see’s gold as the predecessor to today’s superior form of money, Bitcoin.  They both feel there is currently a need for sound money in a tumultuous economic time. Regardless of what the official government data says.

“It’s not just that the numbers may be revised. I think the numbers as they stand now don’t even support that the economy is strong,” Schiff said. “One of the things that they look at is the job creation, and they point to all these jobs that are being created. But what they don’t acknowledge is the quality of the jobs. They are all part-time jobs. On balance, full-time jobs are being destroyed. We’ve lost full-time jobs.”

The loss of full-time jobs also backs up mounds of other data, which shows how weak the U.S. economy currently is:

-A report from Bank of America Global Research showed the current Democrat president having an amazingly-unique combination of a low unemployment rate and abysmally low approval rating. Approval rates are usually much higher with the unemployment numbers as low as has been officially reported, leading many to think the positive economic data has been manipulated.

-A recent report from the Centers for Disease Control and Prevention says United States fertility rates have cratered to their lowest levels in nearly a century. Economic uncertainty theoretically puts a halt on new family formation.

-Q1 GDP growth came in at only 1.6%, well below the 2.5% that was estimated.

-A Discover report from SEC filings currently shows credit card default rates spiking to levels not seen since the financial crisis of 2008-2010.

“The jobs that are being created are second and third jobs that are going to people who already have jobs,” Schiff pointed out. “Now the question is, why are people working second and third jobs? Is that something that they want to do? Or is that something that they have to do?”

The duo continued their discussion on the macro state of the economy, and also bridged into their debate between gold and Bitcoin. The full discussion can be seen on Brunell’s YouTube program.

With all the data that stands in opposition with the government’s rosy numbers, Schiff and Brunell have been educating on the need for sound money during difficult times.

Schiff prefers gold. Brunell, Bitcoin. 

And as the economic picture becomes more clear in coming months, we’ll get a better idea about which one performs best in those difficult times.

Rick Schultz
Rick Schultz
Rick Schultz is a former Sports Director for WFUV Radio at Fordham University. He has coached and mentored hundreds of Sports Broadcasting students at the Connecticut School of Broadcasting, Marist College and privately. His media career experiences include working for the Hudson Valley Renegades, Army Sports at West Point, The Norwich Navigators, 1340/1390 ESPN Radio in Poughkeepsie, NY, Time Warner Cable TV, Scorephone NY, Metro Networks, NBC Sports, ABC Sports, Cumulus Media, Pamal Broadcasting and WATR. He has also authored a number of books including "A Renegade Championship Summer" and "Untold Tales From The Bush Leagues". To get in touch, find him on Twitter @RickSchultzNY.

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