Just recently on Peter Schiff’s radio show, Peter called out NIA (National Inflation Association) as a pump-and-dump scam and this has caused a bit of a controversy in the liberty movement. NIA (which can be found at Inflation.us) puts out some great documentary videos and newsletters warning people about hyperinflation and promoting a lot of the same Austrian economics that Peter Schiff does. However, a day or two after NIA puts out one of their newsletters or videos, they will typically send out some mining stock recommendations afterwards, preying on the libertarian folks who’d be interested in these types of investments. These stock recommendations tend to be for illiquid, junior mining stocks and once the NIA newsletters go out, their trade volumes spike up the next day. Schiff knows a bad mining stock when he sees one, and has claimed that the owners of NIA are getting paid to promote these speculative stocks in their pump and dump scam. But what pisses Schiff off most is that they are using his rhetoric to defraud perfectly good people who are not savy stock market traders. In addition, if anyone has heard of Jonathan Lebed (the 15 year old who was arrested by the SEC in 2000 after perfecting the dump and pump scam), I just discovered that he has been working with NIA on their newsletters and documentaries. As a subscriber to both Peter Schiff and the NIA newsletters, I found this revelation quite eye-opening (despite some creeping suspicions about the NIA in the back of my head). If any of you are also subscribers to NIA, let this be a forewarning about their stock advice. It’s sad because the NIA has a lot of good information, but unfortunately their owners do not have the best moral character.
As of today, I’m removing NIA from my recommended links.