Tuesday, August 25, 2009

Peter Schiff on aljazeera Riz Khan 24 August 09

Is it the end of the crisis or the verge of a bigger crash ?

Peter Schiff for the first on aljazera english talking about the recession , Listening to US officials over the past few days describe the national and global economies, people might be led to ask, "Crisis? What crisis?"
Even though central bankers worldwide warn of obstacles to a full recovery, the dire predictions of a 10-year recession are like a distant nightmare. So is the crisis over? Or should we expect another crash very soon?
Al Jazeera Riz Khan Global recession Peter Schiff recovery Daniel Gross economy financial crisis downturn oil


  1. i agree with all of the fundamentals that PS preaches, but one point i cant quite grasp, is his idea that the bankers dont know what they are doing. Also that we will eventually go back to gold, or that china has nothing to loose and everything to gain.
    The bankers surely know what they are doing, and it is what's good for THEM. Consequently why there will never be a gold standard again. Unless there truly were an apocalypse and the powers that be were de-throned, and the people ruled the world. Hasnt happened in recorded history, except maybe amoung the indigenous tribes etc. Even when we had the gold standard, it was just as rank with corruption and manipulation (like gold now) by the same powers. "The Coming Battle: The True History of Our National Debt by Walbert 1899", of which im sure PS has read, goes in to great detail about that.
    While I agree that China would probably be the winner on the other side, they are currently bound by the dollar, and our military forces. China is hurting now because of us, and when the dollar falls, of which their own fiat currency is backed, how could they not be affected negatively. Sure they have spent all their billions of stimulus on production and their future, so they will be better off than the US. But they will suffer because of the dollar, because they are already tied to it very tightly. When they do cut, after initial suffering, if they allowed wealth to go to their people, which i find hard to see any reason to believe they would do, prosperity would be abundant in China. China's elite are very tied to the west as far as i can see at the moment.

  2. China is not 'bound' by our military forces in any way that prevents them from doing what they want with their own fiat money. They are also on a path of 8-10% GDP growth through the end of 2009, and are exepecting 8-10% growth in '10. While that would certainly be affected if the US has another dip in '09 or '10, it is certainly an indicator of DECOUPLING that China didn't fall as far, and has rebounded strongly long before the US has turned upward even a tiny bit.

    China has a larger middle class than the entire US population. The only thing that has to happen for the Chinese middle class to replace the American consumer is that the Chinese government allows the value of their currency to rise relative to the dollar, and they can do that at any time. The result of such an action will probably be a Dollar crash, and China will lose most of a Trillion dollars from their reserves, but they can actually afford that, and they will simply begin to consume their own production. What we may see instead is China trying to slowly wean themselves off of the US, but it won't be a decades long process. More like 5-10 years.

    However, the US is well on its way to precipitating this event even sooner by going on a money spending spree of impossible proportions. A trillion-dollar deficit per year for the next decade is really a low-ball figure. Most all countries in the world could more than double their own GDP with a Trillion a year added to their spending. How we could even still be in recession with the massive spending we added this last year should be amazing, and tell us that our real economic health is quite poor.

    - Jaycephus

  3. Thank you for this comment. I too agree with the PS fundamentals and I feel like justice would prevail if the bankers ponzi scheme would fail.

    But, the banksters seem to be too smart and powerful. I mean, all the markets are their casino and they control all the chips. They can print all the money they need whenever they need to prop up something at any particular time.

    Did they orchestrate the stock market collapse like they are creating this current stock market run?

    Or, did they really almost lose control of the casino this past fall and this past winter?

    I know what PS says should happen and I thought it was inevitable but now I am beginning to wonder if the banksters' powers are too strong.


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