PETER SCHIFF
Monday, August 31, 2009
Subscribe to:
Post Comments (Atom)
Popular Posts This Month
-
Your Daily Dose Of Liberty Freedom Watch with Judge Napolitano 16 Sept 2009 Jim Babka, Downsize DC Dr. Edwin Vieira, Author Walter ...
-
Peter Schiff: Printing Money Is Not the Cure for Cononavirus In his most recent podcast, Peter Schiff talked about coronavirus and the im...
-
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 , L...
-
If you want to listen to Peter Schiff's Wall Street Unspun Podcasts , here is the widget , I used to have it on the front page , But fra...
-
The devil we know is better than the devil we do not know Benbernanke did a horrific job as a FED chairman he's done a good job in tempo...
-
Dave Ramsey calls Peter Schiff an idiot ! Quote from the youtube channel that posted this video : This is a phone call to the Dave Ramsey sh...
-
A very hot debate between Peter Schiff and Mike Norman on the future of the Gold prices back then in 2008 , today more than a year and a hal...
-
Peter Schiff starts his Campaign from Fox Business today he said that he is Not a Career Politician like Chris Dodd .he wants to fix the se...
-
The more we owe, the wealthier we are ??? Congressman Pete Stark reacts to national debt Watch Congressman Pete Stark reacting when Jan Helf...
-
23-03-2009 Peter Schiff: You're Better Off as a Renter Part 1 of 2 : Part 2 of 2 :
I think what Peter Schiff needs to do is to first go to where people are assuming. He needs to say something like this:
ReplyDelete"When we hear of the economy growing again, people usually think that that means that the economy is making things and being productive. In our case this is not really so. The economy is only going again in terms of consumption. [and then state, as always]... This is why we are creating an even more devistating problem today with all these debt-fuelling bailouts: we are not really making anything, we are only going deeper into debt. When the day comes that we can't borrow anymore, then you tell me what happens then. No productive capacity + massive debt = no money = true poverty.
I can empathise with his frustration. It is ridiculous how people cannot get this. There shouldn't even be an argument. It is mad.
Peter fails to acknowledge that it wasn't the housing bubble itself but the repackaging of high risk debt as low risk securities that essentially showed the emperor had no clothes. That was a huge failure an more deregulation isn't going to fix that problem. More regulation will. Credit is the oil of the capitalist engine. Preaching that credit is evil is nonsense. Irresponsible credit is bad, but not credit itself. I agree that America needs to produce more and spend less but that could be said of many western countries. Few have a positive trade balance with Asia because goods cannot be produced as cheaply as they can in Asian countries, by lower paid workers. What Asia still doesn't have is the varied level political stability and ingenuity and entrepreneurship prevalent in many western countries. America created the computer revolution - Asia piggybacks off it by providing cheap hardware but when has Asia created software you own?
ReplyDelete"Credit is the oil of the capitalist engine." True enough statement but clearly the commentator fails to understand that credit liquidity has to come from somewhere? Is that credit based on savings that people has amassed or is that based on fiat from some entity that declares the interest rate to be thus? If the latter, then that is funny money being generated and not in real savings. This is where the theory of business cycle applies - there is a mis-coordination between savings and investments.
ReplyDeleteTo the previous poster... Peter is not saying credit is evil, what he is saying is that capital comes from savings, and we don't have any savings... credit is being artificially created out of thin air by The Fed. We have borrowed substantial amounts of money and we used that debt not to produce goods, but to consume. That is the problem. The housing bubble would have never occurred if the government wasn't guaranteeing mortgages and keeping interest rates so artificially low. Interest rates are supposed to rise when savings are low, not drop. Repackaging of high risk debt is a symptom of our problems, not a cause.
ReplyDelete