Monday, November 19, 2012

Peter Schiff: We are going to go over a much bigger fiscal cliff

Peter Schiff: Everybody is saying we have to avoid the fiscal cliff, but eventually we’re going to go over a much bigger fiscal cliff, because this one is really a pothole. In the current case, we’re talking about cuts in government spending which are trivial relative to the types of cuts we actually need to solve the problem. People are panicking because we might have small cuts in government spending. We actually need enormous cuts in government spending, the problem is we’re not getting them. And yes, there will be tax increases. It’s worse for the economy not to have the taxes, because if we don’t have the taxes, we’re still spending the money, so we’re just paying for it by creating inflation and going into debt. It’s the deficits that do more damage to the economy that the taxes. - in seekingalpha

Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

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