Saturday, June 7, 2014

CNBC's Liesman Thinks Consumers Need More Debt

All currency is debt, that is where Liesman is coming from. Schiff is right in that Consumer debt is the worst debt, because it goes towards consuming. Rather than assets that will appreciate. Business debt is the most productive debt, because it produces value in terms of goods and services. Unlike real estate, stocks and bonds which are unproductive assets. However, Schiff has this horrible misconception that currency comes from savings. Borrowed currency does not come from other peoples savings. It's created out of nothing. Likewise if everyone pays down their debts at the same time. It will cause deflation and a wave of bankruptcies. 

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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