Posted on 01/25/2009 7:30:23 PM PST by sickoflibs
ON OBAMA’S STIMULUS PLAN: “It’s a disaster. The stimulus is the problem. It’s a bigger problem than what we are all dealing with now. Our politicians refuse to accept reality and understand what’s going on, that the economic contraction is necessary, our country is imbalanced; we’ve spent and borrowed too much money. We’ve run up these huge debts from speculation and instant gratification. People on Main Street have borrowed a lot of money and spent it. And people on Wall Street have borrowed a lot of money and gambled it away. And we’ve dug ourselves into this gigantic hole and the solution is to save our money, to produce things again. We need to tighten our belts, everyone from the average American family to Uncle Sam.”
“All they are doing is spending us deeper into debt, deeper into bankruptcy. Economies don’t grow because we spend money. We get to spend money because economies grow. And what makes economies grow is the opposite of spending. It’s saving, investment and production that this country is lacking that we need more of. We don’t need more spending. The politicians say we need to get consumer credit flowing again, that we need people borrowing more money so they can buy more cars. We need that like we need a hole in the head. We got too many cars on the road, right now we need to make cars we need to export them. There are people all around the world that are still using bicycles. Let’s make some cars for them, let’s export some cars. We can’t just keep borrowing money to go deeper into debt to buy more cars or TV sets or washer-dryers. It’s great to spend money when you have it. But first you have to earn it. It’s great to have things, but first you have to make them. “
It was bad monetary policy that got us into this mess. We had interest rates to low for too long. That’s encouraged all the reckless consumption.(and little savings.) The problem is, since we destroyed our capital base, since we destroyed our savings(low interest rates), the only way we can compete now is with cheap labor. So unfortunately wages in this country are going to have to come down because that’s the consequence. We have to start over again. The reason why Americans used to enjoy the highest wages in the world is because we had the most capital. We had the highest savings rate. We had the most tools in the hands of our workers and we have to build that back.
“The reason we were so rich was because we believed in capitalism. The government was small so people were big. We could succeed because government wasn’t putting on all these roadblocks. And we had honest money and we had higher interest rates so people would save. We used to have a double digit savings rate in this country. People bought things when they had the money. They didn’t buy first and figure out how to pay for it later. We didn’t have this phony service sector economy.”
ENTIRE CLIP AT : Peter Schiff on Lou Dobbs Radio Jan 6 2009
"It's great to spend money when you have it. But first you have to earn it. It's great to have things, but first you have to make them."
"“The reason we were so rich was because we believed in capitalism. The government was small so people were big. And we had honest money and we had higher interest rates so people would save. We used to have a double digit savings rate in this country. People bought things when they had the money. They didn’t buy first and figure out how to pay for it later. ."
"Everytime government planning has been tried,all it's done is made things worse. It didn't work in communist China, it didnt work in the Soviet Union. Barack Obama is no smarter than Khrushchev or Mao. He may think he's smarter than everyone else..."
"The economy is not going to improve because of this plan. You don’t solve economic problems by printing money. You solve those problems by working hard, saving, producing, and the exact opposite of what we are trying to do.."
"One way the government could create affordable housing is to stop propping them up with very low interest rates."
"The government can't fix the economy, it can only move our property from person to person, by taxing, borrowing, or printing more currency."
"The total cost to society is what the government spends, not just what we see it tax us"
"If devaluing currency made countries richer, the third world nations could just print themselves to a world power"
"We don't want work for the sake of work. We want work for what it produces"
"The (US Treasury)bond market is the next to collapse. The current buyers are like condo flippers looking to sell to someone else". "It's just another ponzi scheme as each buyer buys to sell until there are no buyers and it collapses"(this is because the government always needs NEW lenders for them to pay the interest and principle back to last set of lenders plus more to for new spending.)
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bfl
On the road to socialism. The more disaster they create the more we “need” them.
Peter Schiff for emperor.
I didn't realize until recently that it's possible to short Treasury bonds
Some more unconventional ideas to share
Good Lord, how does this Peter Schiff guy get on any national news show?
Obviously his name comes from his country of origin, the island of Shiffer. People there are so dumb the rest of the world refers to them as Shifferbrains.
WHY PETER? Peter Schiff is what we need now as the articulate and witty ‘ Prophet of Free Markets’ and the ‘nay-sayer of government intervention/socialism.’ We don’t need more dribble about how we need endless bailouts and endless stimulus packages and endless debt because the alternative is too terrible to speak of. We got the media and the party in power using public panic to gain support of their massive largest pork barrel redistribution project of all all time.
Kinda of OT I guess but have you read Crash Proof yet?
RE :”the island of Shiffer.”
???
Thanks sickoflibs. Very good 9 minutes.
We've been dancing - it's time to pay the fiddler...
He gets on news shows because he foretold this mess 4 years ago. And he is from the Austrian School of Economics. Not some socialist/Keynesian.
There is also an ETF that is a DOUBLE Short of T-Bills..
It trades under the symbol: TBT
*
President Strangelove or: How I learned to stop worrying and love Socialism.
The banking system is insolvent and credit will continue to remain frozen. All that's happening now is that the government is in the process of trashing what remains of the economy.
No, not to the extent it is today, but when GATT, then NAFTA, then the Pacific Rim deals went through, anyone with one eye and half sense should have seen it coming.
Of all the huge mistakes, Reagan's "Kitchen Cabinet" - agricultural conglomerates have done the most harm. IMHO
The Gipper was a fine man, but he got snookered on that one.
So, we have green cantalopes and watermelons for Christmas. Yum-yummy. Shipped thousands of miles from who knows where ...
Exactly : The best advice I have heard is wait till the stock market grows a bit, get out , and buy commodities for the next 5-10 years.
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