Peter Schiff on BNN Canada Jan 7 2009 (Bond market is the next to go)

"The bond market is the next to collapse. It's just another ponzi scheme as each buyer buys to sell until there are no buyers and it collapses"

"There is no safety in the bond market. The only buyers are speculators. It has all the dynamics of a bubble. When the federal reserve announced their intention to buy long term treasuries it sparked a speculative wave of buying, traders trying to get into the bond market to sell to the treasury. They are all speculators. No one is buying bonds with the intentions of holding them to security. Everyone is looking to get out". "There are no real buyers in this market, they are like condo flippers looking to sell to someone else". "When the last buyer is in and you start to sell, there's no buyers left. Unfortunately the last remaining buyer is going to be the fed. But the more bonds the fed buys, the less bonds are worth, because the fed in order to buy bonds, has to print money. And when you print money you debase the value of the dollar, so the more inflation the fed creates, the less attractive bonds become." "...all he has is a printing press... he can't do anything"

" No one will buy US government bonds because we can't pay anyone back. The way the US government operates is we borrow money, and when the interest payments are due, we borrow that, and when the principle comes due, we borrow that,it's just a big ponzi scheme. It depends on an ever increasing supply of people to loan us money, and hope there's even a bigger fool willing to loan us even more so we can get it back."

Democrats are waging the war on the economy basiciscally repeating GWB borrowed-printed-stimulus packages but on an ever increasing scale. Instead of bombs and roads in Iraq it will be parks and art galley's here. All debt.

The booms and busts are just crack cocaine highs and crashes and the addict (Washington-MSM-stockbrokers-americans) are putting the crack rocks on their kids credit cards because "we have to". None of these even republicans ideas fix anything. It's all “we have to” like the parents on A+E Intervention buying their kids more crack, to keep them out of jail for stealing, “we have to”

RE "our money in the US is just as good....or as worthless..as everybody else's.....everybody else's economy stinks like ours"

What Peter failed to predict is the current deflation and run on the dollar after inflation and intrest rates killed the super stimulus bubble in late 2007-2008. He had predicted the rest of the world would survive without our borrowing and consumption of our products and so the dollar would continue down, our inflation up. But given current Washing plans to repeat the past on a more massive scale, inflation+interest rates are on the way (in fact last night democrat CNBC Cramer said we need inflation now, not kidding).

Will another crash cause deflation? Will it bring down the world again? Or can they adjust so their loaning us money isnt keeping them employed. Or maybe democrats are right and americans will save so much the only demand is the government, and government employees save creating no real jobs or inflation. Is he wrong? Can we just borrow and consume forever? Long term how does that help tose that lend to us? If they stop loaning to us, our interest payments on dept can only be paid by even higher interest loans and printed money. Does our consuming really make the world go round or is it just another suckers game, last one holding debt like Peter said at link?

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