Zombie scalps bought
Corn liquor served
Female company provided
20 roentgens cooler inside
2 can minimum
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 08/25/2010 6:31:34 PM PDT by Lorianne
Jennifer Schonberger: What's your take on the state of the economy now?
Peter Schiff: We're in the early stages of a depression now. It's going to be a horrific experience for average Americans who are going to watch their standard of living plunge. The cost of living is going to escalate dramatically. We are going to see soaring prices for the basic necessities of life, like energy, clothing, and other things. Education and health-care costs are going to continue to spiral out of control. Millions of more Americans are going to lose their jobs, and all of us are going to lose our freedoms and our rights. As the government gets bigger, it tries to end the crisis; but its policies are creating, perpetuating, and making it worse.
The sad fact is these policies are going to wipe out the middle class. They're going to wipe out the poor; they're going to wipe out retirees. Accumulated savings is going to be blown.
There is no economic recovery. All we did is spend more borrowed money. We dug ourselves into a deeper hole, and now we're in even more trouble than before Obama ascended to the presidency.
Schonberger: You've got the new book out on how an economy grows and why it crashes, and as you noted, you feel that this recovery is "fake." Certainly, it's slowing down as the stimulus is beginning to fade. How do we revive the economy for real growth and create jobs?
Schiff: We have to stop stimulating. We have to shrink the government and cut government spending dramatically. The reason the economy is so screwed up is because government regulations and subsidies have created a slowing economy. They have prevented market forces from operating the way they need to be. They have prevented an efficient allocation of resources. We need to rebuild our manufacturing base. We need to reindustrialize. We can't do that without the resources, without the savings, without the investment.
They've created a nation of spenders, speculators, and consumers, and they've destroyed the savers, producers, and the investing class that built this country. We're moving from a market-based economy to essentially a planned economy. We're abandoning capitalism and embracing socialism. That's a recipe for disaster.
Schonberger: Sans fiscal stimulus and the Feds' intervention -- quantitative easing -- do you think we would even have GDP [gross domestic product] growth?
Schiff: We don't have economic growth. GDP is going up, but that's not a sign of any economic growth. All we're measuring is what we're consuming. But we are paying for it by going into debt. As a nation, we're in worse shape because of the GDP growth. The real economy is shrinking. All we're doing is borrowing money from economies that are growing, like China, and we're spending their money. But that's going to stop.
Schonberger: You mentioned that you think we're in the early stages of a depression. When do you think we begin to see a double dip back into a recession?
Schiff: We've already seen that. GDP is decelerating now as the stimulus is wearing off, and the hangover is setting in. By next year, I believe we'll be back in recession territory, as far as the GDP numbers.
Schonberger: If we continue on the current policy path, is there a chance the U.S. is facing a Japan scenario where we're in a slow-growth, deflationary malaise?
Schiff: No. There's no chance of us getting off as easy as Japan. Our situation is considerably worse. We're going to have runaway inflation and recession simultaneously. I call what we're going to have an inflationary depression, which is the worst possible depression you can have.
Schonberger: So even though you think we're in for a depression, you're not concerned about deflation?
Schiff: No. We're going to have falling stock prices and falling real estate prices. That's not deflation. Prices are rising. Oil is at $82 a barrel and rising. The Japanese yen is at a 15-year high against the dollar. The government is printing a bunch of money. These are signs of inflation. Deflation is healthy. That's what we need. Unfortunately, inflation is what we're going to get thanks to the Fed and government policy.
Schonberger: Then it's safe to say you think the Fed should not be following the zero-interest-rate policy right now?
Schiff: No. We need higher interest rates. Rates are much too low. Low interest rates are part of the problem; they're not part of the solution.
... We're repeating the same mistakes of the [Alan] Greenspan Fed except on a bigger scale. Obama is repeating Bush's mistakes. Bernanke is repeating Greenspan's mistakes. So their mistakes will do even more damage to our economy than the mistakes of their predecessors.
Schonberger: So how should investors preserve their wealth in this environment?
Schiff: By getting out of U.S. assets entirely, by not owning any dollar-denominated debt. Don't own Treasuries or bonds. Invest in the economies that are doing it right. Invest in emerging markets -- Southeast Asia, China. Invest in natural resources economies like Australia, Norway, and Canada. I invest in commodities and precious metals. Just get out of dollars.
Schonberger: So you're still buying gold, which is currently trading around $1,200 an ounce. Where do you see gold going from these levels?
Schiff: There's no limit to how high gold prices will go. They will rise many times from here --thousands and thousands of dollars per ounce higher. People will be shocked.
It's surprising to me that gold is still as cheap as it is. I just know it's going higher, and eventually it's going to go ballistic. ...
Schonberger: Given your outlook for the U.S. economy, do you think the U.S. stock market is poised to crash?
Schiff: No. I don't think it's going to crash in nominal terms -- the way we think about it -- because the government has already created inflation. All that money creation will put a floor under nominal stock prices. But I do believe that the Dow Jones will fall down to about one ounce of gold, which is an 80% or so decline from where it is right now. In real terms, U.S. stocks are going to get killed. But in terms of dollars that we create out of thin air, no, I'm not looking for Dow 1,000 or Dow 2,000. But I am looking for the equivalent, loss of purchasing power, in terms of an ounce of gold.
(edited prologue)
I really wish I had a well.
Yup!...Check out his previous writings and videos on Youtube http://www.youtube.com/watch?v=lYkFYdLTTw8&feature=related
We aren’t in a full fledged Depression yet. History shows us that first we need a leftist President to enact a few Socialist ideas that are supposed to help to bring the big on the “D”. Fortunately Imam Obama has already started doing that so it’s only a matter of time. So we’ve got that going for us, which is nice.
Rain barrels - 2 55gal plastic barrels (connected by balance hose) at each downspout. Potentially 400 gallons. (Don’t forget filters & purification.)
bttt
Thanks!
I’ve been depressed since 2006.
The way things were going, I thought I'd get it earlier rather than later...and hopefully get a few checks before it ran out of money.
What a Pollyanna!
Most of us will mutter about the lucky buggers who were able to go scavenge cans!
BFL
Given the optimistic tone of this thread, I would have to point out that we’ll be lucky to have just a regular old garden variety depression.
He made a lot of predictions to a convention of mortgage bankers in 2006:
I totally agree with Schiff that our prosperity has increasingly been a phony prosperity.
In a healthy economy, prosperity is based upon a country creating wealth via the production goods and services.
But America for the last few decades, has instead been eating its own seed corn and spending borrowed money.
It’s obvious that you cannot eat your own seed corn forever and that there will come a time when you can borrow no more money until you pay back the money you already borrowed.
But the only thing I disagree with Schiff about, is exactly how long the people in power can keep our phony economy sputtering along.
It could be far longer than Schiff has been saying.
Or even sooner.
Cloward-Piven
A Democrat government.
That’s a good idea. I may be moving soon (I was laid off a couple of weeks ago, and am looking for work). I’ll keep in mind that having a well could be a great thing to have. Thanks for mentioning that, mylife.
Yes.
It could be far longer than Schiff has been saying. Or even sooner.
I lean toward a time frame of months, rather than years before it tanks for real. We've consumed an awful lot of seed corn since 2008.
Sir, you are correct.
There's not a dozen elected GOP officials who will do what is needed and no Democrats.
We REQUIRE a 50-60% cut in expenditures and a 25% across-the-board tax cut to pull out of this.
We need to repeal Obamacare and return the remaining TARP money to our children.
Not even the best of our GOP politicians have the stomach for this...because the American People don't have the stomach for it.
Dude, we're doomed. Get what you can for your dollars today because either the US Government is going into default or the Fed is going to drive hyperinflation...or both.
The only question now on the table is whether we bypass the hyperinflationary phase and go straight to default.
For the folks who are paying attention, that means the FDIC and US Treasuries won't amount to a hill of beans.
“and all of us are going to lose our freedoms and our rights”
Why is that? If the gov’t gets smaller and smaller and eventually defaults on its obligations, doesn’t that mean that there won’t be as many bureaucrats to get in our knickers?
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