Posted on 10/15/2010 4:27:50 AM PDT by blam
Instead of win-win, it's lose-lose, according to Schiff.
No matter how HORRIFYINGLY PAINFULLY TRAGICALLY AWFUL it really is, it is a MILLION times worse. Then things get *really* tough. After that, HORRIBLE things happen, and then we REALLY get screwed. Immediately following that, the BOTTOM drops out and we are all DEAD, and THEN things get HARD! Once that happens, it signifies the TOTAL collapse of EVERYTHING, and that’s when the CATASTROPHE starts! Then there will be an OMINOUS PAUSE which CANNOT SAVE US because it’s DOOM BABY. We’ll slide right into complete DOOM and HORROR and BAD THINGS; Thereafter, it’s the sign of the end of EVERYTHING, but after that, comes the TRAGEDY and GLOOM and DARKNESS. Then times get DIFFICULT, and things get WORSE, until it’s EXCRUCIATING, but that’s just the beginning, because after that it’s all PAIN.
Sounds like Schiff is calling out the shenannigans of the the Liberal Free Trade Globalists.....Reverse Protectionism...which is really nothing more than failed Liberal Free Trade Globalism.
Globalists have to manipulate currency because Free Trade does not work. Why do you think the Communist Chinese have been altering their currency....
Vincent Fernando, CFA
Oct. 15, 2010, 6:19 AM
A race to competitively devalue currencies even further would lead to global crisis, says European central banker Juergen Stark.
Yet this crisis has nothing to do with hyperinflation or trashing the value of currencies, as many believe is the inevitable crisis.
It's that competitive devaluations would lead to the erection of defensive trade barriers, which would cause economic activity to contract as they have in the past.
"It would be fatal to enter a race to devalue, which in the end will bring about protectionism. Protectionism in the 1930s is what led to the global economic crisis," he said to the German business paper Handelsblatt according CNBC.
It seems any crisis would thus be one of protectionism, not a currency crisis.
We probably wouldn't even get far enough in the competitive devaluation process to hit a true currency crisis, since new trade barriers would quickly make devaluing one's currency useless as an export strategy.
[snip]
After that it's all downhill.
“If the fiat currencies of the world go Poof then the vast majority of the worlds wealth vanishes with them. “
That reminds me, I’ve got to go buy a two bottom plow for my tractor.
So what’s your take on the economic situation, that the dollar is actually very strong, the economic future looks bright, and this is merely just another slow period in the economy? What would you base that on, the DJIA being at 11K?
Then it is really much better than I thought.
Thanks, Laz. I feel a whole lot more optimistic about EVERYTHING. ;)
He’s just having some fun.
The dollar is indeed doomed, and non-Government pensions will become worthless or be seized by the Government - but there’s still time to get into hard assets.
And one day Bambi won’t be King anymore.
(Requires specialized hardware, sold separately)
“It would be fatal to enter a race to devalue, which in the end will bring about protectionism. Protectionism in the 1930s is what led to the global economic crisis,” he said to the German business paper Handelsblatt according CNBC.
What Liberal Globalist horse crap. Its that “Smoot Hawley caused the Great Depression” nonsense again.
Liberal Globalist trade policies is why we are here now....Protectionism is the only thing that will work to correct the problems...especially when the US enacts protectionism.
The failure of Liberal Globalist Free Trade is the reason the world economy has collapsed
Gee. Laz. That sounds like a buying opportunity...
No, free trade works fine. Manipulating currency is NOT free trade. Schiff is pointing out that it doesn't work, that allowing a free trade in currency is the solution.
Protectionism did cause the Great Depression. Its not crap, it’s what happened.
Socialists believe that tariffs create wealth, in the same way that taxes create wealth.
But they don’t. Tariffs destroy wealth. They are a tax on buyer and seller, and a subsidy for uncompetitive domestic “industries”.
In your Brave New World, we’d all have to buy a GM car off heavily-compensated union goons rather than (horror!) be allowed to buy cars that are cheap and effective from foreigners.
Edited for clarity
Protectionism did not cause the Great Depression. According to Friedman it was caused by the Fed. Protectionism just made it worse.
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