Those are my views and not Schiff's.
As noted in the response, I base them on actual events reported by economic historians, rather that forecasts prepared by academicians and government bureaucrats.
If you want to think about something really terrifying, try to amortize our national debt. All of the premises you need can be found here: U.S. Debt Clock.
OK, so it can't happen under current conditions. But maybe we can still avert disaster if we slash government spending enough. Start by eliminating the 40 percent or so we borrow. Then raise interest rates to a more reasonable level from those resulting from printed money (with another $140 billion or so in spending cuts required for every percentage point they're hiked). Try not to think of Greece in the process. Think you can cut another trillion or two or three from spending to make ends meet?
So how about doing away with Medicare, Medicaid, Social Security, Food Stamps and Civil Servant Pensions. Is that enough, even if it were remotely politically possible?
Rerun the numbers as many times as you like and you will discover that default is inevitable. What does that mean?
For an answer, go back to the economic history text books and look at what happens to countries that default on their obligations.
Hint: think South American type hyperinflation if we default on the external debt only (i.e. debt held by foreigners), and Zimbabwe type hyperinflation if we also default on internal debt.
As noted earlier and elsewhere, as a nation, we are so incredibly screwed!
LOL...boy did I misconstrue your post!
Believe me, I see what’s comming, not if but when is the part to figure out.
I agree. There's no peaceful way back from here.
Krugman agrees:
Krugman: We're Going To Have To Default On Our Debt One Way Or Another