There's No Pain-Free Cure for Recession

The Wall Street Journal ^ | 2008-12-27 | Peter Schiff

[rabscuttle385]

As recession fears cause the nation to embrace greater state control of the economy and unimaginable federal deficits, one searches in vain for debate worthy of the moment. Where there should be an historic clash of ideas, there is only blind resignation and an amorphous queasiness that we are simply sweeping the slouching beast under the rug.

[An Old Man]

I believe the first one was none other than Davy Crockett of Tennessee

[umgud]

What was the name of that congressman those congressmen that said people were acting like the money belonged to them????

[AmericanGirlRising]

I’ve been following Schiff’s market economic analysis. I’m not an expert, but know he’s been spot-on in the past. Interested in any FReeper opinion on Schiff’s outlook:

http://www.youtube.com/watch?v=HUv8rjBAdbk&feature=related
Schiff on Madoff scandal and market effect.

http://www.youtube.com/watch?v=QSqrbF8ql_0&feature=related
Schiff radio call-in. Listen, but beware of the embedded shock imagery.

http://www.youtube.com/watch?v=ATgDXsxgRxQ&feature=related
Schiff radio call-in. Talks government bonds and long-term US currency depression. This is one of my favorite because Schiff is a strict capitalist and he takes the free-market principles and applies them to the larger global market.

http://www.youtube.com/watch?v=gapZx0bJiRU&feature=related
More Schiff radio call-in. He’s dumping dollars.

http://www.youtube.com/watch?v=NsYDkBprJZY&feature=related
Schiff on Glenn Beck Headline News talking Weimar Republic.

[An Old Man]

From your link to the Von Mises site where Murray N. Rothbard discusses the language of the new economics:

So be of good cheer; from now on, depressions and even recessions have been outlawed by the semantic fiat of economists; from now on, the worst that can possibly happen to us are "slowdowns." Such are the wonders of the "New Economics."

With the socialists propaganda machines in high gear, sometimes it is hard to believe we share a common language.

[An Old Man]

I believe the first one was none other than Davy Crockett of Tennessee

Let me expand on that: It is my understanding the Mr Crockett refused to spend the money of his constituents and admonished his colleagues who were debating the merits of some Federal giveaway program to do likewise.

[Squantos]

Painful only for the unprepared.....we saw this post turtle coming. Home, vehicles and bills all paid in full, zero debt shy of some utilities and cash in the ball mason jar under the porch per se ! We garden, we hunt, we fish and cherish the harvest as the resource it is. As others have stated here......we will fix the old and save the gold ! As well we made every effort to shelter our fiscal resources from the tax man and wall street long ago.

.... Confidence is low....extremely low in goobermint right now. A congress and executive branch that is and will be heavy in socialist idealist’s is toxic for preserving the republic. Trying to keep their seditious agendas in check is gonna be right up there with herding cats. The next two years will require every real conservatives efforts on a daily basis to get the word out that the MSM squashed during the election about these domestic enemies writing laws and incrementally destroying this nation. We “must” retake congress in 2010.

If they censor the conservative message again we go old school with handouts, snail and e-mail, ad’s in small local advertisement papers, club bulletins, parties and other social events. But above all else the content must have FACTS vs opinion or rumor. Anything less is to become what we fight.

Just my opinion........and what I am doing NOW !

[An Old Man]

Pleased to learn that you have the get outta town money in a safe and secure location! Many are not as fourtunate and still live hand to mouth.

Semper Fi
An Old Man

[Squantos]

Already out of town Sir !.......:o)

Hope others had the same opportunity we had to prepare for this type of event. Effort these days is just staying employed and saving more while we maintain the quality of life that exhibits our conservative values. One that hopefully is seen by others as an example of individuals taking responsibility for their position in life and helping others along the way to achieve that same level of security and independence by living within their means.

Stay safe !!

[El Gato]

There's No Pain-Free Cure for Recession

But most politicians and media idiots think that bleeding the patient is sure to work....this time.

[Travis McGee]

Schiff nails it, great to see him in the WSJ.

"It would be irresponsible in the extreme for an individual to forestall a personal recession by taking out newer, bigger loans when the old loans can't be repaid. However, this is precisely what we are planning on a national level.

"I believe these ideas (Dr. Keynes' Olde Snakeoil Majik Elixer)hold sway largely because they promise happy, pain-free solutions. They are the economic equivalent of miracle weight-loss programs that require no dieting or exercise. The theories permit economists to claim mystic wisdom, governments to pretend that they have the power to dispel hardship with the whir of a printing press, and voters to believe that they can have recovery without sacrifice.

"As a follower of the Austrian School of economics I believe that market forces apply equally to people and nations. The problems we face collectively are no different from those we face individually. Belt tightening is required by all, including government."

[TigerLikesRooster]

The message won't sink in for at least another two years. There are lots of people who won't get it until they crash into a brick wall and get themselves bloodied.

[scoastie]

well said, ExTex!!!!!!

[Squantos]

Can’t wait till they discover that miracle ointment that makes my wallet larger !

[GOPJ]

Similarly, any jobs or other economic activity created by public-sector expansion merely comes at the expense of jobs lost in the private sector. And if the government chooses to save inefficient jobs in select private industries, more efficient jobs will be lost in others. As more factors of production come under government control, the more inefficient our entire economy becomes. Inefficiency lowers productivity, stifles competitiveness and lowers living standards.

Thanks for posting this - Schiff gets it.

[USFRIENDINVICTORIA]

“By borrowing more than it can ever pay back, the government will guarantee higher inflation for years to come, thereby diminishing the value of all that Americans have saved and acquired.”

The importance of this truth cannot be overestimated.

[Comparative Advantage]

Sad but true. The folks who are now screwing their creditors by not paying their mortgages, credit cards or school loans will reap what they have sewn. After the proverbial SHTF, the result will be loans only to those with good credit ratings (and low debt ratios) and down payment money for mortgages. That’s the way it should be anyway. So, doing it the right way will eventually pay off, though everyone will be hurt in some form or fashion.

The party is winding down.

[Freedom_Is_Not_Free]

Common sense article. Schiff often nails it. I think he puts too much stock in the hyperinflation scenario, otherwise he seems to be accurate and he is way out in front of most. Thanks for the post.

[KarlInOhio]

His economic theory is that you need a recession to get healthy, the sooner the better and says in 2002 we needed one,

A recession is a time to prune the dead branches of the economic tree so that the healthy branches can thrive and the tree will grow when spring comes again. The bailout mania is an attempt to save the dead branches at the expense of the healthy branches. Taken to its logical end, the live wood will either be removed limb by limb, or will die and then "need" to be bailed out. The tree will die of that cure.

[grey_whiskers]

You might like this vanity or even its sequel.

Cheers!

...oh, and Merry Christmas!

[blam]

BFL.