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.

[rabscuttle385]

*Ping!*

[rabscuttle385]

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[wastedyears]

I have a good argument I’d like to put forward to people.

Obviously not those informed on here.

“Why if the government caused all the mess in the first place, should they be the ones to try to clean it up?”

[sionnsar]

There is a principle of cleaning up your own messes... IF you are competent to do so!

[An Old Man]

Governments cannot create but merely redirect. When the government spends, the money has to come from somewhere. If the government doesn't have a surplus, then it must come from taxes. If taxes don't go up, then it must come from increased borrowing. If lenders won't lend, then it must come from the printing press, which is where all these bailouts are headed. But each additional dollar printed diminishes the value those already in circulation. Something cannot be effortlessly created from nothing.

That statment says it all! Remember it, and tell your dem friends every chance you get.

[ExTexasRedhead]

What pain? The voters are counting on their new God Obama to cure all their pain, heal their wounds, pay their bills, make everything right in the world, placate and appease our enemies so they will love us, fix all our highways and bridges, stop global warming, cure disease and give us all free top-notch medical care, put a steak on each of our tables every night. What more could peons want than for their Socialist God Obama and Liberal leaders in Congress to take care of them? All we have to give up is our freedom.

[wastedyears]

They obviously weren’t competent in the first place, which caused them to make the current mess.

[AndyJackson]

We have enormous structural problems and the liquidation of enormous malinvestment accumulated over 30 years and more to deal with.

Our legal and regulatory mess has been crying for reformation for 20 years. Our system of finance where investment dollars are created out of inflation rather than out of personal savings is on its last gasp of hot air and paper. We have put a fortune into Miami condos and shopping malls. We have 10 times the retail floor space per consumer of any country in the world. None of this is productive.

Health care costs are inflated by regulation, legal messes, a bizzare system of payment all of which has made a bureaucratic nightmare out of getting an aspirin.

It was ok when the world was willing to take our paper in exchange for commodities and manufactured product that we were unwilling to produce ourselves. That is at an end.

We have a finance system that skims money off the top of consumer transactions through credit card payments and interest payments that contributes nothing productive.

We have lot to work through and a lot of restructuring to move people from jobs that shouldn't be done to jobs that need to be done.

[sionnsar]

Q.E.D. *\;-) Thank you.

[patton]

Just keep in mind that aspirin is really just a tea of willow bark, and you will make it.

[Cyber Ninja]

snot true........................

[djf]

If you can pick up a wrench or a screwdriver and fix stuff, there will always be stuff to do.

We will certainly be going into a “repair instead of replace” kind of lifestyle.

Which is absolutely fine with me, as one of my greatest pleasures in life has always been taking things apart, seeing how they work, and putting them back together. Better, if possible.

If you make your living moving paper from pile A to pile B, you might want to do some serious job planning now.

The medical industry, the home care industry, will do well.

[sickoflibs]

The financial prophet Peter Schiff tried to warn us, see his speech Nov 2006 Peter Schiff Mortgage Bankers Speech Part 2 of 8. Schiff quote : 'Saving is under-consumption in the present for consumption in the future'. Saving is the solution, a recession. In America we consumed in the present for the expense of the future.' Another Schiff quote :"The boom is the problem, the bust is the solution". His economic theory is that you need a recession to get healthy, the sooner the better and says in 2002 we needed one, but this is political death for the elected. Politicians running for re-election need to pump more and more money, borrowed and printed (ie low interest rates), into the economy to look like they are fending off a recession but it only delays the eventual crash and makes it much worse.

[org.whodat]

“Why if the government caused all the mess in the first place, should they be the ones to try to clean it up?”

They have the printing presses and they control the police and army's.

[org.whodat]

Just damn!!!

[An Old Man]

they control the police and army's

I find it very interesting how we let them think they are!

[org.whodat]

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

[sickoflibs]

Some Peter Schiff 2006 prediction videos at

The Financial Prophet Calls it (Peter Schiff) at

http://sickoflibs.blogspot.com/2008/12/financial-prophet-calls-it-schiff.html

[Para-Ord.45]

It`s Govt. that creates boom and bust cycles:

http://mises.org/story/3127

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