Posted on 01/25/2009 7:30:23 PM PST by sickoflibs
ON OBAMA’S STIMULUS PLAN: “It’s a disaster. The stimulus is the problem. It’s a bigger problem than what we are all dealing with now. Our politicians refuse to accept reality and understand what’s going on, that the economic contraction is necessary, our country is imbalanced; we’ve spent and borrowed too much money. We’ve run up these huge debts from speculation and instant gratification. People on Main Street have borrowed a lot of money and spent it. And people on Wall Street have borrowed a lot of money and gambled it away. And we’ve dug ourselves into this gigantic hole and the solution is to save our money, to produce things again. We need to tighten our belts, everyone from the average American family to Uncle Sam.”
“All they are doing is spending us deeper into debt, deeper into bankruptcy. Economies don’t grow because we spend money. We get to spend money because economies grow. And what makes economies grow is the opposite of spending. It’s saving, investment and production that this country is lacking that we need more of. We don’t need more spending. The politicians say we need to get consumer credit flowing again, that we need people borrowing more money so they can buy more cars. We need that like we need a hole in the head. We got too many cars on the road, right now we need to make cars we need to export them. There are people all around the world that are still using bicycles. Let’s make some cars for them, let’s export some cars. We can’t just keep borrowing money to go deeper into debt to buy more cars or TV sets or washer-dryers. It’s great to spend money when you have it. But first you have to earn it. It’s great to have things, but first you have to make them. “
It was bad monetary policy that got us into this mess. We had interest rates to low for too long. That’s encouraged all the reckless consumption.(and little savings.) The problem is, since we destroyed our capital base, since we destroyed our savings(low interest rates), the only way we can compete now is with cheap labor. So unfortunately wages in this country are going to have to come down because that’s the consequence. We have to start over again. The reason why Americans used to enjoy the highest wages in the world is because we had the most capital. We had the highest savings rate. We had the most tools in the hands of our workers and we have to build that back.
“The reason we were so rich was because we believed in capitalism. The government was small so people were big. We could succeed because government wasn’t putting on all these roadblocks. And we had honest money and we had higher interest rates so people would save. We used to have a double digit savings rate in this country. People bought things when they had the money. They didn’t buy first and figure out how to pay for it later. We didn’t have this phony service sector economy.”
ENTIRE CLIP AT : Peter Schiff on Lou Dobbs Radio Jan 6 2009
Peter is the ‘Priest of Free Markets’, and ‘nay-sayer of government intervention’ and has shown how Republicans have gone a-stray and democrats are a disaster. Democrats still believe it doesnt matter how big the pie is, only who cuts it, Obama/Pelosi. Republicans don’t believe in anything, that I can tell.
[Economic collapse in 5 1/4 months.]
The inflation predictor I watch is calling it for September, or eight months out. But yeah, I think we are looking at the same things. Continuing bank defaults causing artificial disinflation until the waves of printed money finally catch up.
I don’t know much about Schiff other than some TV interviews and YouTube clips, but according to this bolg post (http://globaleconomicanalysis.blogspot.com/2009/01/peter-schiff-was-wrong.html) he did a lot of damage to his investors. It claims that while Schiff correctly predicted an stock market crash in the US, instead of just shorting US stocks (which would have made money), in the past 1+ year he had his investors short the US Dollar (losing money to date), buying emerging-market stocks (losing even more money that US stocks to date), and buying commodities (losing as much money as US stock markets to date).
One can argue that he accurately predicted the US crash and perhaps even that in the long run may be proven right again, but up to now his alternate investing strategies have been as bad as everyone else’s.
I don’t think the likes of “O” would ever talk to Peter
Schiff.
The way he is poorly treated by other real economists, and financial “pros”, leads me to believe that our new “Head- Socialist-In-Charge” wouldn’t come within a thousand miles of his advice.
Originally as of 1/1/09 I said 6 months. Now it’s little less.
You can't be this damn ignorant. Did you even listen to the entire audio?
Schiff tried to warn us years ago, and told us exactly where this was all going, and Schiff was exactly correct.
Schiff was also Ron Paul's economic advisor. You know, the guy all the Republican insiders told us was a nut ball.
Turns out, these guys were absolutely correct.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.