December 13, 2008
– Comments (8) |
RELATED TICKERS: UDN
They keep lining up and Peter keeps taking these idiots and their Socialist Keynesian dogma down.
Kenysian Socialist Don Recag
Schiff is getting tiresome. He blames government for everything. I guess government also framed OJ.
If you find him so tiresome, don't watch his clips. Then maybe the rest of us can be spared from nonsense like your last sentence.
I'd like to know how we are going to save jobs by giving money to the auto companies. If auto sales are down close to 50% from normal, you are either going to have to cut production by 50% and get rid of those workers - bailout or not, or you are going to make millions of cars that nobody wants, or you are going to pay people not to work (welfare). Those are your choices, so you decide.
Entrep hit the nail on the head. GM sales alone are down over 40% and Ford over 30%. Any well run company would just shut down unprofitable product lines and lay off workers. The automakers cannot because of all the contracts that strap them down. Auto industry layoffs will come bailout or not. Our government is holding on to memories of days past. Schiff is right, the us workforce needs to retool for the future. If you prop up failed industries, you curtail investment in new industries.
There is a huge history of bubbles and crisises; Peter Schiff claims it's the government's fault? He's a true believer and a mystic, not a credible authority on anything.
Before you mention "he predicted the crisis" - so did plenty of other people, few of whom agree with him - and he was pretty far off on the timing, which can't be said about all of his competition in the "called it" clan.
The amount of debt the US Treasury and Fed are creating is just ungodly and unsustainable and can only even reach existing levels by a currency backed by thin air, faith, and nothing else.....just like subprime borrowers 4 years ago. Tax paying bases are evaporating by the day. The way I see it, there is no more faith left in the consumption and debt driven US citizen. The state governments, CA/NJ/MI, are now where the US consumer was 6 months ago. Next to follow is the federal government. Just ask yourself this question, who is going to service the existing and projected national debt? What tax bases, unemployed people? Failing industries that already received enormous tax rebates/incentives from state and municipal goverments?
Foreign countries back their currencies with US dollar reserves, what the heck backs the US currency???? Faith, a strong tax paying base???? Exports????? It is a house of cards.
I agree that the amount of federal debt being created now is ungodly and (eventually) unsustainable. Right now, of course, this debt creation only partly offsets debt destruction in the private sector.
However, US treasuries are still safe, for the time being. The federal government has an enormous tax base and the US has a unique place in the current world order. There's no prospect of the current Chinese government removing or greatly loosening their currency peg, so the strength of the Chinese economy leads to dollar strength.
Of course we're in a global recession and financial crisis, but I'm not convinced that the Federal Reserve is specifically and particularly to blame (it shares part of the blame, but only as one wheel in a great system) and I strongly doubt that a gold, rather than dollar, backed currency has a good chance of being adopted.
If there's no gold currency, then gold is just for jewlery and electronics - on which basis it's grossly overpriced.
Dollars are still money, gold is not.
Thank you for the replies.
Peter Schiff claims it's the government's fault? He's a true believer and a mystic, not a credible authority on anything.
I posted my next blog post is your answer, the Peter Schiff was Right video has 883,315 views and Five Stars Rating. So I guess a FEW people disagree with you.