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Peter Schiff - The Hail Mary

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October 08, 2010 – Comments (3)

Since the US economy has failed to recover as widely predicted, pressure on the Federal Reserve to conjure a solution has increased. In fact, the Fed now faces the hardest choices in its history. It can either redouble its past efforts to re-inflate America’s bubble economy (risking the destruction of the US dollar) or it can stop pumping and let the economy deflate to a self-sustaining level. Unfortunately, both choices guarantee severe economic pain – but only one offers the possibility of ultimate success.

Today’s news that the economy lost 95,000 jobs in September confirms that record doses of stimulus have failed to create a real recovery. The loss of 159,000 government jobs in the month could have been a positive if those lost positions had been replaced by wealth-generating private sector jobs. But the 65,000 jobs generated by businesses didn’t come close. Worse still, most of these jobs came from the goods-consuming service sector rather than the goods-producing manufacturing sector (which lost another 6,000 jobs). The unemployment rate has now been above 9.5% for 14 consecutive months, the longest such streak since monthly records began in 1948. More importantly, the real unemployment rate, which factors in discouraged and under-employed workers, rose from 16.7% to 17.1%.

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3 Comments – Post Your Own

#1) On October 08, 2010 at 3:27 PM, HansHauge (31.69) wrote:

Preach it brotha!

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#2) On October 08, 2010 at 4:49 PM, loverandfighter8 (< 20) wrote:

I agree with Jim Rogers that the Federal Reserve is going to print money until we run out of trees.  I can't really imagine Bernanke standing there and admitting that he's been completely wrong on everything he's done and Congress cutting Social Security, Medicaid, Medicare, food stamps, ending our military empire, etc.  Only one way out of here, all the way down for the U.S. Dollar. 

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#3) On October 08, 2010 at 7:50 PM, simplemts (< 20) wrote:

My favorite part in WSJ and other media outlets is the rumor or thought that countries should get together and discuss "A gradual decline in the US dollar".  WFT?!?  Why would the whole world encourage this behavior and allow for this... simply because it is better than the alternative of the US depreciating 20% in a year?!?  *SIGH*, $100+ oil before end of 2011 easily at this rate, would not be surprised to see $125.

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