February 13, 2009
– Comments (10) |
RELATED TICKERS: GLD
Peter Schiff - Stimulus Bill Will Lead to Disaster 06/02/09
Hope for the best and prepare for the worst - www.survival-information.com
I think the stimulus bill will lead us through disaster. The CBO expects a 7.4% decline in GDP without the stimulus. 3.5% with it. Slightly better numbers in 2010, and then a 1% decline in 2011 before slow growth returns.
Hopefully when we get to doing the Federal budget money can be shifted into more stimulating endeavors and possibly lessen the pain a little more.
Companys with good products and good business plans will be fine. Companys like C that relied upon skybox tickets to buy sales might not do so well. They will need to use the tickets and have good products.
We shall see.
Locked and Loaded!
Getting ready to put a chicken coup in my backyard. Probably a dairy cow too. Trade my BMW for horse and buggy.
If you are financially sound, meaning that you have played by the rules and saved, then there may be an opportunity for you here.
Put have your money into gold, silver, mining stocks and energy stocks.
Buy one or many properties in a low tax state using the maximum amount of government provided credit, basically any government owned bank.
Wait for the Dollar bust, when the prices of everything but your loans go up. Trade in your gold into Dollars as needed to cover your expenses. Sell the properties you don't really want, even at below market prices (which would have been inflated) to lock in your winnings or rent the properties to good renters using long term leases at below current market rates, to make your properties cash cows.
Properties with friut trees, a vegetable garden and room for a chicken coop would be a plus.
Sometimes I don't get Schiff. He's saying that the dollar will tank and it will be worthless as a result. I don't agree with that but his view is fine. Now on the other hand he advises to reduce your debt. Isn't that the dumbest thing you can do if you know your debt is going to be worthless?
Debt is debt no matter what it's denominated in.
If you owe $1,000, but the dollar is devalued, you still have to pay back that debt, but increasingly devalued dollars, so that will likely be a wash, but if interest rates increase, your debt will be an increased burden on you.
We have 30 years fixed-rate mortgage at 5.25%. We wouldn't worry about my mortgage in a hyperinflation economy. Instead of trying to pay it off sooner, I am buying silver and gold. Once I am convinced of deflation, I will be hurried to pay off my debt.
Paying off fixed rate debt in a hyperinfaltionary economy is probabbly a bad idea. My deposit would earn me a rate of 15%. I would make 10% by delaying payment of my mortgage. My point is very clear.
I still like Peter Schiff. However, Marc faber usually offers more complete and diversified view on economy and investment. I would trust Marc more than Peter with my investment.
buy more bullets
If we are going to have hyperinflation, why pay off everything you can? Quite the opposite, - don't pay off your mortgage faster than you need to because you'll be able to pay it later with cheaper money.