Guy who predicted the financial meltdown: Obama’s only making it worse
posted at 6:43 pm on November 24, 2008 by Allahpundit
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It’s Peter Schiff, Cassandra of the collapse, sounding off on Bloomberg TV over the weekend. He also predicts a bear market for another five to 10 years, with lows for the Dow somewhere between 4,000 and 6,000 but actually much worse in real dollars as the U.S. is crushed by hyperinflation. The only solution? Bring on the apocalypse and let’s muddle through.
If anyone needs me, I’ll be out back killing myself.
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Pretty sure Ron Paul has been talking about the collapse of our economy for years
offroadaz on November 24, 2008 at 6:46 PM
Is that because it’s Ron Paul’s economic advisor (and Ron Paul) who are being given credit for predicting and explaining the collapse?
Jimmy Liberty on November 24, 2008 at 6:48 PM
You’d better hurry up, Allah. Suicide’s gonna be taxed like crazy in the coming administration :)
progressoverpeace on November 24, 2008 at 6:48 PM
WHAT?! and miss all of that yummy doom and gloom that all of us will be subjected to for the next 5 – 10 years? What kind of Eeyore are you?
My collie says:
CyberCipher on November 24, 2008 at 6:49 PM
PLEASE! Tell me why this guy is wrong.
HUGE trade deficits funding consumption.
HUGE liquidity pumped into system.
Collapse of housing market.
Where is he wrong?
Charles Martel on November 24, 2008 at 6:50 PM
To be frank, I don’t see how we aren’t heading for hyperinflation. I’m no way optimistic for a recovery within the next 5.
Risk is part of the financial market. These bailouts are tearing at the fabric of our system, not repairing it.
Spirit of 1776 on November 24, 2008 at 6:50 PM
I’ll see you back there.
meltenn on November 24, 2008 at 6:50 PM
Can I borrow your implement when you’re done with it?
eeyore on November 24, 2008 at 6:51 PM
That’s true. But mostly that was he was forecasting what would happen if we did nothing to push back terror and we let them hit us here again.
But at least he was smart enough to put his money in gold.
Spirit of 1776 on November 24, 2008 at 6:51 PM
Smart money = Canned goods.
bryanmyrick on November 24, 2008 at 6:52 PM
Thus far, every single prophet who has ever augured, “The world will end tomorrow” has been wrong.
Five years hence, will this guy be available to cover the point spread on his abyss-mongering?
whitetop on November 24, 2008 at 6:53 PM
Here’s my fearless prediction:
Things will get bad, then ok, then good, then meh, then bad, then good. Repeat ad infinitum.
Oh, and the Cubs will continue to not win the World Series.
rbj on November 24, 2008 at 6:55 PM
On the plus side, maybe any bank with any connection to my student loans will go under and I’ll get a free education.
jimmy the notable on November 24, 2008 at 6:56 PM
Smart money=guns. There, FIFY.
Webrider on November 24, 2008 at 6:57 PM
The first term of the Ossiah is going to suck.A
NeoKong on November 24, 2008 at 6:57 PM
Gold Standard! Luap Nor was right – Heh.
Aristotle on November 24, 2008 at 6:57 PM
What do you expect him to say? He is famous now that he was shown to have predicted this. That fame goes away if he says everything is going to be alright.
Has he ever said anything positive? Ever?
BuckNutty on November 24, 2008 at 6:57 PM
Come on, ya pansy. So you have to give up your IPhone v.138. Whoopty doo.
MadisonConservative on November 24, 2008 at 6:57 PM
Not to encourage suicide, but can you honestly say that anyone needs all the stuff that’s offered at Bed Bath and Beyond? The little plastic thingamabobs that do one specific task and don’t actually work very well? Who actually uses that stuff?
If our economy depends on the success of BBB, I think we’re sunk. I’d much rather effort go to going back to the moon and actually doing something there. Or making things here in the US.
wtis02575 on November 24, 2008 at 6:58 PM
Damn thing printed before I was finished.
I wanted to say..anyone know how to can some peaches…?
NeoKong on November 24, 2008 at 6:59 PM
Ron Paul advisor FTW. Nobody is too big to fail, and until we let these junk corporations fail, its only gonna get worse.
muyoso on November 24, 2008 at 7:00 PM
Here’s the deal: If you sound batsh*t crazy on other major topics, people tend to ignore you on the one. We’re talking about the guy who claimed that Iran has no army, air force, or navy. Pardon me if I didn’t embrace his economic advice.
amerpundit on November 24, 2008 at 7:01 PM
I’d like to inherit your possessions before the death tax is implemented.
I’ll be sending you the proper paperwork. Thank you and good luck! ;)
katy on November 24, 2008 at 7:01 PM
Pretty sure Ron Paul has been talking about the collapse of our economy for years>>>
Look, a lot of people predicted rain everyday straight since Bush’s inauguration. These events don’t make those morons prescient.
joeindc44 on November 24, 2008 at 7:03 PM
@ amerpundit on November 24, 2008 at 7:01 PM
If you take everything someone says as literal, then McCain thinks people in Pennsylvania are racists bigots, Obama thinks there are 57 states, Palin reads every single publication in America, and Biden thinks Hillary would be a better president than Obama.
muyoso on November 24, 2008 at 7:04 PM
@ joeindc44 on November 24, 2008 at 7:03 PM
When they call it EXACTLY correct, it does. He has been warning of this collapse for a while.
muyoso on November 24, 2008 at 7:04 PM
Last week the worry was deflation; now it’s hyper-inflation. I’m going to go have a beer…
oddball on November 24, 2008 at 7:05 PM
Huh? When did McCain say that Pennsylvanians are racist bigots? I thought Biden said that Hillary would be a better VP choice than him. Here’s what Ron Paul said:
That’s a strong statement to make if you don’t mean it.
amerpundit on November 24, 2008 at 7:06 PM
@ amerpundit on November 24, 2008 at 7:06 PM
It was Murtha, and here is the clip.
http://www.youtube.com/watch?v=QnE-YJ—GI
muyoso on November 24, 2008 at 7:07 PM
So what is the bad news?
Our economy is one of riches, choices and opportunity, not needs. As Obummer’s half brother proves, you can get by in a 10×10 cardboard hut on $12 a year — But who would want to do that. Well maybe a relative would.
Obamunism, equally misery for all.
tarpon on November 24, 2008 at 7:07 PM
I’m not a Paul fan, but it’s clear what he means. There is enough real issues with Paul, no need to gin others up.
Spirit of 1776 on November 24, 2008 at 7:07 PM
@ amerpundit on November 24, 2008 at 7:06 PM
I think he was talking comparatively. As in comparing Iran’s army, navy, air force, to our own, es evidenced by the context.
muyoso on November 24, 2008 at 7:08 PM
amerpundit:
I didn’t see Ron Paul in either of those clips, did you ?
billy on November 24, 2008 at 7:08 PM
I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.
- Woodrow Wilson (shortly after signing the Federal Reserve Act into law)
MB4 on November 24, 2008 at 7:09 PM
@ billy on November 24, 2008 at 7:08 PM
Peter Schiff was Ron Pauls economic advisor.
muyoso on November 24, 2008 at 7:10 PM
That was very good analysis, translation = We are screwed.
Firebird on November 24, 2008 at 7:10 PM
Schiff has a weekly radio program you can hear at europac.net, FYI. It’s a bit client focused, but he does do plenty of general economic talk.
kc8ukw on November 24, 2008 at 7:11 PM
It`ll work out.
ThePrez on November 24, 2008 at 7:12 PM
He said, “They don’t have an army or navy or air force.” He didn’t say, “Compared to Israel they have nothing.”
Let’s say that he didn’t mean what he actually said. Apparently he doesn’t speak literally. Yet the nation should heed his economic advice when he gives it. Okay.
amerpundit on November 24, 2008 at 7:14 PM
Peter Schiff is not the only one.
sharrukin on November 24, 2008 at 7:14 PM
http://www.youtube.com/watch?v=dv6rQ0U01Yc
If anyone is interested in Ron Paul’s view on the bailout, or rather, bailout #1 of many.
muyoso on November 24, 2008 at 7:14 PM
Peter Schiff makes very straightforward common sense. The news of the day confirms it. 7.4 Trillion loaned out so far by the Treasury, and little transparency.
Now we are bailing out another bank backstopping $306B and they have another 1.3 trillion of off book transactions that may go sour.
Once foreign countries such as China and the Saudis understand that we cannot possibly pay the interest on all the debt we created, it will be game over.
The blame rest squarely on Dodd, Frank, Clay, Waters, et al regarding Fannie and Freddie and we played nice. MM is the only one beating the drum of warning about all this and Congress is clueless and the public wants handouts.
Starlink on November 24, 2008 at 7:15 PM
muyoso on November 24, 2008 at 7:10 PM
But he’s not Ron Paul, so merely dismissing him because of RP’s rather, shall we say, interesting views on other issues would be pretty stupid. Wouldn’t it?
billy on November 24, 2008 at 7:16 PM
@ amerpundit on November 24, 2008 at 7:14 PM
Look at the broader context of what he is talking about. Stop focusing on one sentence. Read the prior 5 sentences before that one. Anyone looking at it rationally can figure out what he is talking about.
muyoso on November 24, 2008 at 7:16 PM
@ billy on November 24, 2008 at 7:16 PM
Agreed.
muyoso on November 24, 2008 at 7:17 PM
Worst.President.Evah
My collie says:
CyberCipher on November 24, 2008 at 7:18 PM
Pretty sure Ron Paul has been talking about
the collapse of our economyAliens for yearsKaptain Amerika on November 24, 2008 at 7:18 PM
Okay, I’ve finished watching that segment. While Schiff is still holding strong on his lines regarding hyperinflation and the default of the treasury, did anyone else notice a serious layer of cockiness lacing his comments, particularly his snipes?
Methinks he may be getting ahead of himself.
MadisonConservative on November 24, 2008 at 7:19 PM
Ding! Ding! Ding! We have a winner. Just because a guy associated with a fringe Presidential candidate who attracts the 9/11 Inside Job crowd and the John Birch society predicted something that came to be doesn’t mean that he’s always right. I think it is unlikely that the US will be in recession for ten years. More likely two years and all will be well again.
Illinidiva on November 24, 2008 at 7:19 PM
@ Illinidiva on November 24, 2008 at 7:19 PM
Even if we are better in 2 years, the government has set a precedent of a company being too big to fail. Companies know they don’t even have to be viable to exist anymore, so we learn absolutely nothing from the recession, and it happens again and again.
muyoso on November 24, 2008 at 7:22 PM
Schiff has predicted financial doomsday every year, for years. and he didn’t predict the CDS problem, which is what made the current mess such a mess.
We are currently in a deflationary recession, he’s saying Hyper-Inflation is around the corner, dollar losing 90% of its value, etc, etc.
jp on November 24, 2008 at 7:22 PM
BTW, freaking out doesn’t making anything better. Spending within one’s means does. Everyone should make a concerted effort to spend money (without going into debt and with setting aside savings). Turn off the TV and stop following the stock market (which really has tested its lows). Good God! The panic has really got to go.
Illinidiva on November 24, 2008 at 7:22 PM
Here’s what he said:
Nothing he says in there indicates that he understands they maintain a military. In fact, he claims that Israel has 300 nukes. Former Presidents and nuclear experts estimate that their stockpile is 1/3 or 2/3 of that.
amerpundit on November 24, 2008 at 7:23 PM
whitetop on November 24, 2008 at 6:53 PM
They only have to be right once, and eventually one will be.
Seriously, what reason to be optimistic?
1. Since the end of WWII the government has been complicit in the destruction of our manufacturing base. How many of you have a majority of your friends and acquaintances that makes something for a living?
2. We have a generation who thinks the world is owed to them, because their parents won WWII, running the country.
3. Our education system is actively working to indoctrinate children as little collectivist drones.
4. The government is gaining increasing power to influence and control your day to day activities (EPA mandating CO2 as a pollutant, anyone?) through departmental and agency moves, as well as the bailouts.
5. We do not get the best and brightest in government, because they have chosen not to put their family through the sh!t that anyone above dogcatcher gets.
Making myself even more annoyed, so I will end my list, but I could go on for a bit as there are far more reasons to be Eeyore than Pollyanna.
Nathan_OH on November 24, 2008 at 7:24 PM
I’m scared about this precedent, which is why we should say no to GM. We also must do something to beef up the Justice Dept’s anti-monopoly division. No company should be so big that they can take down the entire US economy with them.
Illinidiva on November 24, 2008 at 7:24 PM
Things you will need to survive the Obama Economy:
Canned Spam,Ramen noodle, Powdered Milk, Bottled Water, Charcoal water purifiers, Canned Veggies, propane tanks, gasoline tanks, stockpile Ammunition, Wrought Iron bars on the windows, Basement folding cots & your religious book of choice.
portlandon on November 24, 2008 at 7:25 PM
seems to me the paultards are putting all their economic cred on the table by following schiff here. If he is wrong, and hyper-inflation does not occur, we are just in a deflationary recession….he’ll look as crazy as he has in the past and completely make Austrian Economics a laughing stock.
for what its worth, a friend went to an economic summit last week that had some big name phd economist(one worked in whitehouse not long ago). One of them predicted we bounce back in 2nd quarter, the other 3rd quarter 2009. Schiff is saying soon Hyper-Inflation sets in, dollar is worthless so buy tons of Gold and SIlver now.
jp on November 24, 2008 at 7:28 PM
A new technologic revolution is about to invigorate the short-sighted, stuttering economy with raw energies, from the nanoscale (buckeyballs) to the cellular (telomere research).
The potential in a Materials Revolution to revive the treasuries of all states far outweighs any losses we’ve suffered so far.
Let the biotech and medical leaders get the ear of the cringing investor class and start utilizing the backlog of brilliant insights awaiting exploitation.
From carbon sequestration via vanes to metabolic regulation by carbon nanotubes, the future is rich with profound areas for every skill and speciality.
profitsbeard on November 24, 2008 at 7:29 PM
here is a short version of the NAU(Bircher) conspiracy theory this crap has spun out by the Schiff/Paul followers
jp on November 24, 2008 at 7:32 PM
@ amerpundit on November 24, 2008 at 7:23 PM
So lets say he is exaggerating? Is that allowed? He is saying that Iran will never attack Israel because Iran has “no” air force, navy, army, and Israel has “300″ nukes. THAT is the worst you can come up with against Paul? He exaggerated once? I am a supporter of his and I can find much worse things against him.
muyoso on November 24, 2008 at 7:32 PM
Starlink: You mean to say John McCain “played nice” didn’t you? He should have hung Frank, Dodd and Fannie and Freddie around Obama’s neck last summer and the outcome would have been different. Smart money = canned goods, water, guns, generators.
missouriyankee on November 24, 2008 at 7:32 PM
U.S. Air Force: Israel has 400 nukes, building naval Force (July 04, 2002 )
MB4 on November 24, 2008 at 7:33 PM
NO there is alot more that can be said here, and was last year. The guy is a lying lunatic nutball, who worships Austrian Economics(which is right about alot of economic stuff, on paper anyway in idealistic terms).
jp on November 24, 2008 at 7:35 PM
There was life before iPhones, AP….
FloatingRock on November 24, 2008 at 7:35 PM
Went to school with Laffer’s daughter. Also, I was telling friends in 2007 that the economy would tank hard right before the election and that gas would be below $2.50. Not a bad guess for an English major.
Christien on November 24, 2008 at 7:36 PM
Ok, tell you what. I’m going to start saying right now that the economy will recover and that the DOW hits 20,000. Now, if the DOW hits 20,000 in 2050 or 2075, does that make me a genius?
It’s inevitable that markets are going to crash and surge because it’s freaking cyclical
Tacitus_SGL on November 24, 2008 at 7:37 PM
This particular prophet has a quite impressive record. My training is in economics, though I’m not a professional economist. He’s right, he’s been right, and he will generally be right in the future. This is rougher than you think. Deflation at first, then hyperinflation along the lines of the Weimar Republic in Germany in the 20s. We’re not going all Zimbabwe or anything, but if you have very little debt, now is a good time to take on debt if it is feasible. It will be pretty much inflated away within 3 years.
HerrMorgenholz on November 24, 2008 at 7:37 PM
And here I thought it was a the chickensh!t littles that were the abyss-mongerers.
Huh, learn something new every day….
FloatingRock on November 24, 2008 at 7:38 PM
I’m not an economist…but if you print money, trillions worth, it devalues the currency, which leads to massive inflation.
See “Republic, Weimar” for a terrific example.
Paul, for all his wackiness, is correct on fiscal matters, at least what I’ve read on him to date. His big beef is that our money isn’t tied to anything like gold anymore.
hippie_chucker on November 24, 2008 at 7:40 PM
The only thing? No. But I don’t feel like sitting here writing up a dossier on him and I’m sure you don’t feel like A) Waiting for it, or B) Reading it.
First of all, that one report is from 2002 — 6 years ago. The BBC News report I quoted is from this year. Second of all, that would still make Paul quite wrong.
amerpundit on November 24, 2008 at 7:41 PM
Ok, so, what? Bottom line is…? Seriously…what can a family of four (two kids under four) with one income as an industrial/print designer do? We are saving canned goods and water already but, c’mon, we are already living paycheck by paycheck with only student loans as our debt. What. Can. We. DO?????
Mommypundit on November 24, 2008 at 7:47 PM
Unless they’re fundamentally right, as Peter Schiff was. He didn’t just predict some ambiguous form of doom and gloom, he enumerated the specific causes of the current falling sky catastrophe that’s caught the chicken littles entirely unaware.
FloatingRock on November 24, 2008 at 7:48 PM
Maybe that is what this country needs, to raise another generation of not so spoiled brats.
Lincoln Logs for Christmas
No more Birthday parties at swanky gaming joints
Vacations at the campground
Weekend playing includes picking up a stick and using a tennis ball.
broker1 on November 24, 2008 at 7:49 PM
Aye. I hope this guy is wrong.
If the party’s over there’s gonna be a lot of big, fat, lazy types living at home with mom and dad who’re gonna have a huge shock when they find out they have to give up their X Box, cell phone, internet, HBO and cable.
They’re gonna have fun when mom and dad insist they pay rent and they get to compete with all the illegals here for jobs – while they last – at McDonalds and Wendys. But that “issue” will be resolved when amnesty is granted. Ha, at least they’ll be competing with citizens.
If you’ve got a house with a yard start planning on growing food.
Put some cash aside to pay property taxes for the next few years – assuming it retains some measure of value.
And buy guns and ammo.
BowHuntingTexas on November 24, 2008 at 7:50 PM
Just bought canning for dummies, don’t seem to be too awful hard.
thomasaur on November 24, 2008 at 7:51 PM
@ Tacitus_SGL on November 24, 2008 at 7:37 PM
What is going to happen to the dollar? Why is it going to happen? What will the international response be? Answer all those and then my answer would be yes.
muyoso on November 24, 2008 at 7:51 PM
@ amerpundit on November 24, 2008 at 7:41 PM
We have already had this discussion multiple times, so you are correct.
muyoso on November 24, 2008 at 7:52 PM
Except that if the government stops screwing up the economy we’ll come out of it sooner and stronger.
FloatingRock on November 24, 2008 at 7:55 PM
what Schiff predicted as the cause, and the actual cause may be two separate things, with the results looking like what he predicted.
Schiff never predicted what the Credit Default Swap Contracts(which are private contracts with no Regulations), would do. And this is a Multi-Trillion dollar market. Ben Stein wrote about this not long ago, because he didn’t see it coming, the Investment banks didn’t see it and pretty much the only ones that did were the owners of the contracts(who I’d like to know who they are).
Stein compared the CDS contracts to being able to buy a Caddilac for $50k and insure it for $2 Million and guarantee the investment. They’ve been defaulting and the rest is history, its what was bankrupting the Investment banks and others playing that game.
Warren Buffet called these things “Weapons of Mass Financial Destruction”. Which by the way, Buffet is the smartest man in Finance history, so if Schiff is right Buffet just pissed away his fortune, if Buffet is right then Schiff is wrong and can go back to being labeled a Crazy. We’ll find out in 2009
jp on November 24, 2008 at 7:56 PM
does anyone have a video of Peter Schiff, before this mess, talking about CDS and MBS Derivative contracts?
jp on November 24, 2008 at 8:04 PM
he has weird eyes … like those cat clocks
joey24007 on November 24, 2008 at 8:04 PM
Scary stuff.
This guy is more apolyptic than seems realistic, but nobody should totally discount the possibility of a major major economic event.
In fact, we are already in one. Why can’t it get worse.
notagool on November 24, 2008 at 8:07 PM
Hopefully they’ll realize that, excepting video games, books are better.
FloatingRock on November 24, 2008 at 8:08 PM
Puhleeze
Ever heard this one?
Economists have predicted nine of the last five recessions.
corona on November 24, 2008 at 8:09 PM
I can’t bear to watch this, but I did find it extraordinary that Cavuto had some blonde chubby chick on as a guest (don’t remember her name, hence the description) who is apparently part of The One’s economic team, and she was saying that the solution is to give the “middle class” a tax cut so they spend money.
This after Obama has based his entire Universal
Serviceserfdom idea on the talking point that Bush told people to shop after 9/11 instead of urging them to serve their communities like Saints Barry and Michelle, and wasn’t that horrible.I still don’t understand how community service would have stopped the 9/11 hijackers, but I digress..
Buy Danish on November 24, 2008 at 8:11 PM
Here is my thoughts on bailouts of public corporations:
If I was Toyota I would sue because the markets are dictating that their business model works better and a foreign government is interceding in Fords, GMs et al gaining of market share.
Wells Fargo, Fifth Third Bank are doing ok and weathering the storm. What happens if Citi gets the bailout, weathers the storm and pushes these two out? Is that fair?
broker1 on November 24, 2008 at 8:15 PM
I’ve known there was a credit and housing bubble for years, though only in the most general sense, (not being an economist myself or following the topic avidly), and I was right. The fact that even now I don’t know much about credit default swaps and only learned of them recently doesn’t invalidate my past observations that there were unsustainable bubbles in our economy that nobody around me or in the government seemed to recognize.
FloatingRock on November 24, 2008 at 8:18 PM
The worst case scenario that I fear is if the government bailouts actually succeed in delaying the inevitable while racking up more trillions in debt and causing massive inflation leading to an even worse crisis later on.
FloatingRock on November 24, 2008 at 8:23 PM
I’m really not up on my economic knowledge. Could you explain this for me? Husband and I have about 18k in student loans. This is our only debt. What does inflated away mean?
And, um, the conspiracy theory scares the crud out of me. Is there any truth to that??!?
Mommypundit on November 24, 2008 at 8:27 PM
We already do this. OMG…we are so going to die.
Mommypundit on November 24, 2008 at 8:30 PM
The salient point of Schiff is that we are not financially solvent. He is right.
The American economy is based upon people borrowing money to buy things. But they borrowed money they can’t pay back. We know how this ends. These other experts don’t get it. They think the solution is to free up more money for more purchases. The problem is not one of tight credit, it is one of loose credit. It is not one of slow sales, but of sales that should never have been made. Like all those deadbeats that bought houses they couldn’t afford. Next will be the credit card debacle, and then the car loan debacle. The problem is not slowing consumer demand. That is the medicine. The problem was consumer demand for things that were not paid with cash.
I have said this for years. As Schiff says, “we don’t need people buying stuff. We need people making stuff.” Any economy that is predicated upon people buying stuff, is a debtor economy.
No politician will ever say that the people have been living too high on the hog and that they will have to suffer for their sins. They won’t say it. And no talking head from any investment firm will say it, you can be sure of that. They want you to buy things to help stall the inevitable.
keep the change on November 24, 2008 at 8:35 PM
I agree there was a real estate bubble obviously, which some economist recognized a couple years back. My point is, take out the CDS contracts and the chaos and bailouts we’ve seen wouldn’t be what it is. 300 Billion in bad mortgages is costing a whole lot more than that, thanks to what they do with mortgages these days.
I’d like to know if there is much Saudi or Middle Eastern money behind the CDS’s, or Soros or Putin or China for that matter
jp on November 24, 2008 at 8:36 PM
I happen to agree with him. The last 14 years has been a faux economy. Some geniuses set out to equalize the world economy, create markets, yada yada.
Our congress wants to be reelected, not pay the piper.
Free trade sure is expensive.
eaglesdontflock on November 24, 2008 at 8:37 PM
That means that your debt is measured in dollars, dollars that might be worth nothing, so your debt will be, too. For Example; You owe $10,000 and that much today takes you a year to save. But if the dollar is devalued, which it will be, what will $10,000 be like then? That could be the cost of a loaf of bread. So you might be able to pay off your debt for the equivalent of a loaf of bread.
If you think the dollar will crash, you would want to get rid of dollars and turn them into something that will not decline in value – something that is real. Like a can of beans. Remember, you can’t eat money.
keep the change on November 24, 2008 at 8:40 PM
The sooner the people get back to running things the quicker our economy will be better.
JellyToast on November 24, 2008 at 8:41 PM
My tinfoil hat tells me that hyperinflation has been planned ahead of time as the only way to make the debt go away. Can’t prove it’s a real conspiracy, but wow, it kinda fits.
The key question right now is how much new money is being “printed” vs. how much is being funded by the sale of Treasury Securities. If the Chinese and Saudis (and others) stop buying T-Bills and bonds, we’re screwed ’cause all that’s left to fund bailouts and Obama programs is taxes and creating money out of thin air. And tax increases won’t even scratch the surface of these bailouts, so thin air it is.
Incidentally, they can create money a lot faster now than in the Weimar Republic days, because they don’t even need to print it. The Fed just taps on it’s keyboard and the central banks magically have more money. That ought to speed things up a bit. More here: Hyperinflation-Watch
But I also totally agree with profitsbeard: There are some astounding new technologies bubbling away in labs right now, almost ready to burst forth. We just need to hang on through the next year or three, and we’ll have the means at hand for a major technological revolution.
Hopefully we won’t need to have the other kind of revolution before we get there.
ZenDraken on November 24, 2008 at 8:44 PM
Somebody asked about old footage of Schiff.
This was on H/A a few weeks ago. It’s from 2006 I think. Notice others laughing at him..
http://www.youtube.com/watch?v=2I0QN-FYkpw&eurl=http://hotair.com/archives/2008/11/14/video-blogger-stocking-up-on-ammunition-canned-goods-for-recession/
katy on November 24, 2008 at 8:45 PM
Mocking him.
FloatingRock on November 24, 2008 at 8:47 PM
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