The idiot in charge of our central bank

Was he ever wrong...

[video=youtube;uZr0WQxQpLs]http://www.youtube.com/watch?v=uZr0WQxQpLs[/video]

 

You have to view Bernanke as the modern day Abe Lincoln. With an artificially low interest rate, he is preventing the spiraling out of control debt that the USA should be seeing. However, he is also sacrificing the elderly and responsible to ensure that the irresponsible has access to housing. If one is interested in preserving the USA at any cost, Bernanke is the perfect logician. The problem is that I don't think that the world will tolerate USA debt indefinitely and the Ponzi schemes associated with it. Something is going to break. Instead of the USA having a standard of living fifth in the world (or so) and dropping to tenth over the next 20 years, Ben wants to see the USA drop from fifth to 200th within 1 month. When is that day? Hard to say until the USA military shows flaws.

 

What a great video and post.

It says a lot about Schiff to stick to his guns in the face of all that opposition.

 

Duplicate post (what is it with this forum?)

 

Personally, I think they're hosting it on some kind of Wintard machine..

 

Thank you, and yes - even that dork Bernanke was believing and saying all the wrong things (did he know his words were false when he spoke them? got to wonder!) while Schiff was right on the money. In Keynes vs Hayek, I think it's quite clear who was right and who was posh..

[video=youtube;d0nERTFo-Sk]http://www.youtube.com/watch?v=d0nERTFo-Sk[/video]

[video=youtube;GTQnarzmTOc]http://www.youtube.com/watch?v=GTQnarzmTOc[/video]

http://econstories.tv

 

Maybe everyone should listen to him this time? Just a hunch..

[video=youtube;NngxJz2aBqg]http://www.youtube.com/watch?v=NngxJz2aBqg[/video]

 

It's been a while since I've heard about Schiff.

I think according to him the Dow should be at about 5000, gold at 5000, and hyperinflation running amok now.

 

Here it is:

9/25/09 Dow 9748 1:40
The worst is not over, according to Euro Pacific Capital's Schiff, who predicts the Dow will fall another 90% from current levels when measured against gold.

A longtime dollar bear and gold bull, he foresees gold hitting $5000 per ounce "in the next couple of years," and predicts the Dow and gold will trade on a one-to-one ratio vs. the current level of around 9.7-to-1.
http://economicrot.blogspot.com/2009_09_01_archive.html

He was right on the nail with that one, wasn't he.


Though a bit dated (mid May 08 ) Peter Schiff states that gold will see $2,000 in 2009 and likely $5,000 by 2012.
http://economicrot.blogspot.com/2008/07/peter-schiff-500000-gold-by-2012-dollar.html

He's got a few more months on that one.

Maybe that is why we haven't heard from him lately.

 

Cute videos, enjoyed watching them.

 

Schiff wasn't the only one to see the housing bubble, but he seems to have been much more vocal about it and took some crap for his position.

I started looking into Schiff, here is another good one:
http://www.investmentnews.com/article/20120710/BLOG09/120719997

Peter Schiff: The real fiscal cliff
July 10, 2012 9:33 am ET

Summary - the Jan 2013 fiscal cliff is not the problem, the negative impact of tax increases may be offset from the positive impact of reduced spending. The real fiscal cliff is the national debt:

The current national debt is about $16 trillion (this is just the funded portion...the unfunded liabilities of the Treasury are much, much larger). The only reason the United States is able to service this staggering level of debt is that the currently low interest rate on government debt (now below 2%) keeps debt service payments to a relatively manageable $300 billion per year.

On the current trajectory the national debt will likely hit $20 trillion in a few years. If, by that time interest rates were to return to some semblance of historic normalcy, say 5%, interest payments on the debt would then run $1 trillion per year. This sum could represent almost 40% of total federal revenues in 2012! ​

Other people are making this same arguement. Amazing its being ignored and the media and DC are listening to the same people who always get it wrong.

 

It's not being ignored. We just have a group in DC that refuses to compromise on a budget deal.

Here is the view expressed by its leaders:

[video=youtube;WKzGZj32LYc]http://www.youtube.com/watch?v=WKzGZj32LYc&feature=player_embedded%22]All%20GOP%20Candidates%20Would%20Walk%20Away%20Fro m%20A%2010%20to%201%20Spending%20Compromise%20%20% 20%20%20%20-%20YouTube[/video]

If you are concerned about the debt, write your Republican rep and tell them to compromise.

 

In looking back over his old predictions, he was off in the timing of the housing bubble as well. With the housing bubble, the economics and politics didn't change throughout the years he was predicting the collapse and his analysis was consistent. What he could not predict was Obama getting elected and the great lengths the government has gone through to prevent / slow down the correction. I'll give him some slack on the timing.

He is now claiming 2013 is the year doom will fall, and the issue is the huge debt and interest rates. I don't see that changing no matter what happens in the Nov election, although the longer obama stays in the deeper the doom.

 

No way. I do the opposite. I write to republicans and democrats and tell them to cut spending and cut taxes, and I tell republicans to stick to their principles and do not compromise.

Compromise means raising taxes (bad for the economy) and cutting spending (good for the economy). I agree with Schiff. The result will be no change at best, and probably a worse situation because the tax increase will be real and big, the spending cuts will be on paper only (cutting the increase in planned spending).

 

I think he mentioned what you're talking about in the video I posted here: http://www.politicalforum.com/budget-taxes/255140-idiot-charge-our-central-bank.html#post1061500230

He was saying that Europe's crisis has distracted everyone from the US, so we've been able to cruise along doing the wrong thing (low interest rates, printing money, yadda yadda) without us having to pay the piper. As I recall, he thinks that once the Euro crisis has been dealt with somehow, then things will come to a head here.

I dunno - watch the video and let me know what you think.

 

It seems terribly criminal to me for a bank to lend a nation its own national currency at interest. I can't believe we really have this system! It seems mind-bogglingly stupid to me that our nation is in debt to a private bank for its very currency, the money I earn and spend, and that we - the American taxpayers - are paying these $300 billion interest payments to that private bank. W T F ! ! ? ? CRIMINAL! We went from gold to this?? Dumb, dumb, DUMB!

 

There are legitimate reasons to go to fiat currency and a federal/central bank, but it also opens up a lot of opportunity for abuse. If the politicians are not responsible (and they are not) then its a disaster. Thats the conclusion of this "fed bank" experiment, its failing everywhere.

 

So to clarify, you would not be willing to raise taxes even though tax collections are at 60 year lows to lower the deficit, right?

Neither would half the rest of the pass the buck generation.

 

A false arguement. Taxes may be at a 60 year low by percentage of GDP (but not by other metrics), but spending is at an all time high.

The problem is not lack of revenue, it is lack of responsible government. There is too much spending. No level of taxation can support the level of spending. Particularly when the government will spend $1.40 for every $1 of revenue - increase revenue and the govt will spend the increase and more.

Raising taxes is passing the buck. The solution is to cut spending, cut the size and scope of govt.

 

Schiff says a lot of things. I don't disagree with him on some of them.

But I'm pretty sure we are a long way off from $5000 gold and a 5000 Dow and hyperinflation.

 

It wasn't an argument. It was a question.

And the fact you refused to address it simply proves my point. You'd rather see more debt than higher taxes. Same as half the rest the pass the buck generation. And why the country is $16 trillion in debt. Your personal finances are more important than the fiscal health of the country. Same with most other folks.

 

I answered it quite clearly. I'll answer it clearly again.

Do not cut taxes. In fact, reduce taxes.

Cut spending. In fact, cut a lot of spending. Means test social security starting now, and phase it out over the next 20 years. Transfer all of medicare to the states, end the federal program completely and let the states fund it and run it on their own. Abolish the federal dept of education and all of the federal unfunded mandates. Reduce the military presence overseas, close bases and bring troops home, reform defense funding. Etc.

Allocate a set amount of revenue to pay off the debt, when the debt is paid off then reduce taxes again.

 

Quite clear. You'd rather cut taxes and run up more debt.

You and the rest of the pass the buck generation.

 

I see you choose to ignore the answer and pick and choose what fits your bias. Thats a good little liberal.

 

No, I ignored that part of your post that had nothing to do with my question. I didn't ask anything about spending.