Monday, November 10, 2008

Mish on Schiff

Here is another comment on Peter Schiff by Mish. He agrees with Schiff on Obamanomics, but of course not with the badly outted non-decoupling theory. What's important for us is if they are right on what they both agree on and then Schiff has already said that we are headed from recession into a depression.

In the video, Peter Schiff rants and raves about clueless economists and more spending and fiscal stimulus and states "We need that like a hole in the head". And on that point he is entirely correct.

I totally agree with Schiff. The cause of the economic crisis we are in now is a result of reckless spending and loose monetary policy. If reckless spending was the cause of this mess then reckless spending cannot be the cure.

And on the US dollar Mish says the worst is over.

Even though the US dollar index fell from 120 to 70, Schiff was still looking for a collapse of the dollar. It had already collapsed.
From there Mish seems to argue that the dollar is not so bad against other major currencies, but that's like Schiff saying his stocks aren't down nearly as bad as everyone else's. I am not going to hold dollars just because they're only half as worthless as Euros or yen, I'd rather hold gold and rice, and if I have to bullets i.e. things of intrinsic value.

I guess to workin stiffs like us it's a case of hope for the best but prepare for Schiffs Obamanomic nightmare.

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