Do you think that he deficit spending Washington engages in doesn't affect your life, think again. When the government goes into debt prints more dollars creating a tax called inflation, the interesting thing about this tax is that it affects absolutely everyone, but no one complains about it.
This Yahoo story shows what the bailout is doing to the budget deficit and now that Obama has been elected listened to Peter Schiff talks about what deal bomb a presidency will do to it
Sunday, November 9, 2008
Peter Schiff predicts doomed economy under Obama
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7 comments:
Schiff has already shot hit wad. He correctly predicted the housing meltdown, and made some money doing it. However, he still has his clients in foreign assets and commodities. They are taking a pounding right now. Schiff is talking his book. Long term he is probably correct. Short term, the dollar and the U.S. are the safest instruments during a world wide recession.
Schiff hopes for a Reagan like administration to follow the Obamanation. I think that's certainly something to hope for, but there are more "gimees" every minute. If you rob Peter to pay Paul, you can count on the support of Paul. Nothing will really change until our debt addicted country hits bottom. The government under Obama will use the current crisis to advance it's socialist agenda, maybe beyond recovery.
Schiff is right on the money. This problem is just beginning to unfold. Happy times are not returning anytime soon to our country. The Treasury and Federal Reserve have created $4 trillion out of thin air in just the last three months, and each day they continue to create tens of billions of more "money" to prop up ailing institutions (AIG, GM, etc.). I suspect this will end very badly, and it will unfold so quickly that most will have little time to react. Instruments considered safe (T-Bills, bonds, and even cash) will suddenly lose most of their value. Institutions considered safe will default (COMEX), go bankrupt (certain troubled lenders not favored by Henry Paulson), or be temporarily shutdown (entire US banking system). When the fecal matter strikes the oscillator, you will either have bullion or you won't. Paper silver trades right now for $10 an ounce, but one ounce Eagles cannot be acquired for less than $16 an ounce. It doesn't take a financial genius to realize that this enormous spread SHOULD not persist for long. "Savvy" investors think they will patiently sit in US dollars and wait for the price of bullion to come (down) to them. But what is this?--The confounded price of choice bullion keeps creeping upwards rather than down! Once the trap swings shut (i.e., COMEX default and/or paper currency devaluation), we will see a race for bullion that will defy the imagination. When it occurs, you will either have bullion or you won't. If you think the bullion market is tight right now, wait until panic takes hold; fearful dollar holders will beg for metal at skyrocketing prices, and equally fearful goldbugs will refuse to sell. With no bullion to be had, the general public will run for th next best thing--metal in the ground. Consequently, quality precious metals miners remain a safe bet, especially at these depressed prices.
Obama has inherited a economy with 3 flat tires and the 4th tire is a slow leak.
Coming out of this is not going to be easy.
I hope that the world does not blame him for this mess!
Albeit a doomed economy, it has better chance for change under Obama. It took eight years of failed policies under the previous administration to get the economy where it is. It will take at least that long to bring change to a system that has strangled our financial markets. We have a war at $10 Billion a month and corporate heads recieving millions on the backs of their employees. We have billion dollar bailouts of companies who have been fiscally irresponsible and continue to reach out to the government and ultimatley the tax payer for relief.
It will be an up(Mountain)climb for President Elect Obama to deal with the economy but I do believe he will bring a fresh approach. Regardless of his outcome the doomed economy cannot be attributed to his election but to his those who proceeded him.
...the dollar and the U.S. are the safest instruments during a world wide recession.
Those are famous last words, Buba. More famous than, "Hold my beer."
I do have to say that I do agree with some of what this guy said and I do agree that with the big corporations instead of bailing them out via corporate welfare we should let them collapse under their own "free market" rules. That being said though, a return to the "trickle Down" economics of Ronald Reagan has already been a failure and would become an even bigger failure if like this guy proclaims, the first four years of obama lead to another reagan type president. You don't water a tree from the leaves, but from the roots. We have to have a bottom up economy for this country to get back on its feet. I personally feel that means the collapse of Wall St. and BIG corporations is going to be a good thing for our country. I think America needs to reemphasize it's small business mentality and become productive all around, not just with monopolies ruling! We need to Nationalize our monetary system giving the power to coin back to Congress like it states in Section A Article 8 of our Constitution. And I have to agree with Naomi Klein on the Nationalization or World Nationalization of Exxon Mobil! The free Market economy of the Reagan years has been a proven failure and along with Clintons De-regulations and W.'s Military Industrial Complex bankrupting this nation, we need to move this country forward from the BOTTOM UP! please visit my blog at http://enemyartistkristofer.blogspot.com
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