08 February 2009

Peter Schiff Predicts Economic Collapse

Will Thunderdome Become America's National Past Time?

The President would do himself some good by listening to Peter Schiff's economic theories instead of the modern-day Keynesians. Schiff correctly predicted the housing bubble going tits up, and his current economic forecast is just a bit grim. From Yahoo Finance:
The fiscal stimulus bill being debated in Congress not only won't help the economy, it will make the recession much worse, says Peter Schiff, president of Euro Pacific Capital.

Schiff scoffs at the notion the economic decline is starting to level off and concedes no government action means a "terrible" recession. But the path of increased government intervention will lead to "unmitigated disaster," says Schiff, who gained notoriety in 2007-08 for his prescient calls on the housing bubble and U.S. stocks.

The problem, he says, is the government is trying to perpetuate a "phony economy" based on borrowing and spending.
This Ponzi economy may very well bankrupt the nation much like the Weimar Republic in 1920s Germany he goes to argue. At best we can hope for some uber-nanny state like Great Britain (thx to St Ives Cornwall for the great vid on England's demise), but I'm sure it will be much worse. Sucks for us.


Shea said...

I thought we were already bankrupt. The only thing holding us up now is the fact that our dollar is tied to oil or petrol, which means that almost all oil and energy on the world markets is sold and bought in dollars.
Anyways, sure you will do fine and I hope you get that job. The U.S. job market is pretty dismal and only getting worse.

Anonymous said...

I agree. We're going down.

Lisa said...

It is a "Ponzi economy." You can't borrow and spend forever, can you? The tab comes due at some point.