8/28/2006-Peter Schiff Predicts The US Economic Collapse With Unbelievable Accuracy

[seemslikeadream]

http://www.newmogul.com/item?id=1002

8/28/2006-Peter Schiff Predicts The US Economic Collapse With Unbelievable Accuracy

http://www.youtube.com/watch?v=LfascZSTU4o


From Peter Schiff's weekly email:


The Beginning of the End
October 10, 2008

Peter Schiff, President and Chief Global Strategist

While I have warned for years that the United States was headed into the eye of an economic hurricane, nearly every other "expert" from Washington, Wall Street, the press and academia saw nothing ahead but sunny skies. Now, suddenly, there is an overwhelming consensus that absent the Federal mortgage bailout, my dire forecast would have come to pass. While I'm glad that rose colored glasses have finally been removed from so many eyes, the vast majority of these observers are still blind. In truth, the bailout plan substantially increases the threats to the U.S. economy.

When I wrote my book "Crash Proof", I not only predicted that our consumer/mortgage credit-based economy would fall apart, but that the government would ineptly try to repair it. The magnitude of those potential policies formed the basis of my worst case scenario. My fears have now been confirmed, and the U.S. Government is now set to destroy all hope of economic recovery.

Make no mistake; had the government resisted the political pressure to interfere with the markets, we would now be experiencing a very deep recession. But by refusing to let the markets work, policy makers are resisting the only medicine capable of curing the economic disease that afflicts us. The same mistakes were made in the early 1930's, causing a severe financial crisis to morph into the decade-long Great Depression.

The government will now attempt to keep bad loans from failing and real estate prices from falling. Rather then allowing market forces to rein in excess borrowing and replenish savings, it will encourage even more borrowing and drain what is left of our savings pool. Rather than allowing our economy to return to one based on legitimate production, it will continue to encourage reckless consumption.

In the end, by refusing to allow market forces to work their cure, our economy will inevitably die from the disease. Our economy will now face death by hyperinflation, which will cause a complete loss of confidence in the dollar and result in prices and interest rates skyrocketing out of sight. The evaporation of our national wealth will lead to civil unrest, food and energy shortages, and the possible imposition of martial law. If such a scenario unfolds, what is left of our Constitution will surely be completely shredded.

[izquierdista]

1. Another "free market" wacko

These people have a religious faith in "The Free Market", akin to primitive peoples who worshiped mountains or oceans. There is no goddess Pele, no Poseidon who rules the seas, and no deity involved in market economics. There are laws of physics, and just as roads and tunnels can tame mountains, and jettys and breakwaters can tame the sea, man-made constructions can tame the roller coaster free market. All these free market believers should be packed onto a boat and sent into a Category 5 hurricane. Tell them if they believe hard enough, that the aerodynamic forces will rein excess wind speed, just as market forces rein in excess borrowing. The rest of us, the free market skeptics, we'll go inland to a government constructed shelter.

[F2XL]

12. Another Socialist wacko

I'm sure things have gone just fine in nations where the government controls the market right???

[leeroysphitz]

14. LOL. Try googling CHINA.

Genius.

[depakid]

2. One big problem with his analysis

the dollar has been posting substantial gains relative to most other currencies- and commodities have fallen.

Moreover, other markets have been every bit as affected- in some cases worse than the US. Thus "crash proof" wasn't so crash proof after all.

[endthewar]

4. I guarantee that the world will no longer use the US dollar

as a currency reserve as it does now. That's part of the reason why this economic crisis is worldwide.

[depakid]

7. What other currency will they use?

That's deal with currencies, they're based on relative economic measures.

For example, all things considered, one wouldn't have expected the Aussie, with its high yield, healthy banking system and "assess" to key (and scarcer growing) commodities to have gone from a high of .98 in July to around .64 on Friday.

Yet it has, and no one's sure where the bottom is.

[endthewar]

8. Probably will be discussed at the G7 meeting

or talked about later down the road when the world talks about how to avoid another global economic crisis like this. They will probably establish some kind of standard that is a mixture of multiple currencies of the most powerful countries.

Peter Schiff has talked a lot about these issues. Youtube has a bunch of clips of him. :hi:

[depakid]

9. I've read Schiff's book and heard him talk over the years

I've also looked at the data. How much do you suppose he's lost in Asia and emerging markets this year?

Over the much longer term, he's probably onto something- but not probably not anytime over the next several years.

Resource depletion of course throws a monkey wrench into all of this

[endthewar]

10. I think he's doing pretty well relative to other investors

For example, he's been smartly investing in gold, which has been skyrocketing recently and will continue going up.

[depakid]

11. Hate to break it to you- but he's leveraged with mining stocks (or at least that's the advce

he gives). Had a look at how they've been doing?

Now, that doesn't mean they're not undervalued at the moment- but hell, tons of stuff is.

Gold's no panacea- it doesn't pay interest or dividends- unless you're a business that actually uses it to produce something, it just sits in a vault and fluctuates in value.

[Hannah Bell]

3. unbelievable accuracy? where? i

[malaise]

5. So did Nouriel Roubini

and he's no free market goon.
http://www.nytimes.com/2008/08/17/magazine/17pessimist-t.html?_r=1&oref=slogin


His proposal - adios neoliberalism
http://www.rgemonitor.com/blog/roubini/

[bemildred]

6. Several things:

1.) You didn't need to be a genius to see it coming.
2.) You didn't need to be a genius to see it was peaking out.
3.) Once a Ponzi bubble starts to peak it CANNOT go on very long.
4.) Lotsa people saw it coming. I'm an economic nobody, and I pegged it for 2008-2009 five years ago.
5.) These things have happened over and over, history tells exactly how it goes.
6.) There are bound to be a lot of people out there who pegged it pretty close, just based on statistical considerations.
7.) He's a free market whacko. Anybody who says markets work magic is not "reality based". The market is a greedy ass, and it needs to be regulated. All markets that work well over time ARE regulated, and when they fail is always a failure of regulation. If you want to gamble and speculate, you ought to go to Vegas.

[roamer65]

13. Every currency in human history has been inflated out of existence.

It is easy to predict the demise of the dollar, because eventually it will happen.

Gold is the incorruptible currency.

For example, near the end of the Roman empire, the gold aureus was worth 4,600,000 denarii.