Peter Schiff tells it like it is in a speech at the Austrian Scholars Conference, March 13, 2009:
“China knows we’re not going to pay them back. Of course we’re not going to pay them back their money. It’s impossible. We can’t. We can’t possibly.
Can you imagine? Can you imagine President Obama giving the following type of speech to the American citizens?
He’ll give a national televised address and say, “My fellow Americans, I’ve got a little news for you today. We’re going to have to have a massive, across-the-board tax increase on average working Americans. Any American that still has a job is going to have to pay much higher income taxes.
“And, as a matter of fact, we’re going to have to cut Social Security across the board. Forget the Social Security check, we’re going to have to reduce it. And remember all my plans about more education and health care for everybody and energy independence, we got to put all those plans on hold, because the Chinese need their money.
“We borrowed a lot of money from the Chinese and we’re good for our debts. They worked hard for that money and they loaned it us to and we’re going to pay it back. And that’s going to require a big sacrifice on our part.”
Does anyone think that we’re going to do that? What are they, kidding me?
Do you know what we’re going to tell the Chinese? We’re going to say, “You guys are predators, predator lenders. We need a modification program. We need a cramdown on this. You never should have lent us all this money. You know we can’t pay it back. It’s not our fault.”
The Chinese know this. The Chinese–they can’t even vote in our elections. Why are we going to care what they think? We’re going to tax voters to pay non-voters? So the Chinese know they’re in this box.
The US government, we don’t pay our bills. We’re like Bernie Madoff. People loan us money. How do we pay it back? We borrow more.
If somebody came to Bernie Madoff a couple years ago and wanted their money, they got it. Why did they get it? Because they were able to take in new money. They found another sucker who didn’t know it was a Ponzi scheme.
Same thing the US government does. Every time a bond matures, we just go sell another one. And every time we need to pay interest on the national debt, we go borrow that too. Well, it works until nobody wants to lend us any more money, then we’re going to have to default, just like Bernie did.
And there’s only two ways we can default. We just legitimately don’t pay, or we print money. That’s it. There’s only two ways to repudiate your debt. There’s no way we’re going to pay the debt; the Chinese have to know that, and we’re going to figure that out.” [For the whole speech and video, go here: http://mises.org/story/3493 ]
America and the whole world are in trouble. The banksters, led by a nefarious spirit of greed and lies, have conspired to enslave the people of the earth. But the good news is that the King Jesus (Yahshua), who is not the milktoast wisp He’s painted out to be–He’s coming back with a “rod of iron” to smash their evil designs. And He will set up a righteous Kingdom wherein dwells peace and joy for a thousand years. That is the good news. That is the gospel. Kenneth Wayne Hancock