Tag Archives: Peter Schiff

Peter Schiff Prediction: Economic Collapse for America Worse than 2008 and Europe

Peter Schiff predicted the 2008 crash.  Should we listen to him now?  “You shall know them by their fruits,” said our Master and Savior.  Schiff has been generally right for many years now, and those who followed his advice have been rewarded handsomely.  If we are wise, we will pay attention to this guy who was right before.

Check out this video from Yahoo Finance along with an article detailing what we should be doing to ride out the economic storm: http://finance.yahoo.com/blogs/breakout/america-heading-towards-collapse-worse-2008-europe-says-155504860.html

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Peter Schiff: Economic Predictions for America, 2009-2012

We had better listen to Peter Schiff.  He predicted the stock market crash of 2008 and the real estate bubble bursting.  Here are his predictions for the immediate future, including 2009-2012:

“So, the question is, what are going to be the consequences of what we’re doing now?

“And what I think is going to happen is that, ultimately, people like the Chinese and the rest of the world — the Saudis and the Japanese and everybody else — they’re going to figure this out, and they’re not going to want to play this game any more. We’ve got them conned right now.

“In my book, in Crash Proof, I compared it to Tom Sawyer. You know, there was that passage in Tom Sawyer where Tom gets everybody, all the kids in the neighborhood, to whitewash his fence. And he gets them to pay for the privilege of doing his chores.

“And when Mark Twain wrote that passage, he probably had no idea that it would one day form the basis for the entire global economy. But we’ve got the world painting our fences. Like they don’t have their own fences that need painting.

“But the world is not going to accept this, this economy. You had Hillary Clinton from when she went over to China, a couple weeks ago, to get them, to beg them to buy our bonds.

“She’d tell them, “We’re all in this together.” And basically this is what she tells the Chinese: “You need to take money away from your citizens and loan it to us, so we can give it to our citizens so they can use it to buy products made in your company to keep your people employed.” That’s the deal that we’re making with them.

“Now, what the Chinese should say to Clinton is, “You know what, I got a better idea. Why don’t we just leave our money with our own people and then they can use the money to buy their own products. That way we get to keep our stuff.”

“The way it is now, we get all the stuff and all they get is the jobs. Well, what good are jobs without stuff? That’s slavery.

“So they’re going to figure it out. And what’s going to happen is they’re not going to buy our bonds, and the Fed’s going to start buying all the bonds, and the dollar’s going to plunge. And this crisis is going to end up being a currency crisis. And when it becomes a currency crisis, then you’re going to have higher consumer prices and you’re going to have higher interest rates.

“Right now, we’re creating a lot of inflation. A lot of people are talking about, “Oh, there’s not inflation, it’s deflation.” That’s all nonsense. Real-estate prices are falling because they’re too high. Stock prices are falling. But that’s not deflation. That’s just falling prices. There is no contraction of the money supply, it’s growing like crazy.

“And this crisis is going to end up being a currency crisis.

“But the expansion of the money supply is not immediately showing up in rising prices for commodities or consumer goods, because there are other temporary factors that are pushing prices down at the same time inflation is pushing prices up. You’ve got deleveraging; you’ve got bankruptcies, going-out-of-business sales; you’ve got a lot of companies liquidating their inventory; and you have the dollar strong.

“And what happened was, paradoxically, when this crisis began, money flowed into America instead of fleeing America, which it will do ultimately. Can you imagine there’s a giant explosion and everybody’s running towards the blast? That’s what’s going on.

“And when people look around the world and they say, “Well, people are coming to America because as bad as it is every place else, it’s so much worse here.” That’s nonsense. That’s just what they’re saying to explain it. Just like they tried to justify the real-estate bubble or the Internet bubble. That’s all nonsense.

“The reason it’s so bad in the rest of the world is because they loaned us so much money and we can’t pay them back, and now they’re losing, based on their bad loans.

“And what’s really causing the global credit crunch is that we’re borrowing so much money right now, we’re crowding out everybody else. The fact that people are loaning us so much money means that private businesses around the world can’t get capital. Why? Because it’s all going to the US government, that’s why.

“So the world is suffering, not because our economy is collapsing, but because they’re foolishly trying to prop it up.

“And when they figure this out, then we’re going to get a real economic crisis. Because when the dollar starts to plunge — and it will — then we’re going to see prices rising, sharply, for consumer goods, and interest rates rising.

“And if we think we have problems now, wait till we see how much worse they get when we throw rising consumer prices and rising interest rates into the mix. And there’s nothing the government’s going to be able to do about it.

“Right now, unemployed people are getting the benefit of lower prices. Imagine when you’re out of work and your prices are going up, because that’s what’s going to happen. And then this is going to be a real economic crisis and then we’re going to be in for very, very difficult choices.

“And, unfortunately, the worst-case scenario is one that is looking increasingly more likely, which is hyperinflation. And if we get that, that’s where nobody will lend us money.

“And, so, the Fed buys all the bonds in order to keep interest rates down and to maintain deficit spending. And, then, the velocity money really starts to pick up. Nobody is going to want our money — not even American citizens will want our money and they will try to spend it as quickly as they can.

“The government might try to keep it together a little bit longer, with regulation. Maybe we’ll have capital controls. Maybe they’ll make it illegal for American citizens to do what I’m doing with my clients right now — buying foreign currencies, foreign stocks. Maybe they’ll make it illegal to buy gold.

“As prices really start to contract, to escalate, private parties will try to make contracts with payment in gold or other currencies. Maybe the government will make that illegal. There might be stores or people that actually don’t want to accept dollars because their value is dropping too rapidly. The government will make that illegal.

“And that means that we’ll have a black market. That means if you want to buy something, you’ll have to buy it on the black market, just like they did in the Soviet Union. The only reason you could buy anything there was because you bought it illegally.

‘A lot of these things are going to happen. I think early on, probably even in Barack Obama’s first term of office, I think we’re going to have price controls.

‘I think prices will be rising so rapidly, maybe even by next year, that they’re going to impose price controls on a number of products; probably energy, probably gasoline, probably milk, bread. And we’re repeating all the mistakes of the 1930s. We might as well repeat the mistakes of the 1970s.

‘And, so, when they put on price controls, what’s that going to mean? Shortages, power blackouts, long lines for gas, long lines for food. A lot of things are going to happen, I just mention that. Everybody now, of course, is talking about the 1930s and saying, “Oh, no, we can’t repeat the mistakes of the ’30s.” Well, that’s exactly what we’re doing.” ***

Most will not heed Peter Schiff’s advice; they will continue to go headlong over the cliff, following the other sheeple.  We have been warned.  There will be a few who will study out the warnings and make appropriate moves to not only preserve their wealth, but also prosper.  “My people are destroyed for lack of knowledge,” said Yahweh through his prophet for that  hour.  And it is through this economic knowledge that we can make it through the hard times.  Kenneth Wayne Hancock

***From his speech at the Autrian Scholars’ Conference, March 13, 2009

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Peter Schiff: Feds Running a Ponzi Scheme Like Madoff–The Speech Obama Won’t Give

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

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