Peter Schiff answers all your questions about the economy – in advance

by Rocket Finance

This guy has gotten it right over and over. If you don’t have time to sit through the ten minute video, I have posted the highlights below:

  • May 2002: “the market is extremely overvalued, don’t believe the propaganda”
  • April 2005: “we cannot head off the coming disaster . . . some disasters have to happen”
  • August 2005: “our bubble economy rests on the bubble of the housing market . . . the housing market is similar to the internet market of the late 1990’s”
  • August 2006: “the recession is going to be pretty bad and it is not going to last for quarters  – it will last for years”
  • August 2006: “too much consuming and not enough producing”
  • “The disease is all this debt-financed consumption, the cure is a recession.”
  • You really need to see how foolish Art Laffer looks around 3:35 in the video.
  • December 2006: “sky high real estate prices will come crashing back to earth”
  • Watch as Schiff is openly mocked at about 4:25
  • January 2007: “the market is going up because of the depreciating dollar . . . I see a very severe recession”
  • August 2007: “foreign investors are now finding out that we can’t repay, we cannot continue borrowing to live beyond our means”
  • “subprime is not a tiny blip and it’s not just subprime”
  • November 2007: “we are going to wipe out all the gains from 1999 to the peak”
  • September 2008: “the bailout is going to make the problem worse”
  • September 2008: “the government caused this crisis, it was the worst monetary policy in history, together with the moral hazard of Freddie and Fannie that allowed American citizens to borrow trillions of dollars and spend every penny”
  • “if the government tries to prop of these companies, we will have a much great problem down the line – we will destroy our currency”
  • December 2008: “I’ve been running from the dollar for years”
  • “The government is creating inflation to pay for the bailouts.”
  • “I don’t like government spending. . . government should be cutting back . . . the real cost of government is in not in taxes, but in spending and what it does not take from us honestly in taxes, it will take dishonestly by creating inflation”

  1. 4 Responses to “Peter Schiff answers all your questions about the economy – in advance”

  2. By Bender on Jun 11, 2009 | Reply

    Does it take a Rocket Scientist to figure out that if you just keep saying the market will go down over and over you will be right at some point? On top of that, if this guy is so smart why was his investment performance so bad?

  3. By rocketc on Jun 11, 2009 | Reply

    So you think all the guys who kept saying that the market was strong and would continue to grow have more credibility? Schiff’s warnings were very specific and have proven to be quite accurate.

  4. By MLR on Jun 17, 2009 | Reply

    I agree that Schiff read the signs correctly about the oncoming disaster. This is a great video and one I have passed on to multiple people.

    I do take issue with his statement that the government is creating inflation. M1 is up, but all estimates of M3 show M3 going down.

    We will experience SOME inflation, though. If you give money to banks and say “lend it!” right now they aren’t doing so. Why? Conservative low-risk investments are currently beating inflation. If inflation ticks up a point or two, it is no longer profitable to sit on the money. They will start lending it out more to consumers, who will use it for consumption and investment. So, inflation will go up slightly in order to spark the velocity of money. Once things start recovering the monetary base will probably be reduced a bit to curb inflation.

    Just my take on the current situation.


  5. By rocketc on Jun 20, 2009 | Reply

    Interesting perspective, MLR, I will be watching . . . 🙂

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