Peter Schiff: The Beginning of the End - "our economy will now face death by hyperinflation"

Peter Schiff: The Beginning of the End - "our economy will now face death by hyperinflation"

www.newmogul.com

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.

(visit the link for the full news article)

Wow. I thought the Schiff's were one of the inside banking families? He sounds like he's against the bailouts though and is warning of what is to come. Either way it's rather alarming that he's making comments like this.

So anyone here familiar with Peter Schiff? and what do you make of these comments?

www.newmogul.com
(visit the link for the full news article)

Rather than allowing our economy to return to one based on legitimate production, it [the bailout] will continue to encourage reckless consumption.

This part makes sense to me. I have been skeptical for quite a while about the long-term feasibility of a 'service' based economy, in face of withering American industrial and manufacturing capacity.

Although 'services' are a necessary skeleton to support an economy, an economy without solid foundation of goods and resource production seems to me to be without foundation.

Many answers and explanations I've heard, when asking this, remind me of the kind of hand-waving explanations we heard before the dot-com bust, when asking "yes, but how will any of that make money?"

I am no longer willing to defer to explanations from 'experts', for things that should be able to be explained understandably.

reply to post by Phazon


the way I see it the bailout is an attempt to buy time-basically keep blowing up the bubble rather than let it pop while the Govt thinks of what to do next.

He might very well be partially correct, or even fully correct, or completely off.

The reason for saying that is that we are indeed travelling onto uncharted territory. The bailouts have been happening over the years, but have mostly been localized patches within one country, or restricted in scope. Never before we have seen such 'unlimited' bailout of an industry on a world wide scale, so there is really no hard data to base the predictions upon. I've read that this massive injection of capital does indeed cause the inflation to increase, and also that it is very likely that the banks that do accept the bailout will end up being treated as lepers by all the others institutions and subsequently fail , sinking even further everything. On the other hand , I've also read that this bailout , and if indeed the Gov's buy stakes within the banks will make them a lot more bullet proof , and end up strengthening their positions. In the end it's all summed up as in 'let's try, and see where it goes'. But even Master Yoda said, 'do not try. Do!'

I've been listening to him for a while now and he's been right on the mark so far. Debt cannot bail out debt. Banks cannot solve our economic problems even if they were lending like wild again because increasingly more Americans are losing their jobs and losing wage earnings (thanks in part to the Fed and Treasury printing money like no tomorrow, a massive trade deficit, and extortion of oil (prices) - all responsible for inflation), so more and more people wouldn't be able to pay off the debt anyway. All the Fed and Gov't is doing is throwing grease on the fire and telling the people that their working hard to resolve the problem, while loading the pockets of their buddies.

By the way, another guy who's telling like it is and has been making the talk show route is Nouriel Roubini from NYU. He was on CSPAN this morning and gave an excellent overview of the financial & banking crisis and explained very well the whole CDO scheme and so on. I wrote down his site: it's rgemonitor.com

A former Fed guy was on CNBC last evening..he basically said inflation - we do not need to worry about that in the short term anyway. Notice price of oil is coming down? Reason is they are anticipating less demand due to recession in the US. Thus generally people are expected to honker down and not buy as much. All defaltionairy pressure..at least in next year.

You dont know who Peter Schiff is? I recommend youtube. He has called this for years. He was Ron Pauls economic adviser during his campaign and he would of been the treasury secretary. The guy is a genius. Go to youtube and watch his stuff from two and three years ago when he debated people when he was telling them this all was coming and they all told him he was full of crap.

after reading the linked article...a new thought has entered my set of variables.
the author paints the picture that the USA considers itself the 'tent pole' for the global economic system, under which all other economies meander around, performing their own acts ...


What If the USA undertakes the "Sampson Option"
and does a nuclear 1st strike... the reasoning being that the US will as world leader [aka; the center tent pole] has the ability and position, experience to rebuild the world...
as long as other nations contribute their labor & resources to their ability.


pretty much the same old song of american hubris as the rest of the world views it...
only with a new catastrophe more dire than just economic downturns and sorting out each nations new economic status in the global order.

Schiff, has been warning about this CRASH for years...everyone ignored him. He is also correct on how to solve this mess, both he and Jim Rogers are the only voice of reason in a world of insanity.

In this interview Schiff, discusses possible Capital Flight regulation. In other words, the FED along with government will soon impose restrictions so money doesn't start flowing-out of this country to a safer haven. Also about future hyperinflation and government having to impose price controls, thereby causing shortages. Time to prepare folks...things are going to only get rough from here....

Peter Schiff Interview

Hyper Inflation, if Schiff is correct( he has a good track record), would be very scary to live through.

Germany did go through Hyper Inflation pre WW2.

I recently connected a old folks home in Southern Saskatchewan to the internet. One lady stands out in that she was from Germany and had been part of the Hitler Youth.


As I set up her cable modem we struck up a conversation concerning where she had farmed with her husband, how she came to Canada from Germany and how long she had had her little apartment since her husband had died.

As I got her PC on line she had mentioned how she missed many things about Germany so I went to the ATS sight as I knew of a thread that had some pictures of the mountains of Germany.

Also, in the thread their was pictures of Hitler looking through a telescope at a certain mountain.

Anyways, as I taught her some basics concerning the internet she told me that she had been part of Hitlers youth.

She said that Hitler had been viewed as a saviour by the many of the adults of Germany since he had brought prosperity after a period of Hyper Inflation.

She said that things had gotten so out of control before Hitler took power that many many had lost farms, property, factories had closed etc...and that the German currancy became worthless until Hitler began to take control.

Here is a PBS look at Germany during Hyper Inflation

Before World War I Germany was a prosperous country, with a gold-backed currency, expanding industry, and world leadership in optics, chemicals, and machinery. The German Mark, the British shilling, the French franc, and the Italian lira all had about equal value, and all were exchanged four or five to the dollar. That was in 1914. In 1923, at the most fevered moment of the German hyperinflation, the exchange rate between the dollar and the Mark was one trillion Marks to one dollar, and a wheelbarrow full of money would not even buy a newspaper. Most Germans were taken by surprise by the financial tornado.

But the bourgeois habits were very strong. Ordinary citizens worked at their jobs, sent their children to school and worried about their grades, maneuvered for promotions and rejoiced when they got them, and generally expected things to get better. But the prices that had doubled from 1914 to 1919 doubled again during just five months in 1922. Milk went from 7 Marks per liter to 16; beer from 5.6 to 18. There were complaints about the high cost of living. Professors and civil servants complained of getting squeezed. Factory workers pressed for wage increases. An underground economy developed, aided by a desire to beat the tax collector.

The publisher Leopold Ullstein wrote: "People just didn't understand what was happening. All the economic theory they had been taught didn't provide for the phenomenon. There was a feeling of utter dependence on anonymous powers -- almost as a primitive people believed in magic -- that somebody must be in the know, and that this small group of 'somebodies' must be a conspiracy."

www.pbs.org...


If we face the monster of Hyper Inflation it may pave a road to a Hitler again.

.....THE thing that struck me concerning the old lady was the fact that she did not hate Hitler in the way I was taught too....she still looked up to him somewhat it seemed.

Being someone who does not fully understand economics some questions I have would be...

1. Would the whole of the Western World undergo Hyper Inflation or just the US

2. I am sure that the Fed and the Executive Branch are aware of this. Will they take measures to stop Hyper Inflation or will they fan the flames of Hyper Inflation?



[edit on 11-10-2008 by whiteraven]

Originally posted by mybigunit
You dont know who Peter Schiff is? I recommend youtube. He has called this for years. He was Ron Pauls economic adviser during his campaign and he would of been the treasury secretary. The guy is a genius. Go to youtube and watch his stuff from two and three years ago when he debated people when he was telling them this all was coming and they all told him he was full of crap.

Oh, right I know who this guy is now, yeah he's really good. He spoke on Lateline (a news program in Australia). You should check out this video actually, especially the end. Watch the host of the program Tony Jones try to not let him speak, but eventually he does. - www.abc.net.au...

[edit on 11-10-2008 by Phazon]

reply to post by Gateway



My two questions are answered in the interview you posted....

1. Would the whole of the Western World undergo Hyper Inflation or just the US

2. I am sure that the Fed and the Executive Branch are aware of this. Will they take measures to stop Hyper Inflation or will they fan the flames of Hyper Inflation?

Listen to the posted podcast. Schiff, who works with Ron Paul, paints a realistic picture of the near future.

If people are hurting enough here in the U.S., there are those that would support another omnipotent dictator that would lead us into the promised prosperity of the Third Reich, now referred to as the NWO. I think that, they think that, they have us over a barrel.