Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

brucefan · Feb 6, 2009

The fiscal stimulus bill being debated in Congress not only won't help the economy, it will make the recession much worse, says Peter Schiff, president of Euro Pacific Capital.
Schiff scoffs at the notion the economic decline is starting to level off and concedes no government action means a "terrible" recession. But the path of increased government intervention will lead to "unmitigated disaster," says Schiff, who gained notoriety in 2007-08 for his prescient calls on the housing bubble and U.S. stocks.
The problem, he says, is the government is trying to perpetuate a "phony economy" based on borrowing and spending. With the U.S. consumer tapped out, the government is "now taking on the mantle" of consumer of last resort, he continues, predicting the bond bubble will soon burst - if it hasn't already - ultimately leading to a collapse of the dollar and an "inflationary depression worse than anything any of us have ever seen."
If nothing else, Schiff is an nonpartisan critic of American policymakers, comparing President Bush to Herbert Hoover and President Obama to FDR, and neither in a favorable way.

brucefan · Feb 6, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

CBO: Obama plan damages our economy

The non-partisan Congressional Budget Office finds Barack Obama's $1.2 trillion dollar welfare-and-spending plan causes even more economic damage than if Congress were to do nothing, The Washington Times reports yesterday. Support for the massive long-term expansion of government spending and debt is plummeting, with opposition rising fastest among independent voters.
The CBO finds the House and Senate bills help in the short term, but create such crippling government debt that within a few years it chokes out private investment, driving down our Gross Domestic Product over the next 10 years even further than if the government had done nothing.
That economic research contradicts fear-inducing rhetoric coming from the White House. In a move reminiscent of the Bush administration's strategy to push through the PATRIOT Act and approve the Iraq war, Obama took to the pages of The Washington Post yesterday, telling Americans they would be in danger if Congress does not adopt his plans immediately and with little dissent.
Not so, says the CBO. Congress' official research arm estimates that by 2019 the Senate legislation would reduce GDP by 0.1 percent to 0.3 percent on net. The House version of the Obama spending plan creates similar long-run damage to the economy, the CBO said in a letter to Sen. Judd Gregg, Obama's nominee for Commerce Secretary.
Rather than do nothing, however, the Libertarian Party joins the rising numbers of economists and experts urging Congress to abandon big spending plans and simply reduce taxes for employers and workers.
America's job creators pay the second-highest taxes in the world, and allowing them to invest their own money rejuvenates the economy and offers more opportunity than short-term "make work" programs and massive expansions of long-term government welfare programs. Voters agree, with recent polling finding a majority of voters support a stimulus plan consisting of only tax cuts and no government spending.
That's a real plan for hope and change.

Doc Mercer · Feb 6, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

ultimately leading to a collapse of the dollar

Cheney knew what he was doing in 2006 when he dumped 25 mill into the
Euro bond market

brucefan · Feb 6, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

http://www.youtube.com/watch?v=hl9wPYxvwj8

Doc Mercer · Feb 6, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Lets see ...

the GOP Stim Bill was 3x as Large as what Barack has on the table

Hmmm .... the silence from Wayne Root on that issue is interesting

Doc Mercer · Feb 7, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Just stock up on beer and vaseline and you will be fine

Hell .. the GOP package was 3x this and Cramer wanted it to be 10x
larger

brucefan · Apr 10, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

<HR style="COLOR: #d1d1e1" SIZE=1><EMBED src=http://www.youtube.com/v/yREOUxo6Qdc&hl=en&fs=1 width=560 height=340 type=application/x-shockwave-flash allowfullscreen="true" allowscriptaccess="always"></EMBED>

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brucefan · Apr 15, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Peter Schiff Responds to Obama's Speech 4/14/09

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brucefan · May 6, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

The Forgotten Man
By Peter Orvetti
Published 05/06/09

Printer-friendly version

In her history of the Great Depression, Amity Shlaes recalls a speech delivered by Yale professor William Graham Sumner in the winter of 1883. Sumner said, "As soon as A observes something which seems to him to be wrong, from which X is suffering, A talks it over with B, and A and B then propose to get a law passed to remedy the evil and help X. Their law always proposes to determine what C shall do for X or, in the better case, what A, B and C shall do for X." Sumner called C, the man coerced into action on the part of X, the "Forgotten Man."

A half-century later, New York Gov. Franklin Roosevelt, in the first national radio address of his presidential campaign, again invoked the Forgotten Man. Roosevelt said, "These unhappy times call for the building of plans that rest upon the forgotten," plans "that put their faith once more in the forgotten man at the bottom of the economic pyramid." This Forgotten Man was X, not C -- the recipient of government support, not the provider.

C has continued to be forgotten in the years since 1932, and is now more forgotten than ever. Marking his 100th day in office, President Obama briefly recalled the Cs of America, calling them the "folks waving tea bags around." That's more than they got on April 15, when the White House said Obama was "unaware" of anti-spending demonstrations across the nation.

While thankfully Obama's 100 days fell short of the FDR mark, he was strikingly effective in pushing through a radical agenda in a very short period of time. A $787 billion stimulus package and an appropriations bill pockmarked with some 8,000 earmarks were just the appetizer before a $3.55 trillion budget for the 2010 fiscal year was pushed through on Day 100. The cumulative national debt is expected to hit 14 digits by the end of the next decade.

But it is not just spending, no matter how spectacular, that made Obama's first months in office so significant. In March, Obama said, "Because these are no ordinary times, I don't just view this budget document as numbers on a page or a laundry list of programs. I see it as an economic blueprint for our future." The White House has set the course for a planned economy. He essentially fired the CEO of General Motors -- without consulting major shareholders -- and has played a central role in moving Chrysler into bankruptcy. (This puts a new spin on former GM president Charles Erwin Wilson's adage that "what was good for the country was good for General Motors and vice versa.")

The Federal Reserve and Federal Deposit Insurance Corporation have doled out the equivalent of the entire federal budget for 2007 -- and have no obligation to say where the money went. The massive government intervention into the health care sector -- which makes up 17 percent of the U.S. economy -- is likely to be squeezed through via parliamentary procedure. Deficit spending is expected to amount to four percent of the gross domestic product for at least the next decade. While on the same day he spoke of a "blueprint" Obama also said he would "welcome and encourage proposals and improvements from both Democrats and Republicans," his words behind closed doors tell a different story. During his first week in office, he told Republican members of Congress that he would call the shots on spending because, "I won." After liberal Democratic Rep. Peter DeFazio voted against the stimulus bill, the President reportedly warned him, "Don't think we're not keeping score, brother."

As the Wall Street Journal wrote on Day 100, Obama wants to "make the federal government the guarantor of middle-class security. He wants to make a college education a new entitlement, regardless of the cost. He wants state-financed health-care available to all, even if it means jamming a $1 trillion bill through the Senate with 51 votes. And he wants a cap-and-trade tax that would punish the main current sources of U.S. energy and hand Washington a vast new source of revenue. Oh, and by the way, he also wants to fix the financial system, run the auto industry, and build a nationwide, high-speed rail network. And on the seventh day, he rested."

This may be what A and B -- or in this case O -- want to do for X, but what about C? At some point, someone will have to pay for all of this -- and then the "Forgotten Man" will quickly be remembered

tank · May 6, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

brucefan said:
The Federal Reserve and Federal Deposit Insurance Corporation have doled out the equivalent of the entire federal budget for 2007 -- and have no obligation to say where the money went.

This is what really bugs me.That's our money they are rat holing and doing whatever they want to with it.Like usual that money will be used against us somehow to screw us.

brucefan · May 6, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Come in, Ill make you a nice hot cup of Tea

<TABLE border=0 cellSpacing=0 cellPadding=0 width=1376><TBODY><TR bgColor=#02021e><TD id=logo height=58 vAlign=bottom colSpan=2 noWrap>4th Of July Tea Party</TD><TD width=703>

</TD></TR><TR bgColor=#02021e><TD id=tagline height=57 vAlign=top colSpan=2 noWrap>Let Freedom Ring</TD><TD width=703>

</TD></TR></TBODY></TABLE><TABLE border=0 cellSpacing=0 cellPadding=0 width=1376><TBODY><TR bgColor=#02021e><TD id=logo height=58 vAlign=bottom colSpan=2 noWrap>4th Of July Tea Party</TD><TD width=703>

</TD></TR><TR bgColor=#02021e><TD id=tagline height=57 vAlign=top colSpan=2 noWrap>Let Freedom Ring</TD><TD width=703>

</TD></TR></TBODY></TABLE>
<TR><TD><SCRIPT type=text/javascript src="http://www.zfacts.com/giz/G05/debt.js"></SCRIPT><STYLE type=text/css>#zDebtBox TD { PADDING-BOTTOM: 2px; PADDING-LEFT: 2px; PADDING-RIGHT: 2px; PADDING-TOP: 2px}#zDebtBox { FONT-FAMILY: arial}#zDebtBox { BORDER-BOTTOM: #ccc 1px solid; BORDER-LEFT: #ccc 1px solid; BORDER-TOP: #ccc 1px solid; BORDER-RIGHT: #ccc 1px solid}#zDebtBox A { COLOR: inherit; TEXT-DECORATION: none}#zDebtBox A:link { COLOR: inherit; TEXT-DECORATION: none}#zDebtBox A:visited { COLOR: inherit; TEXT-DECORATION: none}#zDebtBox TD { TEXT-ALIGN: center}</STYLE><IFRAME id=zDebtFrame height=18 marginHeight=0 src="http://zfacts.com/giz/G05/debt.html?zOops=1" frameBorder=0 width=140 allowTransparency name=zDebtFrame marginWidth=0 scrolling=no></IFRAME></TD></TR><TR><TD>The Gross National Debt </TD></TR></TABLE>

http://www.teapartyday.com/Organize.aspx

How much is 1 trillion dollars?

A stack of one trillion one-dollar bills would reach 68,000 miles in space. If you spent $1 million dollars a day from the day Jesus was born until now, you would only have spent about three quarters of a trillion.

If you laid one trillion one-dollar bills end to end, it would make a chain from the earth to the moon 200 times. One trillion dollars would stretch nearly from the earth to the sun. It would take a jet flying at the speed of sound, reeling out a roll of dollar bills behind it, four years before it reeled out one trillion dollar bills. A million seconds is 11.5 days. A billion seconds is 32 years. A trillion seconds is 32,000 years.

Record Spending In The Budget: The budget increases spending to $3.9 trillion in 2009, or 27% of GDP – the highest level since World War II. This is simply too much spending and will lead to higher taxes, slower economic growth, and fewer jobs for middle class families.

Historically High Deficits For The Next Ten Years: the budget promises historically high deficits stretching out until 2019, when the budget deficit will stand at $712 billion.

A Record Deficit In 2009: The budget would produce a $1.75 trillion deficit, or 12.3percent of GDP, in 2009. This deficit level is more than three times the previous record deficit.

$24 Billion Spent A Day: Over the first fifty days of the new Administration, approximately $24 billon has been spent a day, most of it with borrowed money.

Doubling The National Debt Over The Next Eight Years: The budget doubles the national debt over the next eight years.

Trillion Dollar Increase In Entitlement Spending: The budget includes a $1 trillion increase in entitlement spending over ten years. The budget dramatically increases entitlement spending while doing very little to improve the budget impact of existing entitlement programs.

Increasing Your Families' Share Of The Debt: The current debt per capita exceeds $35,000. The budget would double the national debt in only eight years, thus ballooning your share to approximately $70,000.

Growing The Debt At Record Pace: During the last eight years, the debt rose by $4.9 trillion. The proposed budget will exceed that within three years.

Skyrocketing Net Interest Payments: Beginning in 2012, and every year thereafter, the government will spend more than $1 billion a day in net interest. By 2019, the government will spend $1.7 billion per day on net interest.

The Largest Tax Increase In American History: The budget will raise taxes by $1.4 trillion over the next ten years.

Harming Small Businesses: The budget will raises income taxes harming the many small businesses that pay taxes at the top two individual rates. According to the National Association of Manufacturers, 68 percent of American manufacturers pay taxes at the individual income tax rate and most of them will see their taxes increase.

Higher Energy Prices: The budget will lead to higher energy prices and a tax for every American who uses energy. The cap-and-trade proposal represents a new national climate tax that will cost every household up to $3,128 annually in higher costs for natural gas, electricity, home heating oil and gasoline.

Hurting Charitable Giving: The budget will put a new tax on charitable giving that could cost American charities as much as $16 billion a year. This will harm numerous organizations at a time when many of these groups are now struggling with the economic downturn.

Harming The Housing Market: The budget will harm the housing market by limiting the mortgage interest deduction and making it more expensive to purchase or afford a new home. As the National Association of Realtors reports, lowering this deduction will impact all home prices and values for all Americans.

Bringing The Death Tax Back: The budget brings back the estate tax – currently scheduled to be repealed next year – re-imposing a heavy tax burden on small businesses and family farms.

Taxing Charitable Contributions Will Deter Giving: Included in the tax increase is a cap on itemized deductions for charitable giving. By putting a new tax on charitable giving, the budget could cost American charities as much as $16 billion a year.

Increasing Taxes On Charitable Giving Comes At A Time When Millions Of Charities Are Struggling With The Economic Downturn: Many charities are now struggling with the economic downturn. Taxing charitable giving will only make it worse for these organizations and would cause many to shut down. Charities depend on donations – by lessening the deduction the public is discourage from giving.

The Largest Tax Increase in American History: The budget will raise taxes by $1.4 trillion over the next ten years. The cap-and-trade proposal is expected to raise at least $646 billion alone.

A Tax Increase On Families Of More Than $3,000 A Year In Higher Energy Prices: The cap-and trade proposal in the budget will lead to higher energy prices and a tax for every American who uses energy. The cap-and-trade proposal represents a new national climate tax that will cost every household up to $3,128 annually in higher costs for natural gas, electricity, home heating oil and gasoline.

Tax Burden Would Hit Lower-Income And Middle-Income Families The Hardest: The cap-and trade tax is highly regressive, impacting most the lower-income and middle-income families who spend a greater portion of their monthly income on energy than higher income earners.

Potential To Destroy Anywhere From 1.8 Million To 7 Million Jobs*: National Association of Manufacturers estimated a net job loss of 3 to 4 million; the Heritage Foundation estimated job losses between 1.8 and 5.3 million; and Charles Rivers Associates estimated job losses as high as 7 million

Stifling Economic Growth*: The Environmental Protection Agency estimated a decline in GDP of $238 billion (0.9%) to $983 billion (3.8%) in 2030 and $1,012 billion (2.4%) to $2,856 billion (6.9%) in 2050. The Heritage Foundation estimated a decline in GDP of $1.5 to $4.8 trillion.

Higher Energy Costs*: The Environmental Protection Agency estimated a rise in electricity costs of between 44% and 79%. The National Association of Manufacturers estimated an increase of between 101% and 129%.

Fannie Mae and Freddie Mac plan to pay more than $210 million in bonuses through next year: http://news.yahoo.com/s/ap/20090403/ap_on_bi_ge/mortgage_giants_bonuses

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Joe Contrarian · May 7, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

brucefan said:
The Forgotten Man
By Peter Orvetti
Published 05/06/09 

 Printer-friendly version

In her history of the Great Depression, Amity Shlaes recalls a speech delivered by Yale professor William Graham Sumner in the winter of 1883. Sumner said, "As soon as A observes something which seems to him to be wrong, from which X is suffering, A talks it over with B, and A and B then propose to get a law passed to remedy the evil and help X. Their law always proposes to determine what C shall do for X or, in the better case, what A, B and C shall do for X." Sumner called C, the man coerced into action on the part of X, the "Forgotten Man."

A half-century later, New York Gov. Franklin Roosevelt, in the first national radio address of his presidential campaign, again invoked the Forgotten Man. Roosevelt said, "These unhappy times call for the building of plans that rest upon the forgotten," plans "that put their faith once more in the forgotten man at the bottom of the economic pyramid." This Forgotten Man was X, not C -- the recipient of government support, not the provider.

C has continued to be forgotten in the years since 1932, and is now more forgotten than ever. Marking his 100th day in office, President Obama briefly recalled the Cs of America, calling them the "folks waving tea bags around." That's more than they got on April 15, when the White House said Obama was "unaware" of anti-spending demonstrations across the nation.

While thankfully Obama's 100 days fell short of the FDR mark, he was strikingly effective in pushing through a radical agenda in a very short period of time. A $787 billion stimulus package and an appropriations bill pockmarked with some 8,000 earmarks were just the appetizer before a $3.55 trillion budget for the 2010 fiscal year was pushed through on Day 100. The cumulative national debt is expected to hit 14 digits by the end of the next decade.

But it is not just spending, no matter how spectacular, that made Obama's first months in office so significant. In March, Obama said, "Because these are no ordinary times, I don't just view this budget document as numbers on a page or a laundry list of programs. I see it as an economic blueprint for our future." The White House has set the course for a planned economy. He essentially fired the CEO of General Motors -- without consulting major shareholders -- and has played a central role in moving Chrysler into bankruptcy. (This puts a new spin on former GM president Charles Erwin Wilson's adage that "what was good for the country was good for General Motors and vice versa.")

The Federal Reserve and Federal Deposit Insurance Corporation have doled out the equivalent of the entire federal budget for 2007 -- and have no obligation to say where the money went. The massive government intervention into the health care sector -- which makes up 17 percent of the U.S. economy -- is likely to be squeezed through via parliamentary procedure. Deficit spending is expected to amount to four percent of the gross domestic product for at least the next decade. While on the same day he spoke of a "blueprint" Obama also said he would "welcome and encourage proposals and improvements from both Democrats and Republicans," his words behind closed doors tell a different story. During his first week in office, he told Republican members of Congress that he would call the shots on spending because, "I won." After liberal Democratic Rep. Peter DeFazio voted against the stimulus bill, the President reportedly warned him, "Don't think we're not keeping score, brother."

As the Wall Street Journal wrote on Day 100, Obama wants to "make the federal government the guarantor of middle-class security. He wants to make a college education a new entitlement, regardless of the cost. He wants state-financed health-care available to all, even if it means jamming a $1 trillion bill through the Senate with 51 votes. And he wants a cap-and-trade tax that would punish the main current sources of U.S. energy and hand Washington a vast new source of revenue. Oh, and by the way, he also wants to fix the financial system, run the auto industry, and build a nationwide, high-speed rail network. And on the seventh day, he rested."

This may be what A and B -- or in this case O -- want to do for X, but what about C? At some point, someone will have to pay for all of this -- and then the "Forgotten Man" will quickly be remembered

Great book. :thumbsup

brucefan · May 12, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

May 12, 2009

<TABLE border=0 width="95%"><TBODY><TR><TD width="80%" align=left>Socialism Coming Back To Haunt U.S.
</TD><TD align=right>

</TD></TR></TBODY></TABLE>
America is more than a country; it is the ideal of liberty. In economic terms, liberty translates into the entrepreneurial spirit of hard work, risk taking and self-reliance. And this spirit has made America rich beyond compare.

Unfortunately, over the past four decades, much has been undone. Under the guise of a new, ?social? justice, political leaders have turned our native ethics upside down. Profit-taking is now seen as gouging; success is greed; businessmen are predators. This creeping socialist transformation of our culture has finally broken the back of the American economy.

The definitive fork in the road occurred in August 1971, when President Nixon ended the U.S. dollar?s link to gold. The move allowed the U.S. government to issue money without the restraint imposed by gold-backed currency. For most countries, this would have unleashed a wave of monetary inflation and, consequently, skyrocketing prices. But, since the dollar remained the world?s reserve currency, foreign central banks were compelled to subsidize U.S. expenditure, and our inflation was exported overseas.

With global funding secured, Congress offered increasingly generous entitlements to an increasingly dependent population. This has resulted in the decay of America?s productive sectors and a massive depletion of accumulated wealth. Now, socialist America subsists on the whims of the capitalist powers of the East. American consumption is dependent on loans from nations who just 40 years ago were economic afterthoughts.

Rather than dissipating their wealth through spending and borrowing, these economies have undertaken the difficult work of wealth creation. Though nominally Communist, China has become an intensely pragmatic state. While Americans have grown complacent about their liberty, China has quietly, but with determination, expanded economic liberty: courts are becoming more efficient, land reform has introduced private ownership, and obstacles to entrepreneurship are decreasing.

Many countries, such as China and Japan, which export massively to the United States, resist converting their U.S. dollar surpluses into domestic currencies. They fear that, in doing so, they will force up their own currency relative to the U.S. dollar, making their exports less competitive. Therefore, they invest the bulk of their surpluses in ?secure? U.S. Treasury bonds, satisfying America?s appetite for imports and entitlements.

But this logic is economically flawed. Through their actions, Asian governments are transferring their citizens? wealth to the United States. When a Chinese business exports to the U.S., the dollars earned are exchanged in a Chinese bank for local currency. Those dollars are then recycled by the Chinese Central Bank to buy U.S. Treasuries. America then creates more dollars (inflation) so that it can redeem those outstanding Treasuries. This mechanism props up the dollar and holds down the RMB. As a result, the Chinese are poorer and America richer. Unfortunately, many Asian governments are still too collectivist to cease robbing their citizens. If they would do so tomorrow, America would feel the full effects of years of federal profligacy at once.

What happens when half a century of socialism catches up with the ?shining city on a hill?? Start with America losing its Triple-A credit rating, then the dollar free-falling, then interest rates rising into double-digits as a last-ditch effort to restore faith, which may lead to civil unrest ? and certainly widespread misery.

Already the credibility of the U.S. dollar is being questioned by producer states. Any loss of its privileged ?reserve? status would result in rapid diversification out of the U.S. dollar and U.S. Treasuries. In short order, the inflation gingerly spread around the world by the U.S. government would come back home to roost.

The outlook for the U.S. economy appears increasingly bleak. The final window for self-imposed reform has been forsaken, as both Democrats and Republicans have chosen to magnify the mistakes of the past. Huge investment losses experienced by investors worldwide may have forever tarnished the luster of U.S. stocks. Meanwhile, the threat of inflation and bank failure has discouraged domestic savings. Americans looking to preserve their wealth are turning to precious metals, commodities, and foreign shares denominated in the currencies of surplus countries.

Even in its most successful incarnations, socialism is a drag on a successful market economy. The U.S. has been able to have socialist entitlements within a relatively free-market only because the costs were borne by foreigners. But as the global economy strains under increasing weight, look for those funders to begin tending their own gardens.

This U.S. economy is now a runaway train, and anyone who has the courage to look out the window will likely want off. Short of the imposition of U.S. exchange controls (as during the last depression), American investment funds will flow toward countries that fuel their economies with America?s depleted resource: liberty.

For a more in depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar denominated investments, read Peter Schiff?s latest book "The Little Book of Bull Moves in Bear Markets".
<HR color=#018780 SIZE=1 noShade>

brucefan · May 16, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Comments about Obozo's shocking speech at ASU ,

May 15, 2009
Peter Schiff on Obama the Half-Truther

<EMBED height=340 type=application/x-shockwave-flash width=560 src=http://www.youtube.com/v/F1vb7isUZUs&hl=en&fs=1 allowfullscreen="true" allowscriptaccess="always"></EMBED>

brucefan · May 23, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Saturday, May 23, 2009

Great video explaining how the 1920 Depression was abruptly halted: Do NOTHING.
If you don't want to hear about the 1920's depression skip ahead 30 min. to today's problems. A MUST SEE VIDEO!

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jesse ventura · May 23, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

the "concern" from the right after Bush raped this country for 8 straight years is "touching"

BCTTWR · May 23, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

How many handles do you have Doc Mercer? You're an embarrassment.

Joe Contrarian · May 23, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

BCTTWR said:
How many handles do you have Doc Mercer? You're an embarrassment.

Not as embarassing as Obozo.

brucefan · May 25, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

<TABLE id=zDebtBox cellSpacing=0 cellPadding=0 border=0><TBODY><TR><TD><SCRIPT src="http://www.zfacts.com/giz/G05/debt.js" type=text/javascript></SCRIPT><STYLE type=text/css></STYLE><IFRAME id=zDebtFrame name=zDebtFrame marginWidth=0 marginHeight=0 src="http://zfacts.com/giz/G05/debt.html?zOops=1" frameBorder=0 width=140 scrolling=no height=18 allowTransparency></IFRAME></TD></TR><TR><TD>The Gross National Debt</TD></TR></TBODY></TABLE>

Sunday, May 24, 2009

Time is running out

RUSSIA Dumps US DOLLAR

The Russians are aware of the imminent threat from the USA and have dumped their U.S. Dollar for Euro as Reserve Currency.
Link

This dumping will increase the USD to spiral downwards at an alarming rate. The more value the USD loses, the higher inflation because it takes more dollars to acquire the same goods or services, more money is also needed just to run the countries program. And America's ability to repay back the National Debt will become an impossible task, therewith, the USA will lose her 'AAA' rating inviting other countries to follow Russia's example in dumping their own US reserve currency for the more stable EURO trickling back into the US and causing evermore inflation. But the most detrimental of all is that this outcome will tip the scales in favor for the oil producing countries (OPEC) to DUMP and replace the US dollar with a currency basket to price crude.

China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed's direct purchase of US Treasury bonds.

Link

The above will trigger War with the Europeans-Russia proxy Iran this is a foregone conclusion, but before the War the only option let for the US administration is to Crash all American Markets and remove as much disposable capital from the System to achieve two things; (1) buy time by strengthening the Dollar into finding an economic solution to bleed the Europeans and Russians with; (2) impoverish as many Americans as possible in the process to achieve an obedient and dependent civilians that should the worst arise when the Government points finger at the enemy, you will not question!

jesse ventura · May 25, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Gosh ....shocking .... lets see .... Cheney dumped $25,000,000 into the EURO Bond market in 2006 ... hmmmmm .... I guess just a good guess by Scarface??

Kornholio · May 25, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

obamas a retard, bush is a retard. everybody's a retard. I can't believe we are arguing left right in this complete collapse that is coming. Who gives a shit they are all evil. How bout we just go get some guns and food and supplies and prepare for the fallout...its inevitable. 1 Year from now, boy,... It will be very bad in this nation.

brucefan · May 28, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

May 28, 2009

<TABLE width="95%" border=0><TBODY><TR><TD align=left width="80%">False Confidence
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"Socialism is the philosophy of failure, the creed of ignorance and the gospel of envy," said Winston Churchill. Although it inevitably lowers living standards, socialism feels good - at least at the outset - as "free money" flows in great abundance. Keep this in mind as we examine the "good news" about consumer confidence.

Last week, it was reported that consumer confidence has seen an unexpected lift. In response, the sluggish stock market saw a manic 196-point rally.

This mania overrode losses from the week's other big news: Great Britain was put on negative credit watch by Standard & Poor's; the U.S. markets tanked on expectations of a similar downgrade domestically; and, Case-Shiller reported an unrelenting slide in home prices. In other words, the economic decline continues.

So, why are consumers so confident? They are being deceived by "free money" into believing in the power of socialism.

Since the start of the crisis, the Fed has held interest rates to an artificially low level, greatly helping borrowers who can obtain credit. Also, the Administration has made it clear that it will not allow a major bank failure, even if accounting rules have to be changed to give the appearance of solvency. Including guarantees, the entitlement-based stimulus packages have sprayed trillions of dollars into the economy, with minimal oversight.

None of these policies aid recovery, nor do they allow resources to be allocated more efficiently. Instead, they prolong economic dislocation, increase the influence of the federal government, and drag America deeper into debt.

It is true that the financial collapse that threatened does appear to have been averted by "officially" hiding and avoiding the problem of toxic assets. But the lesson from Japan, which did the same, is that avoidance is no cure and will only allow the wounds to fester.

In other words, the government is forcing the bone to heal before it's been reset, so that even if we're happy to be limping now, it will be that much harder to ever correct our gait down the road.

Most of the evidence shows, with the damage done to debtor countries like America, world trade is shrinking at an alarming pace. Socialists may argue that any further economic decline will simply be met by additional government spending. But this raises a novel and alarming question: how much more can the Administration spend? Or, more critically, how much more can it borrow?

We are in an age of massive deleveraging. Cash is scarce and becoming more scarce by the day. The recession is worldwide, and even creditor nations like China are spending their reserves on internal economic stimulus. In aggregate, major debtor governments have spending plans of some $5 trillion in the near term. From where will such a substantial sum come in a world long of paper debts but suddenly short of cash?

If the U.S. Treasury fails to find buyers for its massive calendar of debt, the Fed will have to raise interest rates. This will hit all borrowings, including mortgages. It will be likely to drive consumer spending down, bankruptcies up, and unemployment to depression-era levels.

Already, with the securitization markets dead and some $3.5 trillion of underwater commercial real estate loans, America's economy looks set to take another hammer blow - a blow that might be too big for Daddy Government to handle.

Consumers may be confident that something is "being done" to solve the economic crisis, but either do not understand or have misplaced faith in what the corrective policies amount to - socialism. It may feel good now, but it is neither wise nor sustainable.

All indicators are still negative, and the government's actions have merely covered over that weakness. Indeed, it appears that the Administration is driving us deeper into recession. It is likely that, when reality dawns, the rush from the U.S. dollars, stocks, and bonds will be truly devastating.

So, ignore the vagaries of consumer confidence polling and stick to the enduring laws of economics. Production leads to stocked shelves, but looting leaves them bare.

For a more in depth analysis of our financial problems and the inherent dangers they pose for the U.S. economy and U.S. dollar denominated investments, read Peter Schiff?s latest book "The Little Book of Bull Moves in Bear Markets".

brucefan · Jun 30, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Monday, June 29, 2009

Warning: Collapse Imminent

WARNING
The mainstream media and government are communicating that the economy is on a positive track toward recovery while downplaying the likelihood of another economic catastrophe similar or worse than that experienced in the fourth quarter of 2008 and first quarter of 2009. In actuality, there is a significant chance that the U.S. will experience a severe economic collapse, beyond what has already been experienced, either this year or within the next few years. If there is a perceived, sustainable economic rebound before this happens, do not be fooled - the underlying economic problems still exist and will likely eventually surface in economic collapse.

This following analysis further explores this warning by describing:

1. The 4 key reasons an economic collapse is likely imminent
2. Why these 4 reasons make the economy vulnerable
3. Warning signs and triggers to monitor to foresee a collapse before it happens
4. What can result from an economic collapse
5. Ideas for preparation

The 4 Key Reasons an Economic Collapse is Likely Imminent

1. The U.S. has unprecedented, massive amounts of current and coming debt.
2. Foreign countries have experienced their own crises, and they cannot offer added levels of debt funding for the U.S. Even if they could, they are unlikely to do so.
3. Productivity is declining, and everything the government is doing is further hurting productivity.
4. The U.S. is printing unprecedented, massive amounts of money and no longer has an ability to control inflation and deflation.

1. The U.S. has unprecedented, massive amounts of current and coming debt.

1. Over $11.4 trillion in current debt and growing
2. $1.8 trillion deficit in current budget - $9.3 trillion over next decade (likely to be higher)
3. Outstanding future debt of $43 trillion to $102 trillion from entitlements
4. Debt Comparison to U.S. GDP

A. Over $11.4 trillion in current debt and growing

U.S. federal debt is now over $11.4 trillion. As this graph is slightly outdated, you can imagine how far off the graph the line will need to go to chart the increase.

Link

brucefan · Jul 20, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

July 17, 2009

<TABLE width="95%" border=0><TBODY><TR><TD align=left width="80%">Prescription for Disaster
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By Peter Schiff

The health care bill unveiled this week by the House of Representatives (with the full support of the Obama administration) is one of the worst pieces of legislation ever drafted. If passed, it will reduce the quality and increase the cost of health care in America. But more importantly, it will severely undermine our already weak economy. To burden a country currently in the throes of a violent recession with such a bureaucratic albatross clearly illustrates the scarcity of economic intelligence in Washington.

In the first place, specifically taxing the rich to pay for health care for the uninsured is the wrong way to think about tax policy and is an unconstitutional redistribution of wealth. While the government has the constitutional power to tax to ?promote the general welfare,? it does not have the right to tax one group for the sole and specific benefit of another. If the government wishes to finance national health insurance, the burden of paying for it should fall on every American. If that were the case, perhaps Congress would think twice before passing such a monstrosity.

In the second place, the bill is just plain bad economics. For an administration that claims to want to create jobs, this bill is one of the biggest job-killers yet devised. By increasing the marginal income tax rate on high earners (an extra 5.4% on incomes above 1 million), it reduces the incentives for small business owners to expand their companies. When you combine this tax hike with the higher taxes that will kick in once the Bush tax-cuts expire, and add in the higher income taxes being imposed by several states, many business owners might simply choose not to put in the extra effort necessary to expand their businesses. Or, given the diminishing returns on their labor, they may choose to enjoy more leisure. More leisure for employers means fewer jobs for employees.

More directly, mandating insurance coverage for employees increases the cost of hiring workers. Under the terms of the bill, small businesses that do not provide insurance will be required to pay a tax as high as 8% of their payroll. Since most small businesses currently could not afford to grant 8% across-the-board pay hikes, they will have to offset these costs by reducing wages. However, for employees working at the minimum wage, the only way for employers to offset the costs would be through layoffs.

The uninsured self-employed, or those working as independent contractors, will be forced to buy insurance or pay a tax equal to 2.5% of annual income. Either choice will divert resources from more productive uses into an already out-of-control health care bureaucracy.

Sadly, the bill does nothing to restrain or alter the dynamics that have caused health care costs to spiral ever higher. In fact, the bill will intensify these pressures.

The simplest (but by no means fullest) explanation of why health care costs so much is that demand exceeds supply. Demand is a function of how much people are prepared to pay. Insuring more people will drive demand for health care services even higher. (To truly get a handle on out-of-control health care costs, we need more people paying for routine medical care out of pocket, and tort reform for medical malpractice. See my previous commentary.)

As costs continue to soar, expect additional tax hikes to fund the added expense. As these additional taxes further encumber a weak economy, the diminished tax base will yield lower total tax revenues ? despite higher rates. As the politicians attempt to pass ever higher increases to make up for revenue shortfalls, a vicious cycle toward insolvency will ensue.

The worst part of the whole fiasco is trying to imagine the bureaucracy necessary to administer this plan. My guess is that the government provider will mis-price its policies on the low side, pushing employers to dump private sector insurance for the taxpayer-subsidized alternative. Such a system will further distort health care pricing and, ultimately, make a bad situation intolerable.

The enormity, complexity, and expense of this bill could well pull the rug out from what many of my cheerleading colleagues believe to be the beginning of an economic recovery. The way I see it, the economy is walking dead anyway, and this measure is the equivalent of a stake through the heart. But even if we manage to escape the grave this time, Congress is working on a few other ideas that will surely keep us buried.

brucefan · Jul 24, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

July 24, 2009

<TABLE width="95%" border=0><TBODY><TR><TD align=left width="80%">No Exit for Ben
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By Peter Schiff

In a Wall Street Journal op-ed on Monday, and in congressional testimony later in the week, Fed Chairman Ben Bernanke reassured all that thanks to his accurate foresight and deft use of the Fed?s policy toolkit, he could maintain near zero percent interest rates for an extended period without creating inflation. With supernatural powers such as these, one wonders if Ben would be better employed by the Justice League rather than the Federal Reserve.

Ben?s game plan is apparently simple: once he determines that the economy is on solid ground, he will use the monetary equivalent of Superman?s laser vision to strategically evaporate all the excess liquidity that he has recently created without endangering the recovery. Don?t try this at home, kids.

In other words, as he did just a few years ago when the subprime fiasco began to emerge, Bernanke is assuring us that inflation is contained. He is just as wrong now as he was then.

The idea that the inflation genie can be painlessly rebottled has no historic precedent. Even mainstream economists, who?ve never met a fiscal stimulus they didn?t like, agree that central banks must act preemptively with regard to inflation. Bernanke is making the case that the new set of liquidity tools, hastily developed in the panic of late 2008, will act just as well in reverse. But liquidity is a lot like liquid, it?s a lot easier to spill than to un-spill. The Chairman believes that his new gadgetry will allow him to perform a feat of monetary magic no other central banker has managed to pull off. But given his history of getting it wrong, why should we assume that this time he will get it right?

The bottom line is that Bernanke has no exit strategy. He can talk about it all he likes, but when it comes time to actually pull the trigger, his nerves will buckle. The current communications campaign is simply an attempt to calm the markets. I doubt few citizens or members of Congress had any hope of understanding the exit strategy mechanisms that Bernanke described. Many likely place their faith in his seeming mastery of financial minutiae. Sadly, as with the mythical ?strong dollar policy,? confident talk may be the sum total of the Chairman?s strategy.

He senses that the villagers, in the form of currency traders and bond market vigilantes, are becoming a bit restless. To sooth their concerns, he must pretend that he has the situation under control. Like Jack Nicholson in A Few Good Men, he knows full well that markets simply ?can?t handle the truth.?

But make no mistake, in order to mop up all the excess liquidity, the Fed will need to raise interest rates substantially to attract buyers for all the bonds that the Treasury must sell. Fed officials know that our economy is completely dependent on cheap money and limitless government credit, and can?t tolerate the loss of either. Of course, the longer the monetary spigot remains open, the more addicted to low rates we get, and the harder it will be to kick the habit. If the Fed could not remove the punch bowl during the years before the bust, how will they do so while the economy is far weaker? Even if they do start the process, the minute the ?recovery? seems in jeopardy, look for the Fed to turn the showers back on.

Also, paring down the Fed?s bloated balance sheet will require selling hundreds of billions of dollars of toxic assets, such as bonds backed by subprime mortgages, credit card debt, and auto and student loans, back into the market. Finding buyers for such sludge without crushing the market is a trick that Houdini himself would be reluctant to attempt. The Fed?s assumption that the assets will no longer be toxic by the time it sells them is farcical. The economy at large has not yet suffered the full weight of the recession because these assets have been largely quarantined at the Fed. Reintroduce these toxins back into the economy and the reaction could be lethal.

Bernanke also mistakenly expressed optimism that a strengthening global economy would aid our recovery. Unfortunately, a global resurgence will force Bernanke?s anti-inflation hand, and will thereby cause more pain to the U.S. economy.

Few appreciate how the global panic of 2008 actually benefited the U.S. by causing a flight into U.S. dollars and Treasury bonds. The resultant flows put a lid on consumer prices and kept interest rates low. As growth overseas resumes, and these flows reverse, both consumer prices and interest rates will rise.

Further, as current policy prevents the structural imbalances underlying our economy from being corrected, U.S. unemployment will continue to rise. Combined with higher interest rates and rising consumer prices and the Misery Index (inflation + Interest rates + unemployment) will be a big issue in the 2010 mid-term elections, and an even bigger one in 2012.
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brucefan · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

July 31, 2009

<TABLE width="95%" border=0><TBODY><TR><TD align=left width="80%">Happy Days Aren?t Here Again
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By Peter Schiff

Have you heard the great news? The recession is over! It?s true; I saw it on TV. Why fret about growing unemployment lines when banks are paying big-time bonuses again?

Proof of the turn was apparently revealed by the 2nd quarter GDP figures that showed that the economy declined by only 1%. After four consecutive quarters of negative GDP, the green shoots now assume that growth will resume over the summer. But before we pop the corks, it may be worthwhile to ask, ?what really has changed, and what is responsible for our new lease on life??

In truth, because of the continued profligacy of the government and Federal Reserve, the imbalances that caused the current recession have actually worsened. We are now in an even deeper hole than when the crisis began. Rather than wrapping up a recession, we are actually sinking into a depression. If things look better now, it?s just because we are in the eye of the storm.

We must remember that recessions inevitably follow periods of artificial growth. During these booms, malinvestments are made which ultimately must be liquidated during the ensuing busts. In short, mistakes made during booms are corrected during busts ? and in the recent boom we made some real whoppers. We borrowed and spent too much money, bought goods we couldn?t afford, built houses we couldn?t carry, and developed a service sector economy completely dependent on consumer credit and rising asset prices. All the while, we allowed our industrial base to crumble and our infrastructure to decay.

In order to lay the foundation for real and lasting recovery, market forces must be allowed to repair the damage. However, current policy is counterproductive to this end. Trillions in stimulus dollars have kept the party going, but now what? How does deficit spending by the government address the problems that brought about the crash? It doesn?t; it just delays and worsens the hangover ? and we have to hope we don?t die of alcohol poisoning.

By interfering with the unpleasant forces of the recession, we simply trade short-term gain for long-term pain. By propping up inefficient companies that should fail, we deprive more effective companies of the capital they need to grow. By holding up over-valued asset prices, we prevent the prudent or less well-off from snatching them up and, in doing so, creating a new price equilibrium based upon reality. By maintaining artificially low interest rates, we discourage the very savings that are so critical to capital formation and future economic growth. In addition, the false economic signals the Fed sends the market prevent a more efficient re-allocation of resources from taking place and leads to even more bad economic decision being made. By running such huge deficits, we further crowd-out private enterprise by making it harder for businesses to invest or hire.

The recently passed ?cash for clunkers? program (currently on-hold, as it ran out of funding in one week) is a perfect example of how government policy can make the economy worse. By incentivizing Americans to destroy fully paid-for cars so they can go deeper into debt buying brand new ones, the government weakens an already crippled economy. The last thing we want to do is subsidize Americans to go deeper into debt by buying more stuff. Don?t they realize that is precisely the behavior that got us into this mess?

Think about it this way. If your friend were in trouble because he had too much debt, would you encourage him to take on even more? Wouldn?t a real sign of progress be a reduction of debt, even if he had to cut back on his everyday expenses? What is true for an individual is also true for a collection of individuals, even if they call themselves a ?government.? If, as a country, we are even deeper into debt now than we were before, we are worse off. Period. The fact that the additional debt enabled better short-term GDP numbers is a long-term negative.

Since we have learned nothing from past mistakes, we are condemned to repeat them. As if we have not already suffered enough as a consequence of the Bush/Greenspan stimulus, Obama/Bernanke are giving ever larger doses, which will prove lethal to any recovery. The recession is over; long live the depression!

tank · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

I have never heard anyone say the recession is over but they are saying things are getting better.The people that sell fear do not want to hear that but it sure looks like things are going in the right direction.
Why does he assume that people using the cash for clunkers cannot afford them? Absurd.

brucefan · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

tank said:
I have never heard anyone say the recession is over but they are saying things are getting better.The people that sell fear do not want to hear that but it sure looks like things are going in the right direction.
Why does he assume that people using the cash for clunkers cannot afford them? Absurd.

Really, you need to get out more

Who else but the left wing ragsheet Newsweek declaring the end right on the cover:LMAO

tank · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

brucefan said:
Really, you need to get out more

Who else but the left wing ragsheet Newsweek declaring the end right on the cover:LMAO

Yep Newsweek is the only ones claiming this too.:LMAO
The Coming Depression is now the bible for economic times i guess.Fit's in the doom and gloom crowd quite nice I see.

brucefan · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

tank said:
I have never heard anyone say the recession is over but they are saying things are getting better.The people that sell fear do not want to hear that but it sure looks like things are going in the right direction.
Why does he assume that people using the cash for clunkers cannot afford them? Absurd.

Really, you need to get out more

Who else but the left wing ragsheet Newsweek declaring the end right on the cover:LMAO

tank · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

brucefan said:
Really, you need to get out more

Who else but the left wing ragsheet Newsweek declaring the end right on the cover:LMAO

Nah I would rather sit inside all day and go to websites like the Coming Depression and be fearful and miserable and spread it to make the doom and gloom crowd seem like normal people.

brucefan · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Telling the truth and weeding through the media propaganda is a public service. The truth is the truth.

If you want lies, you can listen to Obama

I am not being fearful, I am waking people up to stop the madness.

We can turn things around but , it doesn't look real good right now.

For people to invest blindly, believing that this ends will because Newsweek says so is dangerous. Many people are going to suffer and look back on these times with lots of regrets .

There is a fire burning, and this administration is throwing gas on it, and transforming our Country into something most wont recognize.

Or, maybe you think the answer to our problems is that we dont own enough new cars :doh1

Maybe we will subsidize ipods or nintendo Wii''s next!

Here is a hint..... how did our Dollar due today?????:shoot:

tank · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

brucefan said:
Telling the truth and weeding through the media propaganda is a public service. The truth is the truth.

If you want lies, you can listen to Obama

I am not being fearful, I am waking people up to stop the madness.

We can turn things around but , it doesn't look real good right now.

For people to invest blindly, believing that this ends will because Newsweek says so is dangerous. Many people are going to suffer and look back on these times with lots of regrets .

There is a fire burning, and this administration is throwing gas on it, and transforming our Country into something most wont recognize.

Or, maybe you think the answer to our problems is that we dont own enough new cars :doh1

Maybe we will subsidize ipods or nintendo Wii''s next!

Here is a hint..... how did our Dollar due today?????:shoot:

You have been ''waking'' people up with all your predictions. Let's see the Dow was going to be down to 5000 and Gold was going to be 2000 an ounce and oh yes the housing market was going to crash even worse , etc, etc ,etc.That hyper inflation you warned about was a real heads up too.
No one is saying everything is rosy but the Armageddon that you predict every day is just the usual doom and gloom fear you have been selling for months now.
The dollar has been taking a beating for months now so what??Do you think it will come back up like it has in the past?

brucefan · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

I never said next month, or even this year. I am not a trader, I invest.

One of the reasons the market has pushed higher is the recent collapse of the agenda of the man we call 'The Messiah', and the people's revolt against his massive expansion of Governement.

Here is one you can time.

If we pass Health Care with any kind of Public option , and or pass a cap and trade bill, My predictions will come true much faster then even I expected

The real question is, who really is the sheep here????

Joe Contrarian · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

brucefan said:
Here is a hint..... how did our Dollar due today?????:shoot:

George Soros is shorting the USD large!

tank · Jul 31, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

brucefan said:
I never said next month, or even this year. I am not a trader, I invest.

One of the reasons the market has pushed higher is the recent collapse of the agenda of the man we call 'The Messiah', and the people's revolt against his massive expansion of Governement.

Here is one you can time.

If we pass Health Care with any kind of Public option , and or pass a cap and trade bill, My predictions will come true much faster then even I expected

The real question is, who really is the sheep here????

No but all your post's of Armageddon are suppose to come true very soon right??You doom and gloom sheep eat this shit up and ask for seconds.
Yes I'm the sheep here:LMAO:LMAO

brucefan · Aug 2, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

THE RECESSION IS OVER... NOW ON TO THE DEPRESSION

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brucefan · Aug 12, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

August 12, 2009

<TABLE width="95%" border=0><TBODY><TR><TD align=left width="80%">Shifting Sands

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The monstrous typhoon that pounded away at coastal areas of the Pacific last weekend certainly qualified as a disaster for anyone who happened to be in its path. But for those of us safely in bed, the storm not only provided some remarkable meteorological footage, but also a stealth lesson in economics.

The most dramatic image, which involved a water torrent sucking away the sand beneath a stoutly built six-story hotel, struck me as an apt metaphor for the current economic environment. As the hotel?s foundations became exposed, the building toppled over like a massive domino. It was a vivid reminder that no structure, no matter how mighty, is safe if its foundation is weak.

Since the financial deluge erupted last year, the authorities, at least in the United States, have concentrated their repair efforts on the upper floors of our economy, and have virtually ignored the rotting foundation beneath.

Since 1971, when President Nixon broke the last link between gold and the U.S. dollar, American politicians have unleashed an ever-increasing number of entitlement projects designed to boost consumerism. With some 70 percent of our economy now based on consumption, we can safely say they accomplished their aim.

Following Alan Greenspan?s financing of the largest asset boom in the history of the Fed, America now faces massive deleveraging and a severe recession. However, it is becoming increasingly clear that neither the Obama Administration nor Congress have the slightest appetite for the political costs of deleveraging. Instead, the government has decided to lavish unprecedented trillions more of borrowed dollars on preventing a natural deleveraging from taking place.

Today, the official U.S. Treasury debt stands at a shocking $13 trillion, or 100 percent of the (declining) total wealth created in the United States each year (GDP). But total federal debt amounts to an almost unimaginable $56 trillion, or 4.3 times GDP.

Notwithstanding this precarious state of affairs, the government intends to spend trillions more dollars on wealth-consuming entitlement projects such as education, health care, auto sales, and the pursuit of fruitless wars in Iraq and Afghanistan.

America still has the largest economy in the world, but that doesn?t mean that it is the richest. Although Americans enjoy one of the world?s highest standards of living, they are also its largest debtors. As a result of the debt, which is subtracted from output, the worldwide rank of U.S. GDP is not first, as most would expect, but fifteenth!

For many years, two factors have prevented rank-and-file Americans from perceiving the weakness of our economic foundation. First, the international reserve status enjoyed by the U.S. dollar has delayed severe price erosion and allowed Americans to buy imports at a falsely advantageous price. Second, American living standards have long been heavily financed from abroad, most notably today by China.

The Chinese have recently expressed grave concerns about depreciation of their dollar-denominated assets and openly challenged the reserve status of the dollar. As Chinese support is vital to our currency?s continued viability, these threats are bound to exert downward pressure on the price of the dollar. In short, China is increasingly unwilling to finance America?s falsely high standard of living. If the Chinese pull out, where else can the U.S. turn?

Last week, in response to questions about the sustainability of Washington?s spending spree, Tim Geithner uttered one of the more ambiguous phrases ever from a sitting Treasury Secretary, saying, ?the government will have to do what the government has to do.? His comments went unexplained and could have referred to massive future tax increases. More ominously, they could have hinted any measure from an extended ?bank holiday,? to currency exchange controls, or even to a massive devaluation of the U.S. dollar (similar to the 75 percent devaluation instigated by Franklin Roosevelt in 1934).

Increasingly, it appears that the government is aware that its reckless expenditures will be financed less by foreigners and increasingly by current, and more importantly future, U.S. taxpayers ? and potentially by a severe devaluation of the dollar.

It does not take a student of architecture to grasp that America?s very structure is becoming more and more vulnerable to the shifting sands of economic policy being made in foreign capitals, and blowing upon our shores.

Euro Pacific Capital

brucefan · Sep 3, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

We are running out of time

But then again, cash for fridges may save us all :shoot:

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brucefan · Sep 18, 2009

Re: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

BRACE FOR IMPACT

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Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

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