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Peter Schiff Discusses Our Economy

May 19, 2009

I’ve recently decided that along with some of the other information I post on this site, I’d start writing short lessons on economics, to teach people how things operate.   But today my brother recommended I watch this series of videos by Peter Schiff, an Austrian economist.  He was wondering what I thought of what he was saying.

He’s spot on.  He’s exactly right, about everything.  He talks about Americans living in debt.  The things the government is doing to correct all our bad decisions, and their bad decisions too.  The bailouts, and what’s really going on.  How the Federal Reserve is manipulating things, and is the problem.  How Obama’s plans are no different than what George Bush was doing.  Spend Spend Spend.  Borrow Borrow Borrow.  There’s no economic policy change WHATSOEVER.  And now since no one is buying our bonds, we’re looking at: Print Money, Print Money, Print Money – which will lead to hyperinflation, and the butchering of our currency.

He mentions Bush’s deficit spending of 400 billion a year, and how it pales in comparison to Obama’s 2 trillion dollar deficit.  He talks about how inflation only benefits the government, because they want to spend money they print up without consequences, and devalue the debts they run up through bonds.   Here’s a picture of the deficit spending, for those of you who would like to see.  The red bars are Obama, the grey bars through 2008 are Bush administration. The surplus back in 2000 was back in Bill Clinton’s day:

Who can run up the highest deficit!

I remember watching corporate owned news networks deriding the tea parties.  They’d say “Obama gives everyone a tax cut,  but here they are out here protesting taxes.  Look how stupid they are.”  That’s not what the protests were about AT ALL.   It’s about how we’re going to have to pay back all this MASSIVE SPENDING.   The small tax cut most Americans received pales in comparison to the backlash which we’re all going to feel from this spending.  To compensate for these actions we have two options:  1) We’re either going to be taxed, or 2) they’re going to print up money, which devalues the dollar, pisses off countries who have lent us money, ruins trade relations, and essentially steals from those who have been responsible and saved.

Count up all those red bars.   All that’s running up national debt.  And remember, the more debt we run up, the higher the interest rate we must offer foreign nations to buy more debt.  And how do we pay for that?  Government taxes us, and WE GET NOTHING IN RETURN!  Just pay international bankers interest.  The more we borrow, the worse it’s going to get, and Obama, for some reason, thinks that’s the solution.

The average person is broke.  Buried in debt up to their eyeballs.  The government is broke.  Deficit spending galore, on the state and the federal level.  Where the hell do they expect to get all this money?   The average person is already leveraged to the max.  I know, let’s tax the hell out of the rich!  Good plan there, idiots.  Tax the business owners, who provide you your jobs.  Make it harder for the successful businesses to operate, and send the resources to failed businesses who have proven themselves corrupt, and incapable of running themselves effectively.  Bailout the very bankers who lent out money irresponsibly.

Everything we’re doing is SO STUPID.  STUPID.  Just quit spending!  Quit bailing out people with China’s money.  Cut back, and take the pain.  We can’t keep doing this.

He also talks about how other countries, such as China, and Japan, are not going to keep letting us take advantage of them.  Our leverage is gone.  They’re not going to keep sending us their products while we keep handing them money we print up on the printing presses.  They’re going to start keeping the things they produce for themselves, instead of sending them to us.  Since basically everything we buy from the store is “Made In China”, it’s going to hurt… BAD.

I apologize for the fact that this is 7 videos, instead of 1.  It’s just the way it’s been posted to YouTube.

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