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Peter Schiff: "The government has shown its hand, its hand is inflation, we’re going down this direction. The government is committed to this tactic, and it’s going to be a complete disaster."
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This Link is located in the Public Channel Housing Bubble and Bear Links.
Posted by ian 234 days ago (www.europac.net). Views: 668
Tags: peter schiff housing bubble gold |
| Related Tags: credit crisis economics wall street banks recession inflation finance |
Wall Street Unspun with Peter Schiff (internet radio show) - May 14, 2008 recording.
Here is an excerpt I have typed out, for your reading pleasure:
At 15:25 a caller asks:
“Do you think that it’s possible the Fed is trying to create all this inflation so that the banks can borrow below the rate of inflation and then invest in energy and commodities to recapitalize themselves?”
Peter Schiff:
“Well they’re not hoping that they invest in energy and commodities, they’re trying to keep these banks afloat. They’re hoping they’ll continue to lend money to Americans to buy real estate and to buy other consumer goods they can’t afford.
The government is trying to socialize the losses through inflation and hope that nobody notices them, or that they can spread it out and diffuse the losses, and that somehow it’s better to do it that way. Because the losses are there – and either the losses are going to be borne by the people who deserve to bear them, or they are going to be borne by everyone. And the government is opting for everybody. Just make everybody pay in the form of debased savings, in the form of higher food prices, higher energy prices, and a higher cost of living. Let’s just take the losses through debasement of the currency, and in the mean time the government is able to also benefit because it’s able to wipe out huge portions of its debt, because in effect it’s defaulting on that debt, because it’s paying it back in cheaper money.
So there are a lot of reasons why the government wants to create inflation, and they’re hoping that the inflation will be able to bail us out. And then the government then blames the result of their monetary policy, the rising prices, on external forces. They say it’s happening because of food shortages, because of higher economic growth, because of whatever we want to blame it on, other that the fact that high prices are a direct consequence of the government policy to bail out Wall Street. Main Street, people who make $30,000 and $40,000 a year, are being forced to pay higher prices for basic necessities so Wall Street billionaires can get bigger bonuses.”
At 21:20:
“… The government has shown its hand, its hand is inflation; we’re going down this direction. I don’t think we’re going to veer from it anytime soon. The government is committed to this tactic, and it’s going to be a complete disaster.”
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ian said |
| 232 days ago |
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