Alan Blinder vs. Peter Schiff: When Will the Dollar Lose Its Reserve Status?

[pfeiffer101]

Peter Schiff is awesome

[lwglwglwg]

Gotta love Peter's foresight! Less than one year later, look at what's happening to Dollar now? Just prescient!

[speedrecovery]

THE SECRET OF OZ at theopensource . tv ;)

[edschaeffer]

The Austrian School of Economics is a tiny group of libertarians at war with mainstream economics. They reject even the scientific method that mainstream economists use, preferring to use instead a pre-scientific approach that shuns real-world data and is based purely on logical assumptions. Academia has generally ignored the Austrian School, and the only reason it continues to exist is because it is financed by wealthy business donors on the far right.

[zbigniewzapora]

@edschaeffer

You confused CATO with mises dot org

[zbigniewzapora]

@edschaeffer

Austrian school is as unscientific as geometry is. Please don't spread FUD about things you have no idea about.

[casienwhey]

Id like to see the rest of this as well

[kuza01]

Alan Blinder < Peter Schiff

The Truth hurts.

[AxiomaticObserver]

"Other great mainstream economists like Robert Kuttner and Meredith Whitney did so as well and with greater accuracy and less rhetoric."

When? Where are the clips from them predicting this mess in '06 or '07? I haven't see ANY. That's what sets Schiff apart, he was actual on TV defending his views while literally being laughed at and he was right. I see those people you mentioned who hold some of the same views NOW, but not back when Schiff was being ridiculed.

[jobedied]

Americans will always believe the liars because they are the ones CNN FOX promote for the corporate banking cartels . CNN and FOX cable type news will never give much time to accurate analysis. They do on occasion just so they say they have been unbiased but they strongly promote the paying advertisers who are the problem. Spinning over and over again the harmful agenda. Wolff Blitzer doing his high mass each night promoting the corporate spin.

[raspberrybaggio]

A prince between two dirty dumb pigs.

[GSDebunked]

lmao, ill double up on my bed, what a ledge

[thruid3]

@edschaeffer

It seems that Bernanke and Greenspan have been doing the feeding and you have been one of those doing the gobbling.

[edschaeffer]

I don't see how anyone can believe these Austrian Economic losers like Peter Schiff. He uses no proof to back up his arguments, he does not use the scientific method, no correllation models, no spreadsheats, no DSGE models. He spits out just bullshit rhetoric and you guys swallow it up.

America's net worth is 370 Trillion dollars and that says alot. Anyone who pursues the truth in this rhetoric will realize that alot of these idiots are just gold and precious metal propagandists.

[zbigniewzapora]

@edschaeffer

Well he does use a proof (logical one) if you bother to read his book. He precisely says what is wrong and why it is wrong and - bang - he was right (he published his book in 2006!). Exactly the same story with Mises and Great Depression. He predicted it and explained it before it actually happened. Even if you disagree with the guy you should at least read his arguments in his book and see for youself what kind of thinking this guy represents.

[edschaeffer]

@zbigniewzapora - No sir he's a broken clock that sometimes tells the right time. Austrian economists like Pete never use the scientific method saying all arguments based on the individual. When you have scientific and DSGE models that correctly predict the behavior models of the masses you realize pete and others that continue to propagate the gold standard are nothing but propagandists.

No Austro book is on an any required reading list at any university. In other words, they're crackpots.

[jonald77]

Keep putting all your faith in paper then. Real wealth is created by a printing press obviously.

[ulysseinvest]

@edschaeffer,

Several central banks use DSGE and not a single one of them saw the crisis (any crisis, the dot-com and/or the housing one) even though it was staring at them all in the face. You need to speak once in your life with a bureaucrat to know how clueless these guys really are - totally useless, you'll only believe it all after it crashes. Tell you what, ship me any precious metal you own, I will gladly exchange all my dollars. Assuming you're right - you'll be rich.

[TheNodnarb88]

Actually there are a select few universities that teach courses involving Austrian Econ, but not nearly enough. What makes you think any of those universities that don't offer it are credible anyway? I'm currently an Econ major and so far none of my professors can offer a complete analysis of their own. They're mind boggled by the recession and they view Bernanke as a God (some of them anyway). But Keynesian style seems very broken.

[edschaeffer]

@TheNod - I don't know of any major university (such as Harvard or Yale) that have any Austrian text on their required reading list. I would consder watching this if you're in academia for Econ and still believe there is truth to their claims:

watch?v=2P_Yq1AIDjM

[TheNodnarb88]

Well the only reason I believe there is truth to their claims is because people like Schiff and Ron Paul predicted this crisis down to the smallest detail, main-streamers didn't. But several grad schools do offer Austrian style programs like NYU and George Mason. I wouldn't expect left-wing schools like Harvard or Yale to have such. I will make it a point to watch the rest of that vid, but if you wanna get an idea of how accurate Keynesians have been watch this speech.

watch?v=6XbG6aIUlog

[edschaeffer]

Well, eve broken clocks like Schiff and Paul sometimes tell the right time, but don't think for a minute they predicted the crisis to the smallest deatil. Other great mainstream economists like Robert Kuttner and Meredith Whitney did so as well and with greater accuracy and less rhetoric.

You guys never admit that actually mainstream economists matter-of-factly DID get it right. They were accused of it because they were soft on subprime, but truly subprime was only 1 Trillion in damage.

[wizardseye]

I don't know if you count the University of Iowa as a major university, but it does offer a course specifically in Austrian Economics, and has a number books by Rothbard as required reading.

[wizardseye]

The University of Iowa, with as liberal a campus as it is, does in fact have an economic course on Austrian Economics, taught by an adjunct professor who is an Austrian Economist. The University also boasts a Students for Austrian Economics Club which has more attendance than the Socialist Club on campus.

[edschaeffer]

There's about 10% out there that teach it. University of Iowa is ranked 16 in Athletics and 75 in Academics. When a school is ranked 6 times higher for athletes than academics and higher than all 50 states. I think your right about the political nature of this. It's definitely far right economics, but it sneakily doesn't advertise it as such. Austrians are crackpots. You'll discover this soon enough.

[zbigniewzapora]

@edschaeffer

In some way I agree. Predicting future is not possible therefore anyone that claims otherwise is cracktop by definition. Still what Peter has done was not predicting future but stating the obvious in my opinion anyway. Mathematical models are useless in economics - did they help in predicting, explaining or even repairing economy - no. All they do is tell FED to print more money which is nonsense. Last part of your argument is logical fallacy called argumentum ad verecundiam.

[edschaeffer]

@zbigniewzapora - Without the fed these anarcho capitalists would've had you standing in a bread line and would've preached that the free market is doing its job and you'll be back to work soon. (working for $0.30 per day no doubt). A market can go two ways: up or down for various reasons and these broken clocks will always tout that they are telling the right time when things go their way.

[zbigniewzapora]

@edschaeffer

Why don't let us live the way we want to? Why do you care if we will work for $0.30 per day? Just leave us alone and we will never look back. I promise. Why do you have to force your way of living on me through your government? I don't care if you want to have FED or whatever and I will gladly let you have it. Why don't you extend the same courtesy to my views?

[edschaeffer]

@zbigniewzapora - No great society has survived without a government. If your way of thinking somehow warped the rest of the populus into actual believing the crackpottery of the Austrian school, global imbalances between wealthy and poor will reach a bi polar peak. watch?v=2P_Yq1AIDjM

[zbigniewzapora]

@edschaeffer

"No great society has survived without a government."

And that proves what?Ad hominems you seem to be so proficient at prove nothing too.Video you linked is really weak - there are a lot better criticisms. He equated an axiomatic-deductive approach with religion in other words he equated for example pythagorean theorem with religion.It seems like his problem is with the assumptions/premises.I suppose it has to be taken on faith that humans act. lol

[edschaeffer]

@zbigniewzapora - Whatever dude. How does it make you feel that Austrian economics has been out for 100 years, hasn't changed in theory, and is completely in conflict with academia? Not one Austrian economics "textbook" is on the required reading list for economics at any major college. Doesn't that tell you something? Anyone who believes in the value of gold over stocks is a fool. lol

[zbigniewzapora]

@edschaeffer

Your argument is rigged with ad populum and ad verecundiam so please provide more logically coherent arguments as to why you think AE is nonsense. As for gold - nothing has inherent value, every value is subjective, so it may be that for Shiff gold is more valuable and stocks are more valuable to you. Also remember that economics is value-free science - if you see anyone making any valuations thats not economics - that just an entrepreneurship decision or simple opinion.

[edschaeffer]

@zbigniewzapora - Yes, my argument is ad populum, but so is the scientific method. Do you reject the scientific method? Austrian economics rejects the scientific method. Mainstream economic theories are "ad populum" because one can successfully prove a correlation on an outcome. The opposite is true for Austrians. Laissez-faire is proven to be destructive to a market. Take JP Morgan, Rockefeller, Carnegie these men crushed the competition due to lack of regulation whichAustrians wish to reclaim

[zbigniewzapora]

@edschaeffer

So you are saying that by your definition scientific method is logical fallacy. You should really read up on things you are trying to debate and especially on methodology and epistemology of various schools of economic thought. It will really help you understand how little you know and give you some humility. I don't reject neoclassical school on basis of some youtube video. You should extend this courtesy to my views.

[zbigniewzapora]

@edschaeffer

Second part of your argument about free market is really just about understanding what free market is and what government is. Free market are voluntary exchanges, government is violent monopoly over creating and upholding of law basically so it is negation of former. Rich people like you mentioned have high incentive (spend a little on politicians, reap profits from being monopoly thanks to law) to buy up this monopoly so it serves their needs.

[zbigniewzapora]

@edschaeffer

Only logical conclusion to free market philosophy is anarcho-capitalism or voluntaryism of which I'm proponent. Ancap position is more nuanced than just abolishing government - ancap is not about abolishing law, police or destroying roads, but about abolishing violent monopoly over them so we can reap benefits of competition without monopolies created by government or monopoly of government itself.

[zbigniewzapora]

@zbigniewzapora

Of course in government (monopoly) absence all this would be voluntarily funded just like every other business.

[zbigniewzapora]

@edschaeffer

Problem with government is that it continually grows - every intervention leads to some sort of disaster that politicians try to be remedy by another intervention and so on. Best thing is that it is always fault of free market and politicians are always innocent and glad to be our saviors when they are in reality the root of our problems.

[TheWestAspen]

In the pursuit of truth, please provide source evidence for the $370 Trillion Dollar Claim.

How can a person logically support that leverage is good when growth stops, creating negative leverage, whether individually, corporately, or on the government level?

[edschaeffer]

@The WestAspen -

a) Look in my uploaded videos entitled "America's Debt is Trivial"

b) The answer is called investment. When you invest, you negatively put yourself at risk for the sake of innovation and growth. At some point there is growth. What can you do in a desert if there is no water? Wait for the next rain cycle?

[TheWestAspen]

I agree the concept of investment and risk for innovation and growth. However, our nation has stopped growing, check out the trade imbalances over the past few decades. Without core growth and with deficits, via net exports, you can not pay for the interest or the amortization of principal on the underlying debt. Without this servicing of debt and slow conversion of debt to equity, you are simply eating away at your intitial "investment" or in Australian Economic terms you have malinvested.

[DeathOfTheDollar2010]

Master Peter for Pres!

[aviomaster]

Seano71 -- Before they go broke , They know in Goverment very well what is going on , You think they are dumb as they try to sell themselves to the public.

CCCP did not fall in 1 month , But years of missmanagment and Military expenditures , crumbled , CCCP.

I see USA is on the same path but this time , zionist are steering USA , There is no way they will wait for Default , They will go to war , Iran , Russia (unlikely) but possibility.

[Kurosawaisgod]

Where is the full debate?

[AKAGl]

^ This.

[edschaeffer]

@Kurosawaisgod - I second that.

[aviomaster]

tommy6238 (--- IF China and INdia continue what they are doing , buying GOLD with Dollars . dollar goes DOWN .. USA will start NEW WARS ,,,

Maybe attack CHINA ...

[Seano71]

How?  they'll be too broke

[jobedied]

Went Christmas shopping tonight dec.15th man the mall was dead for so close to Christmas this mall has been here for 26 years and it looked like a dead snowy monday night in febuary.

[leftbehind81]

... and building the houses that contributed to housing boom. Many factory towns are ghost towns. I think a LOT of people are going to be very happy to see a reversal of the outsourcing trend.

[leftbehind81]

Its hillarious to hear ultra free marketers down complain that other countries produce everything we consume. And how exactly did we get in this position? For decades companies have been sending jobs over seas to get around having to deal with labor unions and working standard in the US. All the time cheared on by free marketers. The result has been devastating to the working class in the US. Many of them have moved on to service industry jobs.

[bobdole57]

If you knew what Peter Schiff stood for, maybe read his book or watched his videos or something, you might know how it happened.

[Depletethestate]

this is great man more tapes on record of schiff getting it right alongside Keynesian believers predicting way off base of reality

[bubbadankness]

Is there a full recording of this around?

[residentzombie]

Peter walked into a set up. He was laughed at and ridiculed for most of the debate. Remember the bankers at the Federal Reserve want their old friend Chris Dodd to retain his Senate seat.

[akpoker21]

"the dollar is still the reserve currency," not for long you dumb idiot. im glad peter is finally challenging these elites who think they can say whatever they want and people will accept it as truth. their time is running up

[jumpers3]

Like the ones who talk like little boys

[dirtynas]

These former and current so-called financial experts are used to everyone listening to them at face value and just accepting what they say because our economy normally is okay. This time, however, we are starting to question what they are saying and realizing they are full of SHIT!!!

Peter is just the catalyst in this process pointing out just how stupid their comments. Great job Peter. This country will be on the right track as soon as we get it!!!

[MrHarry46]

why did this "meeting" take place in the first place??

how many "discussions" like this have you seen in the past??

on mainstream TV???

is the Fed afraid of Schiff?

is it trying to discredit him?

will Peter Schiff end up like JFK

murdered by the FED in 1963?

stay tuned kidds

[rtardbox]

bullard sucks dog-penis in hell

[golfprobro4eagles]

Why dose anyone want to save these smug arrogant people. I am leaving you will be sending me my checks while I live on an island.

[roseagain2]

This is awesome!  They don't stand a chance against Peter! Where is the whole debate?!

[ezjisalive]

What a butt boy that last guy is

[LaMontagne1982]

Hey all, I am a fellow Peter Schiff supporter. I am running a page on facebook called "The Great Economic Debate of 2009: What You Need to Know Right Now" I am trying to promote Peter Schiff and Austrian Economics. Currently have 9 fans but would love to have more.  Please sign up and post your input. I have some great figures up there!

[0musing]

So this is what the fed expects to happen and is making happen? China will own the reserve currency? When that happens, the rest of the world will be owned and told what do by the bamboo curtain...congratulations Fed for leading us into slavery!

[toshibavoodoo]

great

[controlpopulation]

Ha. They all squirm in their seats when Peter is around. I'm surprised they even had the balls to speak in the same building as him.

[stealthpakfa]

these federal reserve con artists represents the cesspool of the human race.

[mreisma]

why didnt peter say the 'safety to the dollar' was in fact deleveraging.

[bjarnet3]

LOL,,, they flee the dollar next time...

How long are Americans going to listen to peoples who got i wrong all the time... You can always find a excuse afterwards...

But when peoples like Schiff, Ron Paul predicts crisis before it has happened. And explaining precisely what is going to happen, how is going to happen and why it is going to happen. It clearly speaks for itself.

It was not that Peter was right, it was how he explained things so precisely, so easy to understand. Go Peter!!!

[lilidk6150]

People got brainwash from msnbc and fox

[Motoicon]

Less worse is not better. Look at gold and silver reflecting the true value of paper money. Add to that the fact that JP Morgan and Goldman sachs control 80% of the shorts in PM's, it is only a matter of time before PM's go super nova.

[theguvnorjimmy]

Buy Gold and silver!!!!!

[odin422]

can talk about the DOLLAR EH TREASURY!?!?!?!?!

Go HANG YOUR SELVES THEN

[30percentplusreturns]

All these fed officials are the biggest dopes. They didnt see any of this coming.

[AmRonPaulian]

Thanks for uploading! can you please upload the whole conference?

[PreciousMetalsStore]

I will if I can find it. It seems the Yahoo is the only one who has made any part of this conference available so far. If anyone runs across anywhere online please let me know and I will get it up on youtube.

[spol07]

schiff is amazing

[Eraser7622]

Schiff has some balls, but I suppose when you are right, and know you're right, it is hard to be "PC" in the face of the perps of this global scam.

PS: PS :)

[Intervene]

nice!