Peter Schiff vs. Keynesian Economist Greg Mankiw (4/20/09 Schiff Report)

[Spjungen]

The nobel prize AND the accompanying cash payment need to be confiscated from Krugman and given to Peter Schiff. This man represents excellence and accurate foresight and analysis in economics. Honestly I wish he'd become a professor...academia needs him because it's being brainwashed by Keynesianism right now, and it's endemic. All the Ivy Leagues are guilty of it, especially Harvard.

Sad...

[BogartWestern]

mankiw isn't what schiff is making him out to be. "basic economics" to schiff means "austrian economics". mankiw speaks truths that if they were to be applied to the economy they would work, but schiff is so market-oriented he can't bring himself to reconcile with keynesian economics. i agree with schiff 99% of the time, if not more. i agree with mankiw much of the time, although he's rather blah. at least he's not as brash as schiff. if austrians want change, they need to develop tact.

[Spjungen]

@BogartWestern The reason they're brash is because the system is fucked up and they're sick of being ignored, laughed at, and being seen as the weirdo fringe extremists of economics.

[LiberalCast]

much of the theory you disagree with is actually monetarist

[kroovyandcal]

100 dollars in my pocket would actually be 102 dollars in my pocket with "negative 2% rate of interest" yeah. spend spend spend irationally.

[kroovyandcal]

negative rate of interest - what's that? negative 2 percent? haha. mathematical impossibilities abound

[tzlifts]

I don't know, who are you to call a turnip clever?

[tzlifts]

Who is Peter Schiff to call anyone nutty?

[BikiniBabe1985]

@tzlifts Who are you to call Elton John a faggot?

[CircleBastiat]

@BikiniBabe1985 lol, nice.

[MenacingMoppet]

(cont'd) This is the cost of holding money - by holding currency, you lose 10% of its value. Mankiw wants the interest rate to be at (hypothetically) -5%. Therefore, you lose more money by holding it (-10%) than investing it (-5%).  He wants to punish people for holding money and encourage investment. Yes, increased consumer spending could be a byproduct of this policy, but Mankiw's goal is to reward people for saving, not punish them.

[MenacingMoppet]

Peter Schiff clearly has reading comprehension issues. I just read Mankiw's article and his goal is NOT to increase spending for a short term GDP boost (as Schiff proclaims), but to increase investment. Our problem right now is that our interest rate is so low, there is no incentive to invest. Mankiw's solution to this is to increase inflation. The interest rate of money is negative inflation, so if inflation is 10%, the interest rate of money is -10%.

[asmuench]

are you kidding me? you vs. mankiw... sorry man, you don't know what you're talking about, mankiw is 100% right on this issue

[Romulasshl]

@obgnoixious

Did you even listen to the last half of the video?

[stevekindejr]

dude, I hate Mankiw too but at least pronounce his name correctly.

[obgnoixious]

1. Mankiw is a monetarist, not a keysian.

2. Peter Schiff is a broker a.k.a. salesman who has a terrible understanding of economics (i believe he was an accounting major), thus his calls on selling financials has turned out to be epically incorrect as demonstrated by reality.

3. His reference to Mankiw discussing negative interest rate is taken entirely out of context and misrepresented

4. His opinions are all from watching cnbc aka investainment, rather than actual research and analysis

[jrs89]

Mankiw is actually a New Keynsian. Read his papers. He has different views than many other prominent Keynesians, but he isn't exactly a Chicago-style monetarist.

[Sivels]

he's so bad at economics that he predicted the financial crisis. Now how many keynesian "economists" can say they did that?

[obgnoixious]

I stand corrected jrs89. You are right, Mankiw is a New Keynsian but on the political spectrum of economic schools of thought, it's more aligned with the right than the left.

Sivels, all I have to say is that the sun shines on a dogs ass every once in a while. I'd like to see his overall record of predictions. Plus, who said an economist's job is to trying to predict the future.

[Sivels]

"who said an economist's job is to trying to predict the future." first of all, it shows he has an understanding of how things work.. 2nd He's the president of a multinational company Euro pacific capital, He knows his stuff, economics and was economic adviser to Ron Paul during his run for president in 2008 (Ron Paul who also predicted the collapse would come). So I'd say he's more than a dog's ass, and maybe people should listen him instead of fx Paul Krugman. Governments create bubbles m8

[tonybonez]

none. there is your answer..

It is simple..if you make an accurate prediction your credibility goes up (Schiff, Ron Paul..). If you are totally wrong your credibility goes down.

It is not rocket science!

[migkillertwo]

@Sivels Krugman predicted the financial crisis. He, and everyone else, could see that this was a bubble. How could it not have been? Income for the people to whom these loans were given was going down, but the price of their loan was going down. That's a bubble.

[soctennis8]

Starting around 0:50, Schiff says about Bank of America, "anyone who's buying stock in any of these financials should have their head examined. They're going to lose a lot of money, and if you own any of these, you need to sell."

At the beginning of the video, Schiff tells us the date: April 20, 2009. At the market close on April 20, 2009, Bank of America (BAC) stock was trading at 8.02. Right now, BAC is at 15.87 - nearly a 100% increase in price.

[CIPPALA]

All the economists who deal with the economy as a science is ridiculous.

the idea of Mankiw is an old idea, the brilliant but never implemented ..

The profit is given by the money + interest. The Communists concentrated on the money .. but some .. I think Silvio Gessel not clear why the interest?

[CIPPALA]

Mankiw !! Italy said Mankiw.

find seigniorage....

[KLguy133]

can you imagine Mankiw's books are standard texts for most colleges.

[infin1te]

I dont think Mr Schiff has a real point here. He states that Mankiw is wrong when it comes to creating deflation. It's the basic principle of macroeconomics that you gotta spend money in recession to make the economy work again. And if the only possibility of forcing ppl to do so is creatig inflation I agree with him. Plus the criticism on german car-clung is ridiciolous - it's one of the only things thats proofen to work (here in germany).

greetings from germany.

[Entropy137]

America 1920.

[dmger14]

Yet another great video from Schiff. The CBO itself said the stimulus will do more harm than the little good it will do. The only thing we know about all this spending is that the bill will come due, not that it will help at all. Also, freeing up the credit markets won't make banks lend because consumers are already up to their eyeballs in debt, so that is a false premise!

[react1200]

Whose ultimately responsible, the government, but only because those gutless republicans and democrats dont have what it takes to stand up to Wall St. as FDR and JFK did. Wall St. holds no ideology and has no respect for the Constitution (watch General Butler video bribe). Peter's policies is the noose these powers want, because with all the wealth centralized the cutting of taxes, education, social servies would lead to epedmics, rampant crime and depopulation. We need a peoples government!

[DONOVANDANNA]

good lord! who do you think pays those taxes?!?!?

What are you saying?!?!?

The 30 - 40% wealth stimulus would be centralized in everyone's house hold.

Please stop, shut your eyes, and breath and listen again.

[react1200]

Uhh, you should read the New Deal and Pecora Comission findings. I never said it should be centralized in a household, it should go to the physical economy. Do your research!! "react, why do you say these things of peter"??? :( because Peter believes that AFTER the gov has deregulated markets to favor big biz/corruption (per enron), outsourcing, tax havens, hedgefunds, that the gov should no do anything else. He is saying the crooks should keep their money and perverted version of laws.

[react1200]

Understand that the money that has been acquired by hedgefunds (such as George Soro's Quantum) as acquired via fraud. This discussion is beyond the scope of this post. It must be understood that their are multiple layers, like an onion, to the reason why America is in decline. Corruption, perversion of laws, shadow government, collusion, greed, cultural, drugs. Recognize economic warfare, against lower, middle and upper middle class when you see it. Study what Enron!

[react1200]

Wrong, system is dead and completely insolvent. Bankruptcy and freezing of assets is only solution to the quadrillion worth of CDS obligations. Mr. Schiff, stop spreading your fascist views, a reincarnation of the American Liberty League and Amity Slaes. Hoover did not launch Pecora, FDR did along with the purging of Zombie banks. If you drive on a highway, thank FDR and the New Deal supporters which decentralized the wealth as much as possible before Truman took over. May 11th, END GAME!

[DONOVANDANNA]

How on Earth can you claim that Mr. Schiff's views are fascist? He is against government bailouts.

[react1200]

The austerity measures he wants to take would leave an entire underclass to die. Thats what happens when their are no jobs and no government help. Reseach Amity Shlaes and Ameican Liberty League, which was financed by the same corrupt powers (JP Morgan, GE, Alcoa, Dupont, etc.) that caused the last depression. This time they perverted the law to cause the collapse. They failed, according to General Butler, to install a fascist dictator in the US, but had high hopes for Hitler. Eugenics.

[DONOVANDANNA]

Dude, I empathise with your passion to get to the source of corporate-government corruption in an effort to abolish it and give the masses back their freedom and rights to pursue happiness.

However, you only need to look in to the federal reserve. You'll find your source.

[dlucas90]

The banks have quenched their thirst with salt water. Wont be long now for things to get crazy.

[Honkyrappa]

I want:

Schiff vs Krugman

Schiff vs Robert "third" Reich

Schiff vs Greg "GOP Shill" Mankiw

[ironoskar]

Mankiw is the same bastard that told us that outsourcing of American jobs was good for the U.S. economy while serving under Bush.

It was all about immediate profit. No look to the future. Now we are seeing the results.

Obama is stupid enough to believe this theory. Or, he wants to destroy capitalism.

[linnx88]

Hooray the welfare state, everyone will be jobless, on unlimited unemployment extensions, free med insurace.....that'll last for a year....the payment will last for years. Lets see how fast this bubble bursts.

[libertyeconomics]

linn, let me tell you something. i embellish this not. 3 out of every 4 people i know is living on taxpayer money. most of them are social security disability, and they aren't even disabled. they are in their 20s and 30s. even this person i know who has a very good job managed to find a way to get a $470 check for taking care of his gay lover under a VA program. and then i hear that next month, ssi recipients get a $250 bonus. what an insult to people like myself who want honest work

[linnx88]

Oh I believe you. My sister and her husband were forced to go into foreclosure because the bank wouldn't do a re-evaluation and mortgage correction any other way. This is what Peter's landlord is doing with his parents' home they're renting. It's all over the country today. And of course always there will be people who want free money, it's not their fault but the system who sets it up that way. That's why it never works, nobody wants to work and everyone will take free money if they can.

[giygas666]

Mankiw was an economic advisor to George Bush? The same George Bush whose administration helped create this climate of fiscal/economic irresponsibility? The same irresponsibility promoted by advisers like Mankiw?

Plus, Mankiw's a Harvard professor? That alone should set the alarm bells tolling.

[Chikusoo]

LOL i am taking an econ course at my university and we had to buy a book written by Greg Mankiw.

wtf does the school like to waste students' money?

I rememebered I used to have another textbook written by Paul Krugman. lol

[mcgrawtim123]

This is the best video from Peter Schiff in awhile. Great stuff! And yet, when Peter gets his game on, I know the shit is inches from the fan.

[xennelul]

My german friends talked about the car thing, weird how similar things seem to be happening in different places all over the world, all the while the general populace does not support those kind of frivolities, and only want politicians to stay out of their pockets and use common sense to run the countries they live in...wake up people!

[YZBot]

5 stars.