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

[vultureofawhore]

December 23 1913 was the last day of this country. That is the day that lives in infamy.

[disaLlfaya]

dude... pete .. i love u bro.. u actually took the time out to break things down so the average guy can understand that wall street stuff.. peace

[paulbutkiss]

wheres his beard? watch fox for real news :)

[acchichi1]

You don't need a PhD to understand economics, but in order get an economics PhD at an brand name university, you will need to disregard basic logic and the reality right before your eyes and explain, probably not even in your own words, the party-line fantasy account of how Keynesianism or Marxism will create paradise on earth.

[scrapdaddy811]

this guy is right on the money. the largest problem with our economy is the trillions of dollars changing hands with nothing to show four it. wealth is not just the exestance of dollars thare must be assets created to back it up, or you have to many dollars chasing to few goods "inflation". the deindustrelisation of our country is what has created this economic bust. even the rise of realestate prices is nothing but speculation if it surpasses the value of durable good being manufactured.

[ianclivewright]

I don't know why you need to have an in depth knowledge of Austrian economics.

It seems obvious to me that currency is a replacement for barter, that what backs it therefore has to actually have an intrinsic worth, that spending more than you earn constantly is a bad idea, and earnings from "services" is a chimera that is bound to fail.

If I can see that as an economic novice, why are so many economists surprised by the present recession, soon to be coming depression?

[dmger14]

Shahen, he was right in the medium term, wrong in the short term. As he says, all China has to do is consume moire instead of saving so much, and they will consume their own production! Also, there are other nations to sell to that are coming out of third world status that are potential buyers.

[gus19668]

can the EAGLE gold coins being confiscated by the USA goberment ??

[DaveDoggOwns]

Yes, they allready raided the Liberty Dollar collections last year. They'll come for the EAGLE gold coins next.

[toounfazed]

So some rich people got burned by their own greed. So what? Ma Joad said it right, "Rich fellas come up an they die, an their kids aint no good an they die out. But we keep acomin. Were the people that live. They cant wipe us out; they cant lick us. Well go on forever, Pa, cause were the people."

[livingaftermidnight]

The problem is, even if American's are broke, the Government will still spend, spend, spend because they have an unlimited supply of fiat money from the Federal Reserve. The more money they create, the more fucked we become with inflation. STOP THE FEDERAL RESERVE!

[mookixox]

Why not start at the grass roots? Tell everyone u know to take their hard earned money OUT of the banks and back your own money with gold,silver, food, land...items of actual WORTH. Tell your govt that if it won't back your money then you will. Once the banks lose control of your money watch how fast the govt will LISTEN to the people. You guys can still win this fight, but u gotta take action*

[jimmyjoe1975]

Right track, but food is not a good backing for certificate issues. Think about your banana certificate that then rots. That certiicate quickly becomes worthless. But you are on the right side of freedom.

[shahen13]

Riiiiiighttt. He is not the short selling type because he is so noble.

Unless of course it comes to the US dollar. Then he is all about shorting the dollar - which really amounts to him being a traitor. Is that what you are suggesting?

[shahen13]

Nichola, let me make this simple for you so that you are able to comprehend. If Schiff had bet exactly opposite of what he did, he would be up 70% instead of being down 70% right now. Since you ask, that is what I would expect if he knew what he was talking about which he obviously does not.

The problem is that he did not realize that the other economies that Schiff loves so much are highly dependent on our economy. This is why those economies are down as well. This was his major screw up.

[rationalCrash]

Finally someone (other than Ron Paul) who actually talks rationally about the economy. if Bahama Bush, our new president, had put this guy in charge I might start believing that there was going to be a change for the better.

[shahen13]

Schiff is a mega idiot. His investments over the last year are down 70% despite the fact that he called this downturn correctly. That is what qualifies him as a mega idiot.

[zurichdublin]

The FED has caused a large part of this problem. Lowering interest rates causes businesses that are shit to continue to operate when they should go bankrupt, and replaced by companies that are productive.

Then the market would be filled will companies that produce quality products instead of "planned to be obsolete in 3 years products; such as american cars".

[zurichdublin]

Lowering interest rates also encourages companies and people to 'borrow'.

If interest rates are at 15% or more nobody wants to borrow.

The interest rates have been artificially lowered 'manipulated' by the FED. The GENUIS Alan Greenspan was the one who got us to this point, and everyone thought he was great.

[702decatur]

All business is in debt, no country does not have a debt load.

What he is not mentioning is the type of spending Obama is doing. Investing in infrastructure, and energy will get that debt paid back.

To say that the FED cause this problem because of low interest rates is just plain stupid.

Free markets do not correct themselves, never has never will.

[husgvarnya]

1. Please explain how make-work construction projects (which was tried and failed in Japan) and subsidies for worthless "alternative energy" projects (read: corporate welfare) will be beneficial to the economy.

2. Expansion of credit is the cause of the business cycle. To claim (which you implicitly do) that the interest rate is an arbitrary number that has no effect on the economy is the height of idiocy.

[husgvarnya]

3. Letting the market function is the only way to purge the mal-investments created during the Fed's inflationary boom and adjust the structure of production to a sustainable configuration. Compare the recession of 1920-21 (where markets were allowed to work) with the Great Depression (where they weren't).

[702decatur]

So are you saying that the markets are not allowed to function. I was thinking that this is what happened banks and creditors are in the business of making money. Knowing this why would you think this problem would correct it's self.

[toounfazed]

Good information. Listen to this expert. We listened to him from the beginning and we are economy-proofed. We have no debt. We own a very small, energy efficient home outright in a place that has low property taxes. We own our used, low-mileage, fuel efficient vehicles outright. We invested our free cash into our economy proof businesses and into tools to earn money. True capitalism. Real investment of cash, not loans. We can live without income, grocery stores, and fuel, if necessary.

[Swansen03]

good for you, but honestly, not everyone has the ability to live without some basic provided services because its no feasible. There are to many people in the world for everyone to have enough land to have a farm, of any usable size. However, everything else you've said should be a model to live by, but people just love debt for some reason.

[toounfazed]

You have a point, however if there is a crash severe enough to prevent those basic services then people will find out how hard it is the hard way. If you don't plan for the possibility of a life without services and a develop way to survive, you will be without a safety net. We decided not to wait and become stuck in a McMansion we couldn't afford, so we downshifted early. We did vote for Obama, and we think his way is the only way out.. Things are really bad and action had to be taken.

[FreudWasAFraud]

i'd say giving trillions to goldman and friends is the only way to goldmanocracy.

things are really bad *because* of the actions taken.

[toounfazed]

All the grumbling and all the hand-wringing means nothing. A relatively few rich people lost some numbers on their balance sheets. A few greedy middle-class people lost some numbers on their 401k's. Everybody who thought they were 'entitled' to careers, incomes, material goods, and comfortable retirements, has had a bit of a shock lately.

[cwp4ut]

To kohlermna8,consider this: If our car insurance covered gas, what would happen?When we pay at any station and hand the clerk our insurance card,we have introduced a third party to which the gas station must raise prices !!in order to hire personel to handle billing logistics and compensation claims. Not only this, but the third party must make a dollar to, so there is profit for them built in their coverage. This is exactly like healthcare, except HMO's and PPO's are government mandates!!!!

[30percentplusreturns]

We should start a financial revolution in the United States by not using credit cards or credit!

[littlemisspissy]

People should pay cash for everything... whenever and wherever possible. Not always possible when buying a washing machine or a car and rarely when buying a house, but for everything else... DEBIT cards with money in the bank to cover it or better yet cash.

0-Balance Budgeting.

Too bad, like Schiff says, government is running up debts FOR us that will make things tough, if not impossible to pay back. That is why Obama will run taxes through the roof in an effort to pay for everything.

[702decatur]

The government discourages this by putting little watch methods on cash transaction. Try go out and buy anything for more than $10,000 in cash or try going across the boarder with the same amount without carrying a W9 form.

[gamepuck]

If the econ crashes, the only thing gold will be good for is smashing small animals so you can cook them for food.

[30percentplusreturns]

The economy did crash. Gold will never be used as currency because there isnt enough of it. We have 300 million Americans. If 150 million people used gold as currency, we would have to issue notes that represent gold, ala the gold standard again. This will just lead to an abondonment of the gold standard again, with the cycle constantly repeating. There is no fix. Using fake paper money is the only thing that can work at this point unless you can settle for 99% deflation due to no credit.

[702decatur]

Wow you are the only other person I have seen to say this most obvious point. Besides the fact that all and I do mean all businesses run with a debt load. I wonder how many if any businesses Schiff has ran.

[nafter9]

What should alarm ppl is "in order for our economy to grow....we need to expand credit"....thats corrupt!!!

The foundations of the economy are evil and corrupt.

The middle east uses different methods and it results in people being cash rich.

Thats why you never hear of a economic crisis in the middle east.

We need to change the foundation of our economy.

[qmiler88]

umm yeah...what about the oil rich resources? If the mid east did not have these massive resources, it would be another 3rd world country. In fact the mentality is still a 3rd world country there. I am from the mideast.

[nafter9]

True i see your point but, the system they have of financing means credit is frowned upon.

I would rather be in the middle east right now then here in the west...i would still have a job !

The point i was saying is- the foundations are corrupt. The economy depends on you and i being in debt- that scares me!

[makinglovetotheday]

I hope this man keeps on sharing his knowledge of America and others don't silence him.

[alexngyen]

The problem is everyday Americans by spending too much money they don't have. The damage the government will cause in the way of inflation and limited production will dramatically lower the standard of living for many. Get your gold and silver which incidentally can be traded in for most fiat currencies in the world now. Failure to take care of your family will result in poverty for you all.

[kohlerman8]

If we want to reduce medical costs we need to finally take on the American Medical Association and their lock hold monopoly on health care. Without change we will never have competition.

[jckjti49]

Peter Schiff knows that hyperinflation will soon hit the US and make the dollar worthless and those who don't prepare now will soon be broke. Read the articles and signup for the free newsletter at: Inflation . us

[benpa29]

Peter also probably realizes that the stock market is currently being sustained through money given to banks via the Federal Reserve. Warren Buffett isnt dumping that much cash into the system.

I wonder how stocks prices would be doing without the billions of dollars being sifted through the various bailout banks into the stock market? The same risky investors who helped to cause our problems and know helping to make it worse.

[ronheri]

The government says inflation is .1% or nonexistent. They say unemployment is around 8%. They say the Federal Reserve is Federal (Nope its a private banking cartel). The FDA does;nt protect anything or does the SEC; our southern border security is a disaster. Both parties lie to us and the MSM back them up. What we have here folks is a shadow/tyranical group of corporate criminals destroying our once great Republic. I'm mad as hell.

[30percentplusreturns]

Mr Schiff is great about telling you what has happend but im afraid his gold prediction will be wrong. Interest rates are going to soar with china selling treasuries and putting the money into base metals, not gold. As interest rates go up, demand for dollars will outweigh demand for gold. This whole gold thesis is wrong. Do you really think you can make money in gold when everyone out there is a gold bug. Gold is up like 400% over the past few years. It isnt going up another 400% people!

[nolan067]

research GATA. they are a foundation out of Russia that studies the balance between gold and currencies, and to other metals. You will find your answers there.

[ThomasFreed]

less than 1% of the people on this planet possess any gold at all. Of course it's going up. There will be no demand for worthless dollars when inflation takes hold - not worh a continental - how many of them do you have ?

[mentalcuzisaidso]

1. Cover your mouth with you hand

2. Make a wish

3.Close your hand (fist)

4. Hold you hand at heart for 5 seconds

5. Send this to 3 more videos

6. Tommorrow will be the best day ever

[pandabead]

Mr. Schiff Obama has no interest in helping our economy recover. He has been manipulating a revolution.

[rezus123]

Not to mention, a few people now, that GDP can be calcuted in three different ways: GDP by production, by expenditure, by income. Different calculation gives different results. For example in Lithuania comparing GDP by production and expenditure, the ratio is 7/10

Austrian economist Shostak:

"The GDP framework cannot tell us whether final goods and services that were produced during a particular period of time are a reflection of real wealth expansion, or a reflection of capital consumption".

[shahen13]

The answer is, yes, they are. Look at minimum wage for proof. So, what difference does it make if you earn $1 and can buy 2 cans of cokes for fifty cents or earn $2 and can buy 2 cans of coke for $1. The answer is none. Schiff is a fool and to follow him is even more stupid. Blind leading the blind. I am not looking for any personal gain here - just trying to warn you of impending disaster if you take advice from this idiot. The market is about to take off - get in with a diversified portfolio!

[walmartsbitch]

shahen, i got a good laugh too when '73 told u to read about the fed. but dont u think that the massive expansion of speculative(401k)money in the market coupled with obvious inflation followed by cutting off the money supply is exactly like the first depression? how can 9/1 lending ratio be maintained? isn't the loss of solid manufacturing jobs a problem? and u r wrong about wages keeping up w/ inflation. the poverty line is still based on a time when food was the number one cost.

[walmartsbitch]

gang, we r the problem. we buy foreign goods. we let 5 or so guys own the media. we allow the fed to continue. we allow corps to have the same rights as us. we simply stopped using common sense. college is not knoledge. turn off the tv, get educated for real, apply common sense,follow the constitution, stop being afraid. stop voting for rich pricks who dont care about u. and if u find all that as unrealistic as i do, study the weimar republic of germany and start looking towards asia.

[pandabead]

Have you read history we have had hyperinflation during the great depression which led FDR to fix pricing on goods and services.

[shahen13]

As stated before, my research interests are in economic growth and money and banking. Perhaps you didn't know this, but monetary policy is a huuuuuuge component of money and banking. And what is this inflation that you keep blabbering about?? The US will NEVER have HYPERINFLATION. There are too many guards in place for that. And think about the last 20 years - this is not so distant in the past that we have forgotten. Have prices really gone up that much? And aren't wages keeping up?

[pandabead]

Yeah right! weiner republic is all I have to say.

[shahen13]

In other words, he is like a physician who diagnoses correctly that you have high blood pressure but then treats for blood sugar. The evidence is plain to see in his investments that declined so hugely last year - what a fool. As for 601373, read Griffin's book? I already have and I could teach Griffin a thing or two. He claims all economies functioned perfectly with the gold standard. Hello??? Anyone ever hear of the great depression??. Most of his claims are twisted and full of it.

[husgvarnya]

Lol you think the gold standard had anything to do with the Great Depression. You might want to get a refund for that PHD, buddy.

[shahen13]

A PhD in Economics is comprehensive enough that you cover all the schools of thought. Incidentally, I was an economics major as an undergraduate and as a masters student as well. Between my education and career, I have studied the subject of economics for over 10 years now. Schiff, like a lot of other economists, did call the housing bust and resulting economic downturn correctly. This was really not as uncommon a call as you might think. Where he screwed up was in placing his bets.

[dukearmyguy]

Mr. Schiff,

I'm loving the new microphone!! Way to go!!

Bill W.

[jckjti49]

Peter Schiff knows that everything Obama does will lead to hyperinflation and Americans who don't prepare now will be broke once the US dollar collapses. Read the articles and signup for the free newsletter at: Inflation . us

[shahen13]

As far as Schiff goes, I hear he is down 70% on his investments for 2008 with his "decoupling" theory. Are you sure this is the guy you want to worship?

[shahen13]

brown 55061 - I have a PhD in Economics and my research is in economic growth and money and banking. Govt. Spending and tax cuts are the two tools of fiscal policy available to the fed. govt. to stimulate the economy - this is Econ 101. You may want to open a book and read to gain knowledge before you argue. ALL KNOWLEDGE CANNOT BE GAINED JUST BY WATCHING TV - NOT EVEN CNBC. It takes discipline and hard work - there are no easy pills. Furthermore, you are wrong in everything you have said.

[601373]

You say you have a PhD in Economics, I am willing to be that the Economics you were taught were likely Keynesian Economics, not Austrian which is the proper economic philosophy when dealing with a laissez fair capitalist market.

How can you conciously say that we need to spend more and "cut taxes" to fix our economy? How about downsizing the government, eliminating unnecessary spending like the War on Drugs, DEA, etc. Go read "The Creature from Jekyll Island" by G. Edward Griffin.

[601373]

You sound like every other idiotic economist on Television who thinks that continued spending, and inflation of our currency is a good idea. You say you have a PhD in Economics, how about monetary policy? Did your degree cover the dangers of fractional reserve banking or fiat currency?

I highly doubt it, because if it did then you wouldn't be trying to discredit somebody who is comparing our current situation to Japan's during the 1990s because he/she is correct in their comparison.

[drewd1987]

you finally got your camera and mic !!! woot woottt!!!

[shahen13]

Also, Schiff, look up the Japanese stagnation, the great depression and the keynesian cross. This will clearly demonstrate why you either lack the knowledge or have an agenda to mislead those who don't know any better, and that my friend, is truly dangerous.

[brown55061]

WRONG AGAIN!! We are doing the same thing Japan did in their inflationary period, except worse. SPEND SPEND SPEND! But the best part is the 700 billion bailout is that it was actually 10 trillion in foreign entitlements. I'm sure you knew that already though, clearly you are smarter than everyone else haha. How exactly does paying foreign private banks in the IMF helping stimulate our economy? I'd love to hear your stance on macroeconomics.

[shahen13]

Schiff, do you understand the difference between the short run and the long run? You certainly do not seem to. It is necessary to spend in the short run to stimulate the economy and get it going. Once it gets going, then you want to implement policies that encourage savings - this is what needs to be done but it seems too complex for you to grasp. Complex problems need complex solutions - get that through your skull.

[brown55061]

That is the most ignorant thing Ive read in weeks. You have to SPEND to stimulate the economy? How much inflation is required to make your grocery stores and clothing retailers profitable? LOL

Do you know where money comes from? The FED (private bank) prints it and has no collateral to do so. Every dollar printed is a tax on your wallet genius! If it takes twice as much dollars to buy the same product, saving is impossible. Get an education!

[NookulerFreedom]

Glass Steagall Act

[FreedomsReigning]

This is a standard operating procedure for a demagogue Mr Schiff. They co-opt our beliefs to secure popular support, then stick a knife in our necks to serve the money powers. He is right about one thing though, "America is ready to lead again" but we will lead with our agenda. The constitution!

[FreedomsReigning]

I was talking about Obama not Schiff.

[dgallegos4201]

great video

[mahakala]

I'm sorry being depended is also a form of being controlled. Freedom is making your own choices being responsible for your life and the way it comes out. Socialized government has only been around since the federal reserve bank( which isn't government ruined)So socialized medicine isn't all it's cracked up to be. I'm not big on the government being any more involved in my life than need be. And by government I mean the people who run the government.

[jdhatl]

The "Austrian" school of economics doesn't seem to get that in Austria they have socialized medicine and education, like the rest of western Europe. Those two areas are totally worth government investment. If people are more well educated in general and healthier in general, it will be good for everyone. It's just not going to happen though without some good old fashioned socialism.

[r0binbanks]

Austrian economics began in the 15th century and the name is used to clearly separate German economic ideology and the Austrian ideology. So you couldn't be any more wrong.

[moissanitestar]

Regardless to your comment, he is right on the money. He always has been more correct than any mainstream economist. What is your contribution?

[YankeeClippa]

Ditto!

[swiftysmithuk]

"It's just not going to happen though without some good old fashioned socialism."

Do you feel it should be considered acceptable to take from someone without their consent?

[brown55061]

Schiff doesn't mention that Obama's real economic plan is to keep letting the FED printing this imaginary money which the Americans will be indebted to forever, in order to collapse the USD so he and Gordon Brown can create a new global gold/silver based currency. That my friends, is the end of sovereignty. We may still be known as the US, but it will be a 3rd world nation. Argentina is the same story, different decade. History is about to repeat itself. SUCKS!

[shahen13]

You are off your meds, aren't you, brown 55061?

[brown55061]

It's OK, when you have no intelligence to add to the debate insults are all you people have. Those of us with a brain are used to your dribble.

[FatLibertarian]

Thanks for posting.

ADDED TO LIBERTARIAN REPORT . COM

[elbajoloco]

Excellent!

[ivar197]

peter try to stay in the center of the camera, more aesthetically appealing that way, thanks.

[eksdem]

Thanks for putting up this video.

I'm trying to learn about the economy.

[swiftysmithuk]

"Thanks for putting up this video.

I'm trying to learn about the economy."

If you have not already read it, this is a great introduction and can be read online for free.

Economics in One Lesson

By HENRY HAZLITT

Remove brackets and spaces:

tinyurl(.)com/EconomicsInOneLe­sson

[Globalflow]

Anyone still stuck in that old economic system is just spinning their wheels. It FAILED and CRUMBLED. You need to create your own economy. Mine is not dependent on politicians or corporate idiots or pundits... Refreshing.

[jonnyjmpup]

Yet another trying to convince others that they have "the magic bullet" You are a snake oil salesman,your opinion is zero.

[Geschmolzen]

Maybe we need to get all the libertarians together and start our own republic

[brown55061]

Someone front the money for the island, and I'm in!

[nicoya31]

To the couple of people who say he makes no sense, I would say just look for extended videos of speeches that are on youtube and you'll get a more complete understanding of what his philosophy is.

[Jerrodswmhr]

Right on Peter!!!

[chunstiger]

Someone FWD this vid to Obama. He just doesn't GET it.

[escapethecollapse]

Maybe he doesn't WANT to get it.

[chunstiger]

You mean like the same way the Govt doesn't WANT to get Osama Bin Laden?

[feeknocks]

just load this up on one of his teleprompters lol

[putittogether]

The Republicans are not on your side.

The Democrats are not on your side.

They are on THEIR side.

Republicans and Democrats mock you. Its' a big club, and you are not in it. Wake up America!!

[BAILOUTMONEY]

MONEY TO THE PEOPLE...... screw giving the bail out money to ANY Wall Street Co - Give the people the money, as they spend it it will fix economy, stop forclosures, get america out of debt, etc.

PLEASE join my protest to the Bail out and answer 1 question on camera: "How would you spend $297,000 dollars?" - That is the amount of BAIL OUT money given to the people....C'MON AMERICA, JOIN US IN TELLING THE GOV HOW WE COULD FIX THIS ECONOMY!....... The Fight Isnt Over YET!!

[nicoya31]

Why only $297,000 dollars, why not $2,000,000 each?

[BAILOUTMONEY]

This idea (my channel) was based off an email sent around that said if you gave the bail out money to the people - after taxes we would get 297k - you can see this email in my favorites on my channel - its titled....AMERICAS NEW BAIL OUT PLAN......Im looking for vid responses or comments as to how you would spend your share of the bail out money

[nvsyru]

It dawned on me while watching this video of what a true measure of a true leader. A true leader has the unique ability to TEACH TRUTH!

Therefore, Peter Schiff, who continually takes the time, to try his very best, to teach us what he understands in the truthfulness of his spirit proves he has better leadership skills the Obama. Why Obama doesn't have Peter in the white house can only mean he doesn't want to lead the people in truth or he has been deceived!

Obama, WAKE-UP!

[cellularautomata]

Smart guy, explain me this: if the only measure of the economy is what we make, and nobody buy what we make, what does that mean? People have to buy things for people to make money. I'm not an economist. That logic should be apparent to a child.

[Inyarear]

You missed a step in your logic: people have to make things worth buying if they want anyone to buy them. Anybody who makes something no one wants to buy (e.g. cars from GM) is wasting his labor. If the government steps in to buy these worthless products and bail out these wastrels, then it's also wasting OUR labor (that is, the work we did to earn that income it taxes so heavily). Manipulating people into buying worthless stuff is a con game, and coercing them into it is robbery, get it?

[cellularautomata]

Sure, but the quote is this, verbatim: "when we really keep track of our economy it's not about how much we spend, it's about how much we make, how much we produce-- that's economic activity"

The argument being made seems to *support* governmenr tintervention. We keep making stuff, and the economy is good, regardless of whether anyone buys it-- ie, we spend.

And I can't make money without someone hiring me (spending). If my clients stop buying my services, I'll be out of business.

[cellularautomata]

As far as the Obama issues goes let's see what happens. Nobody really knows what all this will lead to. We'll just have to see. Socio-economics isn't a mathematical formula. If it was, there wouldn't be any poverty. It's an ongoing experiment.

[Inyarear]

Secondary point: if nobody buys what we make, that means people don't need and don't want it, or at least not enough to pay what we're asking for it. The proper response is to lower the price until they do buy it. If the price at which they will buy is too low to cover production expenses so we make a profit, then the product isn't worth making and we should make something else instead. I'm no economist either, but you don't need a degree to understand the basic principles.

[cellularautomata]

Right, but what was said is that only what is MADE qualifies as economic activity, with no qualification for whether people want to buy it.

[averros31415926]

He said nothing like that. What he said is that it is insane to add production and consumption like they are the one and the same.

The *difference* in production and consumption is what matters - it creates savings (when people produce more than they consume they get extra money which they can save). Out of savings comes demand for *capital goods*. I.e. savings are not entirely wasted on consumable goods, but also spent on purchase of goods which are used to increase productivity.

[ImproveYourMagic]

Well said.

[HalogenFlood]

Keep spreading your message, Peter. God knows it will take a debilitating depression for people/government to come to their senses, but we all need to keep beating the drums regardless.

[Wiseburn]

Great Video. Schiff goes into great detail over retail spending, the GDP. Housing, Education and Healthcare. The economy is how much we produce, not what we spend. We need to Spend less. Spending at 70% of GDP is too high.

Mentions how what Obama says his similar to what he says. But that Obama's plan is flawed.

Much more great stuff. The problem started with the Federal Reserve which dropped interest rates to 1%. This caused the housing bubble.

[nurbSoldier]

Wouldn't matter if he did, considering his background all his life. He would likely do most of the same stuff.

[FarFromEquilibrium]

ya think? Im not sure about that. I dont think Obama has a bit of economic sense worth giving free reign, Its scary enough with the strings on him but at least the people holding the strings know what money is and what it does. No that they are doing what is best at all but I think on his own he'd be far worse..

Honestly this one is far better with stings ^^

[Mrhuh]

Actually the ones pulling the strings don't know what money is since they believe that money IS wealth when in reality money can only buy wealth, but not if there is far more of it in circulation. Hence the reason why printing paper money always creates a general increase in prices despite what some incompetant Keynesian might believe.

[FarFromEquilibrium]

I think they know but they use the situation to their advanatge in ways that are both politically convenient at the time and ultimately bad for everyone. They just count on getting more out of it now than they will lose later.

[TheRealBuffaloChip]

At 1:50 he says "It's not about how much we spend, it's about how much we make.."

So suppose I spent $500 last year at the local pizza shop. This year I cut back and stop eating out. The pizza owner has now earned $500 less than he would have had I kept spending.

He also says the problem is that our economy is based too much on spending. But without spending, the guy on the other side of the hypothetical transaction doesn't earn. I like Schiff, but think his explanation is incomplete here.

[CivitasUltraAporia]

That is the broken window fallacy. Just because you do not spend that money at the pizza parlor does not mean the economy is worse off in any way. The owner of the parlor makes a little less profit but there will always be winners and losers. You could very well spend the money in a different manner an achieve the same effect. Or you could save the money and acquire capital down the road and truly add to the productive capacity. Consumption is not growth.

[ftorresgamez]

"The pizza owner has now earned $500 less than he would have had I kept spending."

He simply finds other clients.

[kflee82]

The pizza owner has now earned $500 less, but now you have $500 capital that you can spend.

His point is that our GDP double-counts both savings and spending. Either you (or the pizza owner) has that $500, but not both of you. Once you spend that $500 on the pizza, that capital is the pizza owner's, not yours anymore! :(

[Inyarear]

Of course, in exchange you get $500 worth of pizza; it's not as if you've been ripped off, it's just that you can't spend pizza the way you spend dollars, and the economists can't really track abstract values like how much enjoyment you got out of eating all that pizza. Moreover, if he would gladly have given you more pizza than he did to get that $500 and you wouldn't have minded spending $600 for the amount you did get, then you and he are both winners!

[JUDASismyHERO]

Yeah but like he said consumption is not growth.

What if you dont have 500 dollars for pizza so you put it on your tab? You default and now that pizza guy is out of money and pizzza.

You see this is where too much credit and consumption has taken us.

We are spending money we dont have to spend money we dont have. The insanity of it all.

[JUDASismyHERO]

who is going to bailout the guy who is bailing you out scenario.

We cant just keep writing down IOU's.unless the other guy is a complete idiot and keeps loaning us money until we all go bankrupt

But. thats not how it works in a global economy .Because we compete against one another. The longer we wait the more likely we will be the ones in the sweat shops producing retail goods for 10 cents an hour.

another mans bankruptcy is another mans fortune.

[chovbha]

I believe he is telling spending "too much" in context of earning. So if you earn $500 and spend $450 or so then its not too much, or if you make $1million and spend $.95 million then again its not too much. But if you make $500 and spend $600 then its just too much. Also you may personally not spending more than what you earn but our government does and eventually we (or our children) would have to pay the debt govt. is accumulating, and thats what we absolutely needs to avoid.

[swiftysmithuk]

Even savers contribute to the economy, say we take your scenario and you decide not to spend your $500 on pizza and save it, your bank can now use this extra capital to provide credit for loans (real liquidity).

Lets say they lend it to a dairy farmer who uses it to produce a good quality but competitively priced cheese, the Pizza shop

can now take advantage of this new product and save possibly more on costs than he would have made on your purchases.

Savings put the capital in capitalism!

[doobsta]

Great!!!

My ONLY problem with Peter, when will he FINALLY ADMIT that the powes that BE.....are basically the ones running everything and the foundation of all consipracies.

Its fairly obvious and I do NOT belive for one second he thinks this is all by "incopetence" on the FED's part.

Bullshit PETER, admit it and we can move forward.

This is all planned to go down by DESIGN!

[FarFromEquilibrium]

I think he does that on purpose. Its honestly a better way to analyse the situation. if Peter discussed the extra-economic factors, he'd be more like many others out there who talk only of such machinations but are not as good on econmic matters.

[doobsta]

Ya you are right, and I thought the same way for a long time....except NOW...we seem to be winding down towards the end of the road and this thing is going to blow wide open.

May aswell FESS UP, no one **of importance** (obanza++) is listening.

It's not like they would adopt any rational plan, these guys are hellbent on driving it off a cliff.

Can't get a NWO if you don't bring America to its knees beggin for it.

Its exactly what they are doing.....globalists are disgusting!

[ftorresgamez]

"Its fairly obvious and I do NOT belive for one second he thinks this is all by "incompetence" on the FED's part."

He doesn't believe that the crisis was created due to the incompetence of the Fed - he believes as all Austrian economists do that the Fed IS the cause of all boom-busts cycles, regardless of how competent it is (and since it cannot be populated by angels, then it will never BE competent enough to run an economy.)

[doobsta]

We agree on vevrything here except I have heard him time and again state how this is not intended on the part of politicians and the fed...its something that is happening because of their "incompetence" and "inability" to understand the problems....they understand very well, its Intentional!

Watch his earlier videos, he said it many many times..even on his radio show a few times, after being asked about all the banksters connections..nwo ect...

[BigNas13]

He has to keep himself and his company and his future goals LEGIT... the conspiracy talk weather Real or not ... would put a black eye on it. I believe he does believe in it but saying such things would be detrimental to any future success. Just know who Erwin Schiff is and youll know where peter stands.

[doobsta]

hehe..ya...his poor poor dad....

:(

[DolphinFilms]

Brilliant

[jay1wo]

Impeach Obama now!