Peter Schiff explains the global economic situation (and future of the dollar)

[defnotacanadian]

The government during the depression subsidized farmers to NOT grow food. Thereby protecting the high prices. This is when people are starving. This has to end.  Free markets or no markets.

[aliaandreadi]

@defnotacanadian well said

[USTreasuryBond]

Why do some austrian and free market libertarian economists favor trade deficits and some do not? Surely Peter Schiff is NOT in favor of subsidies for domestic exporting industries and tariffs on imported goods.

[MrFabianGhosty]

farm subsidies do not increase the price of food; they decrease the price of food and maintain it at historic lows. That's the whole fucking point of farm subsidies. Without farm subsidies, either farmers increase the price of their goods to stay in business, or they go out of business (thus decreasing the supply of food and increasing the price). This guy hasn't the faintest clue what he is talking about.

[regelemihai]

@MrFabianGhosty

No, I think he's got it right. Maybe you don't get the fact that subsidies are technically hand-outs. When the government engages in protectionism, prices rise; they don't fall. The intended purpose of such interventions is to protect the "workers," not the consumers. This applies not only to farmers, but to every single industry. When they receive money, they have less incetive to lower down prices--kinda' makes sense. This benefits the companies who benefit from...

[regelemihai]

...government largess. Those who go out of business are the ones who SHOULD go out of business. If a company isn't keeping up with the compettion, it goes under. The government, however, props up these failing companies with their misguided interventions. It's the free market that lowers prices; not government.

You're clueless. At least don't be so aggressive when expounding your ignorance.

[hurting]

@regelemihai The idea that farm subsidies raise food prices is directly contradictory to the very basic free market economic principles that Schiff claims to espouse. A subsidy to a CONSUMER might at least arguably have the potential to raise prices (e.g. govt basically 'subsidized' mortgages, contributing to inflated home values). But subsidizing the PRODUCER (farmer) does nothing to enable that farmer to charge more for his crop. At worse, prices should stay the same.

[regelemihai]

@hurting

If you subsedize an industry, i.e a producer, you effectively remove the incentive of increasing input, quality, and lowering prices. You get money from a third party source--not from the consumer. The free market stands against such actions. I don't see it as being contradictory to what Schiff is saying.

[johammbass]

Wenbier,

Get the point and stop concerning yourself with insignificant nonsense

[Wenbier]

Let's have hyper-inflation with good grammar!

"Loan" is a noun; "lend" is a verb.

You lend money to your brother. Your brother is the recipient of a loan.

[Frrrrrrrrunkis]

@Wenbier sounds like SOMEONE'S trying to marginalize Mr. Schiff

[NoisemakerArrow]

@Frrrrrrrrunkis No, someone's trying to maintain the orderly status of the English language so we don't end up speaking in grunts and rap lyrics.

However, "loan" is a verb and a noun.

[pretorious700]

@Frrrrrrrrunkis grammar police are mostly anal retentives

[iandaous]

@Wenbier - you're a retard. Loan can be used as a verb and a noun. Just like 'run.' example... I like to run. or Did you do the 5 or 10 mile run?

[t4509228]

@Wenbier You're wrong. Try looking the word up.