But government isn't a company. A company doesn't get to make the money that it spends. The government does. You can't look at the government as a business, or a family or an individual. It is different precisely because it controls the money supply. No other entity does that.
Education means nothing this professor has nothing to teach zero! Peter is a Master at what he does! Mike Maloney is Master at what he does. Rich Dad poor dad guy is Master as well. I am not saying Gold is the answer but Government if it was a company gets F.
Peter owns this idiot! He did not graduate College no way! So what the interest is lower if you owe alot more money and taking less in equals holly crap we are screwed.
You don't have to agree or disagree with Schiff to see how obvious it is that Galbraith is wrong. And this is coming from someone who graduated from UT.
Galbraith doesn't understand that if the debt were to be refinanced at longer durations the rates would go way up??? Wow, some economist. And just print money to pay the debt, nevermind the inflation that will wipe most of us out. You're saying that all doesn't matter because price controls are the answer? No. Price controls lead to black markets. Price controls lead to producers refusing to produce, even on pain of death as John Law tried. I'll stick with Schiff, and his father's comic.
Galbraith - "Well if the markets are wrong we shouldn't be paying attention to them at all". Spoken like a true ivy tower academic who gets paid even though he doesn't have any skin in the game.
He's saying the markets are always right? In 1999? In 2006? This is the thoroughly discredited efficient market hypothesis.
@walktheworld I think you have misunderstood Galbraith. Have you read his books? He is not a proponent of markets and all that it entails. Him and his father (RIP) are proponents of price control, not free markets etc.
@dackbinder I'm not handicapped by having read anything by him. If I were, I definitely wouldn't have been able to quit my day job six years ago and ride this gold and silver bull. Oh, and it's "He", not "Him", being part of the subject, not an object.
@walktheworld As someone who appreciates grammar, I thank you for pointing out the error! Your success in life, however, is not the point. I think you have misunderstood me. What I said was that you have misunderstood Galbraith and his views. I did not say that you are a failure in life. Being a success in life does not mean that all your perceptions are correct. You may be rich. You still misunderstood Galbraith.
@dackbinder Galbraith makes a fool of himself in this video - Schiff merely points it out, repeatedly. Seriously, can't you understand that? An economist who doesn't understand gold and has been saying sell for what is now an eleven-year-long bull market is a complete waste of my time, no matter how many books he's published and letters he has after his name. Unfortunately, that's most of them.
@walktheworld Thanks for the discussion instead of the namecalling and insults that usually occur when people disagree on Youtube. I feel that we are talking about two completely different things, much like the protagonists in this video. I think Galbraith is the wrong person to have on a show like this. His main goal is not taking advantage of economic conditions for personal gain but the construction of a worldwide economy that is sustainable and equitable. Schiff's expertise is the former.
@walktheworld (cont) Here, we have people with different goals trying to talk about the same thing, so of course the one who is the most "practical" (and the one who can maximize personal gain) comes off as being right. Having read his books, and his father's, I see what Galbraith is getting at. A viewer without that background knowledge, however, merely sees an idealist putz!
@walktheworld (cont2) This is why I pointed out that the whole "market" thing was misperceived. To Galbraith, the old conservative faith in the absolute power of the market to "get things right" is a myth that conservative and liberal economists and politicians do not believe anymore - in private! In public, the absolute ability of the market to "get things right" is still used in public politics because people believe it. It makes sense to the average person. Thanks for the discussion. :)
Galbraith has been wrong all his life and never once eaten any of his words. And to think of all the poor kids uneducated by this idiot. Is there a question on why we are in the mess we are in today?
This is the most absurd thing that I've ever heard.
WilhelmDrake:
So the trillion dollar payment made to the fed every year in the form of a Federal Income tax, that goes to pay the interest on the governments debt, is to be misconstrued now as a savings? How much do you pay in Federal Income tax? Do you put that money in the bank? Are you seriously going to try to redefine the meaning words in the English language? "Debt is savings." Joker.
@bigtex1453 Every deficit in one sector is a surplus in another sector. If the government runs a deficit, the private sector runs a surplus. It's that simple. It isn't even debatable, it's simple double-entry bookkeeping.
How can you come to that conclusion? The government owns absolutely nothing - the people are the owners in our country. So when the government spends money it's spending the peoples money. It has to come from somewhere, right? Well all that they've done is borrowed from future generations. My niece and nephew and all of our sons a daughters will have to pay this back - if it can even be paid back. Who will honor our dollar around the world?
@bigtex1453 The government doesn't spend other people's money, since it's the sole issuer of the currency. It doesn't have to borrow or tax in order to spend.
As to the whole children paying our debts issue. When our children build 20 million cars per year 20 years from now, will they have to send them back in time to 2011 to pay off their debt? There's no such thing. Government debt only influences the distribution of real goods and services.
Who validates the currency? Where does the money come from? When we print more money what happens to the value of that currency? To print the money for the treasury, the federal reserve receives an interest rate in return. That interest payment on the debt is paid by our federal income tax - all of it.
When we "stimulate" the econ we suspend a recession or an economic contraction, with a devalued currency causing inflation and prolonging & deepening the recession.
@bigtex1453 Why would you pay interest on government debt hold by your own central bank? That doesn't make any sense. It surely isn't necessary. And no it isn't going to cause hyperinflation in a situation where we have 17% unemployment and large unused capacity.
We all pay it. It's called Federal Income Tax. We don't have a choice.
Your right, it's not necessary. We need to reduce government spending levels - pay off the debt owed to the federal reserve - or just bail on them, let the recession hit so that the economy can readjust to its natural state, and start saving money. By operating within our means we can get through this. But make no mistake, no matter what we do - we are facing a massive depression like recession in 6-12 months
@bigtex145 Why would the government have to default on debt it owes to itself? You don't understand the concept of the government being the issuer of the currency, it can create the money, it doesn't have to borrow or tax.
The federal reserve is a private bank. Its not government.Which is scary to think in and of itself.
The government is not the issuer of the currency.The treasury looks at the budget and says "ahh well we need 200 billion, lets get the fed on the phone." The fed then says "Ok I'll print this 200 billion out of thin air for you but to put that cash in circulation but the treasury owes us interest on the money."
You keep saying that the government doesn't have to borrow or tax. explain
It will cause hyperinfation if the Fed starts buying treasury bonds because no one else will buy them - and this is already happening. Chine doesn't want them - neither does Japan. Whose left to buy the treasury bonds? The Fed.
@bigtex1453 It will not cause hyperinflation. Look at Japan they did exactly the same thing we did for 20 years and they still suffered from deflation, not inflation, let alone hyperinflation.
The standard formula of the quantity theory of money is: Money supply times velocity equals price level times output. As long as output can be increased an increase in the money supply doesn't have to cause inflation
It doesn't have to cause inflation but it will. We're already seeing inflation. Food prices have gone up, gas here in Houston is $3.50+ a gallon, energy costs have increased. It's because the dollar is loosing its value every time the reserve prints. It's inflation. You can deny it all you want - but I see the price of gas like the next guy.
We've spent all this stimulus money on consumables. We didn't take these Bush & Obama bailouts and stimuli plans and invest into assets like manufacturing, farming, & production. We bought cars, houses and artificially propped up massive companies that should have gone bankrupt. We need to stop doing that.
So in 20 years, if we keep going the way that we are going we wont produce anything - much less cars.
"It doesn't have to borrow or tax in order to spend."
Your right that it doesn't have to borrow but it does. If we didn't borrow why do China & Japan hold trillions in our treasury bills?
I think that you grossly misunderstand the currency crisis, the problem with fractional reserve banking, and the damage to the open market caused by government regulation.
@bigtex1453 Ok. This is hopeless. Here is how it works: China and Japan send us consumer goods and receive dollars in return. They use these dollars to buy government bonds on which they receive interest. Who gains? Japan and China get dollars, which means they have no assurance that they will get real goods and services in return, the US gets real goods and services.
China & Japan have stopped buying our treasury bonds bro. No one wants them. The gig is up. China and Japan have realized that they can just keep their products and let their own people buy them. It will certainly help the value of their currency.
So when we cant sell the bills on the open market where is the money to fund the gross expenditures of this government going to come from? We print it out of thin air. And devalue the perception of the dollar with more cash in circulation.
there is a long line of blowhards who have felt like fools for years as they laughed at peter while he has only been vindicated time and again. get to the end of that line, you're a dime a dozen.
There is no analogy between a household (user of currency) and the government (creator of currency). The government doesn't spend by printing money it spends by crediting accounts. The governments deficit is the publics savings.
absolutely fascinating The man in yellow tie is so confident of himself Also running for office. Galbraith knows what he is talking about and makes his points in a limited, clear, rational way. No one cares.
@67kenb the guy in the yellow tie says we should keep printing money because we can...He may know what he is saying, but what he is saying doesn't make sense
Just w8 until the US economy collapses then people wont be calling Peter Schiff an idiot or a charlatan. The US produces and exports hardly anything but imports a huge amount. This means that more money is leaving the economy than entering it. The GDP SHOULD be going down but they are just borrowing and spending more to make up the difference. The US economy completely depends on borrowing and spending other peoples money.
@titan13131 but the USA can't ever pay back the money it's borrowing because its manufacturing base has all but disappeared so it have no way to earn it. When China stops lending the USA money the US is finished. The US already has to print money because they can't borrowing enough and if they stop printing the economy IS going to shrink. ALL the jobs that have been created by QE are in the wrong sectors too, its not manufacturing jobs aren't being created.
@mdiggs4545 thats cuz the markets are really distorted by all of the manipulation on interest rates...the true price of debt ("risk"), which is tied to interest rates needs to be set by the market place and NOT by central banks. When u create the illusion that debt is less risky, then u create an environment in which ppl begin act irrational. what the price of gold is telling u is that the "smart money" realizes this and is preparing to protect themselves from any currency crisis.
@readthepaper The rich exploit the workers to generate said surplus savings. This is an unjust system in which a minority of people have dictatorial control over such a vast portion of wealth. There's no reason the workers can't take back that wealth and control the surplus savings democratically, create full employment and elevate the standard of living. I think one way this could be achieved is the Rehn-Meidner plan (which failed to pass parliament in Sweden), but there are many other ways.
@spartan2600 - People with surplus savings pay owners of factors of production (land, LABOR, and capital goods) in advance of what is produced from that stage of production based upon the anticipated discounted marginal value product. The reason this is discounted is because the capitalist financing this is compensated for waiting and taking the risk that what is produced will be sold for the price he is hoping for.
Without the capitalists financing the factor owners in advance, they would actually have to wait until the final consumption of the end product at the consumer level and wait for the money to come back up the productive process. If you are a worker towards the high level stages of production in a process that takes 3 years, do you really want to to wait years to get paid? Of course not, but that is exactly what would happen without financing.
There is no such thing as "teaser rates" on bonds that Schiff pulled out of his ass. Also, Fannie and Freddie do not use tax dollars to pay down their debt, so mentioning them is dishonest of Schiff. Also, "unfunded liabilities" are based presumably on Schiff's own insane predictions on the financial situation of Social Security will implode over the course of the next century.
@AlexanderHvass - Not it's not ridiculous. Peter Shiff has been wrong about quite few things over the last to years and unlike Shiff, Galbraith knows what he's talking about. Shiff is a snake oil salesman who talks slick but is full of it. He reminds me of Kent Hovind (slick talking cration scientist). When Galbraith calls Shiff out on his false analogy with Greece (who can't print their own currency) he baits and switches to 'it's not a good thing that the US can just print money'
@ObamaFTWdotcom - Tell me one economic prediction Galbraith has been right about, one useful private sector accomplishment this useless academic who lives in fantasy land has ever done. Schiff has at least written books about his, is a successful broker who has had some great predictions and returns, while Galbraith is a clown just like his father.
Galbraith is funny. The US debt is different than Greece, Ireland, or any other place (including individual US states) because the world has a lot of faith in the US dollar and likes buying t-bills which are nearly risk-free in the short-run.
Interest and coupons have to be paid on those bonds though and there eventually is an end to how many will be bought. It's not just a matter of "printing" money, bonds have to be purchased and they respond to supply and demand models like anything else.
The demand in the US now is low, and unemployment high. The government should increase spending, to reduce unemployment. This will not significantly change the long term debt problem. The solution to the long term debt problem consists mainly of two things Republicans oppose - more cost effective health care and higher taxes. And reducing unemployment and increasing growth is important, that's how the US solved the big federal debt after World War II (bigger than now, as a % of GDP).
@ringozstarr - Yeah, how they handled the debt problem after WWII: decreasing federal spending by 2/3 and taxes by 1/3. They sure as hell won't do that now. We've already seen businesses less willing to come to the US because of ridiculous taxes and regulations; yeah, let's steal more money from people. Oh and I would definitely trust the government to be "cost effective" with healthcare like they are so "cost effective" with everything else. Talk about burying your head in the sand.
Do you understand why federal spending suddenly plummeted after WWII? Because WWII ended, the troops came home, etc. Also, taxes were at their highest in the 1950's... which happened to be the period of the most rapid growth in US history, probably the greatest economic growth in world history.
@spartan2600 - Yes, however, it was all the idiots like Paul Samuelson claiming that such spending was keeping the economy going as a "stimulus" and without such expenditures we would fall back into Depression which obviously did not happen. Also, had you bothered to do any research you would notice that due to all the loopholes that existed NOBODY ever paid those tax rates. And the period of the greatest growth was during the Industrial Revolution.
@readthepaper The legal top marginal tax rates were around 90%. You are right that loopholes allowed the rich to get away without paying that much, but they still paid a 50% effective tax rate in the postwar era, which is still the highest in American history. The Industrial revolution spanned more than a century. The postwar period spanned a few decades. The postwar period saw the greatest *rate* of growth probably in human history.
The US isn't coming strong at all, unemployment is hovering over 9 % and our national debt is increasing exponentially. If you're not buying it it doesn't mean that Schiff's prediction is "crap." People called it crap before and it turned out he was right.
PETER SCHIFF IS A GENIUS.HE SHOULD AND MUST BE THE FINANCIAL ADVISOR OF EVERY USA PRESIDENTS FOR DOLLAR SAKE. FUCK ME IM NOT EVEN AMERICAN. he was right everybody laughting at him when he predicted the financial disaster, wonder what all this FUCKSHIT THINKING NOW.
@Willredd94 said "It's wrong that we have professors like the liberal keynesian retard teaching our collegiates."
Ironic -- calling someone a "retard" & then misusing & ascribing incorrect meaning to a 3-syllable word, as if to prove that you are not ("retarded") -- & all in the same sentence. If irony was intended, you are brilliant. If not, thank you for refuting your own argument.
@marth193 Did you not listen to the rest of the video? Even if you aren't a Schiff fan, you have to at least note the ridiculous arguments of the Mr. Galbraith.
@paradrifter you`re suggesting economies deflate to accomodate he limited supply of a worthless metal? lol. and, no. People went to war before fiat currencies. Govts reduce violence.
@willisworn Max Keiser talked about a "price discovery mechanism" -- and because we have a "flexible, independent monetary policy" governments can go to war easily, and without an honest democratic process of going to war. Which impovershes the general population even bigger.
This current fiat system we have is an undemocratic tyrannical monster.
There is no reason that banks should be able to issue our sovereign currency (through loans, and fractional reserve fraud) and claim interest on it.
@mixedbreed10 that`s true maybe, but it`s irrelevant to the issue at hand. The fact is, that financing has led to lots of growth, real or not. Schiff`s criticisms arent new. He`s pimping Hayek for dummies. The problem is this: what do you replace the current system with. It takes no courage to predict hard times, man. This Austrian nonsense is crap, under scrutiny. The issue of production is relevant, but not in this debate.
@willisworn Please do us all a favor and just don't participate in any type of economic debate ever. You'll also be doing yourself a favor, as you won't make yourself look so ridiculous again. Because if the only argument you have is "rolls eyes", well, all you do is succeed at making yourself look like a clueless little girl trying her hardest to come up with a witty jab rather than making any sense with your asinine arguments. Like the "gold is finite" argument..,. LOL what a gem
Lol @Lethn. Gold isnt any more stable because it`s finite. Let`s say the economy (what banks hold) is worth 100k. Banks have to have 80g in gold to back that up, right? now, let`s say that`s all the gold there is and the economy is still growing. what happens? either the value of gold HAS to go up, or the requirements on gold need to be loosened to allow banks to grow with the economy. This is the reason why Schiff is an idiot and no one takes him seriously besides other idiots.
@willisworn How will the US economy grow when all we produce is services & when the population is steadily being replaced with less productive and competitive but more consumptive masses? The fact is US economy is NOT growing.
@ParapaDrifter -- We didn't have fiat currencies until Bretton Woods in 1944, after the outbreak of World War II. It was the rigidity of the gold standard (fixed parities) in the interwar period that forced economies to deflate, sparking depression and social unrest across Europe (Hitler came to power after high unemployment in Weimar).
James Galbraith is absolutely right. We are not Greece, mainly because we have a flexible, independent monetary policy. Also, Peter S is kind of a douche.
@willisworn Ummm, nice HYPOTHETICAL there, dumbass. Now, lets get to actual reality.
#1: There is A LOT more gold in the world
#2 You know, there are other commodities, right? Gold isn't the only one, fucking idiot.
#3: So, just because one commodity (gold) is finite, that is the reason why we should print infinite amounts of fiat money? You can't seriously be this stupid...
@willisworn Your argument makes little to no sense to an Austrian. Simply, because, firstly, you assume that it is goods and commodities that are actually changing and not the of the dollar. A car wasn't 3,000 in the 60's, and now 30,000 because the commodities making it up and the labor were entirely unstable. Sure, there were likely some commodities spikes in there.. technology effected prices, but largely the change in prices over the past 100 years were the instability in the dollar.
You also miss the point. Gold supplies are not projected to run out, you are oversimplifying the issue. The reason Gold is relatively stable is the rate at which it is discovered. Speculation in the weakness of the dollar often leads to people to invest in commodities.. Gold considered. Increasing their price, and long term decreasing the price of the dollar. It's not that Gold is magic.. it's just Austrian's believe the market should choose what backs the dollar.
Given the current situations Gold seems like a great candidate. That is knowing what we know about Gold. If the Gold supply suddenly ran out.. that could all change. Technically, most Austrian's would argue that Silver would work.. or whatever the market dictates. The important part is that if you own a currency, a commodity is backing the currency to ensure it's value. The logistics are obviously already there. It does not have to be Gold.. right now it just is.
Schiff is a moron. Gold's value is entirely speculative. The supply of gold is limited, and therefore NOT a stable base for an economy's currency. Stupid, really stupid.
@willisworn If Gold was not such a stable base for a currency then why is it that Gold and Silver have been used as stable currencies for hundreds and hundreds of years? Whereas the current paper fiat currency in use has only been used for the past century and it has caused far more recessions and even a great depression than Gold and Silver ever did.
Metals as currencies keep governments in check BECAUSE they are limited, paper gives them free reign.
@willisworn Yes you are really, really stupid. So, since gold is finite, we should print infinite amounts of fiat money? And where do you get gold's price is speculative? Pulled that one right out of your ass? Or did a pundit on CNN tell you to believe that? I just can't believe there are people as absolutely ignorant as you out there. It's not a good base for a currency because it's finite... LOL well there are other commodities too, dumb ass. And EVERYTHING is finite, dumb ass.
@willisworn "Gold's value is entirely speculative"... HAHAHAHAHAHA absolute moron LOL HAHAHA...
"Gold's value is entirely speculative".... HAHAHAHAHAHAHAHA dumbass I'm rich because of idiots like you LOL HAHAHA
"Gold's value is entirely speculative" PFFT HAHAHAHAHAHAH! Please tell your friends and family that tidbit of info... The more clueless suckers like you out there the better LOL
One more time... "Gold's value is entirely speculative" HAHAHAHAHAHA
@willisworn Everything is speculative. Gold's speculative value is driven by the instability of the dollar. To say, that gold is not stable, is to say that the dollar is not stable. Gold's instability rises from what you are measuring it in... generally speaking, most stable commodities are going up. Are they now unstable?
You are looking at it as if gold's value is in a vacuum.
There is obviously room for speculation overvaluing gold, if that is the case we will eventually get a correction. With the current financial climate though, I think we have a long time ago.. the dollar is far more overvalued than gold.
You people sound like tools! Galbraith was warning about the housing bubble before Schiff.
In 2004 Galbraith said "Federal Reserve Chairman, Alan Greenspan, has done his best to keep the American housing bubble blown up, through low and stable interest rates. But not even Mr. Greenspan can forever prevent bubbles from popping, and eventually the housing boom will reach its climax." ("Intervention" Vol. 1 (2004), No. 1).
Don't make stuff up & vilify someone because they disagree with you.
Hes a moron because he's a clueless Keynesian that doesn't understand inflation. Additionally, the fact that he identified the housing bubble in 2004 (if he did at all) is entirely immaterial. His framework cannot explain bubbles in anyway whatever. Bubbles don't exist in the Keynesian framework, where recessions are caused by insufficient AGGREGATE demand, and where capital is a homogeneous fund. The fact that he praised the FED for setting low and "stable" interest rates says it all.
@Questfortruth86 "(if he did at all)" I gave quote & source, but you still question it?
"he praised the FED for setting low and "stable" interest rates" Actually, if you read his quote a bit more carefully, you will see that he is indicting the Fed for contributing to the bubble. Accuse Galbraith of what you want; he is not a monetarist.
Your militant use of the epithet "moron" arising from your (less than intelligent) analysis of the quote leads one to wonder if you are not projecting.
I cant believe Galbraith is so out of his mind when he is "labeled" as a professor in economics.
Why in the world people are so foolish that college minded people are always smarter and brighter as the get more and more into debt? Our world needs to wake up!
Come on even Kiyosaki and me as a 18 year old w/o a college degree knows better!!
When can we stop being slaves and fools to the college system! Its a scam especially for today!
They (the markets) are wrong not because they are reckless and inefficient but because of the Fed's attempt to price fix and central economic planning.
By that argument would you, then, admit that the markets have been 'fixed' since the conspiracy in 1913 to give a private bank called the "Federal Reserve" the mandate to create a monopoly (you must pay your taxes in Federal Reserve notes) of monetized debt as a 'public good'?
And then if this is the case. How can you then consider the numbers that make up the market valid to anything going on in the real economy since then?
Markets are wrong because they are consistently sent bad signals by the artificially low interest rates. If savings is the natural way to bring rates down, but there's no savings, and the Fed pumps in money and credit thereby lowering the rate of interest, businessmen and investors act in a manner as if the savings exist for future consumption, when in reality there are no savings and the only thing fueling the consumption is finite credit which will dry up and reveal malinvestment and debt.
It amazes me that Schiff continues this run of commentary to which there is a track record of his precision yet nothing changes. There is no point having intelligent ppl when they are listened to but not heard!
"The fact that Greece can't print it's own money is a good thing."
And thus Schiff exposes himself as an enemy of the sovereign nation-state, and a proponent of the agenda of the financiers' international dictatorship, which some refer to as the "New World Order."
@offsprng46 You're right, its all about the new world order. I listen to alex jones everyday, he's my bible. he makes so much sense. I don't understand why the rest of the world doesn't share his theories, why countless academics and scholars who've studied politics and economics for years don't see the writing on the wall. they must all be in the pockets of the NWO, with their nefarious mind-controlling schemes forcing us to watch TV!!! DAMN YOU NWO!! DAMN YOU!!!!!
@radscorpion8 I'm no Alex Jones acolyte; in fact, I would say that he's confused about many things (especially with regards to policy), hence the scare quotes - which serve to demonstrate the fact that the so-called "NWO" is not so much a top-down conspiracy as it is the pursuit of the class interests of the parasitical finance oligarchs.
@407buddy Careful, they may use the force of law by tax, or fraud by inflation to get their money to bail out those creditors to maintain the system the way it stands. They conflate Wall Street with America the whole time.
Peter Schiff giving another economics lesson to a college professor. haha, love it! I wonder how many of these intellectual professors have ever ran a successful business? This is the example of a guy who is an ideologue and read a bunch of books vs. a guy who has integrated himself within the market and has years of hands on experience. Professors of economics are worthless.
Isn't it a bit ridicoulus that someone like James is still oposing Schiff? He's been right about everything for the last 10 years. Galbraith is making a fool out of himself by just participating in this debate.
@AlexanderHvass He probably wrote a paper that would get some attention and curry favor with the people in Washington, and then CNBC put him on against Schiff because they knew there would be fireworks.
@AlexanderHvass you need to look up MMT... you don't understand economics and neither does Schiff...This is a shell game... our money isn't and hasn't been backed by gold or anything for years.. any change in the market is controlled... debts don't matter... its all bs. Taxes are bs... taxes to pay the interest on money that is created via debt with interest... HELLO. That is a concept... duh. The real issue is oil... plain and simple... we're running out... check the brent price...
Its also telling that Schiff can't sit without cutting off Galbraith for 2 seconds. Galbraith simply cannot make a point without Schiff pulling another red herring out of his ass.
The Clinton budget surplus is a myth. Intragovernment debt went up under Clinton. He took money out of Social Security to pay for things that weren't Social Security.
Such a huge debate...6min ...perfect for robot. Even with 0 social charge there is no way the western work force could compete against the third world work force. How can you compare the U.S to any other country? That's like comparing Rome in 70 A.D to any other Mediterranean nation. With one blink of an eye the U.S can annihilate it's creditors. People who a see prophet in Ron Paul remind me of those Chomsky nuts who would lick the ass of anyone with knowledge in rhetoric .
ahh, galbraith represents the university of texas, of course. i attended UT during the clinton years, and LET ME TELL YOU, it is a liberal zombie wasteland brainwashing factory, and nothing more. the purpose of university is to learn HOW to think, UT teaches you WHAT to think. returning to my hometown of austin tx during the obama campaign, i could not find a single liberal that could explain why they supported obama. like zombies in a movie, they simply wandered the campus moaning CHAAAAAANGE.
i read your post again, and this is called brainwashing. Same happened to my daughter at the College of William&Mary in VA, where I paid 80K Dollars to get her brainwashed by some 'professors'. You know, the professor professes what he desires to profess. Therefor, watch out for where you send your daughter or son. I think that this Nation should go back to basics. Like, pump water from a well with a hand pump and cut your firewood with an axe. I am sure you know what I mean.
@milkmandan77 politics is about illusion. Politicians are good at being elected. Politics is dumbed down to the level of football. Not saying football players are dumb, but fans are fans because they feel some special attachment to them. They lack critical thinking that is why the debate is always goes something like this "government" vs private sector, or tax cuts vs tax increases." Of course neglecting the fact that economy is shaped by the legal system that is shaped by politics.
Peter Schiff has credibility because he was right in 2005 and 2006 about upcoming problems. If he and Ron Paul says things are going to get worse than we are in the dumpster.
@adizzle82 People are slow to accept bad news, and quick to accept marshmellow dreams. Nobody ever got elected preaching tough love, even more so today.
This is a case of an academic not having a clue of what he's talking about. All they have is their theory and no empirical evidence of what they are thinking except the statistics put out by the people who agree with them. Amazing how stupid smart people can be.
yes, they think they are brilliant professors, but they dont give a shit about anything, as long as their position and status is preserved. What a hoax. Ivory Tower. I now resent that I have sent my daughter to the College of William&Mary in VA and paid 80,000 Dollars for her 'education' just for her to be brainwashed by some 'professors' - And this is called 'higher education' - Shall I go on? YouTube limits the # of characters in a response. Maybe I could do some good..
@equsnarnd Theory is fine, but it has to be correct. This guy obviously only needs to know more than a college freshman about economics so he can teach another semester of macro econ.
Galbraith is an enemy to the United States, to the Constitution and more importantly to his students in Texas at the University. I wish their were more Peter Schiffs and Ron Pauls in the world. Galbraith buys into "Owe"bama and Bernanke myths that spending when you are broke will save you, and turning the money press up to Warp Speed at the Federal Reserve and securing more Payday loans from the Chinese will solve our problems. We need to step up against these tyrants. Schiff for Senate!!!!!
yes msungs, I totally agree with you. This, and many other 'professors' are enemies of what is the true meaning of the United States, according to the Constitution and the proud heritage of this nation. And not only that, they at a much lower level, being parasites in the system.
Ready to take a step out of the Matrix and make a great living in the process? I'm a scientist and discovered 4 years ago that the entire Oil market doesn't really trade, rather it's controlled by a computer, and now I teach this computer code so that you yourself can trade Oil from home and make virtually as much money as you want to make. You can Google my website "Oil Trading Academy" and find me. David P.S. No this isn't a scam or a joke.
@King100Joe I don't know what views YOU claim to hold, but try respecting people's rights. Citizens are responsible for being duped into Collectivism. The Collectivism that says you can steal individual's property and KILL individuals for the benefit of the group. I support the right to be ignorant. Ignorant people are often too ignorant to support themselves though. They'll usually point the finger at someone else!!!!!! It makes em feel reel smart I thank
"The united states is in full control of its currency"says the bloated baboon. Yeah as long as we can control the people for allowing us to print more money and fronting them the bill... tik tok tik tok..
This lady has a third grade economics education...She says that "if you trust markets then the US should continue to borrow..." WTF...THERE IS NO REAL MARKET FOR INTEREST RATES!!! the Federal Reserve SETS THEM to what they want them to be. THAT IS NOT FREE!
@AUTiger2487 Critical point you made. When you control the most fundamental price in a capitalist system, that being the price of capital, all kinds of whacky things happen.
I have seen James Galbraith in a debate here at UT. I couldn't disagree with him more about most everything economical and political. Peter Schiff is absolutely correct on this one. Keynesian economics is a joke.
Galbraith is a Fraud, an idiot, or both. He actually bought into Goldman's Crap and stated the following on a Tech Ticker video about 1 year ago: "Goldman Would have Made More Money if the Government Didn't Pay them for the AIG contracts becuase they shorted AIG."
CNBC, and Galbraith are idiots. Higher interest rates are bad? It creates a stronger dollar. Spend more money, because low interest rates are great. Lol...
The professor is right. When you can keep the rates as low as zero in short term paper why would you refinance to a higher rate long term?? Those ifs will not happen.
@MAZDAKPRODUCTION Because you miss the opportunity to lock them in at lower rates for the longer term. Same deal as teaser rate mortgages. People are passing up subsidized 5% mortages for 30 years so that they can get 2% for 2 years.
But government isn't a company. A company doesn't get to make the money that it spends. The government does. You can't look at the government as a business, or a family or an individual. It is different precisely because it controls the money supply. No other entity does that.
abelltube 3 weeks ago
Education means nothing this professor has nothing to teach zero! Peter is a Master at what he does! Mike Maloney is Master at what he does. Rich Dad poor dad guy is Master as well. I am not saying Gold is the answer but Government if it was a company gets F.
superhawkn 3 months ago
Peter owns this idiot! He did not graduate College no way! So what the interest is lower if you owe alot more money and taking less in equals holly crap we are screwed.
superhawkn 3 months ago
Schiff is a Muppet
travonius 4 months ago
criminalize gay butt sex..
steelfury455 4 months ago
You don't have to agree or disagree with Schiff to see how obvious it is that Galbraith is wrong. And this is coming from someone who graduated from UT.
SolarAlchemy 5 months ago
Galbraith doesn't understand that if the debt were to be refinanced at longer durations the rates would go way up??? Wow, some economist. And just print money to pay the debt, nevermind the inflation that will wipe most of us out. You're saying that all doesn't matter because price controls are the answer? No. Price controls lead to black markets. Price controls lead to producers refusing to produce, even on pain of death as John Law tried. I'll stick with Schiff, and his father's comic.
walktheworld 5 months ago
Galbraith - "Well if the markets are wrong we shouldn't be paying attention to them at all". Spoken like a true ivy tower academic who gets paid even though he doesn't have any skin in the game.
He's saying the markets are always right? In 1999? In 2006? This is the thoroughly discredited efficient market hypothesis.
walktheworld 5 months ago
@walktheworld I think you have misunderstood Galbraith. Have you read his books? He is not a proponent of markets and all that it entails. Him and his father (RIP) are proponents of price control, not free markets etc.
dackbinder 5 months ago
@dackbinder I'm not handicapped by having read anything by him. If I were, I definitely wouldn't have been able to quit my day job six years ago and ride this gold and silver bull. Oh, and it's "He", not "Him", being part of the subject, not an object.
walktheworld 5 months ago
@walktheworld As someone who appreciates grammar, I thank you for pointing out the error! Your success in life, however, is not the point. I think you have misunderstood me. What I said was that you have misunderstood Galbraith and his views. I did not say that you are a failure in life. Being a success in life does not mean that all your perceptions are correct. You may be rich. You still misunderstood Galbraith.
dackbinder 5 months ago
@dackbinder Galbraith makes a fool of himself in this video - Schiff merely points it out, repeatedly. Seriously, can't you understand that? An economist who doesn't understand gold and has been saying sell for what is now an eleven-year-long bull market is a complete waste of my time, no matter how many books he's published and letters he has after his name. Unfortunately, that's most of them.
walktheworld 5 months ago
@walktheworld Thanks for the discussion instead of the namecalling and insults that usually occur when people disagree on Youtube. I feel that we are talking about two completely different things, much like the protagonists in this video. I think Galbraith is the wrong person to have on a show like this. His main goal is not taking advantage of economic conditions for personal gain but the construction of a worldwide economy that is sustainable and equitable. Schiff's expertise is the former.
dackbinder 5 months ago
@walktheworld (cont) Here, we have people with different goals trying to talk about the same thing, so of course the one who is the most "practical" (and the one who can maximize personal gain) comes off as being right. Having read his books, and his father's, I see what Galbraith is getting at. A viewer without that background knowledge, however, merely sees an idealist putz!
dackbinder 5 months ago
@walktheworld (cont2) This is why I pointed out that the whole "market" thing was misperceived. To Galbraith, the old conservative faith in the absolute power of the market to "get things right" is a myth that conservative and liberal economists and politicians do not believe anymore - in private! In public, the absolute ability of the market to "get things right" is still used in public politics because people believe it. It makes sense to the average person. Thanks for the discussion. :)
dackbinder 5 months ago
Galbraith has been wrong all his life and never once eaten any of his words. And to think of all the poor kids uneducated by this idiot. Is there a question on why we are in the mess we are in today?
reneh 5 months ago
looks like Galbraith will be eating his words on Monday
ch1kusoo 5 months ago
@ch1kusoo How did that work out? Hahahaha. Treasuries rallied.
Cosbibi 5 months ago
"The governments deficit is the publics savings."
This is the most absurd thing that I've ever heard.
WilhelmDrake:
So the trillion dollar payment made to the fed every year in the form of a Federal Income tax, that goes to pay the interest on the governments debt, is to be misconstrued now as a savings? How much do you pay in Federal Income tax? Do you put that money in the bank? Are you seriously going to try to redefine the meaning words in the English language? "Debt is savings." Joker.
bigtex1453 7 months ago
@bigtex1453 Every deficit in one sector is a surplus in another sector. If the government runs a deficit, the private sector runs a surplus. It's that simple. It isn't even debatable, it's simple double-entry bookkeeping.
Cosbibi 7 months ago
@Cosbibi
How can you come to that conclusion? The government owns absolutely nothing - the people are the owners in our country. So when the government spends money it's spending the peoples money. It has to come from somewhere, right? Well all that they've done is borrowed from future generations. My niece and nephew and all of our sons a daughters will have to pay this back - if it can even be paid back. Who will honor our dollar around the world?
bigtex1453 7 months ago
@bigtex1453 The government doesn't spend other people's money, since it's the sole issuer of the currency. It doesn't have to borrow or tax in order to spend.
As to the whole children paying our debts issue. When our children build 20 million cars per year 20 years from now, will they have to send them back in time to 2011 to pay off their debt? There's no such thing. Government debt only influences the distribution of real goods and services.
Cosbibi 7 months ago
@Cosbibi
Who validates the currency? Where does the money come from? When we print more money what happens to the value of that currency? To print the money for the treasury, the federal reserve receives an interest rate in return. That interest payment on the debt is paid by our federal income tax - all of it.
When we "stimulate" the econ we suspend a recession or an economic contraction, with a devalued currency causing inflation and prolonging & deepening the recession.
bigtex1453 7 months ago
@bigtex1453 Why would you pay interest on government debt hold by your own central bank? That doesn't make any sense. It surely isn't necessary. And no it isn't going to cause hyperinflation in a situation where we have 17% unemployment and large unused capacity.
Cosbibi 7 months ago
@Cosbibi
We all pay it. It's called Federal Income Tax. We don't have a choice.
Your right, it's not necessary. We need to reduce government spending levels - pay off the debt owed to the federal reserve - or just bail on them, let the recession hit so that the economy can readjust to its natural state, and start saving money. By operating within our means we can get through this. But make no mistake, no matter what we do - we are facing a massive depression like recession in 6-12 months
bigtex1453 7 months ago
@bigtex145 Why would the government have to default on debt it owes to itself? You don't understand the concept of the government being the issuer of the currency, it can create the money, it doesn't have to borrow or tax.
Cosbibi 7 months ago
@Cosbibi
The federal reserve is a private bank. Its not government.Which is scary to think in and of itself.
The government is not the issuer of the currency.The treasury looks at the budget and says "ahh well we need 200 billion, lets get the fed on the phone." The fed then says "Ok I'll print this 200 billion out of thin air for you but to put that cash in circulation but the treasury owes us interest on the money."
You keep saying that the government doesn't have to borrow or tax. explain
bigtex1453 7 months ago
@Cosbibi
It will cause hyperinfation if the Fed starts buying treasury bonds because no one else will buy them - and this is already happening. Chine doesn't want them - neither does Japan. Whose left to buy the treasury bonds? The Fed.
bigtex1453 7 months ago
@bigtex1453 It will not cause hyperinflation. Look at Japan they did exactly the same thing we did for 20 years and they still suffered from deflation, not inflation, let alone hyperinflation.
The standard formula of the quantity theory of money is: Money supply times velocity equals price level times output. As long as output can be increased an increase in the money supply doesn't have to cause inflation
Cosbibi 7 months ago
@Cosbibi
It doesn't have to cause inflation but it will. We're already seeing inflation. Food prices have gone up, gas here in Houston is $3.50+ a gallon, energy costs have increased. It's because the dollar is loosing its value every time the reserve prints. It's inflation. You can deny it all you want - but I see the price of gas like the next guy.
bigtex1453 7 months ago
@Cosbibi
We've spent all this stimulus money on consumables. We didn't take these Bush & Obama bailouts and stimuli plans and invest into assets like manufacturing, farming, & production. We bought cars, houses and artificially propped up massive companies that should have gone bankrupt. We need to stop doing that.
So in 20 years, if we keep going the way that we are going we wont produce anything - much less cars.
bigtex1453 7 months ago
@Cosbibi
"It doesn't have to borrow or tax in order to spend."
Your right that it doesn't have to borrow but it does. If we didn't borrow why do China & Japan hold trillions in our treasury bills?
I think that you grossly misunderstand the currency crisis, the problem with fractional reserve banking, and the damage to the open market caused by government regulation.
bigtex1453 7 months ago
@bigtex1453 Ok. This is hopeless. Here is how it works: China and Japan send us consumer goods and receive dollars in return. They use these dollars to buy government bonds on which they receive interest. Who gains? Japan and China get dollars, which means they have no assurance that they will get real goods and services in return, the US gets real goods and services.
Cosbibi 7 months ago
@Cosbibi
China & Japan have stopped buying our treasury bonds bro. No one wants them. The gig is up. China and Japan have realized that they can just keep their products and let their own people buy them. It will certainly help the value of their currency.
So when we cant sell the bills on the open market where is the money to fund the gross expenditures of this government going to come from? We print it out of thin air. And devalue the perception of the dollar with more cash in circulation.
bigtex1453 7 months ago
schiff bashers--you're a few years late.
there is a long line of blowhards who have felt like fools for years as they laughed at peter while he has only been vindicated time and again. get to the end of that line, you're a dime a dozen.
dagnysrebuttal 7 months ago
There is no analogy between a household (user of currency) and the government (creator of currency). The government doesn't spend by printing money it spends by crediting accounts. The governments deficit is the publics savings.
WilhelmDrake 7 months ago
absolutely fascinating The man in yellow tie is so confident of himself Also running for office. Galbraith knows what he is talking about and makes his points in a limited, clear, rational way. No one cares.
67kenb 8 months ago
@67kenb the guy in the yellow tie says we should keep printing money because we can...He may know what he is saying, but what he is saying doesn't make sense
pdawg691 7 months ago
Just w8 until the US economy collapses then people wont be calling Peter Schiff an idiot or a charlatan. The US produces and exports hardly anything but imports a huge amount. This means that more money is leaving the economy than entering it. The GDP SHOULD be going down but they are just borrowing and spending more to make up the difference. The US economy completely depends on borrowing and spending other peoples money.
titan13131 8 months ago
@titan13131 but the USA can't ever pay back the money it's borrowing because its manufacturing base has all but disappeared so it have no way to earn it. When China stops lending the USA money the US is finished. The US already has to print money because they can't borrowing enough and if they stop printing the economy IS going to shrink. ALL the jobs that have been created by QE are in the wrong sectors too, its not manufacturing jobs aren't being created.
titan13131 8 months ago
if peter schiff doesn't buy the market's price of debt, why does he buy the market's pricing of gold?
mdiggs4545 8 months ago
@mdiggs4545 - Probably because the Fed isn't buying $150 billion of it every month.
readthepaper 8 months ago
@mdiggs4545 thats cuz the markets are really distorted by all of the manipulation on interest rates...the true price of debt ("risk"), which is tied to interest rates needs to be set by the market place and NOT by central banks. When u create the illusion that debt is less risky, then u create an environment in which ppl begin act irrational. what the price of gold is telling u is that the "smart money" realizes this and is preparing to protect themselves from any currency crisis.
dontblameme100 8 months ago
Thank you James Galbraith for making Schiff look like the idiot he is. It's about time someone called this guy out on his bullshit.
NathanAGoss 9 months ago
Keep enlarging that debt and keep living in fanatasyland (for now).
People like James G never heard of reality. But reality will come along and then dreaming wont help anymore.
MrEdwinauer 9 months ago
Just one glance at schiff and you would know that this guy is nothing but a charlatan and a fraud!!
brendos444 9 months ago
@orgasmicide2 Sure they can. We can tax the rich.
spartan2600 9 months ago
@spartan2600 - Whose surplus savings do you think are responsible for expanding productive processes and creating employment?
readthepaper 9 months ago
@readthepaper The rich exploit the workers to generate said surplus savings. This is an unjust system in which a minority of people have dictatorial control over such a vast portion of wealth. There's no reason the workers can't take back that wealth and control the surplus savings democratically, create full employment and elevate the standard of living. I think one way this could be achieved is the Rehn-Meidner plan (which failed to pass parliament in Sweden), but there are many other ways.
spartan2600 9 months ago
@spartan2600 - People with surplus savings pay owners of factors of production (land, LABOR, and capital goods) in advance of what is produced from that stage of production based upon the anticipated discounted marginal value product. The reason this is discounted is because the capitalist financing this is compensated for waiting and taking the risk that what is produced will be sold for the price he is hoping for.
readthepaper 9 months ago
Without the capitalists financing the factor owners in advance, they would actually have to wait until the final consumption of the end product at the consumer level and wait for the money to come back up the productive process. If you are a worker towards the high level stages of production in a process that takes 3 years, do you really want to to wait years to get paid? Of course not, but that is exactly what would happen without financing.
readthepaper 9 months ago
There is no such thing as "teaser rates" on bonds that Schiff pulled out of his ass. Also, Fannie and Freddie do not use tax dollars to pay down their debt, so mentioning them is dishonest of Schiff. Also, "unfunded liabilities" are based presumably on Schiff's own insane predictions on the financial situation of Social Security will implode over the course of the next century.
spartan2600 9 months ago
@AlexanderHvass - Not it's not ridiculous. Peter Shiff has been wrong about quite few things over the last to years and unlike Shiff, Galbraith knows what he's talking about. Shiff is a snake oil salesman who talks slick but is full of it. He reminds me of Kent Hovind (slick talking cration scientist). When Galbraith calls Shiff out on his false analogy with Greece (who can't print their own currency) he baits and switches to 'it's not a good thing that the US can just print money'
ObamaFTWdotcom 9 months ago
@ObamaFTWdotcom - Tell me one economic prediction Galbraith has been right about, one useful private sector accomplishment this useless academic who lives in fantasy land has ever done. Schiff has at least written books about his, is a successful broker who has had some great predictions and returns, while Galbraith is a clown just like his father.
readthepaper 9 months ago
Galbraith is funny. The US debt is different than Greece, Ireland, or any other place (including individual US states) because the world has a lot of faith in the US dollar and likes buying t-bills which are nearly risk-free in the short-run.
Interest and coupons have to be paid on those bonds though and there eventually is an end to how many will be bought. It's not just a matter of "printing" money, bonds have to be purchased and they respond to supply and demand models like anything else.
jgrdonquixote 10 months ago
Happy SCALPING on Forex!
freeSCALPINGindicato 11 months ago
@orgasmicide2 Thanks! When I saw that someone had replied to my comment, I expected abuse from some right-wing guy. Thanks for the nice surprise!
ringozstarr 11 months ago
The demand in the US now is low, and unemployment high. The government should increase spending, to reduce unemployment. This will not significantly change the long term debt problem. The solution to the long term debt problem consists mainly of two things Republicans oppose - more cost effective health care and higher taxes. And reducing unemployment and increasing growth is important, that's how the US solved the big federal debt after World War II (bigger than now, as a % of GDP).
ringozstarr 11 months ago
@ringozstarr - Yeah, how they handled the debt problem after WWII: decreasing federal spending by 2/3 and taxes by 1/3. They sure as hell won't do that now. We've already seen businesses less willing to come to the US because of ridiculous taxes and regulations; yeah, let's steal more money from people. Oh and I would definitely trust the government to be "cost effective" with healthcare like they are so "cost effective" with everything else. Talk about burying your head in the sand.
readthepaper 10 months ago
@readthepaper "decreasing federal spending by 2/3"
Do you understand why federal spending suddenly plummeted after WWII? Because WWII ended, the troops came home, etc. Also, taxes were at their highest in the 1950's... which happened to be the period of the most rapid growth in US history, probably the greatest economic growth in world history.
spartan2600 9 months ago
@spartan2600 - Yes, however, it was all the idiots like Paul Samuelson claiming that such spending was keeping the economy going as a "stimulus" and without such expenditures we would fall back into Depression which obviously did not happen. Also, had you bothered to do any research you would notice that due to all the loopholes that existed NOBODY ever paid those tax rates. And the period of the greatest growth was during the Industrial Revolution.
readthepaper 9 months ago
@readthepaper The legal top marginal tax rates were around 90%. You are right that loopholes allowed the rich to get away without paying that much, but they still paid a 50% effective tax rate in the postwar era, which is still the highest in American history. The Industrial revolution spanned more than a century. The postwar period spanned a few decades. The postwar period saw the greatest *rate* of growth probably in human history.
spartan2600 9 months ago
Outside a small group of hardcore beleivers Peter Schiff is a laughing stock...
bellcord 11 months ago
Thr Greece problem has been solved for months and forgotten...the US is coming back strong and Schiff's "We're All Doomed" crap ain't sellin'..
bellcord 1 year ago
@bellcord
Solved how? Bailed out by the IMF?
The US isn't coming strong at all, unemployment is hovering over 9 % and our national debt is increasing exponentially. If you're not buying it it doesn't mean that Schiff's prediction is "crap." People called it crap before and it turned out he was right.
regelemihai 11 months ago
PETER SCHIFF IS A GENIUS.HE SHOULD AND MUST BE THE FINANCIAL ADVISOR OF EVERY USA PRESIDENTS FOR DOLLAR SAKE. FUCK ME IM NOT EVEN AMERICAN. he was right everybody laughting at him when he predicted the financial disaster, wonder what all this FUCKSHIT THINKING NOW.
tk291100 1 year ago
it's wrong that we have professors like the liberal keynesian retard teaching our collegiates. No wonder our education is falling/
Willredd94 1 year ago
@Willredd94 said "It's wrong that we have professors like the liberal keynesian retard teaching our collegiates."
Ironic -- calling someone a "retard" & then misusing & ascribing incorrect meaning to a 3-syllable word, as if to prove that you are not ("retarded") -- & all in the same sentence. If irony was intended, you are brilliant. If not, thank you for refuting your own argument.
sjt257 9 months ago
our rates are lowering because the fed lowered them to try and pump the bubble back upp
TheThejoseph 1 year ago
I'm not impressed with Shiff. "You see that I'm laughing. hahahahaha". Austrian economists are ridiculous.
marth193 1 year ago
@marth193 That's your argument against austrian economics? What a weak-ass argument, about as weak as the keynesian logic
dagrimreeefah 1 year ago
@marth193 Did you not listen to the rest of the video? Even if you aren't a Schiff fan, you have to at least note the ridiculous arguments of the Mr. Galbraith.
macktasticjoshflava 1 year ago
@paradrifter you`re suggesting economies deflate to accomodate he limited supply of a worthless metal? lol. and, no. People went to war before fiat currencies. Govts reduce violence.
willisworn 1 year ago
@willisworn Max Keiser talked about a "price discovery mechanism" -- and because we have a "flexible, independent monetary policy" governments can go to war easily, and without an honest democratic process of going to war. Which impovershes the general population even bigger.
This current fiat system we have is an undemocratic tyrannical monster.
There is no reason that banks should be able to issue our sovereign currency (through loans, and fractional reserve fraud) and claim interest on it.
ParapaDrifter 1 year ago
the safe haven for peoples money is hard currency. Silver. Thats what people are looking for.
ParapaDrifter 1 year ago
Comment removed
ParapaDrifter 1 year ago
@mixedbreed10 that`s true maybe, but it`s irrelevant to the issue at hand. The fact is, that financing has led to lots of growth, real or not. Schiff`s criticisms arent new. He`s pimping Hayek for dummies. The problem is this: what do you replace the current system with. It takes no courage to predict hard times, man. This Austrian nonsense is crap, under scrutiny. The issue of production is relevant, but not in this debate.
willisworn 1 year ago
@AlexanderHvass Yes, Shciff has predicted 13 of the last 3 recessions.
*rolls eyes
willisworn 1 year ago
@willisworn Please do us all a favor and just don't participate in any type of economic debate ever. You'll also be doing yourself a favor, as you won't make yourself look so ridiculous again. Because if the only argument you have is "rolls eyes", well, all you do is succeed at making yourself look like a clueless little girl trying her hardest to come up with a witty jab rather than making any sense with your asinine arguments. Like the "gold is finite" argument..,. LOL what a gem
dagrimreeefah 1 year ago
Lol @Lethn. Gold isnt any more stable because it`s finite. Let`s say the economy (what banks hold) is worth 100k. Banks have to have 80g in gold to back that up, right? now, let`s say that`s all the gold there is and the economy is still growing. what happens? either the value of gold HAS to go up, or the requirements on gold need to be loosened to allow banks to grow with the economy. This is the reason why Schiff is an idiot and no one takes him seriously besides other idiots.
willisworn 1 year ago
@willisworn How will the US economy grow when all we produce is services & when the population is steadily being replaced with less productive and competitive but more consumptive masses? The fact is US economy is NOT growing.
mixedbreed10 1 year ago
@willisworn --- why not, if the economy grows, cant goods become cheaper? and less gold buys the same amount of product?
--- you have to admit, fiat currency is the reason that governments and bankers want and force populations to go to war. (Wag the dog)
ParapaDrifter 1 year ago
@ParapaDrifter -- We didn't have fiat currencies until Bretton Woods in 1944, after the outbreak of World War II. It was the rigidity of the gold standard (fixed parities) in the interwar period that forced economies to deflate, sparking depression and social unrest across Europe (Hitler came to power after high unemployment in Weimar).
James Galbraith is absolutely right. We are not Greece, mainly because we have a flexible, independent monetary policy. Also, Peter S is kind of a douche.
dfmdfmdfm1 1 year ago
@willisworn Ummm, nice HYPOTHETICAL there, dumbass. Now, lets get to actual reality.
#1: There is A LOT more gold in the world
#2 You know, there are other commodities, right? Gold isn't the only one, fucking idiot.
#3: So, just because one commodity (gold) is finite, that is the reason why we should print infinite amounts of fiat money? You can't seriously be this stupid...
dagrimreeefah 1 year ago
@willisworn Your argument makes little to no sense to an Austrian. Simply, because, firstly, you assume that it is goods and commodities that are actually changing and not the of the dollar. A car wasn't 3,000 in the 60's, and now 30,000 because the commodities making it up and the labor were entirely unstable. Sure, there were likely some commodities spikes in there.. technology effected prices, but largely the change in prices over the past 100 years were the instability in the dollar.
macktasticjoshflava 1 year ago
Willis,
You also miss the point. Gold supplies are not projected to run out, you are oversimplifying the issue. The reason Gold is relatively stable is the rate at which it is discovered. Speculation in the weakness of the dollar often leads to people to invest in commodities.. Gold considered. Increasing their price, and long term decreasing the price of the dollar. It's not that Gold is magic.. it's just Austrian's believe the market should choose what backs the dollar.
macktasticjoshflava 1 year ago
Given the current situations Gold seems like a great candidate. That is knowing what we know about Gold. If the Gold supply suddenly ran out.. that could all change. Technically, most Austrian's would argue that Silver would work.. or whatever the market dictates. The important part is that if you own a currency, a commodity is backing the currency to ensure it's value. The logistics are obviously already there. It does not have to be Gold.. right now it just is.
macktasticjoshflava 1 year ago
Never trust a man with a beard, it's a good indication they are a sphincter
flyattic 1 year ago
Schiff is a moron. Gold's value is entirely speculative. The supply of gold is limited, and therefore NOT a stable base for an economy's currency. Stupid, really stupid.
willisworn 1 year ago
@willisworn hit the thumbs down by accident (damn trackpad! damn shaky hands!). I agree with you. Sorry.
sjt257 1 year ago
@willisworn If Gold was not such a stable base for a currency then why is it that Gold and Silver have been used as stable currencies for hundreds and hundreds of years? Whereas the current paper fiat currency in use has only been used for the past century and it has caused far more recessions and even a great depression than Gold and Silver ever did.
Metals as currencies keep governments in check BECAUSE they are limited, paper gives them free reign.
Lethn 1 year ago
@willisworn Yes you are really, really stupid. So, since gold is finite, we should print infinite amounts of fiat money? And where do you get gold's price is speculative? Pulled that one right out of your ass? Or did a pundit on CNN tell you to believe that? I just can't believe there are people as absolutely ignorant as you out there. It's not a good base for a currency because it's finite... LOL well there are other commodities too, dumb ass. And EVERYTHING is finite, dumb ass.
dagrimreeefah 1 year ago
@willisworn "Gold's value is entirely speculative"... HAHAHAHAHAHA absolute moron LOL HAHAHA...
"Gold's value is entirely speculative".... HAHAHAHAHAHAHAHA dumbass I'm rich because of idiots like you LOL HAHAHA
"Gold's value is entirely speculative" PFFT HAHAHAHAHAHAH! Please tell your friends and family that tidbit of info... The more clueless suckers like you out there the better LOL
One more time... "Gold's value is entirely speculative" HAHAHAHAHAHA
dagrimreeefah 1 year ago
@willisworn Everything is speculative. Gold's speculative value is driven by the instability of the dollar. To say, that gold is not stable, is to say that the dollar is not stable. Gold's instability rises from what you are measuring it in... generally speaking, most stable commodities are going up. Are they now unstable?
You are looking at it as if gold's value is in a vacuum.
macktasticjoshflava 1 year ago
There is obviously room for speculation overvaluing gold, if that is the case we will eventually get a correction. With the current financial climate though, I think we have a long time ago.. the dollar is far more overvalued than gold.
macktasticjoshflava 1 year ago
You people sound like tools! Galbraith was warning about the housing bubble before Schiff.
In 2004 Galbraith said "Federal Reserve Chairman, Alan Greenspan, has done his best to keep the American housing bubble blown up, through low and stable interest rates. But not even Mr. Greenspan can forever prevent bubbles from popping, and eventually the housing boom will reach its climax." ("Intervention" Vol. 1 (2004), No. 1).
Don't make stuff up & vilify someone because they disagree with you.
sjt257 1 year ago
@sjt257
Hes a moron because he's a clueless Keynesian that doesn't understand inflation. Additionally, the fact that he identified the housing bubble in 2004 (if he did at all) is entirely immaterial. His framework cannot explain bubbles in anyway whatever. Bubbles don't exist in the Keynesian framework, where recessions are caused by insufficient AGGREGATE demand, and where capital is a homogeneous fund. The fact that he praised the FED for setting low and "stable" interest rates says it all.
Questfortruth86 1 year ago
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@Questfortruth86 "(if he did at all)" I gave quote & source, but you still question it?
"he praised the FED for setting low and "stable" interest rates" Actually, if you read his quote a bit more carefully, you will see that he is indicting the Fed for contributing to the bubble. Accuse Galbraith of what you want; he is not a monetarist.
Your militant use of the epithet "moron" arising from your (less than intelligent) analysis of the quote leads one to wonder if you are not projecting.
sjt257 1 year ago
I cant believe Galbraith is so out of his mind when he is "labeled" as a professor in economics.
Why in the world people are so foolish that college minded people are always smarter and brighter as the get more and more into debt? Our world needs to wake up!
Come on even Kiyosaki and me as a 18 year old w/o a college degree knows better!!
When can we stop being slaves and fools to the college system! Its a scam especially for today!
Cyrus992 1 year ago
galbraith is a prime candidate for secretary of treasury, chairman of the fed or even the president.
billychen13 1 year ago
Galbraith keeps smiling because he knows his arguments are an easy target for someone with a brain. Schiff nailed him to the wall here.
publicanimal 1 year ago
Galbraith should explain his stance over the past several years. Of course he didn't bring that up.
thruid3 1 year ago
It's funny to see when Galbraith says "US dollar is under total control!" where?
coolwithjoy1985 1 year ago
The markets have consistently gotten things wrong, yet it's OK to orient by the market price of gold...?
LCTesla 1 year ago
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hungarylnnjsd 1 year ago
Galbraith the keynesian got his ass handed to him by an Austrian schooled economist.
gaguy1967 1 year ago
They (the markets) are wrong not because they are reckless and inefficient but because of the Fed's attempt to price fix and central economic planning.
rgvhen 1 year ago
@rgvhen
By that argument would you, then, admit that the markets have been 'fixed' since the conspiracy in 1913 to give a private bank called the "Federal Reserve" the mandate to create a monopoly (you must pay your taxes in Federal Reserve notes) of monetized debt as a 'public good'?
And then if this is the case. How can you then consider the numbers that make up the market valid to anything going on in the real economy since then?
OgallalaKnowhow 1 year ago
Markets are wrong because they are consistently sent bad signals by the artificially low interest rates. If savings is the natural way to bring rates down, but there's no savings, and the Fed pumps in money and credit thereby lowering the rate of interest, businessmen and investors act in a manner as if the savings exist for future consumption, when in reality there are no savings and the only thing fueling the consumption is finite credit which will dry up and reveal malinvestment and debt.
rgvhen 1 year ago
It amazes me that Schiff continues this run of commentary to which there is a track record of his precision yet nothing changes. There is no point having intelligent ppl when they are listened to but not heard!
austonsuit 1 year ago
Tech Ticker showdown!
BayFlow408 1 year ago
"The fact that Greece can't print it's own money is a good thing."
And thus Schiff exposes himself as an enemy of the sovereign nation-state, and a proponent of the agenda of the financiers' international dictatorship, which some refer to as the "New World Order."
offsprng46 1 year ago
@offsprng46 You're right, its all about the new world order. I listen to alex jones everyday, he's my bible. he makes so much sense. I don't understand why the rest of the world doesn't share his theories, why countless academics and scholars who've studied politics and economics for years don't see the writing on the wall. they must all be in the pockets of the NWO, with their nefarious mind-controlling schemes forcing us to watch TV!!! DAMN YOU NWO!! DAMN YOU!!!!!
radscorpion8 1 year ago
@radscorpion8 I'm no Alex Jones acolyte; in fact, I would say that he's confused about many things (especially with regards to policy), hence the scare quotes - which serve to demonstrate the fact that the so-called "NWO" is not so much a top-down conspiracy as it is the pursuit of the class interests of the parasitical finance oligarchs.
BTW - I like your Bach videos.
offsprng46 1 year ago
@407buddy By saving money, especially in forms other than cash, you're helping yourself and being civily disobediant.
GaryVolts 1 year ago
@407buddy Careful, they may use the force of law by tax, or fraud by inflation to get their money to bail out those creditors to maintain the system the way it stands. They conflate Wall Street with America the whole time.
GaryVolts 1 year ago
Peter Schiff 4 PRESIDENT!...Put someone in office with some "cahoonies"
iam4u2cl8er 1 year ago
Peter Schiff giving another economics lesson to a college professor. haha, love it! I wonder how many of these intellectual professors have ever ran a successful business? This is the example of a guy who is an ideologue and read a bunch of books vs. a guy who has integrated himself within the market and has years of hands on experience. Professors of economics are worthless.
tonyg0123 1 year ago
Isn't it a bit ridicoulus that someone like James is still oposing Schiff? He's been right about everything for the last 10 years. Galbraith is making a fool out of himself by just participating in this debate.
AlexanderHvass 1 year ago 17
@AlexanderHvass He probably wrote a paper that would get some attention and curry favor with the people in Washington, and then CNBC put him on against Schiff because they knew there would be fireworks.
GaryVolts 1 year ago
@AlexanderHvass you need to look up MMT... you don't understand economics and neither does Schiff...This is a shell game... our money isn't and hasn't been backed by gold or anything for years.. any change in the market is controlled... debts don't matter... its all bs. Taxes are bs... taxes to pay the interest on money that is created via debt with interest... HELLO. That is a concept... duh. The real issue is oil... plain and simple... we're running out... check the brent price...
measax 11 months ago
Its also telling that Schiff can't sit without cutting off Galbraith for 2 seconds. Galbraith simply cannot make a point without Schiff pulling another red herring out of his ass.
spartan2600 9 months ago
The Clinton budget surplus is a myth. Intragovernment debt went up under Clinton. He took money out of Social Security to pay for things that weren't Social Security.
geniusiknowit 1 year ago
@geniusiknowit He also left office before the stock bubble popped. He was lucky eought to be in office during the expansion period of the bubble.
GaryVolts 1 year ago
Such a huge debate...6min ...perfect for robot. Even with 0 social charge there is no way the western work force could compete against the third world work force. How can you compare the U.S to any other country? That's like comparing Rome in 70 A.D to any other Mediterranean nation. With one blink of an eye the U.S can annihilate it's creditors. People who a see prophet in Ron Paul remind me of those Chomsky nuts who would lick the ass of anyone with knowledge in rhetoric .
royalplaylist102 1 year ago
@royalplaylist102 You wipe out one of your creditors, nobody will lend you money. You'll have to actually get a job yourself.
GaryVolts 1 year ago
ahh, galbraith represents the university of texas, of course. i attended UT during the clinton years, and LET ME TELL YOU, it is a liberal zombie wasteland brainwashing factory, and nothing more. the purpose of university is to learn HOW to think, UT teaches you WHAT to think. returning to my hometown of austin tx during the obama campaign, i could not find a single liberal that could explain why they supported obama. like zombies in a movie, they simply wandered the campus moaning CHAAAAAANGE.
milkmandan77 1 year ago
@milkmandan77
you are right, milkman. I once had a boss who told me that if I need an opinion, he would give it to me
gzaenker 1 year ago
@gzaenker An attitude like that is going to cost is employer a lot fo good people.
GaryVolts 1 year ago
@milkmandan77
i read your post again, and this is called brainwashing. Same happened to my daughter at the College of William&Mary in VA, where I paid 80K Dollars to get her brainwashed by some 'professors'. You know, the professor professes what he desires to profess. Therefor, watch out for where you send your daughter or son. I think that this Nation should go back to basics. Like, pump water from a well with a hand pump and cut your firewood with an axe. I am sure you know what I mean.
gzaenker 1 year ago
@gzaenker
guns and ammo my friend, guns and ammo.
milkmandan77 1 year ago
@milkmandan77
and rice and beans and non gmo, heirloom seeds and silver and gold and no debt.
cnow123 1 year ago
@milkmandan77 politics is about illusion. Politicians are good at being elected. Politics is dumbed down to the level of football. Not saying football players are dumb, but fans are fans because they feel some special attachment to them. They lack critical thinking that is why the debate is always goes something like this "government" vs private sector, or tax cuts vs tax increases." Of course neglecting the fact that economy is shaped by the legal system that is shaped by politics.
SamuelMoralesJr 1 year ago 2
Peter Schiff has credibility because he was right in 2005 and 2006 about upcoming problems. If he and Ron Paul says things are going to get worse than we are in the dumpster.
xMaXiMuSx 1 year ago
it would be nice to get rid of Dobb
he sat there while our coutry was destroyed
captkirkconnell 1 year ago
@captkirkconnell He didn't just sit there, he was cheerleading while it was done.
GaryVolts 1 year ago
Man...how many times does Peter Schiff have to be right before people start noticing?
adizzle82 1 year ago
@adizzle82 People are slow to accept bad news, and quick to accept marshmellow dreams. Nobody ever got elected preaching tough love, even more so today.
GaryVolts 1 year ago
This is a case of an academic not having a clue of what he's talking about. All they have is their theory and no empirical evidence of what they are thinking except the statistics put out by the people who agree with them. Amazing how stupid smart people can be.
equsnarnd 1 year ago
@equsnarnd
yes, they think they are brilliant professors, but they dont give a shit about anything, as long as their position and status is preserved. What a hoax. Ivory Tower. I now resent that I have sent my daughter to the College of William&Mary in VA and paid 80,000 Dollars for her 'education' just for her to be brainwashed by some 'professors' - And this is called 'higher education' - Shall I go on? YouTube limits the # of characters in a response. Maybe I could do some good..
gzaenker 1 year ago
@equsnarnd Theory is fine, but it has to be correct. This guy obviously only needs to know more than a college freshman about economics so he can teach another semester of macro econ.
GaryVolts 1 year ago
galbraith you nut..peter schiff,knows the world is in the SH....IT...all down to the bent bankers...nwo!!!!!
benytink 1 year ago
Galbraith is an enemy to the United States, to the Constitution and more importantly to his students in Texas at the University. I wish their were more Peter Schiffs and Ron Pauls in the world. Galbraith buys into "Owe"bama and Bernanke myths that spending when you are broke will save you, and turning the money press up to Warp Speed at the Federal Reserve and securing more Payday loans from the Chinese will solve our problems. We need to step up against these tyrants. Schiff for Senate!!!!!
msungs 1 year ago 2
@msungs
yes msungs, I totally agree with you. This, and many other 'professors' are enemies of what is the true meaning of the United States, according to the Constitution and the proud heritage of this nation. And not only that, they at a much lower level, being parasites in the system.
gzaenker 1 year ago
i love this girl...,
babukp 1 year ago
Borrow more spend more ....
hahahahahahahahaa IS that economics proffesor ... Production is what drives everything creation of new Values and added values
aviomaster 1 year ago
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OilTradingAcademy 1 year ago
@OilTradingAcademy What currency do you trade with?
judoskeleton 1 year ago
@King100Joe I don't know what views YOU claim to hold, but try respecting people's rights. Citizens are responsible for being duped into Collectivism. The Collectivism that says you can steal individual's property and KILL individuals for the benefit of the group. I support the right to be ignorant. Ignorant people are often too ignorant to support themselves though. They'll usually point the finger at someone else!!!!!! It makes em feel reel smart I thank
66chevyo 1 year ago
James Galbraith should resign!
josh2659 1 year ago
I've never actually seen Schiff be out-debated. He's one of the only economists that understands the flow of the FREE market.
getthepoooffmybum 1 year ago
@getthepoooffmybum I don't think Peter was out-debated. I actually agree with Peter. Galbraith seems rather naive.
cabgt 1 year ago
@cabgt Neither did I meant including this debate.
getthepoooffmybum 1 year ago
@getthepoooffmybum Ahh, my bad
cabgt 1 year ago
"The united states is in full control of its currency"says the bloated baboon. Yeah as long as we can control the people for allowing us to print more money and fronting them the bill... tik tok tik tok..
TheReallitycheck 1 year ago 2
Oh terrific, another Peter Schiff was right video in the making. How many times does this shit have to happen?
Godwad 1 year ago
When people like Golbright take controll all hell breaks LOOSE ...
Production + Savings = POWER
aviomaster 1 year ago
This lady has a third grade economics education...She says that "if you trust markets then the US should continue to borrow..." WTF...THERE IS NO REAL MARKET FOR INTEREST RATES!!! the Federal Reserve SETS THEM to what they want them to be. THAT IS NOT FREE!
AUTiger2487 1 year ago
@AUTiger2487 Critical point you made. When you control the most fundamental price in a capitalist system, that being the price of capital, all kinds of whacky things happen.
GaryVolts 1 year ago
...more like "Peter Schiff Was Right Part 72345928"
ZandarKoad 1 year ago
I have seen James Galbraith in a debate here at UT. I couldn't disagree with him more about most everything economical and political. Peter Schiff is absolutely correct on this one. Keynesian economics is a joke.
DrTomHendricks 1 year ago
Galbraith is a Fraud, an idiot, or both. He actually bought into Goldman's Crap and stated the following on a Tech Ticker video about 1 year ago: "Goldman Would have Made More Money if the Government Didn't Pay them for the AIG contracts becuase they shorted AIG."
BringBackCapitalism 1 year ago 14
CNBC, and Galbraith are idiots. Higher interest rates are bad? It creates a stronger dollar. Spend more money, because low interest rates are great. Lol...
SamuelMoralesJr 1 year ago
Yes, higher taxes and regulation are exactly what the markets need to help us reduce the debt....Man that professor is insane....
lastdual 1 year ago 2
every time peter has him cornered galbraiths' eye brows start going up and down,,,
RiteSedFred123 1 year ago 2
Intellectualizing the economy into a good thing loses. Common sense wins!!
MayonR 1 year ago
fuck these stupid academics. damn them to hell.
gingowitch 1 year ago
The professor is right. When you can keep the rates as low as zero in short term paper why would you refinance to a higher rate long term?? Those ifs will not happen.
MAZDAKPRODUCTION 1 year ago
@MAZDAKPRODUCTION Because you miss the opportunity to lock them in at lower rates for the longer term. Same deal as teaser rate mortgages. People are passing up subsidized 5% mortages for 30 years so that they can get 2% for 2 years.
GaryVolts 1 year ago
economically ignorant here, but how does lower interests rates led to the economic crisis overblown
andrew1zy 1 year ago
@andrew1zy you probably won't get a go