Robert Borosage Obliterates Peter Schiff

How can you have demand-driven inflation with an output gap, idiots?

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[InfiniteLove0]

So where does the money come from to "refinance" ?? they create it out of thin air which further weakens the dollar. It might be ok to borrow if you can pay it back but when you already have a $15 trillion debt already how the hell are you going to pay that back?? Printing more money is just going to make the problem worse.

[AntiSchiff]

@InfiniteLove0

No, it comes from bond investors. The Fed holds a tiny percentage of US bonds. That's what refinancing is. You need to get the basics straight in your head before going around declaring that we have too much monetary stimulus.

[doublek321]

@AntiSchiff Google "Fed passes China in Treasury holdings" and find the financial times article by Michael Mackenzie on February 2 2011. The Fed doesn't hold "a tiny percentage" but rather the lion's share.

The US had (according to the article) about 1.108 trillion of treasuries (made up of bills, notes, bonds and Treasury Inflation Protected Securities, or Tips) whereas China held $896bn and Japan $877bn.

That was from 7 months ago. Things have gotten worse since then.

[AntiSchiff]

@doublek321

Okay, first of all stupid, even with the numbers you posted there the Fed doesn't hold the "lion's share". Second, apparently you're not smart enough to even think in terms of numbers that are thrown around daily. What is our national fiscal deficit? It's approaching $10 trillion(don't confuse this with gross debt, which is closer to $14 trillion). So, the US, by your own numbers, holds less than 16% of Treasuries, and not all held in the US are by the Fed, moron.

[doublek321]

@AntiSchiff I could do without the name calling (it's unnecessary) but I'd like to respond anyway.

I'm not sure what you mean by "national fiscal deficit". Isn't our deficit 1.6 trillion (we take in ~2.2T and spend ~3.8T)? As for your point about the US only owning less than 16% of treasuries not being the "lion's share", I think that's a matter of semantics. However you'd like it to be categorized, would you at least agree that the Fed is the #1 holder of US treasuries?

[AntiSchiff]

@doublek321

I meant to type fiscal "debt". And with lion's share, look up any definition you like. It means an overwhelming majority to me, and 16% is no where near that.

Besides, that's not even the issue. The Fed can keep Treasury rates as low as they like, but have to give up something in terms of inflation if demand for dollars falls sufficiently. Yet, we see very little core inflation.

[AntiSchiff]

See how stupid and thoughtless you are?

[AntiSchiff]

@eurocon

Actually, you can stupid. It's called refinancing and it's done all the time. You can sometimes borrow at a lower interest rate to pay off higher interest rate debt, which is exactly what the US can do now. That can make paying down the debt easier.

As usual, one of you Schiff tards doesn't even understand basic finance.

[eurocon]

You can not borrow your way out of debt, Schiff wins.

[zenmachinefilms]

Title is misleading, but as I see this these guys aren't that different.

I don't understand where Schiff thinks the jobs are going to come from in the free-market private sector? The wealthy already have all the money and aren't investing it into creating jobs.

Borosage says we can fix some of that with the government, but until there's campaign finance and lobby reform, most of that money would be pissed away on pork projects to special interests.