Peter Schiff Speaks at Harvard Part 6 of 10

For the latest Peter Schiff, go to http://PeterSchiffBlog.com -

If it wasn't for government guarantees through Fannie and Freddie, the banks never would have made those loans. Now Goldman Sachs is handing out record bonuses, but they would have gone completely bankrupt if they didn't get bailed out. The problem is that the free market has a bad reputation. People associate capitalism with Bush and with all the failures. People need to be reminded about why the nation is actually so prosperous.

It is in good times when socialism is actually tolerable. Now we are on harder times, and this is the time when we need capitalism the most. Hopefully we don't take the final fork in the path on our way to the Road to Serfdom.

You have got to look at the motivation of the guys who run the Federal Reserve. They are almost always from Wall Street, and so they look at the economy from that perspective. They think that what is good for Wall Street is good for the country. They are hurting the economy and producing nothing when the Wall Street banks inflate the money a create these derivative trading products.

All the politicians watch the polls and they watch the stock market. They assume that it is part of their job to keep stock prices up. If we did the right thing, stock prices and real estate prices will fall.

It's going to be hard for workers to get higher wages, but it's going to be easy for the price of everything to go up. Many of the low priced items that we like to buy come from overseas. A weakening dollar means that those goods will cost more for Americans.

It is the level of production that makes prices go up and down. If we are more productive, then there is more stuff to buy in the economy, and we are all wealthier. The only thing that the Federal Reserve really has is inflation.

Category:

News & Politics

Tags:

• Peter Schiff
• Treasuries
• Government Bankrupt
• Financial Collapse
• Economic Collapse
• Financial Crisis
• Economic Crisis
• Gold
• Silver
• Dollar
• Federal Reserve
• ron paul
• john stossel
• judge napolitano
• inflation
• hyperinflation
• interest rates
• capitalism
• free markets
• tom woods
• austrian economics
• harvard

[Rawego]

Peter, i am amazed at your clarity on our economic issues. i think it stems from your honesty.