Peter Schiff: How gov't stimulus spending & deficits impact capital markets (Part 5)

Peter Schiff, CEO and chief global strategist of Euro Pacific Capital, discusses how excessive government intervention hinders economic recovery and growth, during a Fraser Institute policy briefing on Thursday, Oct. 13 at the University Club of Montreal.

Schiff has been quoted in leading newspapers, including The Wall Street Journal and the Financial Times, and appears regularly on CNBC, CNN, Fox News, and Bloomberg TV. His best-selling book Crash Proof: How to Profit from the Coming Economic Collapse was published in February 2007.

Category:

Education

Tags:

• Peter Schiff
• Capital Markets
• Economic Freedom
• Capitalism
• Economy
• Stimulus
• Government
• Deficit
• Keynes
• Keynesianism

[theemmettkeegan]

@cookmatthewr " deflation is bad because it causes unemployment...Consequently, if the person gets a 5% raise because the cost of living (inflation) has increase 5%, then they gladly accept."

What are you talking about???

Deflation: Toothpaste that costs $0.75

Inflation: Toothpaste that costs $11.00

"Consequently, if the person gets a 5% raise because the cost of living (inflation) has increase 5%, then they gladly accept."

Yay i get payed more! But Sh*t! Everything else costs more now too!

[theemmettkeegan]

@cookmatthewr Your agreeing with Schiff.

Capitalism is free market. Free market allows advances in productivity which cause prices to go down.

Flat screen TVs are as cheap as ever. But now look at things in our economy that are costing more and more.

The cost of College education has been going up. On average is at $24,000. College Education gets loans straight from the Federal Reserve.

Homes. The cost of homes is STILL huge. Because the Federal Reserve keeping interest rates low.

[danbuck333]

Your assertion that capitalism doesnt brings costs down is complete garbage...Costs go down due to technological advances which are created because of capital investment

[cookmatthewr]

His assertion that capitalism brings costs down is complete garbage. Costs go down due to technological advances. Something completely exclusive to inflation/deflation. In fact, it's arguably due to an inflationary environment which spurs people to invest rather than save.

[cookmatthewr]

LOL deflation is bad because it causes unemployment. Some inflation is good because people get raises at work relative to prices. If someone works a job and then the next year the employer tells them that they are going to make 5% less because there was a 5% deflation rate over the last year, that person will quit. Consequently, if the person gets a 5% raise because the cost of living (inflation) has increase 5%, then they gladly accept. That my friends, is why inflation is preferred.

[christo930]

I wish Schiff would stop referring to deflation as falling prices! Deflation is a reduction in the money supply and the way our money supply is designed, the money supply grows exponentially and if contracts exponentially. Cell phones go down in price because of productivity increases and economies of scale, not deflation. Deflation is terrible and would quickly destroy our economy.

[christo930]

I think Shiff is really underestimating the exposure of the world's banking system to the dollar. If the dollar collapsed and the American banking system started collapsing (which is what would happen if the US dollar collapsed), foreign banks would also fail because they own so much US debt and dollars. Countries and banks save in USD, it's the reserve currency. There is nowhere to hide from the USD, especially not in Canada, especially since they do so much commerce with the US.