Posted on 07/12/2016 9:26:25 AM PDT by Academiadotorg
The Federal Reserve's monetary policies have manufactured a "super bubble" that " … may give us the worst economic downturn including the Great Depression," economist Peter Schiff declared during an interview with Accuracy in Media.
He explained that low interest rates prop up the government’s feckless fiscal policies and generate " … really systemic structural problems in the economy … " that “manifest themselves in bubbles that then burst."
" … the Fed’s policy does not work and has not solved our problems, it has simply exacerbated our problems, and … we're gonna have a currency crisis, we're gonna have a sovereign debt crisis and it'll make the financial crisis of '08 really look like the Sunday school picnic."
Schiff, who publicly warned about the Great Recession before it actually occurred, said "…the problems I see now are basically the same problems I saw then … we never really had a solution, we never let the markets fix the mistakes that underlie the economy because it was short circuited by more bad monetary policy. So now we're in even worse shape than we were going into the financial crisis. But it's the same bad monetary policy that’s caused the problems … "
Condemning the Fed's manipulative monetary tactics, he asserted, " … no matter how smart you are you can't outsmart the market. You don't want a centrally planned economy, you don't want monetary policy made by a group of bankers … you don’t want interest rates fixed by a group of central bankers. It doesn't work. It didn't work when a politburo in the Soviet Union was fixing the price of bread, and it doesn't work when a similar organization fixes the price of money."
Asked why the media reject his economic predictions but accept the Fed’s statements, Schiff quipped, "… I think that people want to believe in the Fed, maybe just like little kids want to believe in Santa Claus." "But people want to believe that things are gonna be ok, and they’re not." He explained, "…people don’t want to give me the credibility that I deserve because then they have to deal with what I'm saying."
Alex Nitzberg is an intern at the American Journalism Center at Accuracy in Media and Accuracy in Academia. Follow him on Facebook, Twitter and Instagram.
Eventually he’ll be right... He just has no idea when.
That’s the problem with all the doom and groomers - they can’t tell you when the doom will happen.
The road down which the can can be kicked is awfully long.
We never came out of the 2008 inspired recession and now we are in the first stages of a deflationary depression.
does that mean we’d lose our Free Stuff?
Even the boy who cried wolf might be right once.
I may be old fashioned, but I just cannot envisage a scenario where printing money, piling up debt, and keeping interest rates low is a good idea in the long haul. Sooner or later, someone says, ‘gee, these U.S. dollars don’t look like a good thing to hold for the long run. The thing helping us, is that most other countries/currencies have been guilty of even worse behavior. Yeah, that is an encouraging sign for the future.
When you see snow accumulating on the mountainside, you know an avalanche is inevitable. That you cannot predict the precise day does not make it less inevitable.
The road down which the can can be kicked is awfully long.
It has already been longer than I would have believed possible.
Obama is finishing his job of bankrupting America.
Call your Congressman/woman and ask why these loans are being made when they can't be paid back.......Socialism, using other people's money is not sustainable...watch Argentina, remember Greece? Brazil? ....
Ahh...it’s been a while since I’ve had my daily dose of economic doom porn. Schiff is an interesting guy who got a lot of fame for predicting the ‘08 financial panic. The only problem is that since then he has been consistently wrong in most of his big predictions.
The problem with the economic talking heads, is that they all pretend they know what is going to happen when in reality no one can predict the future with any degree of certainty. Studies have repeatedly shown that so called financial experts almost never have a long term track record better than 50%, and Schiff’s is much worse.
My advice is stop trying to guess the future or paying attention to the paid talking heads. Adopt an agnostic approach to the future and invest conservatively. Stay diversified in assets. Own stocks and bonds but also keep a good chunk in reserve in both cash and gold so you can ride out any unpleasantness. Remember that if you lose money there is no guarantee you will be able to make it back.
P.S. to my last... Use index funds wherever you can. Long term VERY few people beat the index.
No worries, it’s all going as planned. When the bubble bursts, it will be the perfect time for a global currency to be ushered in to reset and save the day.
I’ve watched the creation of this phenomena since the Carter administration. It is a package created by the liberals in an effort to destroy the free market, and make everyone equal in wealth because no one will have it except the government. And they are not going to pass it around as they feel the people are not able to handle it. They have been trying to empower the poor for years and this is the way they will do it. They will destroy all the wealth in the US, and the world, and put everyone on a ration basis to be determined by the elite government, the US. Course in reality, they are not going to be able to robot people up and they will just create anarchy. In their mind it’s a great idea to do it, but they’ll find it’s a horrible idea to keep it. I guess they still haven’t learned from history. 1775!
red
I have never believed that we came out of that recession. The only thing "booming" in this economy is the stock market. We have a very low job participation rate, the unemployment numbers keep getting better because people are running out of their benefits because they have been out of work for so long.
The other problem is that we have become a "part-time" nation; which, can be layed firmly at the feet of Obamacare.
Everything, everything that this Bozo in the WH has touched has gotten worse. He has a reverse Midas touch. Instead of gold, we get ----(I'll let you fill in the blank).
Currency crisis,,
What Exactly is that?
YEP....as soon as a Republican is elected...the “powers” that be will put in action the destruction they’ve hidden.
LIBTARDS want a USSA like Venexuela or Cuba....
part of the plan is to murder 25 million or so who can not be re-educated....
the rest will fall in line
BLM is on of their vehicles as are the armed bureaus that HAVE NO LEGAL BASIS TO BE ARMED
irs
epa
blm
interior dept
THEY ARE NOT LAW ENFORCEMENT.
...although some of the thugs that work there think they are
give a little man a costume and a badge and a gun and watch out....
Yes the middle class is dying. People are not buying anything they don’t need. Store shelves are understocked. Record numbers of people on food stamps. Unemployment benefits extended from the normal 6 mos to 2 years. Food banks overwhelmed.
Bingo! The Fed is just a bunch of bankers. In the end their policies are only good for banks and nothing else...because that's what they are.
The Founding Fathers understood this. Andrew Jackson understood this. But we allowed the Progressives to chivvy us into ignoring the Constitution and set up a Central Bank.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.