Peter Schiff always speaks from a credible place because he’s an economist, not a political shill. If we would have listened to more people like Mr. Schiff, Americans might still have some money left in their retirement accounts. China has twice the growth of the U.S. Look around Asia and the Mid East and even parts of Europe…they have infrastructure that we can only dream of…state of the art buildings, high speed rail, state of the art telecom, data processing infrastructure…and they’re doing it with OUR money.
Peter Schiff says: “Governments cannot create but merely redirect. When the government spends, the money has to come from somewhere. If the government doesn’t have a surplus, then it must come from taxes. If taxes don’t go up, then it must come from increased borrowing. If lenders won’t lend, then it must come from the printing press, which is where all these bailouts are headed. But each additional dollar printed diminishes the value those already in circulation. Something cannot be effortlessly created from nothing”
Now that is dead on folks. By borrowing more than it can ever pay back, the government will guarantee higher inflation for years to come, thereby diminishing the value of everything that Americans have saved and acquired. It doesn’t take an economics major to realize that borrowing money to get out of debt only INCREASES debt.. unless of course that cash is going towards activities that abolish debt.
Wall Street hasn’t realized the real threat is inflation yet. But when it does, capital should fly into investments that boom in inflationary times. That is where Gold remains the king. Following Peter Schiff’s advice has given my portfolio a great boost. I am sure there be a time to buy USD again, but that time is not now.
Below is a short 5 minute clip of Schiff talking about what was coming. The Dow was at 14,000. Did he get it right?
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose”.
-John Maynard Keynes, economist and author of “The Economic Consequences Of The Peace”
Some stocks to combat inflation are: Heinz (NYSE: HNZ), ConAgra (NYSE: CAG), General Mills (NYSE: GIS), Kellogg (NYSE: K) and Kraft (NYSE: KFT)
And what does government do with all the “confiscated” money. They return it to the economy. A dollar is a dollar. The very idea that government “confiscates” anything is both native and economical ignornant . It all adds to the multiplier effect. Get a clue.
sidebar: I’ll bet the author of this dribble has never paid enough in income tax to even afford the pavement in front of their own house let alone all the other infrastructure they rely on for their “self-made” existence.