Sabina Becker asks “Who is Peter Schiff, and why is he pwning all these people?” We’ll get to that in a moment, but first, enjoy this compilation of him trouncing a number of self-appointed financial “experts” and savour how astoundingly wrong their prognostications have turned out to be in contrast to his relentless pessimism.
Schiff also references the role of the US consumer in the world, saying that the US consumer thinks he’s doing the world a favor by consuming what the rest of the world produces. He is quick to point-out that this relationship will come to an end, in his view, much sooner than people imagine, and with negative consequences for the US. Schiff has been quoted as saying: “Consumption is its own reward for Production” — meaning that without production, the US cannot indefinitely sustain its ongoing consumption. Schiff, and other adherents of Austrian economics, promote savings and production as “the engine of economic growth — not consumption.”
Schiff has said on numerous occasions that the current economic crisis is not the problem; it is the solution. According to him the transition from borrowing and spending to saving and producing cannot be accomplished without a severe recession, given the current imbalances of the US economy. But according to him that transition needs to happen. He also thinks the government is doing no one a favor by trying to “ease the pain” with stimulus packages, bailouts and such. Schiff believes these actions will only make the situation worse and possibly result in hyperinflation if the government continues to “replace legitimate savings with a printing press.”
Doubtless the foregoing will be music to the ears of some of my libertarian friends who think that my “simplistic” Keynesian prescriptions are barking mad.