Peter Schiff vs. UT Economics Professor James Galbraith

by | Apr 28, 2010 | Headline News | 12 comments

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    Peter Schiff, Senate candidate and CEO of Euro Pacific Capital joins James Galbraith, professor of economics at the University of Texas on CNBC April 26, 2010 (Video below).

    Host: All this fear about debt – is it fear mongering?

    James Galbraith: It is fear mongering and thank you for noticing that interest rates were much higher a decade ago than they are today. The United State government does not have and is not going to have a problem financing its public expenditures and its deficits. It’s simply not an issue that should be on our list of things we really care about.

    Peter Schiff: Basically, the reason that this is happening, it’s not magic. The US government is making the same mistakes that sub-prime borrowers did when they were using teaser rates on their mortgages. We have a $12.5 trillion debt as you state. First of all that doesn’t include any of the off-budget items like the debt of Fannie and Freddie and it certainly doesn’t include the unfunded liabilities that dwarf that number….

    What happens if interest rates go up to 10%, which is half of what they were in 1980…

    …The government is not borrowing for 30 years, the government is borrowing for 30 days. There’s a lot of short-term paper. This is a teaser rate on an adjustable rate mortgage and we are headed for disaster.

    James Galbraith: As I said before, if the markets were seriously worried about the prospect of inflation they would not have a 4.5% rate in bonds.

    Peter Schiff: The markets are wrong. Just like the markets didn’t see the sub-prime problem until it was too late. Look, gold is at $1100 an ounce for a reason. It didn’t go from $250 ten years ago to $1100 without people worrying about inflation.

    James Galbraith: So you’re telling me the price of gold is the oracle we should be following?

    Peter Schiff: You should be following something. don’t be following the Federal Reserve…The market has consistently gotten things wrong.

    This is a spirited and entertaining debate. I’d be worried if my child was studying under Mr. Galbraith, as he is either towing the standard government line or simply doesn’t see the dangers of the current $12.5 Trillion in debt plus the $100 trillion+ in unfunded liabilities (social security, Medicare, Medicaid, Obamacare) over the next 35 years.

    Watch the video below:

    URGENT ON GOLD… as in URGENT

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      12 Comments

      1. Schaef

        “The buffer between our capacity to borrow and our actual debt is narrowing for the first time I think in American history.” – Alan Greenspan, April 4, 2010.

      2. Dr. Acula

        No worries, interest rates are low. Every day I go to the payday loan place and they lend me enough to eat until the next day.

      3. Anthony

        My daughter was thinking of attending University of Texas until i played this video of Professor Galbraith and my 16 year old was smart enough to recognize he is an idiot.  We will not be sending our daughter to UT and Galbraith should go back to school himself or listen to more video of Peter Schiff.

      4. zukadu

        Try St Mary’s Food Bank instead next time, Dr. Acula. Mexican Nationals tell me that they only have to volunteer one day a week and they can have ALL of the food they want ……for free!

      5. Whitey

        Erin should have told Galbraith to wipe that cool-aid off his beard before the interview…  It’s hard to discount Schiff’s reasoning, the charts tell a familiar story.  It seems everthing is in fact setting up for the melt down but I’m left wondering, as many of us are, what the trigger will be – the tipping point. 

      6. admin

        Doc Acula: nowadays some of them are even buying gold so we can sell our 14carat necklaces for bread and meat.

        Anthony: I fear that most universities have similar professors. Is any school really safe from this type of indoctrination these days?

        Whitey: It’s my humble opinion that the trigger has already been pulled…We may very well be in the middle of the explosion as we speak. I think we need to be looking at our situation not in terms of days or weeks, but years and decades. Unless some massive global war breaks out and takes out the entire system over night, I think we are headed for a decades long collapse of of the world as we have come to know it. It will be very volatile going forward, with massive swings in the upward and downward direction in all manner of aspects not limited to just stocks, and bonds and the dollar.

      7. zukadu

        The trigger?  Thats easy: “boobquake” 524 402 925 TCA

      8. Paul Revere

        The stock market is rising because Obama and Bernanke are giving ‘taxpayer money’ to bankers on Wall Street at 0 percent interest (free), through the Federal Reserve.   The bankers in turn are charging citizens a marked up interest rate of 5% to 30% to borrow ‘your money’ back from the banks.   They are also taking ‘your money’ and investing billions of it in the stock market, creating artificial demand, and driving up stock valuations.  Hence the ever increasing rise in the U.S. stock market.

        The rising stock market is suppose to induce you invest ‘your remaining money’ in the stock market so the U.S. government can eventually introduce (secret) legislation that will empower the government take control of all financial instruments including banking, the stock market, and the rest of ‘your money’.        

        Why?   The United States government is insolvent and will legislate ‘your money’ into their control so they can continue U.S. government operations in Washington D.C. and around the world for as long as is possible

        The Obama administration is currently acting ‘tough’ on bankers through the SEC in a attempt to fool the citizens into believing that the U.S. government is curbing abuses by the banks.

        This ‘acting tough’ smoke screen allows the criminal syndicate of Obama, Bernanke, and the big banks more time to swindle the American citizens of their earnings through taxation, excess interest charges, and outright fraud.   

        Don’t be fooled.   The U.S. government, the Federal Reserve, and the too big to fail bankers are a criminal syndicate whose goal it is to destroy the American middle class so they can eventually introduce the North American Union of Mexico, Canada, and the U.S. and restart the entire ponzi scheme on a continent basis with a new currency called the Amero.  

        Sound ludicrous?   Look up the new NAU coinage on Google.  It’s called the Amero.           

        http://images.search.yahoo.com/search/images?_adv_prop=image&fr=slv8-&va=amero&sz=all

        Still don’t believe it?  Check out the new highway system being built that will connect North American Union.  I have personally seen this highway work underway in south Texas.  It is being built with a extensive new rail network right next to the new highway. 

        http://www.channelingreality.com/NAU/International_Corridors.htm

        The United States is being given away, but not before the bankers and the current government first robs it’s unaware citizens of everything they own.

      9. Anthony

        Marc,

        Very true, in fact my wife and I have discussed that our future grandchildren should be home schooled and not influenced by a bias liberal education system. 

      10. david

        Comments…..We do live in interesting times!

      11. BleakoEcobamics

        @Anthony…

        Liberal?  I do not know where people keep getting this, other than it’s a generic insult (like “stoopid” or “crappy”) vs. an assessment of political ideology.  In my son’s school evolution is not taught, selected classic literature has been banned from the library, and I am amazed at some of the “concepts” taught as facts … I will grant you the school sucks, but liberal?  Hardly.  I get so tired of the use and misuse of words to marginalize and factionalize sometimes … but I suppose that’s what humans are designed to do …

      12. Patriot One

        Paul Revere

        I think you have a handle on what is happening. Most will never know what happened. The progressive change is hiding in plain sight. I try to watch the world and form my own opinions. What I see is a depression that is getting wider and deeper. In America its eating up small business at an alarming pace. When you consider companies less then 5 years old accounted for most of the job growth in the last 20 years its going to be a huge train wreak. Manufacturing will come to a halt with no small businesses selling their goods. Here is the good news America doesn’t manufacture much anymore. China, Germany and Japan will collapse as the factories close down.

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