Peter Schiff: “We’re Not Borrowing Ourselves Rich, We’re Borrowing Ourselves BROKE!”

by | Mar 19, 2019 | Headline News | 28 comments

Do you LOVE America?


    Peter Schiff, the CEO and chief global strategist of Euro Pacific Capital Inc., has said that we, as Americans, are not “borrowing ourselves rich” as the majority believes.  In fact, as with all borrowing, it’s only making us broke.

    Schiff hasn’t minced words much and he continues to say that the upcoming recession is a “done deal.” Schiff also implores us to not be fooled by the optimism in the media surrounding events such as the trade war and a stock market rally.  Neither will prevent the coming recession.  Our debt load has ensured we will live through another Great Depression. And this next one will be much worse.

    Right now, we are being bombarded by positive economic news, for the most part. But most Americans are oblivious to what’s going on right underneath the surface.  Despite the recent economic growth, there is plenty of economic data to back up Schiff’s assessment of the current state of the United States’ and the global economy.  In his most recent podcast, Peter Schiff said that while the GDP (Gross Domestic Product) number might look pretty good, the growth is unsustainable because it’s all built on debt.


    Schiff puts the GDP numbers into perspective, and considering the debt load the U.S. economy is burdened with, the outlook isn’t all that rosy.  And of course, it’s not just government debt. Household debt is also at record levels and as Schiff says, “We’re not richer because of this economic growth.”

    “So, we had to add a lot more debt in 2018 to buy not as much growth as a much smaller amount of debt in 2005. So, the takeaway from that is this is unsustainable because the growth came at a heavy cost. We had to increase the amount of debt that we had by a lot more than the percentage that the economy grew.”

    “If your debt is growing faster than your economy, then you’re not getting richer. You’re getting poorer. You would have been better off without the debt and without the growth … We’re borrowing ourselves into poverty. We’re not borrowing ourselves rich. We’re borrowing ourselves broke.“-Peter Schiff, via Seeking Alpha

    The costs of household and government debt are becoming all too real to ignore. Yet so many Americans are more than content to stick their heads in the sand and ignore the problem.  While others have simply stopped spending because they are broke and already leveraged to the point of exhaustion.

    “They’ve [Americans] already borrowed so much money to pay for the spending of the past that they’re just done. That expression, ‘Shop ’till you drop,’ well, maybe a lot of Americans have finally dropped and they’re no longer shopping.” –Peter Schiff, via Seeking Alpha

    This makes far too much sense considering the “retail apocalypse” we are living through right now.  This could be a horrible sign for the economy as a whole, as Americans are at the end of their rope.


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      1. Schiff is right but the can keeps getting kicked down the road.

        Hey, what’d you people do with Maranatha? 🙂

        • Maybe he was raptured out of here.

        • Ketch,
          Comments to/by Marantha seemed to have gotten personal,
          so she disappeared. Just an observation. I could very well
          be wrong.
          How is SHTF going on the island? Any preparations advice
          based on your long term recovery efforts?
          To get to the post, I make my usual comment, I look forward to the depression. Inflation on my island is horrible!

          • Hope Maranatha is OK. He had some really interesting posts going for awhile there.

            • DR,
              Not that it matters, but I think “he” is really a “she”.
              We all read Daisy’s stuff.

              • Rellik, I don’t care if he was really a she, that person still has some interesting posts for quite awhile there.

                • Maranatha had some good info at times. However He or She couldn’t stop bringing Relgious dogma and superstition into the debate. So I quit reading its postings. Im quite comfortable with my very own reglious superstition. I don’t need verification by others to enforce my belief. And I don’t come here to debate religion.

      2. Scniff doesn’t understand the simplest of money principles: the debt is actually a rolling total of the assets.

        Since money must be borrowed into existence, how would the value of all goods and labor ever produced ever increase without the amount of debt also increasing [rhetorical].

        99.9999% of the population just don’t get it yet. All just a bunch of finger pointing penis enviers.

        As long as the trucks keep making the deliveries of corn syrup to the stupid fat unemployable obese ‘americans’ buying it all on debt and entitlement checks there will be no collapse.

        Go ahead short the market and spend your money on seed vaults and magnetic bracelets.

        • Schiff you stupid moron, in the entire history of money… there always was and always will be poor people, and there must be!!

          Unless you are into socialism where the end game is that 99% of the population has nothing. Is that what you want Peter?

          God damn that fucking stupid moron.

          • Bert relax and go sit on the toilet and stop sticking foreign objects up your fat ass. Who dies and made you King shit on turd island dog-boy?…Ernie you getting you in the doggy old boy?

          • Yeah, man, like I said below. The statement “GDP growth is based on debt” is equivalent to saying “You’re only big because you exercise”.

            That said you can make arguments about “if you exercise in specifically THAT way you’ll hurt yourself”, and “if you take on THAT kind of debt it’s not going to translate into economic growth”. You can go there with it. I think he was trying to make that point by the end (that we’re taking on more debt for less results). But it was all nice and vague and shit unfortunately. How about what’s specifically wrong and how do we fix it?

            • “How about what’s specifically wrong and how do we fix it?”
              pfft! schiff has said it from the rooftops for MANY years. virtually ALL cities are broke, ALL states are broke, counties are broke, the fedjal gubmint is BROKE(and BROKEN), the PEOPLE are broke(and broken), we collectively owe way more than can ever be paid back, and he lays it out very eloquently. TODAY’s case-in-point goes to the FED meeting. the only way we can FINANCE this debt is to drive interest rates down to a leve1 that you are forced to put you wealth into stocks and over-priced houses(or STUFF). you no longer get paid a decent return on cash in the bank, so you’re FORCED to spend it. it looks to me like a lot of you can’t understand basic economics, because this aint complicated. the FED has painted itself into a corner. it LOOKS like there’s no way to get back to where interest rates are “normal”….but in order to get people to start saving again, interest rates MUST be at a rate where people can get PAID for renting their money to the bank, instead of the FED just printing more dollars out of thin air. some day the world will figger out that this money can never be paid back….oh, wait, the chinese already DID……they used to buy our bonds, to the tune of a BILLION dollars a day…..but then one day they STOPPED… they are scooping up our real-estate. look around at how many chinese are living here now. the FED has to PRINT 3 billion dollars a day now to make up for the chinese bailing on buying our bonds. these figgers are a couple years old, but the fact remains that they don’t buy what they used to(along with a lot of other countries)…..maybe yall should actually LISTEN to what schiff says one more time.? schiff is a sensationalist, and a fear-monger, and RIGHT……one more thing….how is it the our nation’s GDP is figured so that when money is BORROWED, it makes for POSITIVE GDP growth… eventually has to be paid back when borrowed, yet it’s a PLUS for GDP growth…..our system is rigged, with so much corruption it makes the mexican gubmint look like pikers.

          • Bert, agreed about Schiff. I’ve actually started liking Michael Snyder’s articles. He makes a lot more sense than Schiff.

            • Unfortunately, poor Schneider (Snyder!) is so overwrought emotionally, he cannot see straight and his prose degenerates into what would be acceptable for a five-year-old. He does run hot-and-cold, though.

      3. I agree. and look at all of the announced store closings.

        Another one yesterday closing all their stores. can’t remember which one.

        • US Government war on firearm dealers.
          Defacto gun control.
          Under Obama it was called operation “ChokePoint” this made the banks stop doing business with, lending, to gun stores.
          Gander Mountain –Closed
          Local Gun store –Closed
          Cheaper Than Dirt –Closed all retail locations
          Local Army Surplus –Closed
          Army Surplus across town –Closed
          Bass Pro and Cabela’s merged. Now one company.

          These are all in Dallas area. Just ones I’m familiar with.
          Radio Shack –closed
          Sears –Closed

          Please Realize most of these, except the Gander Mountain, have been in operation/open, since well before my birth. As a child my old man took me there. Before military deployment, we picked up gear there. Now all are closed. Gone. Last year of Obama admin. They ALL closed or merged.

          “ChokePoint” was traitor Obama big plan to control guns. Communist traitors never want people armed and able to defend themselves. Otherwise instead of following laws made by anti-Semitic muslim and communist barmaid congress women, the people might defend themselves. Defend thier country, homes, families, against antiAmerican communist, “elected” to office, by foriegners and illegal squatters. Now Colorade trying to by pass electoral college. Pelosi trying to get 16 year olds to vote, because they have been properly NWO indoctrinated.

          Unarmed Patriotic people just have to be rounded up into FEMA camps quitely. Quite weapons for quite wars. Much easier for traitor communist like Obama. THAT IS WHY THEY WANT YOUR GUNS!!

          Please look up Operation Choke Point on youtube.
          Also look up Obama selling guns to and arming drug cartels. Was called “Fast and Furious”.

      4. In 1967 when I got out of the Army and returned to the farm my grandfather gave me all the advice I needed. Son all you have to do to succeed is work hard and be frugal. Too much borrowed money is the kiss of death as money doesn’t grow on trees. Good advice that I followed to the letter. Good outcome.

        • @Beowulf,

          He gave you some good advice! AND thank you for your service. My husband and I were gifted a Dave Ramsey book when we were first married. Although it was hard back then to save as we were living paycheck to paycheck, we learned some valuable lessons and still practice them to this day. Most importantly, people need to live below their income level…no matter what that is. Over the years, we have been able to pay for college, all of our vehicles are paid for, we have zero debt and now have enough equity to downsize on land and pay for it in full. Hard work pays off and is good for the soul.

          • TST – Dave Ramsey was the best. I followed his advice to the letter and was able to be debt-free by Thanksgiving 2008. The ‘beans and rice and rice and beans’ was rough, I tell ya. And… it cost me a wife. She couldn’t grasp or forgive me for declaring “no Christmas gifts, no birthday gifts… unless made from scratch out of what we already had”. Left me cold due to the austerity it took. The funny part is that I kept the house when she left but 4 months after we were free and clear. Go figure that logic. That same Christmas of ’08, I’d already opened up to the notion of getting the grandkids some things too. Women…. I hope your husband treasures you for understanding what’s right and wrong.

            • @Heartless,

              I think your idea about giving home-made gifts is a great idea! I would much rather have a nice card or something from the heart than any store bought gift. Our Christmas was the smallest ever and I have to say I enjoyed it more and it way less stressful. I also think like most things, if you and your spouse are not on the same page, it just won’t work. Sorry your wife couldn’t see the big picture on that. My husband was unemployed for about 4 months last year, and thankfully because we are debt-free, it relieved the stress from that situation and he was able to really focus in on the job that was right for him as opposed to just taking the first offer that came in because you need a paycheck. It really reminded me as to why we choose to live this way. Keep doing what you are doing because the grand babies won’t remember what gifts you gave them as kids, but they sure as heck will remember the time you spent with them:)

      5. Peter Schiff is a much smarter man than I am. I’m sure he’s made a lot of money buying and selling precious in the past. And he’s right…things will eventually collapse.

        But the economy, both domestic and worldwide, is not a monetary construct. It is an energy construct. A system that converts explosive energy into circular motion to run machinery and run turbines to produce electricity. All to make hard goods to sell and grow real food to eat. Money, currency, credit and debt are merely tokens for energy and the free slave labor it produces. In the older days money was a token for manual labor.

        So, the debt creation will continue until there is no longer enough energy slaves to back stop it. When that happens, like Bert says, the trucks stop running. After that, everyone will be working for the local warlord. Try to be the warlord and not the slave. Get your Mad Max sand rail and assless chaps ready for the end of industrial civilization (sometime in the nearer future).

        Time for a drink.

        • JRS, LOL, love your Mad Max imagery!

          This and other sites have been predicting the “BIG FRICKING COLLASPE” forever. I guess Mac thinks SHTF Plan is The Wall Sh*t Journal.


        • There were so many assless chaps that one time I drove through San Francisco (it was pride day or something unbeknownst to me).

          So many… *shudders*

      6. Spending a trillion or more on forever wars each and every year has nothing to do with the ongoing collapse either. SMH at the elephant overlooked and accepted as normal. No war is the answer to our survival, more war is the end of our freedom.

      7. What the fuck a second.

        GDP growth is based on debt? Well no shit…???

        Isn’t this kind of like saying you’re big based on exercising?


        Now if you want to talk about WHAT KIND of debt… ok then…

      8. Just as a nation cannot tax itself into prosperity neither can an individual borrow his way to real wealth. REAL wealth is something that nobody besides you has any claim on and that you own free and clear of any usury. A simple concept but one that seems to be the hardest for people to learn.

      9. They can’t get large sums of $ out of people but if they make credit available they can nickel dime you to death. People finance everything and it looks to others like they are successful. The have it now pay later crap is out of control. I went to a pet store and you can finance a dog. No bullshit. Stupid people will do it too. Really you can’t save a little $ then go get a damn dog. You don’t need anything urgently other than your food water shelter needs. You put yourself into wage slavery because you want not need.

        • it actually is WORSE than that. at the vet a friend of mine took their cat in, found it had “cancer”, and they financed FORTY FIVE HUNDRED dollars to “save” it… lasted only a couple months, but they paid payments for several years. and they were the types that never has a dime in their pockets.

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