Peter Schiff on Yahoo Tech Ticker, February 6, 2009 discusses his views on economic recovery, the stimulus bill, the fate of the dollar and possibilities of what’s to come.
View the Video of Peter Schiff on Tech Ticker at Yahoo.com
On new economic data suggesting the decline is starting to decelerate:
Not a chance. this thing is just getting started. Remember, what’s imploding is the entire phony American economy, where Americans borrow money and spend it.
What’s happening now is the government is taking on that mantle. the government is now borrowing and spending, because Americans are too broke to do it.
On the Dollar and Bonds:
If the dollar rolls over, which it should, and begins to fall. Ultimately it’s going to collapse. That’s going to knock the rug out from under everything the government is doing. Because when the bond bubble bursts,now the government needs a bailout, the government is broke, that’s when the crisis is going to go into a whole new year.
On unfreezing credit marekts.:
The last thing we need in this country is more borrowing. We need less borrowing. The government is trying to encourage more consumption when we’re in trouble because of all the excess consumption. We actually need the tough medicine that the free market is trying to force upon us.
We need Americans to spend less. We need less credit going to consumers to buy cars, to buy houses, to buy appliances. We need people saving money. We need capital freed up for the private sector. We don’t need capital usurped by the public sector.
On the Stimulus:
The stimulus is the worst thing they can do. It’s actually going to stifle the economy. It’s more of a depressant. All the stimulus is going to do is put us in a deeper hole. We need the exact opposite of that stimulus. We need to really stimulate production and savings.
We’re going to have to have a very severe recession. That’s the price we have to pay for years of reckless spending and borrowing.
If the government continues on this course, they’re going to create an inflationary depression that’s going to be much worse than anythingÂ any of us have ever experienced.
On the foundations of our current economy:
That’s the problem. We have to let that foundation collapse. It’s built on a phony foundation.
Our economy can’t work. It’s a Ponzi economy. We have to replace it with a viable one.
Peter Schiff goes on to discuss the bond bubble, hyperinflation, the Great depression, Roosevelt’s New Deal compared to current economic policy, and a possible coming depression in the USA.