Schiff: America is Already Bankrupt

Discussion in 'Economy' started by Nova78, Aug 10, 2012.

  1. Nova78

    Nova78 Gold Member

    Dec 19, 2011
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    Schiff: America is Already Bankrupt | Breakout - Yahoo! Finance

    Peter Schiff makes it clear, up front, why he's not trying to save America from fiscal disaster. He's not un-American, he's just too late. "We're already bankrupt," Schiff declares in the attached clip. "Better to acknowledge that fact than to pretend we're not."

    It's the stimulus that got us into this mess, or at least exacerbated the one we already had. Because of the Feds effectively zero percent interest rate policy the U.S., both as individuals and a collective, spends, borrows, and generally wastes far too much while saving nothing.

    "We can't have real economic growth until interest rates go up," says Schiff. "If we admit we're bankrupt and at least restructure, we can start repairing the damage and preparing the economy for real growth."

    The man who forecast the end of the housing bubble in his book Crash Proof says the housing implosion wasn't his primary concern. "I was worried about what was going to happen when the government tried to reflate the bubble." The ensuing meltdown is going to result from the cure, not the original disease.

    America's in much worse shape than Europe. What's saving us is that the problems over there are providing enough of a distraction—or are at least making the U.S. look good enough by comparison—that the Fed can keep rates near nil.

    According to Schiff, the hangover from our money party will be hellish.

    But the private sector is doing fine..... $3562723908.gif

    Leave me alone ,I just want to ride my bike.....
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