'Inflation Nation'

Peter Schiff in 2006

Part 1


Part 2


Part 3


Part 4


Part 5


Part 6

Update on hyperinflation

His last point is interesting. He points out that since our government has been injecting so much money into the global economy, prices in emerging economies have been rising even before we see the effects of inflation in this country. So despite our efforts to alliviate global poverty, we cannot match the federal reserve's ability to create it.

Why are we listening to people like this?

When president Obama was defending his economic stimulus package, he made the statement that 'every economist agrees that we need to act'. Not only is that false, but what he really ment was that he only listens to certain economists like Paul Krugman who advocate increased deficit spending and lowering interest rates in times of economic downturn. This essentially means that we borrow, print money, and increase spending in hard times. If this doesn't make sense to you, don't worry, economics is complicated. Although this is utter nonsense on an individual level, we are talking about macroeconomics here.

It might be a surprise, however, that the only economists who don't believe in free money were the only ones to predict the collapse of the housing bubble. In fact Krugman, a very influential economist of the type Obama takes his policies from, advocated for the inflation of the housing bubble.

Its no wonder that people like this keep telling lay people that keynesian macroeconomics is too complex to be understood by everyone. It is utter nonsense. Everyone knows that the answer to money problems is not to take out more debt and go on spending sprees. Here are more quotes from Krugman.

I like this quote from the first article:

'What is damning about these quotes is not that he necessarily caused anything. What is devastating about them is that they expose the intellectual bankruptcy of his economic principles. Those who look up to him like the second coming of Adam Smith should realize that the neo-Keynesian principles that lead him to advocate aggressive interest-rate cuts and mammoth public spending now, are the very same principles that led him to advocate inducing a housing bubble then. He would himself affirm that his economic principles haven't fundamentally changed since then. So the conclusions and policy prescriptions he infers from them are just as wildly wrong now as they were then.'

When will we stop listening to these quacks?

Hyperinflation

Is hyperinflation coming?

Watch this.

and this.

and this.

Our government has indulging itself slowly over the last 20-30 years without notice. Then in the last year alone we doubled our monetary base.

Inflation of the magnitude that sits on the horizon in the United States would literally impoverish all of its citizens. The cost of living will skyrocket and it will literally be more productive to stay home and get rid of your money than to spend the day at work. This is our future unless we take drastic action.

One day we might look back at the last three decades and wonder. How is it that an entire generation of American politicians could be so irresponsible to impoverish their citizens.

Drop Dead California!

Will the Federal Government now bail out failing state economies?

We have a disturbing trend developing in the country. Companies starting with Fannie Mae and Freddie Mac, our financial industries, and lately our automotive industry have been proven to be grossly mismanaged and an unbearable burden on our economy. We desperately need these institutions to liquidate and free up their capital so that the market can adjust. Instead we have been told time and time again that these companies are 'too big to fail'. So we have handed these failing, mismanaged companies hundreds of billions of borrowed dollars with the misled idea that they will somehow become profitable enterprises. These companies are rather 'too big to bail out' and if we don't realize this soon they may drag the entire country down the drain with them.

When will we realize that this money doesn't exist? We don't have a big pot of money to hand out to these failing institutions. The federal government is piling up so much debt right now to fund our own bloated budget, our bail outs, and government stimulus packages that only a fool would believe that we will pay it off. How much longer are other countries going to be stupid enough to lend to us?

Our government is like our crazy drunk uncle who is always getting involved in Ponzi schemes. Not only has he squandered his own fortune but he is in debt to his eyeballs. The problem is, our insane, inebriated uncle has the PIN number to our savings account and is funding his schemes with your and my money and future. When will the public reject this?

California needs to make massive cuts right now to become a functional government. Borrowing money to bail out California would be even more disastrous because it would set a precedent to other states who are sure to require cuts in this environment also.

Reality Check

As we wake up to the realization that years of so called prosperity have in fact been no more than an optical illusion it is absolutely paramount that we Americans come to the correct conclusions as to what allowed us to get caught up in such a wave of feigned wealth and prosperity. If we fail to diagnose the disorder that is affecting us we are doomed to repeat it no matter how swift our resolve is or what kind of lesson we claim to have learned. This is the great debate of our time. Please as a primer to this debate take a half our and view this lecture.

There is a strong argument against the federal reserve meddeling with the money supply. As Andrew Jackson said: 'if the people really knew what the central bank did, there would be a revolution tomorrow.'


If the lecture was informative read this book by Thomas Woods. It is a refreshing, understandable, and common sense approach to understanding the current meltdown.