Discussion of Housing Bubble, US Dollar, Debt, Trade Deficit, Oil, Gold, Consumer Spending, Central Banks, Inflation, Outsourcing and the Bleak Future of the US economy
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Thursday, March 26, 2009
Peter Schiff on Morning Joe - 25 Mar 09
Regardless of how you may or may not feel about Peter Schiff, this is an excellent interview and Peter makes numerous valid points about our economy.
5 comments:
Anonymous
said...
He made some excellent points, but Roosevelt did not create the Depression, it was Hoover and the Moneymasters who screwed it up. The rich called in the loans they made to smaller banks, which could not pay their leveraged loans out, therefore causing bank shutdowns and a bank run panic. Roosevelt did employ 60% of the unemployed putting them to work building the nation, instead of letting them collect welfare checks and being idle.
Schiff says to get government out of health care, but it has been the free market, laizzez faire health care capitalism, ruled by the insurance companies that escalated the costs.
Obama, Geither, Summers are serving the financial needs of the financial banking crime syndicate. If they had spent the trillions of dollars rebuilding manufacturing, the trade deficit would drop, workers would be re-employed, they would resume spending, home buying, and borrowing to some degree.
Schiff says we need to save, but as it was said, how can one save when one has no job. He responds by saying well get another job. The job market is shrinking so fast. And if you get one, no doubt, you will spend your entire check on just living. Basically, that is what working people do! Each dollar they earn get circulated back into the economy. The rich are the ones who have enough to save.
I mostly agree with you on Schiff. He is a libertarian, and therefore will not ever blame capitalism for anything. At least he was honest about the credit bubble.
But the real problem is outsourcing, illegal immigration, and H1-B visa abuse, which has destroyed career prospects for millions of college graduates in this century. I don't undersatend how Shciff believes we can start producing and saving again if the gov't doesn't tear up NAFTA, end "trade" with China, and seal off our borders.
The cheap and easy credit orchestrated by the Fed covered up these problems, and kept the US comsumer spending. Without the credit bubble, Amercica's decline into a third world country would have happened a few years earlier.
I am no fan of insurance companies. I realize they have a powerful lobby. But gov't regulation has a lot to do with increases in premiums. Hospitals are required by law to treat illegals. They then bill the insurance companies, who pass on the cost to you and me. CA recently passed a law that says hospitals must have an interpreter present for all patients who do not speak English. Guess who's going to pay for this stupid regulation? The costs will be passed on to you and me. Instead of being forced to learn English like I was 30 years ago, foreigners will be given another incentive not to.
Government has created the current health care monster by instituting the massive tax deduction for employer sponsored health plans. This funneled massive amounts of money into the insurance and health care provider system and took individuals out of the price negotiation process. Numerous regulations and laws govern health care. There has been no free market in health care for decades.
The outsourcing boom was fueled by artificially cheap money from the Fed. Low interest rates reduce the relative value of existing US factory investments and made it cheap to build factories overseas.
The overheated credit flooded US economy was very attractive to immigrants of all types, especially since jobs were going unfilled by americans. Of course, they hired to build new houses and casinos we dont need...
No Jayson, outsourcing is fuled by cheap labor in India, China, Indonesia, Mexico, and other countries. In addition, there are few health, safety, or environmental regulations in those countries. There is no 40 hour work week, no unemployment benefits, no social security, medicare, workman's comp, or overtime to pay.
Importing foreign labor with H1B and L1 visas and using illegal aliens in construction sites, slaughterhouses, and other low skilled industries has nothing to do with cheap credit. It has everything to do with cheap labor.
Outsourcing is fools gold for capitalists. US CEOs make most of their incomes in quarterly stock bonuses. The fastest way to increase a companie's profit and stock price is to replace expensive Americans with cheaper foregners. But since the outsourced goods and services are sold back to Americans, the US consumer market eventually collapses from declining job growth in middle class industries and wages. We are at this point now. Getting banks to lend is irrelevant if the US consumer is maxed out and cannot take on any more credit.
What are these jobs you are talking about that are going unfilled by Americans? They were going unfilled because corporations didn't want to hire Americans. BLS data show that private sector job growth in this century has been non-existent. Here is the link to look up the data - http://www.bls.gov/webapps/legacy/cesbtab1.htm
In contrast, the National Science Foundation tracks the # of graduates in most professions. In the twenty first century the number of Bachelors, Masters, and PhDs awarded in Science, Engineering and Computer Science was roughly 5 million. The data only goes to '06. I took the average of the previous 6 years and added it to '07 and '08. Here is the link - http://www.nsf.gov/statistics/nsf08321/content.cfm?pub_id=3785&id=2
Yet there has been almost no job growth in these sectors. Bill Gates and other CEOs lie through their teeth when they say they cannot find any Americans. It's all about cheap labor. We are watching American capitalism destroy itself.
5 comments:
He made some excellent points, but Roosevelt did not create the Depression, it was Hoover and the Moneymasters who screwed it up. The rich called in the loans they made to smaller banks, which could not pay their leveraged loans out, therefore causing bank shutdowns and a bank run panic. Roosevelt did employ 60% of the unemployed putting them to work building the nation, instead of letting them collect welfare checks and being idle.
Schiff says to get government out of health care, but it has been the free market, laizzez faire health care capitalism, ruled by the insurance companies that escalated the costs.
Obama, Geither, Summers are serving the financial needs of the financial banking crime syndicate. If they had spent the trillions of dollars rebuilding manufacturing, the trade deficit would drop, workers would be re-employed, they would resume spending, home buying, and borrowing to some degree.
Schiff says we need to save, but as it was said, how can one save when one has no job. He responds by saying well get another job. The job market is shrinking so fast. And if you get one, no doubt, you will spend your entire check on just living. Basically, that is what working people do! Each dollar they earn get circulated back into the economy. The rich are the ones who have enough to save.
Schiff was right, but so were a lot of people. It wasn't exactly rocket science to figure out that trees don't grow to the sky.
I mostly agree with you on Schiff. He is a libertarian, and therefore will not ever blame capitalism for anything. At least he was honest about the credit bubble.
But the real problem is outsourcing, illegal immigration, and H1-B visa abuse, which has destroyed career prospects for millions of college graduates in this century. I don't undersatend how Shciff believes we can start producing and saving again if the gov't doesn't tear up NAFTA, end "trade" with China, and seal off our borders.
The cheap and easy credit orchestrated by the Fed covered up these problems, and kept the US comsumer spending. Without the credit bubble, Amercica's decline into a third world country would have happened a few years earlier.
I am no fan of insurance companies. I realize they have a powerful lobby. But gov't regulation has a lot to do with increases in premiums. Hospitals are required by law to treat illegals. They then bill the insurance companies, who pass on the cost to you and me. CA recently passed a law that says hospitals must have an interpreter present for all patients who do not speak English. Guess who's going to pay for this stupid regulation? The costs will be passed on to you and me. Instead of being forced to learn English like I was 30 years ago, foreigners will be given another incentive not to.
Government has created the current health care monster by instituting the massive tax deduction for employer sponsored health plans. This funneled massive amounts of money into the insurance and health care provider system and took individuals out of the price negotiation process. Numerous regulations and laws govern health care. There has been no free market in health care for decades.
The outsourcing boom was fueled by artificially cheap money from the Fed. Low interest rates reduce the relative value of existing US factory investments and made it cheap to build factories overseas.
The overheated credit flooded US economy was very attractive to immigrants of all types, especially since jobs were going unfilled by americans. Of course, they hired to build new houses and casinos we dont need...
No Jayson, outsourcing is fuled by cheap labor in India, China, Indonesia, Mexico, and other countries. In addition, there are few health, safety, or environmental regulations in those countries. There is no 40 hour work week, no unemployment benefits, no social security, medicare, workman's comp, or overtime to pay.
Importing foreign labor with H1B and L1 visas and using illegal aliens in construction sites, slaughterhouses, and other low skilled industries has nothing to do with cheap credit. It has everything to do with cheap labor.
Outsourcing is fools gold for capitalists. US CEOs make most of their incomes in quarterly stock bonuses. The fastest way to increase a companie's profit and stock price is to replace expensive Americans with cheaper foregners. But since the outsourced goods and services are sold back to Americans, the US consumer market eventually collapses from declining job growth in middle class industries and wages. We are at this point now. Getting banks to lend is irrelevant if the US consumer is maxed out and cannot take on any more credit.
What are these jobs you are talking about that are going unfilled by Americans? They were going unfilled because corporations didn't want to hire Americans. BLS data show that private sector job growth in this century has been non-existent. Here is the link to look up the data - http://www.bls.gov/webapps/legacy/cesbtab1.htm
In contrast, the National Science Foundation tracks the # of graduates in most professions. In the twenty first century the number of Bachelors, Masters, and PhDs awarded in Science, Engineering and Computer Science was roughly 5 million. The data only goes to '06. I took the average of the previous 6 years and added it to '07 and '08. Here is the link - http://www.nsf.gov/statistics/nsf08321/content.cfm?pub_id=3785&id=2
Yet there has been almost no job growth in these sectors. Bill Gates and other CEOs lie through their teeth when they say they cannot find any Americans. It's all about cheap labor. We are watching American capitalism destroy itself.
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