Jordy Blog

Peter Schiff on the Collapse of the Dollar

It’s End-the-Fed day today. I thought I’d commemorate it by posting a video featuring Peter Schiff (Ron Paul’s campaign finance advisor), who accurately predicted the sub-prime meltdown and the ensuing recession.

Some great quotes (emphasis added):

Our markets are going lower. This is not just a financial crisis; this is an economic collapse. Our entire phony economy is collapsing around us. There’s nothing the government can do to stop it; they should get out of the way and let it happen.

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Look, you have to understand: for the past several years everybody thought we had a real economy. We didn’t. We had a bubble. All we did was borrow trillions of dollars from the rest of the world, and we blew all the money on consumption. We can’t pay the bills. The asset bubbles that were inflated by reckless monetary policy are deflating around us, and we’re going to have to rebuild a viable economy; and it’s not going to be easy. A lot of companies are going to go bankrupt during the process. A lot of people are going to lose their jobs, but this has to happen: we have to go back to a sane economy where we save our money and actually make stuff.

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I’d be … getting out of the dollar because it’s a bottomless pit. When this dollar stops rallying, it’s going to fall like a stone. That is the next major economic crisis we are a setting up, a major major run on the dollar, and that’s going to have tremendous repercussions for our economy and our markets.

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We manufactured our way into becoming the wealthiest economy country in the world, and now we’ve consumed our way into bankruptcy.

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It’s time Americans take a long, hard look at the flawed monetary policy that’s behind all of this funny business; and that means understanding the history, operations, and goals of the Federal Reserve. If we don’t figure this out and get back to system of sound money, we may well “wake-up homeless on the continent their fathers conquered“.

It’s frustrating that the only major party presidential candidate that was talking about these issues in any substantial way was written off from the very beginning. But you wanted empty platitudes? Well, you got ‘em.

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Pork Conqueres All

Well, the $700 billion (pre-pork) bailout bill passed 263 to 171, and our “conservative” president GWB has already signed it into law. Here’s the House vote and the Senate vote so you know who to hate.

Here in Utah, Senators Bennett and Hatch broke their oaths to defend the constitution, with Bennett being one of the major proponents of the bill.

Congressman Cannon also voted for the bill, so I couldn’t be more pleased that he’s on his way out. Hatch and Bennett are next, in my opinion; I hope you’ll join me in making sure of it.

Both major party presidential candidates were tripping over themselves to show who supported the bailout more. Can anyone seriously call that options? I’ll be crossing the ticket to vote for Chuck Baldwin, the Constitution party candidate. You should check him out on this issue.

In other news, the Federal Reserve created $630 billion of new money earlier this week (effectively devaluing ever dollar that you have or will ever get), and nobody really noticed. Inflation is true monster. It’s an easy way for politicians to get money for pet projects without the political risk of taking it directly from the people. Sure, you get to keep your money, but eventually it become next to worthless.

These quotes seem fitting for the week:

Thomas Jefferson -

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. (via Quoty)

Henry Ford -

It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. (via Quoty)