Noted investment advisor and precious metals guru, Peter Schiff is giving a talk today in Scottsdale, AZ. There he is expected to share his dire outlook on the US economy. With the spiraling debt concerns in both the US and Europe and the increased likelihood of a hard landing for China, Schiff implores politicians to snap out of their indecisiveness. He says that if the US continues to delay getting their fiscal house in order then the suffering of the general population will be that much greater. Sign Up For Our Free Weekly Newsletter
In previous talks he talks about the inability of the freshman tea party congressmen to reign in spending. I think he misses the point on the tea party members in Congress. While the tea party started out as fiscal based platform for citizens it quickly got co-opted by the establishment GOP PACs and was morphed into a more social conservative cause versus a fiscal conservative platform. This can be seen as their unwillingness to actually address fiscal issues such as social security and defense spending. Social Security is a third rail and lobbyists ensure no one touches the defense area of the budget. And the of course they trumpet these huge savings in bills and then kind of mumble ‘over ten years.’ Plus this is deficit reduction, not debt reduction. That is a major distinction that is lost on the mainstream.
His prescription for people that want to prepare for an economic collapse is to buy gold and silver while stockpiling ammunition and food. Basically act like you are living a real-life version of Red Dawn but have time to prepare. Schiff says the only way for America to return to economic prominence is by using free-market capitalism. Though one would think that pure free-market capitalism on wall street is what has us in this mess. Yes, people will make the argument that it was the government’s fault that somehow made the banks give out home loans. In the next sentence they will also tell you how much government restricts free enterprise.
The end result is no matter what the party there is a refusal on the hill to address the systemic issues facing the country. This will almost certainly lead to some form of correction in the next few years.