He goes on to suggest that advocates of gold are "conspiracy theorists", lauds the junk fiat 'currency' we're using, and asserts that the gold standard Britain was on was bad for the economy.
Should Bootle deign to look at a chart of government debt over centuries, he might notice that ever since the US and UK ditched the gold standard, government indebtedness increased exponentially as the value of their currencies decreased in relation to gold.
Why does he think that might be? Could it be that it is impossible to inflate a currency which is based on gold? Hmmm?
Unlike Bootle, Peter Schiff, Austrian Economist, predicted the financial crisis, and was ridiculed in 2006/7 by 'experts' such as Bootle. What I wouldn't give to see them eat their words.
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3 comments:
A good collection of clips. This is why, also, Ron Paul is now being listened to.
Peter Schiff is not perfect, his calls since the crash haven't been that good. The things with predicting major shifts in things (such as the housing crash, dollar collapse etc) is that you can make a lot of losses even if the prediction comes right eventually. I was predicting a housing crash from about 2003 onwards and was wrong for 4 years.
But I do agree with the basic premise - the US is printing money and spending it, it can never hope to close the deficit by conventional means (cutting spending/raising taxes) so that leaves inflation as the only alternative other than default (which can never happen to a sovereign nation - you just print the money to pay your debts, resulting in hyperinflation anyway).
At some point in the few years what Peter Schiff is predicting will happen. And when it does gold at $1400 will look like a bargain. But until it does you could lose a lot of money in between time.
Indeed, Trooper.
Sobers, I have yet to encounter an economist with a better track record than Schiff. Austrian Economists, generally, have excellent prediction track records, precisely because they are realists and have not succumbed to LSE-type indoctrination.
Some are predicting gold at $2,500, which, given that Bernanke wishes to embark on QE3, seems plausible.
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