Peter Schiff Was (And Is Still) Correct on the Financial Crisis

I am man enough to admit I was wrong about Peter Schiff. I thought he was a “doom and gloomer” who was incapable of being optimistic about the economy for whatever reason. Boy was I wrong.

The problem was that I wanted Schiff to be wrong, and I wanted his warnings to be exaggerations like many of the people you will see in this video. I did not want to believe that the money I had in the market was in danger because of a coming financial crisis from the mortgage industry. And seeing smart people like Ben Stein and Neil Cavuto downplaying or dismissing Schiff’s statements was the only excuse I needed to dismiss him myself.

I wish I could have that one back, but I can’t.

What I can do though is heed what Schiff is saying now, and I suggest everyone in the country do the same.

In the following video Schiff directly addresses the problems from 2005 through 2008 that have resulted in the current recession. Those problems were government interference.

Schiff explains that for too long the government was borrowing and spending too much because of cheap cash coming primarily from China. (China has loads of cash from selling products to wealthy consumers in the US. To increase their wealth, China invests that cash in US Treasury Bonds to gain interest. These interest rates are relatively low, but China gains because of the enormous amount of cash they are investing at what is supposed to be no risk. The result is China essentially finances US debt.)

Not investing cheap Chinese cash responsibly, the federal government promoted a culture of consumer borrowing and spending to keep our new service based economy growing. This was facilitated by the Federal Reserve who kept interest rates artificially low, which incentivized more and more borrowing and consumption.

Schiff argues that this cycle was not free market, capitalist economics and therefore was not sustainable. The market should have been determining interest rates all along and the government should have acted more responsibly, promoting savings and production. It is the government’s interference in the free market that caused the problem, and their increased interference will only make the current problems even worse.

Schiff argues that our deflationary recession will soon become an inflationary depression if the government does not reverse the course it is taking. The enormous increases in the money supply (printed by the Fed) and government borrowing and spending (Obama’s budget with a $1.8 trillion deficit) will no doubt result in inflation. In fact that is the desired result to combat the current deflation. But since this kind of government intervention has never worked in the past, the prospects of future experiments do not instill much confidence.

Schiff’s recommendation does not require the government do nothing though. If the government starts promoting savings and reduction of debt again while reallocating resources back to sectors of the economy that produce goods, the recession will be much shorter lived. However, if they continue to promote consumer borrowing and spending, as they currently are, our problems could and probably will get much worse.

As you watch the video, you will see that in spite of how correctly Schiff has called it in recent years, people are still reluctant to adopt his views. Mark Haines of CNBC is a perfect example, unprofessionally poking fun at Schiff at the end of the video. Not sure where Haines, a reporter and lawyer, thinks he gets authority from on these things. I will defer to Schiff on subjects of economics.

House Speaker Nancy Pelosi Is Building Cars

I guess we didn’t realize how serious exposing someone’s lack of common sense could be.
When those of us here at Freedom Medium recently showed a video that uncovered House Speaker nancy Pelosi’s thoughts on illegal immigration (you can see it here), we had no idea it would lead her to pursue a new career.

But it seems like Mrs. Pelosi is a step ahead of us.
Perhaps she is a bit worried about being re-elected in 2010.
Or maybe she learned enough, after spending billions of taxpayer dollars on bailing out the automobile industry, that she decided that she needs to take her future down a different path.

And as always, the staff of Freedom Medium breaks the news first, so take a look at the Speaker’s first offering:

Socialism We Can Believe In

How is your day going?

Feeling pretty good, fairly cheerful?

Proud to be an American?

Me too.
The only question, as the video below shows, is how long is the America we have grown to know and love going to be around with these chuckleheads in charge?

OBAMA’S MOST PERILOUS LEGAL PICK

JUDGES should interpret the Constitution according to other nations’ legal “norms.” Sharia law could apply to disputes in US courts. The United States constitutes an “axis of disobedience” along with North Korea and Saddam-era Iraq.

Those are the views of the man on track to become one of the US government’s top Read The Rest Of This Entry

Second Amendment Quote Of The Day 3-30-09

Today we are introducing a new feature here at Freedom Medium.

We will present a quote regarding the Second Amendment that will make much more sense than anything you will hear coming out of Washington D.C.

However, there is a catch.

We won’t be doing this every day, we don’t want to spoil you.
So you will have to check back to read some of the most sensible things ever said or written in regards to the Right To Keep And Bear Arms.

Here is today’s:

“False is the idea of utility that sacrifices a thousand real advantages for one imaginary or trifling inconvenience; that would take fire from men because it burns, and water because one may drown in it; that has no remedy for evils, except destruction. The laws that forbid the carrying of arms are laws of such a nature. They disarm those only who are neither inclined nor determined to commit crimes.” — Cesare Beccaria, “On Crimes and Punishments”

John Murtha Ambushed By Jason Mattera

This guy is fast becoming a favorite of those of us here at Freedom Medium.

A few days ago we presented a video showing how Jason Mattera called out tax cheat Charlie Rangel.

This one has to be from awhile ago, but it is well worth seeing.
Here, Mr. Mattera questions Pennsylvania Congressman John “Prince of Pork” Murtha about Murtha’s remarks that members of the U.S. military were murderers.
Of course, Murtha has nothing to say in his own defense.
And watch for the brillant statement he comes up with when Mattera attempts to follow him.

Mattera is the kind of person the mainstream media could use, one who isn’t afraid to ask the tough questions.

Political Correctness

I really should watch more television.

Thank goodness I came across this clip from Glenn Beck’s show.

This might explain why more people aren’t outraged over the fact that there are at least 12 million people living in this country who have no legal or ethical right to be here!

Perhaps the folks who think people like me make too big of a deal out of illegal immigration think that “illegal aliens” are gangbangers from Neptune.

Senate Reverses Course On U.N. Global Taxes

This is why I get so frustrated with the media’s only focus being AIG and the stock market.
I know that the drive-by media doesn’t care about the future of America, but you would think that there would be some of them who care enough about their jobs to actually do them!

So here’s the latest.
While all we have heard about is the bonus scandal at AIG, the Senate voted down a long-standing amendment that would have prevented U.S. tax funds beign used to fund schemes of the United Nations.

With our economy in the shape it’s in, should we really be giving even more money away?

Read the report from Senator Jim Inhofe here

Milton Friedman…Path To Socialism Parts One And Two

Once again we present the man that all of of us here at Freedom Medium are fans of, Milton Friedman.

In this two-part video, Mr. Friedman explains the differences between individual liberty and economic freedom vs. collectivism.

He makes an outstanding case for human prosperity being related to economic well being.

Path to Socialism, Part One:

Path to Socialism, Part Two:

Glenn Beck And Michelle Malkin On The GIVE Act

Michelle Malkin was recently a guest on the Glenn Beck program to discuss the recent passage of the GIVE act.
The Senate just passed their version of the House bill, HR 1388.

What does this mean to you?
Well I would rather you looked it up and read it yourself, that way I can’t be accused of putting my own spin upon it.
And now you are saying “Carl, why don’t you provide a link to it?”
Hey, I’m a conservative.
I expect people to be able to do things for themselves.

But maybe you don’t need to read it.
The title of the bill that just passed the Senate should tell you everything you need to know:

“The Edward M. Kennedy Serve America Act, an Act to reauthorize and reform the national service laws.”

Reauthorize national service laws?

Be sure and wave bye bye to your children as they go off to serve in Obama’s army.

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