Thread: Peter Schiff: Stimulus Bill Will Lead to "Unmitigated D

Peter Schiff: Stimulus Bill Will Lead to "Unmitigated Disaster"

Posted Feb 06, 2009 08:05am EST by Aaron Task in Investing, Newsmakers, Recession

See the Video at the Link

The fiscal stimulus bill being debated in Congress not only won't help the economy, it will make the recession much worse, says Peter Schiff, president of Euro Pacific Capital.

Schiff scoffs at the notion the economic decline is starting to level off and concedes no government action means a "terrible" recession. But the path of increased government intervention will lead to "unmitigated disaster," says Schiff, who gained notoriety in 2007-08 for his prescient calls on the housing bubble and U.S. stocks.

The problem, he says, is the government is trying to perpetuate a "phony economy" based on borrowing and spending. With the U.S. consumer tapped out, the government is "now taking on the mantle" of consumer of last resort, he continues, predicting the bond bubble will soon burst - if it hasn't already - ultimately leading to a collapse of the dollar and an "inflationary depression worse than anything any of us have ever seen."

If nothing else, Schiff is an nonpartisan critic of American policymakers, comparing President Bush to Herbert Hoover and President Obama to FDR, and neither in a favorable way.

Note: Stay tuned for part 2 of my interview with Schiff, where he addresses recent criticism of his investing prowess.

http://finance.yahoo.com/tech-ticker/ar ... IA,TLT,UDN

Schiff also has taken to task the growth of the "Service Economy", a sneaky euphemism for brazen, P.C. money wasters.

Of course Obama would never pick him as an economic advisor, preferring strong arm labor thugs like Richard Trumka and moll, Anna Burger---as announced earlier today.

Oh well---it reminds me of saying from the USSR just before it collapsed:
"We pretend to work, they pretend to pay us."