He's a charlatan that cries about hyperinflation when the real problem is credit stagnation.
http://www.unz.com/mwhitney/the-chart-that-explains-everything/
Banks aren't lending which means that there's no credit or economic growth. In the real economy we're actually stagnating, not inflating.
The only inflation going on is in asset prices, which Peter Schiff (if he wasn't a con artist) would be telling you to invest in now instead of gold
https://www.youtube.com/watch?v=2rNN-FHmYK4
https://www.youtube.com/watch?v=toW2oEhNZmk
>>72206892
He means the $12. Do the math.
>>72207177
lending is down which means there's less money in the economy
So there's no fear of hyperinflation in fact inflation has been fairly low for years.
>>72207279
Wall street banks have gotten trillions of dollars in free money from the government, but they aren't lending it out because the economy is so bad. Instead they are "sitting" on giant cash hoards given to them by the FED.
https://www.washingtonpost.com/news/wonk/wp/2015/12/21/why-the-fed-is-paying-wall-street-banks-billions-of-dollars/
So Schiff has just about everything backwards.
>>72207279
why would banks loan MORE when the amjority of loans are underperforming...
you know creating more underperforming oans doesnt create growth, right?
further lending isnt the only way money circulates in the economy. people are spending less money. that's also a factor in circulation, you know
>>72207458
inflation can exist within certain sectors and not others, you know this, right?
I mean, it's almost like you think changing the incentives and rules of the game dthiengs should also be measured and expected to behave by the rules of 40 years ago
the money IS circulating in the system. it's driving up property, assets, and equities via the banks.
>>72207493
because the majority of money ISN'T credit right?
Americans are too in the red, I'm amazed people somehow make their bills.
>>72207493
America is soaked in private debt which is why no bank can lend anyway even if they wanted to.
>>72207640
>certain sectors
mainly the stock and bond market but also student loans, healthcare, etc
It's not the same hyperinflaiton boogeyman that Peter Schiff peddles in order to get you to buy gold doubloons though.
Nobody should talk about him unless it's to say he's an economic illiterate.
>>72207705
majority of money is credit in some form. that's bad. therefore expanding credit isn't going to grow the economy.
>>72207759
1. agreed
2. it can lead to hyperinflation though. inflation raises aggregate prices by destroying the pricing power of the market. in these conditions dishonest business is more likely to thrive than honest business, which decreases efficiency, which lowers wages in the midst of inflation.
a currency in wide circulation (remember foreigners hold our money too) which is cashed in because it's no longer a good store of value can cause hyperinflation
if the fed were to completely cut back monetary circulation, maybe it wouldn't cause great inflation. but the federal money that's pouring out finds its way into overpaid unproductive sectors, which increases circulation without increasing productivity or spending power, which is by definition, inflation
>>72208215
I've read that trade helps the U.S a lot because when we trade abroad most of the dollars come back to us with profit. Is this true?
Also, doesn't a economy only grow when people are making profits?
>>72208464
the statement is patently false. if we have a trade balance, then trade typically results in profit for both parties.
if there is a trade imbalance, though, then you would consider the net deficit a LOAN that one country makes to another, we invest that loan into business X, and then pay the loan HOLDER interest in the future for that loan.
you must consider what business X is. this is important, I'll come back to it.
1. america has MASSIVE trade deficits, on which we pay INTEREST.
2. when we engage in this trade, it reduces local employment, which reduces money circulation (how do we deal with oney circulation problems? welfare, which increases taxes and ruins price markets, as well as increasing crime.)
the THEORY for international free trade is that prices will best allocate need and viability of service because of moral hazard. this is true, generally, but not in a vaccuum. the world is not a vaccuum. it creates external costs, who pays for those costs of free trade? economies are also stronger under war. it has a cost, who pays those costs? should we have perpetual war?
so inherently, is the idea of taking a LOAN in order to invest in business a bad idea? no, not if you don't have money. does the US HAVE MONEY? YES, it does, actually. it also has loan institutions.
so for paying foreigners for the privilege to take a loan from them, what do WE get out of it, and what business X do we invest in?
We get cheap shit from china (does this enhance wellbeing? I can't afford a house but I can buy an Ipad, I vote no.)
and 2 we get business growth in sectors involving cheap shit from china, which is PROBABLY less important than medical, engineering, or housing, MAYBE it's more important, I dunno. maybe you want to recreationally catch cancer from water bottles
what we have is redistribution. LESS aggregate money comes back to the us. a LOT less in your pocket, and a lot more into the pockets of cargo cult industries that make uselss
>>72206892
probably related to jakob schiff, therefore kosher as blood libel
>>72206892
>Thoughts on Peter Schiff. I never hear him talked about here.
That's because that damn Molyneux is stealing all of his subscribers!
>>72208215
>it can lead to hyperinflation though.
It can't though. The government can control the money supply any time it wants to.
https://www.youtube.com/watch?v=WWQbD__x1E0
>>72209639
If the fed government ever fails to pay back debt when it matures, even if it means causing hyper inflation, the US dollar will stop being the world currency. China is already ready for this to happen
