Posts Tagged ‘inflation’

Please check out the latest podcast from Peter Schiff:

Click here to listen to The Peter Schiff Show Episode 77

Listen to all of Peter Schiff’s podcasts at SchiffRadio.com. Visit Peter’s gold company at SchiffGold.com

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Today I had the pleasure of interviewing David Stockman.  He is a former Congressman from Michigan, former Director of the Office of Management and Budget under President Ronald Reagan, and former partner at The Blackstone Group.  Stockman is the author of The Triumph of Politics: Why the Reagan Revolution Failed (1986) and 2013’s The Great Deformation: The Corruption of Capitalism in America.  On the show today we discussed how some of his work traces “historical dominoes.”  It was fascinating to learn how certain events in history led to others and so on, until we wind up with thus and so…  For example: how did the creation of the Fed in 1913 lead to the 2008 crisis?  What was the chain of events?  Find out in today’s episode.

David Stockman’s Contra Corner

http://www.amazon.com/Great-Deformation-Corruption-Capitalism-America/dp/1586489127/ref=sr_1_1?ie=UTF8&qid=1418358518&sr=8-1&keywords=the+great+deformation&pebp=1418358520995

With the Fed propping up the the stock market with their cheap money policies, what’s a person to do? Andrew Schiff of Euro Pacific Capital says invest abroad:

http://www.schiffradio.com

http://www.europac.net

http://www.amazon.com/How-Economy-Grows-Why-Crashes/dp/1118770277

He’s a contrarian. He’s a prognosticator. He’s a bear on the US economy. He’s Dr. Doom and he was kind enough to chat with us recently:

If you pay attention to financial media even the slightest bit, you have no doubt heard the talking heads freak out over the prospect of deflation. Bloomberg, CNBC, Fox Business, Wall Street Journal, you name it… they all mindlessly repeat the bloviations of Bernanke, Yellen, Krugman, etc. that what we need is for people to spend (not save), to borrow, and for prices to rise. All of this is wrong.

To give you a real basic econ lesson, this attitude is largely inspired by the economist John Maynard Keynes. Bernanke and company are devout Keynesians. They believe an economy is built on consumption and is stimulated by spending. Paul Krugman is outspoken in his conviction that the US does not carry enough debt. That $18 trillion is not nearly enough. He believes we need to spend much, much more and that increasing the debt does not matter in the least. I sh%t you not. These are the people running our economy. Bernanke, Yellen, Jack Lew, the financial media, republicans and democrats alike all believe we must spend our way out of this funk we’re in. And as Shaq once said, “Don’t fake the funk on a nasty dunk.” That literally means nothing, sorry.

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When you think anarchy, what do you think? Disorder? Chaos? Pandemonium? Murder and mayhem? What if there was no government? No President or Prime Minister? No politicians? Who would protect us? Educate our children? Take care of the poor and elderly? The consensus among the masses is that we need government to provide these things for us. We need them to ensure order, if nothing else, right?

Recently, I had the real pleasure of interviewing Dr. Gerard Casey, professor of philosophy at University College Dublin and author of the 2012 book, Libertarian Anarchy: Against the State. Given our common perceptions of what anarchy is, you would think a man who teaches a class called Anarchy, Law and the State and believes we’d be better off with no government at all would be an unstable, disagreeable, even ill tempered person. After all, he’s in favor of chaos and mayhem, right? This could not be further from the truth. As you will learn from this interview, Dr. Casey’s brand of anarchy, which he has dubbed “Libertarian Anarchy”, if implemented properly would provide the maximum amount of peace, order, and prosperity. And Dr. Casey has a personality suited to teach this lesson. He is passionate, yet level headed. Extremely intelligent, but also really funny and charming. Students flock to fill his extremely popular classes. Enjoy.

CNBC Article on Income Inequality

I mentioned income inequality in yesterday’s piece. Seeing as the president is apparently going to address this issue in his state of the union address tonight, I thought it appropriate to mention it again and share this short article I read on cnbc today. The author makes a few great points but the most telling point to me is the fact that from 1979 to 2010 real income for the the bottom 20% increased by 49%. He also points out that the gap has not widened but narrowed since 2007. So when Obama tells you tonight that the gap is widening he’s lying. It is apparent that this is just the issue du jour for the Obama administration. It is an obvious attempt to distract from the disaster that is Obamacare or the NSA before midterm elections. It’s an attempt to pander to his dependent constituency.

One point I didn’t make yesterday is that a by-product of the fed printing money (and giving it to the rich) is to cause consumer prices to rise. So while the wealthy get all the cheap money, the poor, and middle class, and those on fixed incomes get punished with higher prices on things like milk, gas and rent. You think the rich care if the price of milk is $4 or $40? Check out http://www.shadowstats.com for some legit reporting on inflation, as opposed to the BS the BLS puts out. I’ll get into inflation another time but for now suffice it to say money printing benefits the rich and punishes the poor. To the extent income inequality is actually a problem, government creates and exacerbates it.