Tags: schiff | phony | economy

Schiff: Let the Phony Economy Contract

By    |   Tuesday, 28 Apr 2009 03:33 PM

Propping up the current economy isn't working, and the Obama administration's moves to pump more billions into it will cause hyper-inflation and drive down the value of the dollar, says Euro Pacific Capital head Peter Schiff.

"As a nation, we go deeper into debt," Schiff told the Christian Science Monitor.

"What we need to do is get out of debt.”

“We need to let the phony economy contract."

Schiff foresees a period of intensifying inflation as the Chinese and other creditors begin to lose confidence in the dollar and sell their dollar reserves.

“They’re not going to be the bankers for all this stuff,” he says.

“Four years from now we could end up owing them $3 trillion. So [from their perspective], better to take a loss on $1 trillion than to take $3 trillion. You can hear the rumblings.”

In his first 100 days, President Obama has presided over, and encouraged, the greatest printing of money in our nation's history, according to former U.S. Congressional Rep. Tom Campbell.

“The consequence of that predilection will cost our country dearly in terms of inflation,” Campbell writes in the San Francisco Chronicle.

“Never before has the federal money supply been increased so much so fast,” Campbell says. “The total increase in the nation's money supply, printed in less than nine months, is a staggering $3.129 trillion.”

“This is the unfocused-upon legacy of President Obama's first 100 days,” Campbell says. “The entire supply of money in the U.S. economy is $8.3 trillion.”

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Propping up the current economy isn't working, and the Obama administration's moves to pump more billions into it will cause hyper-inflation and drive down the value of the dollar, says Euro Pacific Capital head Peter Schiff."As a nation, we go deeper into debt," Schiff...
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2009-33-28
Tuesday, 28 Apr 2009 03:33 PM
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