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Tuesday, December 09, 2008

Ron Paul economic adviser Peter Schiff was right about, well, everything

Listening to National Public Radio (NPR) the other day, they did a little piece on Peter Schiff, former Ron Paul economic adviser, president of Euro Pacific Capital, and an advocate of the Austrian school of economics. Schiff is often on various financial and business shows as a talking head. On all of them, over the last three or four years, Schiff has been busy predicting an economic catastrophe.

They laughed at Schiff then. They don't laugh at him anymore.

From NPR (you can listen to the broadcast by following the link):

"What's going to happen is that the American consumer is basically going to stop consuming and start rebuilding his savings, especially when he sees his home equity evaporate," he said. "And when you have the economy 70 percent consumption, you can't address those imbalances without a recession."

Schiff was even more blunt when speaking on Fox News Channel in December 2006: "You're going to start to see both the government and the lenders re-imposing lending standards and tightening up on credit — and these sky-high real estate prices are going to come crashing back down to earth."

And here's a little video montage on Schiff on various shows, getting the economic crisis exactly right:

Since everyone is jumping on the Keynesian bandwagon, it's worthwhile remembering that Austrian economists have been predicting precisely this economic crisis for a very long time. They've been bearish on housing, concerned about a looming credit crisis, and raising alarm bells about the value of the U.S. dollar (we have yet to see the massive inflation that they've been predicting, but I'm no longer as skeptical of their predictions as I used to be).

Now they're screaming from the rooftops about the various bailouts. They're radical free marketeers -- my sort of people -- and they think the governments are making a big mistake by throwing good money at bad investments. Having predicted this crisis, it will be interesting if they will also turn out to be right about the disastrous effects of the bailouts.

Keynesians? We should all be Austrian economists now.

UPDATE: Here's Schiff facing down the Lansing mayor about the auto bailout (part two below the fold):

UPDATE2: Robert Scott Bell, in the comments, points to an interview he conducted with Peter Schiff. The interview is really well done, and worth taking a listen to. I had it embedded here, but it plays automatically, and that's annoying.

Posted by P.M. Jaworski on December 9, 2008 in Economic freedom | Permalink


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Economically speaking, Schiff and Paul have been dead on with every prediction they've made since about 2000. When will we learn?

Posted by: JC | 2008-12-09 5:25:46 PM


Department of Education, you say? dump it!!!

Who do you think I should bank my penny with?

Posted by: Liberty for Life | 2008-12-09 7:13:18 PM

Speaking of education ....

The government educational industry is an Marxist indoctrination camp promoting homosexuality and multiculturalism for kids. And that is all it is. It is union run and government funded what the hell do you expect? The best advise they give to their student is to get a wishy washy BA and get a government job. As if that will better our economy or society.

It needs to be gotten rid of fast. Caring parents are putting their kids into private and Christian schools in droves. The local Christian school here is growing so fast it has stretch marks.

I have no kids myself, but I am in a business where I can donate musical equipment their band program and will continue to do so. They do not have the privilege of the trough and they are far more dedicated to producing well educated young citizens rather than whining self-loathing little consumer brats.

Everyone should support their local private or Christian schools. They are the last hope we have of producing anyone who will be able to take responsibility for anything in the future.

I meet the kids and and teachers from both systems regularly and I can see the difference for myself.

It is the value taught in our school system that produce the something for nothing population who are all presently defaulting on their mortgages and credit cards. But then ... it's not their fault is it?

I am not a Christian by the way, just a concerned free-thinking individual.

Posted by: John V | 2008-12-09 8:23:35 PM

Don't blame me- I wrote-in Ron Paul.

Posted by: Carl | 2008-12-09 8:28:11 PM

Imagine - the idea that intervention and socialism could be destructive.

Who other than eastern Europe, Africa, France, China and students of history, could ever grasp such an extreme notion?

Posted by: Mudflap | 2008-12-09 8:30:26 PM

No one wants to hear the truth. They haven't since Noah started talking about a "Hard rain is gonna fall"! No, you'r,e foolish, they said. It is just about to dry up!

I am nobody but I am not ashamed of Jesus Christ.

Posted by: Steve Hanna | 2008-12-09 8:54:52 PM

I thank God I found Ron Paul when I did, I moved my 401K into a safe haven and it's actually growing. Probably not as fast as inflation but.......
Lock and load people, it's going to get bad. :-(

Posted by: Rosco1776 | 2008-12-09 9:47:29 PM

The way I understand it, if the PotUS is impeached and removed, then the VP becomes Pres, right? Then, to replace the VP we have the Sec. of State. So, how many people do we need to impeach for treason before Ron Paul becomes the President Pro Tempore? 104? (My tongue is in my cheek, but my heart is in my throat. Altogether I'm tied in knots inside.)

Posted by: Benjamin Vander Jagt | 2008-12-09 10:58:33 PM

Schiff has not said this directly, to my knowledge, but he is basically saying, the Elites are going down. We, and our battered economies, have had enough of these idiots who control and manipulate the money system. Of course, the Elites will try to maintain power through pure force, but it isn't going to work. Things are going to get ugly, that's for sure. It is going to be, "us" against "them."

Posted by: Scott Harmon | 2008-12-09 11:22:09 PM

Schiff was on the Bill Good radio show (CKNW Vancouver) earlier this week -- I think Monday morning. I only heard a short burst of it while I was driving, but I heard Schiff tell Good, after Good mentioned that Canadians are wondering why the Canadian dollar has dropped, that in a few years the U.S. dollar will be worth 50 Canadian cents.

Posted by: CJ | 2008-12-09 11:37:16 PM

A good post. PMSH has a Masters degree in economics. Its time he earned it. Have him get acquainted with Peter Schiff and the Austrian School.

Posted by: DML | 2008-12-09 11:45:37 PM

Good find.

Posted by: Michael Cust | 2008-12-10 7:39:01 AM

Problem being is most "Christians" are clueless as to what their Bible actually says and what their roles of being salt & light in our societies actually means; we are overrun & overwhelmed by Mustard Tree Christianity and thus our end is upon US as a free people & nation. For God sake we have elected a man who is a a student of Marx to be our president. Nikita Khrushchev was correct they have taken US without firing a shot!

Posted by: Frank Schlerntizauer | 2008-12-10 8:59:44 AM

Link to my interview With Economic Advisor Peter Schiff here: http://www.switchpod.com/f99914.html?puser=none

How do you expect to heal the economy if you listen to pundits that do not understand the true cause of the collapse? Peter Schiff predicted this crisis accurately back in 2006.

Posted by: RSBell Media | 2008-12-10 12:26:28 PM

I have all the info daily on the coming depression here:

Posted by: TheComingDepression | 2008-12-10 1:41:04 PM

Of course Peter Schiff was right about everything. So was Ron Paul. Just you wait...

Posted by: Gloria | 2008-12-10 3:02:18 PM

He's right about the crisis... for the most part.

But have you heard some of the solution's this guy's proposing?

Read up a little on Austrian economics before you give them too much credibility.

Posted by: Joe | 2008-12-13 10:07:36 PM

Yes, Joe, do let's "read up on Austrian economics" shall we?

Ha ha ha.

Joe, EVERYTHING THAT IS HAPPENING TO US NOW - EVERYTHING!!! has been already foreseen, predicted and explained by the Austrian School and NONE OTHER.

What more credibility could you want than that?

The solutions Ron Paul has proposed are the same ones the Founders proposed. They believed in individual freedom and so does he. They believed in sound money - gold and silver. So does he.

The list of consistencies between Ron Paul and the Founders goes on and on. Perhaps you should read up on it.

Posted by: TomdeSabla | 2008-12-23 2:05:24 PM

See the newest challenge to modern economics in heavenlyeconomics.blogspot.com!

Posted by: Jaakko Ojala | 2009-01-02 6:13:43 AM

I heard Peter Schiff might be running against Chris Dodd in the 2010 election cycle. With Ron Paul in the House and Schiff in the Senate, maybe liberty will have more of a chance.

Posted by: Clint | 2009-01-13 6:42:01 PM

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