November 22, 2008

Could this guy be right?.....again

Check out these videos. Peter Schiff predicted what is happening and they laughed at him:

Now, they aren't laughing anymore, but they still are reluctant to listen to him:


Marianne said...

Ben, that's fantastic. I mean, Peter Schiff could really make them eat humble pie. Why isn't it all over the news that someone *knew* this was coming and *warned* people about it? My next question is, how could all the other economists be so wrong? Have they purposely been filling people's minds with lies, or have they been lied to themselves? Don't you think this would make them re-examine their economic schools of thought? I am just in shock at how dead on Peter Schiff was. I sure hope he got the penny that idiot bet him. Accompanied by a long and grovelling letter of apology.

BEN said...

Well, there were actually a lot of economists that warned about this. Peter Schiff just happened to get some publicity. He is often on Fox Business News and was on Glenn Beck some.
He is part of an economic school of thought called Austrian Economics which has a different view of economics than the mainstream. Essentially, Austrian Economics is truly free-market economics while the mainstream is Keynesian which is what influences our public economic policy more than any other economic theory. Keynes is taught in all major economics classes and basically believes that the government can grow the economy through inflation. Austrian Economics opposes this view and is starting to get more voice.

S. Logan said...

You know Schiff hosts his own radio every Wednesday night?

BEN said...

Yes, I recently discovered it and have been listening to it on youtube.

William_Cassidy said...

Great post. I was referred here by Jeff. I'm taking an International Relations class right now and we're focused on global finance. It is currently estimated that US households save -1% of their income annually verses more than 60% in China. Americans have built a massive debt and it will be very painful for most to pay back. I think that analyist was dead on. Wasn't it amusing to watch how much he was laughed at for his predictions by other economists and politicians? Great posting. -William

BEN said...

Hey William, welcome
Yeah, the savings rate is mostly a product of our economic policies. If the interest rate were set by the market, people would be more apt to save. Some say that this would be bad for the economy because we need to spend money to make the economy work. This argument is pretty silly for several reasons. I talk about it a bit in my post on inflation and deflation. I will be discussing it more. I look forward to your comments.

Jeff said...

Hey Will,

Welcome! Thanks for joining in.

Yeah, this reminds me of Helaman 13:21-31.

In no way am I saying that Peter Schiff is a prophet, since these things are plain for all to see if they will look. It doesn't take prophet vision to see and understand basic principles of economics and liberty.

I just find these verses very striking, and the principle very much applies. People will praise a man who tells them a lie that they want to hear, and laugh at a man who tells them the truth they don't want to hear.