Saturday, May 8, 2010

Peter Schiff: Government Bubble Bursting

In a recent interview on Sound Off Connecticut, Peter Schiff said the government bubble will burst, and when it does, the bond market will collapse and hyperinflation will follow soon afterwards.

Schiff also stated that “The bigger the government gets, the weaker the real economy gets,” and of course he's correct. Just look at Greece as an example of that truth.

All the government does is rob from the productive and redistribute to the unproductive. Government can't produce anything, and the larger it gets, as Schiff says, the weaker the real economy becomes because it takes away from investment capital and becomes a part of consumption, which produces nothing.

Keeping interest rates low will "destroy the value of" the dollar, said Schiff, and that will result in hyperinflation, which could bring chaos to the country.

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