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.

Peter Schiff on Origins of Economic Meltdown

Economic expert Peter Schiff gives a devastating critique of the origin and causes of the global ecnomic collapse in this extraordinary TV interview.

He largely takes aim at the the medicine being offered for the disease: more government spending, and calls for the need to amputate the gangrene originating with the illusion larger, socialistic government will be the answer to the dilemna.

Rather, Schiff exposes the government as the perpetrator of the global disaster, not the solution.

As Schiff rightly illuminates, the government has no wealth, all they can do is confiscate the wealth of others and redistribute it through their taxation and redistribution program.

So the announcement of Obama that he's going to come to the rescue with the misguided public works expenditures, he's not really creating wealth or jobs, he's simply taking it and redistributing it to less valuable areas.

In other words, he's going to take wealth that the private sector creates, and redistribute it to government-created programs. The consequences will be the destruction of real employment opportunities, according to Schiff, which will cut into our standard of living.

Schiff's solution to the problem?

Let recession run its course

More discipline by Americans in spending and consumption

Need more savings and less borrowing

More production and less consumption


Schiff on government's role:

Less government spending

Sound monetary policy

Lower taxes

Get rid of military/industrial complex

Slash government programs

Higher, not lower interest rates


View video below if you want one of the best video presentations of the truth behind the economic crisis. It's brilliant!