Market Seer – Peter Schiff recently said that if we don’t stop what the government is doing now – if we don’t Change , this Country will be an Economic Wasteland. ” We’re in a Gigantic Hole , the last thing we want to do is keep Digging it Deeper. ” – Peter Schiff
Schiff also mentioned There is No Recovery In Sight and that in ten years the US Dollar will Not be the Reserve Currency – that’s for sure , and the dollar will not buy as much as it does today. We’re going to have to make some serious changes in our policy. There’s going to be a substantial down-shift in the American Standard of Living , that’s the reality.
Because of the Fed , because of all the policies we’ve pursued , we’ve Lived Beyond our Means. We’ve run up Trillions of Dollars of Debt. We’re going to Need LESS Government Spending and a Higher Savings Rate. But, If We Do All The Right Things – then We Will Build the Sound Foundation and Have a Bright Future.
What’s happening in the US is a Sideshow. The Main Event is Overseas. The Markets are on Fire there , particularly in Asia. The underlying fundamentals of the US Economy have Worsened , we have more debt – look at how much debt we’ve incurred. The US Government is Not trimming itself down. They’re Issuing All This Debt – WHAT ARE THEY DOING WITH THE MONEY?
Speaking of WHO GOT THE MONEY? , listen to American Patriot – Rep. Alan Grayson ask Fed Chair Ben Bernanke just that:
Grayson: ” SO WHO GOT THE MONEY? – ” Bernanke: “I Don’t Know ” Half a Trillon Dollars and You don’t know.
DJIA 7063 and S&P500 735 with Citigroup [C] at $1.50 and Bank of America [BAC] $3.95 a Share. We’re Moving Towards ZERO. Need I say more? It’s The End of The World As We Know It. Peter Schiff says the Common Stock in both Citi & BofA are WORTHLESS.
“…the credit crisis , coupled with tumbling home and stock prices , produced a paralyzing fear that engulfed the country – a freefall in business activity ensued , accelerating at a pace that I have never before witnessed. The US and much of the world became trapped in a vicious negative feedback cycle. Fear led to business contraction and that in turn led to even greater Fear.” – Warren Buffett
The economy will be in shambles for the rest of this year as financial firms take losses tied to reckless loans made during the housing boom.
You can wear last years clothes – You can’t eat last years food! Cheap Is In. Be Cheap. The American Consumer Understands.
In exchange for a Multi Billion Dollar Bailout under a plan circulating in Congress the government would order a major restructuring of GM Ford & Chrysler – Detroit’s struggling Big Three Auto Companies.
Any government aid might be ” highly conditional ” and only occur after a
Replacement of current management
Concessions from both the UAW and automakers
A Wipeout of Existing Equity and Debt holders
Nationalization of the Auto Industry to include a ” Car Czar “
A Government-run restructuring would include Massive Downsizing and Labor Givebacks.
Restructure – Reorganize – Get Rid of the Union Contracts bringing them down – A New Business Model and Move Forward
Political Power is Controlled by those who Control the Money Supply.
The Government is Broke Folks. It’s Going to be a Disaster , a Greater Depression – the Politicians and Bankers – the Interference in the Market and Unemployment. The Criminals are Rewarded – The Sheep are Scared – Socialist Banking System is taking over a free economy.
Full Blown Depression – Phony Borrow and Spend economy – more Dire Forecast Hyper–Inflation – Savings and Wages Debased – Bad Mortgages sold to the Government – Trillions of Dollars in new liquidity. Savings is the root of a former Capitalist system.