Reaction to Obama’s Speech

2/28/2009:

The other side of the coin

While many Obama supporters are excited and hopeful that the trillions of dollars of freshly minted cash will revitalize the world – Economic “specialist” Peter Schiff feels otherwise.

Schiff thinks these measures go against a basic understanding of economics, and even though Obama said credit was the “life blood” of our economy, he feels it’s more like a “cancer.”

See the cheap home made video below (a bit blurry w/ loud sound) but you’ll get the point.

Is Schiff wrong, right, or somewhere in between?

The website WuzzaDem had this to say:
“Payroll, like rent and utilities, is the most basic of business expenses. If a company is not making enough money to meet its payroll obligations, that company isn’t fit for business. A company that borrows money to make its payroll is akin to a homeowner taking out a home equity loan to buy groceries. Both are operating/living beyond their means.

With the exception of a rare and unforeseeable emergency, which business owners are confident they can weather, there are really no legitimate reasons for any company to borrow money in order to make their payroll.

How long have we been living in this fool’s paradise? Since at least 2001, which would explain how we seemed to survive – with relatively few adverse effects – the economic downturn after the Internet bubble burst in 2000. Not only do we continue to kick this can down a dead-end street, but we are expected to be hopeful about the destination. By all means. Let’s sacrifice free-market capitalism – the economic equivalent of democracy – so we can reward failure and indulge our insatiable appetite for stuff, even if it means that our economy collapses and, subsequently, we all become wards of the state.”

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10 Comments on "Reaction to Obama’s Speech"

HansBrix
Member
HansBrix

[quote comment=”139670″]Obama’s economic policy is going to push us into another Great Depression. How does borrowing money revitalize anything?.[/quote]

Never underestimate the MAGICAL POWER of wealth redistribution!

Step 1: Redistribute wealth
Step 2: ?
Step 3: Profit!

All we’re missing is step 2.

HansBrix
Member
HansBrix

Schiff has taken on BOTH Obama and Kudlow. Interesting times. So who’s right? We’ll know in a couple of years. But this classic montage is instructive:

http://www.youtube.com/watch?v=2I0QN-FYkpw

Just listen to the FOOLS laugh at him as he predicts with uncanny accuracy. How many people would be far richer (or simply not destitute) today if they had only listened to that fringe character.

I will tend to believe him over Kudlow who just last week fudged some housing statistics in a CNBC interview. (Luckily his guest spotted it immediately and called him on it “I must have wrote it down wrong” he replied.)

So what’s the best inflation hedge? Gold? GLD? Oil? Ruger M77?

SmartyJones
Member
SmartyJones

Name one regulation this century that aided in the financial problems. Now if you are bright enough to do that, you can certainly name the ones around banking, brokerage and the ones related to mortgages that aided greatly to the problems.

BTW, you won’t be hearing about this from the major media. Otherwise certain federal government employees would need to be in front of a jury. 😛

Okay, perish the thought. That takes too much logical thinking. Let’s just do the class envy/war thing and spend on everything to make the minority of non-paying “citizens” a majority.

Yes we can. 😛

BlackFlag
Member
BlackFlag

Obama’s economic policy is going to push us into another Great Depression. How does borrowing money revitalize anything? On even the most basic level, there’s no merit to his policy. This is the very philosophy that got our country into trouble in the first place. For people who work, pay their taxes and are civil members of their community, government is the problem, not the solution. For people who never work, don’t pay their taxes and could care less about their communities, government is the solution, not the problem. Until we get leaders across the board who are devoted to the basic fundamentals of successful economic policy-low taxes, small government and less spending, this sinkhole that is marginalizing the foundation of our country will continue to spread. The only positive fall out from this current administration is that the laissez faire attitude solid American’s have had about political activism will change, because now their very survival depends on it. Obama isn’t the next FDR, he’s the next Hoover.

bri777
Member
bri777
[quote comment=”139619″]When evaluating Schiff keep in mind that he has been against any gov’t regulation of the economy. This mind-set is part of how we got into this mess. Also, he is a survivalist who advocates leaving the cities during this downturn and stocking up on guns and ammo. In other words, he is a bit of a fringe character.[/quote] Wrong. We got into this mess primarily because of bad management and policies promulgated by Washington and The Federal Reserve; not by a lack of regulation. Schiff’s point is that agencies such as the SEC do not protect anybody they just increase the cost of business while giving investors the “impression” that the market is safe. If you were to get rid of the SEC and investors lived without the fake “impression” that their money is safe with whom they placed it investors would be faced with the very real proposition that if they gave somebody their money to invest they may well get ripped off. Consequently the onus would be on the investor to either do their own leg work and invest the money themselves or the proper leg work investigating the people they are giving their money. Markets work best when the individual takes it upon themselves to make their own informed decisions and don’t rely on the imaginary protection of government. Unfortunately there’s going to be many government workers who are going to get hit with a cold bucket of water in their face when their government… Read more »
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