Establishment talking heads still pushing useless and destructive bailout
Paul Joseph Watson
Tuesday, December 30, 2008
Investor Peter Schiff again went to battle with a raft of establishment talking heads on CNBC yesterday who attempted to propagandize for the bailout by pushing the idea that it was necessary and inevitable.
Schiff pointed out that the word “stimulus” was a misnomer because the government has proven itself incapable of stimulating the economy and has only sought to “interfere with the free market’s ability to create legitimate wealth,” a process that would lead to more inflation and more destruction.
When challenged with the notion that stimulus programs ended the Great Depression in the 1930’s, Schiff pointed out that had the market been allowed to run its natural course absent the interference of government or the Federal Reserve, then there never would have been a Great Depression, adding that capitalism had the cure for the disease with which the government has infected the market.
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While others on the panel attempted to argue for accepting the “inevitability” of more financial regulation, Schiff urged that such measures be resisted. The other establishment talking heads bizarrely promoted the idea of accepting government mandated measures despite the fact that they have proven to make the problem worse in the past and have done nothing to stimulate the economy over the second half of 2008. This is akin to being in a car hurtling towards a brick wall and not slamming on the breaks but preparing for the “inevitability” of crashing through it.
“The problem was in the 1920’s, the Federal Reserve blew up a stock market bubble, when it burst we needed to have a severe recession but Hoover wouldn’t let that happen, he tried to intervene, he tried to prop up companies, he tried to keep companies from failing, he was the most interventionist president up until that point – he started the Great Depression,” said Schiff, adding that Roosevelt then compounded the problem through the rest of the 30’s.
Schiff predicted that the ultimate bottom for the Dow would mean it was worth just one ounce of gold and that it would hit a low of value between five and seven ounces of gold next year.
“It’s gonna be a huge decline in the price of stocks and a huge rise in the price of gold as well,” said Schiff, adding that the creep away from the dollar would soon turn into a “stampede”.
Watch the clips.
This article was posted: Tuesday, December 30, 2008 at 5:50 am