@brothermikefan In 1950 our gross debt as a percentage to GDP was 94% and the top tax bracket was 84.36%. Ten years later the gross debt went down to 56% of GDP. In 2009 our gross debt as a percentage to GDP was 86.1% and our top tax rate was 35%. Next year our gross debt is expected to go to 101% of GDP. What makes us so special compared to our parents and grandparents that we have to be so cheap when it comes to paying for our government?
Excellent points peter as always. Greek government was cooking the books with Goldman Sachs and this is no allegation by the time they did it.. it was considered legal by any EU accounting rule. National Economics is ruled by policies though greece was on verge of bankruptucy in 1991. But then EU stepped in and guaranteed the debt and future loans of the country to the trade off of the signature of the maastricht treaty. I dont know exactly why they keep the regime of the country alive.
The truth is that the debt crisis we see playing out in Greece may soon repeat itself in some of the largest nations in the world such as Japan, the U.K. and even the United States.
Kind of hard to rein in the all the freebies that citizens have gotten. Mandatory 14 months of pay each year, and a full years salary for maternity leave.
@34jwik In fact Greek banks have over 100% of gdp in savings they are over about 200 billion euros or something according to statistical data of Bank of Greece. So the private sector funds his operations with his own savings. Greece must oust the euro denouce 250 billion euros in total debt (which over 70 billions are owed from germany for war reparitions that they were never paid back) and another 70 billion from German and French banks +50 hold from ECB and make a fresh start
@silverbluejc Are you serious? He called the sub prime implosion years before it happened. People called him crazy to his face when he said the derivatives were junk. Oh, and P.S. The Dow closed down under 10K today and was almost down to 9K.
@1stGenGamers This video is about the sobering 1000 point drop for the week, in which the people are protesting the potential end of the booze party and the great hangover that comes after.
It's strange that so many people paid so much more attention to the health care "reform" bill than to the financial aspects of the nation. Yet the finance is SO much more important. I see disaster ahead. Someone told me that the violence in Greece will only get worse as cuts get deeper. Then martial law will be imposed, most likely permanently. As Greece goes, so goes Spain, Portugal, Italy and the US.
.. Debt forgiveness = deflation. It's an unspoken taboo to suggest government allow deflation. No reasoning for that taboo is asked for, and none is offered, but it remains a taboo. Is it the dismissed solution, or the inevitable one? Perhaps it's both.
@TeRrOrBlAdEgr Something like that would definitely cause Greece to go bankrupt. We're not interested in losing our money, we're interested in Greece paying us back.
welcome to the alive and alert world. We live in a debt system. our currency has no value. It's smoke and mirrors; and people are beginning to realize that. The dollar is a note - a promissory note - a debt instrument from its inception - it is not real money - it is a promise to pay - it is not a medium of payment - it is a medium of debt transfer and delay. The dollar has no intrinsic value. there is no money - just your toil and your signature, which is real money, and your credit. Peace
@2uberu How 'bout keeping the taxes at a level that actually pays for what we spend on without borrowing from other countries? Kinda like the healthcare bill that Obama made sure would be paid for by taxes and wouldn't add a dime to the deficit.
Is the Fed run by the govt or big banks? If the big banks own it and give 0% interest bonds to themselves which they use to buy high interest Federal Reserve bonds wont they become richer by having a large portion of the American debt?
I'm in France, we are next on the list after Grece, portugal, spain and Italy..... We have gun control....it sucks so bad, i don't want to be burned alive like those poor guys in Greece.
@Search4TruthReality Money does not have intrinsic value...and that is how it should be....A check has no intrinsic value but people use those with no problem....money checks credit are all means of liquidity like oil in an engine to keep it moving..
I always said from day one that the euro story stinks like the socks you wear for one week. You cannot SIMPLY have the same currency or interest rates like Germany. It defies ANY economic logic
@TeRrOrBlAdEgr yes but u know this is not possible cause as u say and i say we must pay too other countries 300billion euro and u know why we own so much euro ???????? cause every time we wont help countries like germany and france and england say too as ok we will help u we will give u 200.000.000 euro but u must buy from us tank and submarines and helicopters and ....... soo u understand that is u fold . u say becareful turkey buy weapons but the 2 countries is in nato i dont get it .........
I enjoy watching your videos but THEY ARE JUST TOO LONG! Certainly, you could condense them down to 5 minutes or so. I think you really need to think about this or make one video and ask your fans what they think. Hope you end up reading this.
@IWashMyOwnBrain real money has intrinsic value; but it's against public policy to use real money that has intrinsic value - silver & gold. A check is another instrument drawn against other debt instruments on deposit - Federal Reserve Notes / "money of account" / numbers in a computer system representing the share of public debt you've accepted in exchange for your labor in the form of Federal Reserve Notes.
To see more vids about hyperinflation, and specifically what New Hampshirites are doing about it, click my channel. Then...come back and watch more Schiff vids!!
@btmcguir25 Do a Google search for local coin shops. Then go there with cash & buy your silver. Don't ever buy silver or gold online or you'll end up on a list of silver buyers. Corporate security leaks could lead thieves to your home who will break in looking for silver. Also if the government decides to seize silver, they'll have your name and address and soon their thugs will kick your door in and water-board you and your family until you tell them where your silver is hidden.
@TeRrOrBlAdEgr I've had companies under my control with 600 million euro turnover a year. When I began with that job, it was a big mess. I also had to deal with the IRS in Holland. We have accountants that take care those businesses don't get a fine. The company makes 4,8 billion euro now. I wrote a performance plan for them. So when you talking about money, I'm very interested. Countries that suck, are mostly to find in the transparency intern. index. Oh, I work for Dutch enterprises (only).
@TeRrOrBlAdEgr We didn't want Greece in, in the first place. Look you take it personal. If you have 1,5 million euro and pay your tax, we are happy you doing so. Why? Because we pay tax. Everybody pays tax in Europe. When your country has a problem and you don't pay tax and ask the help of other countries, what do they start thinking about Greece? Now we have to bail you out somehow with 5 billion euro. The rest of the world wants to buy our state obligations, because we are trustworthy.
@scottgellermd Thanks for the education grandpa but to me debt is debt. So you're saying NOBODY paid 84%. Were they only paying 35% then? Probably not. Are there no tax shelters today? Who's not paying 35% today who really should be? And we may not have manufacturing but there seem to be billions and billions to be made in the financial services industry. Come on. There's money out there. We just don't have any politicians who are willing to give up their jobs in order to ask for it.
Geithner sells Treasuries to the Federal Reserve. The Federal Reserve owns a lot of ot them. They use the interest from these Treasuries to loan to the banks. That interest comes from the taxpayer. The algorithmic computerized trading platforms make up 60% or 2/3rds of the market's volume. who says they don't have the power to crash the markets? The same banks that use these platforms also can get a free loan from the FR discount window. Did the banks hijack the market for Greece's bailout?
Someone will try the New Zealand solution, the only real remedy, imposed by a Labor government two decades ago, when they shocked everyone by zeroing out all government programs. The result was an amazing boom, particularly in agriculture, where huge farm subsidies and regulations were abolished and the entire department dismantled. Abolishing government programs turned out to be all upside.
I'm from Germany and I think you're so right with your analysis of the Greece situation, Peter. And eatandtravel wrote about the rise of a new Hitler, you're so damn right. Left wing socialists are getting so strong here nowadays, it's probably only a matter of time until we'll have socialist dictatorship in the very heart of Europe again. :-(
@34jwik There's a rule when it comes to economics. Only by export a economy can grow. Now Germany exports some 800 billion every year, Holland over 500 billion a year and France below 500 billion euro every year. Holland is in the top 5 biggest exporters in the world. There's no Italy in that top.
@brothermikefan Debt/GDP represented War debt. NOBODY paid 84%....tax shelters for all. NO welfare entitlements except SS. European industry still partly destroyed by War. EVERYTHING manufactured here. Totally different scenario today. Poor analogy...............you must be young to not know the above.
@SvrchovaneCechy I take offense to your statement that the Greeks have never acted in a responsible manor. The Battle of Thermopylae (480 b.c.e.) was a great achievement. I'm sure they'll do something that amazing again, you just wait and see... =P
Once all that money is printed and all of your prices go up, people will be rioting in the streets against 'greedy corporations' that want more profits, not understand that the currency was loosing value all along.
@seanboy80 Seeds and bullets is the real shit-hitting-the-fan protocol. Gold doesn't mean anything until after the reordering. I'm not necessarily giving this direct advice, but there it is.
@Plakosternas YOu can talk and talk. Greek economy today is in shreads and the second call for more money by the Greek government shows once again how this strange government dysfunctions....Why has Germany refused to help ? Because the German government saw the outcome of simply giving cash....we see the result today. Anyway, other european nations HAVE to help Greece, we have to help each other even in a bitter situation as it is unfolding today. Spain, Portugal and maybe even Belgium may...
@Plakosternas There are so many taxes in Europe too. Greeks were living on credit for years and never bothered until it was no more possible. That's all. They should have known and take preventative measures. They did not because their government just did not care to have a closer look . And we see this happening NOW in the USA where millions live on credit without worries until now and panic spreads and time is NOW to do something about it...The collapse of America? Sort of real isn't it..?
Peter your analysis is very mild and not in depth. First of all you must understand why greece is in trouble? too much borrowing! Why the borrowing occured? to overinflate budgets in all govermental aspects so the politicians can skim away as much money as possible. Do you really now that the politicians are not accountable for their actions is written in THE CONSTITUTION? I really need you to think over this. US will be in the same position pretty soon.. As you have foretold . Hugz from Greece
maybe we are given less money but because of the importance of the matter, profitable solutions that came to light for the first time have come to surface,,if we use this solutions to our advantage then greece will be the next big power in EU..when this happens(maybe today but maybe in 15years) i want you to make a vid saying Sth good (btw "we?" thats just you and a bounch of people that actually believe that greece can get powerful and afraid that when this happen they will fall )
@Brulluhman yes but u know this is not possible cause as u say and i say we must pay too other countries 300billion euro and u know why we own so much euro ???????? cause every time we wont help countries like germany and france and england say too as ok we will help u we will give u 200.000.000 euro but u must buy from us tank and submarines and helicopters and ....... soo u understand that is u fold . u say becareful turkey buy weapons but the 2 countries is in nato i dont get it .........
@Brulluhman if u dint want greece in first place why we were from the first countries that entry in europe before spain before filand before sweden before austria . countries that is near of u and is like brothers too u why u want greece soo much ....... i dont get it and i tell u what if we go out and go with china then europe is 0 cause with us u can control aegean and countries like turkey ally of americans israel and south arabian countries now u get it ? and the cost is too low
In the case of Greece, the private sector did not, in the net, borrow from foreigners: the savings of Greek citizens were enough to cover loans to the private sector. External borrowing was instead done by the government. Indeed, Greece’s external public debt, defined as the part of external debt accumulated by the government, was 89% of GDP in 2009 (or 79% of total public debt in Table 2). Thus, Greece’s external debt essentially coincides with its external public debt.
I would like to mention also that the Euro brought also inflation no matter what Mr Trichet says. The euro lost around 40% of its value compared to basic cost of living expenses like rents, food , gasoline , and so on. The ecb had a target of increasing credit more like 10% to 20% each year. In a way ECB caused the crisis by means of expanding credit and lowering interest rates down to 1%. It was a mistake to join the Euro in the first place it caused a housing bubble and government bond bubble.
couldnt agree more. As a Greek, I am very sad about the whole situation and even more since the bailout. Unfortunately, we are ruled (not just in Greece) by politicians who seek short-term solutions to seemingly short-term problems (initially). This was aggravated when the Greek people adopted rent-seeking in their culture. It's gonna take a long time to recover, considering that we do go bankrupt in 2-3 years. Maybe by 2020...
@csabasand I think Peter is saying the opposite, that creditors have to take responsibility and fail to get their money back. Anyone who has landed money to Greece or Chrysler has to lose that money so next time he will do it more carefully. By this way you can land your monex to anyone and if he can not pay you back someone will bail them out, and the creditors will collect they money anyway.
@darthsuriel Yeah thanks for schooling me in grammar, that's really what matters here. If you actually knew something about the situation you would also have known that countries like mine that aren't even in Eurozone ALREADY gave billions to IMF to bail out Greece and that one of the plans of EU was that all countires in EU lend money to Greece again. As for our neighbour Slovakia - they will lend the money in the end, their prime minister is only acting now like they wont because of elections
there's not enough gold in the world and what gold there is... hoarded by the wealthy - not to mention what is left, mined in Africa, has made slaves out of the people who live on the land rather than the wealth shared. There so much more needs to be done before you get to count your gold - justice and equality and if you aren't working for those things first then hope to God we don't convert back, cause the question you will have to ask yourself is can you afford to protect your gold?
@marniespeaks You see that's the beauty of gold. It will rise to market price so that it will stretch farther. The point is not for every one to have a pound of gold just to have a pound of gold. The point is to have enough gold that it's value equivalent to your worth. As gold becomes more popular the price will rise and you wont need as much to be equal to your worth. It's self adjusting, no central bank needed.
Peter.... people in general do not understand world economics like you or I and to think they could understand the choices they are faced with and make a decision they are happy with is unreal. All most of them know is i'm getting less money and I don't like it..... I agree they should not take the bailout but I bet less than half the population would even understand what that ment.
@michealPW Talking about Leeman Bro..? We don't hear about them anymore...that's strange isn't it..? Where are they now? In jail..? I doubt about it But DSK is in prison for much less than that...DSK should give us some advice in these tremendously difficult times...instead of being sued in New York's Courts..? What's your view and Mr. Schiff's?? I am curious...
The decision has already been made. $15 trillion debt. $150 billion/%interest. When interest at 15% all tax receipts are wiped out. $4 trillion enabled by TARP to be lent to the banks so that they can pass it to the gov as debt. They will keep the party going as long as they can. Too bad for the bag holders (us) when they are done.
The part about Greece cooking the books is a fact, it worked while borrowing was cheap. I also agree it's wrong to assume that this problem is only related to Europe, markets show the sentiment at the moment, but in time, we'll see how these situations are connected. Geographic distance isn't a measure of safety.
@christo930 The one thing I can't understand is why this time is any different? The US has been inflating away it's debt for 40 years and even longer to a lesser extent. Why is the inflation going to be a major disaster this time, but it wasn't before? We will just get poorer, that's all and that was going to happen anyway.
Can you imagine that rioting in the US? Can you imagine what our cities would look like? I have already heard of a US city (I forget which one) that is considering firing all their workers and rehiring them at a lower wage. Can you imagine that happening here? Our cities are already war zones. I live in a large city, god help us.
I dont agree with schiff on the point that creditors should also take a haircut. The reason why people lend to governments is because they know governments cannot default. In economics we learned that government cannot default. If it does default, then we are going to have to restructure our whole education system.
Peter, governments all over the world should repudiate their dept like some US States have done in the 1840's. A government doesn't have money and it's immoral for a country to suffer the consequences of one reckless administration. I know that in my country we would have already bridged a third of the deficit by cutting out interest payments.
@jdl1881 what do you mean all governments would give each other debts? its like saying what if people went to the bank to loan money and then bank would come back to the same person that loaned the money. Nothing would happen it would be just as if nobody loaned any money in the first place. And price of gold and silver would be unaffected by that.
Great video. The ModernMystic has been keeping people involved with the MMT people in a very nice way. It seems to me there's a wing of the economists profession who feel that the failures of the New Deal were because they failed to spend enough! But it's coming out as economic theory. To me, it feels like people are preparing to leap off the cliff.
. @407buddy You can disagree all you want but the fact is that Greece is deep in debt and has to pay it's bills. The "lies" were from the politicians that supported entitlements, easy money and bloated salaries. That sort of thing just doesn't hold up forever. So the reality check is here, time to pay the bill. . .
that was what hong kong government did back in 2002-2003 at the time SARS happened in Hong Kong and Asia, government in HK cut all the people salary and people were not happy. and Hong Kong had surplus. but they still did that. how great Hong Kong government was,
@cnxtrans Precisely. Unfortunately, it's because of a general lack of understanding of economics. Also, inflation distributes the debt burden on everyone equally, whereas tax hikes and government wage reductions target specific groups of people. Inflation is the ultimate socialization of debt.
Another great video Peter! If you somehow don't win, I'm almost tempted to give up on American's being able to properly vote for the best candidate. It's unfortunate I can't vote for you since I live in Chicago. Schiff in 2010 !!! I hope for all of our sake that you win.
@Brulluhman hahahaa good one man . all the north countries u mean ???. heheh good one my friend . the 3 powers that keep euro alive is germany italy and france .:) and ofc if u dont want us 1 we dont want u 1000 its like that simple and nice :)
What bothers me about Peter´s theory is that he focuses mainly on one side of the inflation equation. Inflation is not only an increase in the volume of money but of credit relative to available goods as well. The US has credit debt as far as the eye can see.
it is coming here... light vers already started with AZ immigration protests(already have had some violence displayed) and the wall st protests a week ago and another coming in about a week.. More important look at who is organizing these events
@Thoukudides So you will emerge stronger than ever after you are done rioting, and after you all go back to work, and after rich Greek shippers and smugglers start paying taxes. Yeah just keep telling yourself that.
Nice commentary Peter. Kind of sad to step back and watch our empire crumbling. It's like a bad dream in slow motion, awaiting a train wreck. Keep spreading the truth - hopefully it can help some people prepare.
@vipero00 Any amount - the "price" of gold would just adjust to reflect the corresponding demand. I believe the latest calculations (to go to a full reserve ratio) puts gold at $9000 an ounce.
@niettevragen I taught you had confused things. I am not so sure are you right about this one. But lots of Macedonians (I do not know do you recognize them as nation) will now bomb your inbox.
The most ridiculous thing is that countires like Bulgary where the average sallary is more than 5x lower than in Greece is supposed to lend to money to Greece. That's what I call socialism...
. @407buddy The Greek citizenry are protesting out of ignorance and denial. They are in denial that the bills must be paid and that the easy money days are over. The entitlements are dried up. . .
WoW!! The DOW dropped 1000pts today but came up to a low for the day trade. That's scary, what's tomorrow gonna be like? ECB and Greek bond holders are in a battle royal-scary stuff.
@2237lemon That happens to every politician it seems like. It seems like politics ages everyone almost over night. Glad to see that you agree with Peter and hopefully he wins CT.
SHORT THE MARKET. 2-3 YEAR SWING USE SYMBOLS FAZ TZA BGZ SPXU - Quadrouple your money in the next few years. No lie. No catch. Just a straight up short on the INDEXES
@LeeRyan2930 It is normal for gold to go up whith fear.....when the fear goes away gold will move back down...the dollar will remain strong because the euro is history....
@niettevragen My frien you have mixed all up. There is no country named Yugoslavia any more. You probably thin about Former Yugoslavian Republic of Macedonia F.Y.R.O.M.
Peter, thanks for sharing your wisdom and knowledge and telling it like it is. Americans had better wake up to reality soon. Elect Peter Shiff to the U.S. Senate!
I agree they should default, but they should also go after those banks and politicians within Greece who perpetrated the fraud to begin with (the repo105 games etcetera)
Thank you Peter.
@brothermikefan In 1950 our gross debt as a percentage to GDP was 94% and the top tax bracket was 84.36%. Ten years later the gross debt went down to 56% of GDP. In 2009 our gross debt as a percentage to GDP was 86.1% and our top tax rate was 35%. Next year our gross debt is expected to go to 101% of GDP. What makes us so special compared to our parents and grandparents that we have to be so cheap when it comes to paying for our government?
this was brilliant...everything he said was frighteningly dead on!
Excellent points peter as always. Greek government was cooking the books with Goldman Sachs and this is no allegation by the time they did it.. it was considered legal by any EU accounting rule. National Economics is ruled by policies though greece was on verge of bankruptucy in 1991. But then EU stepped in and guaranteed the debt and future loans of the country to the trade off of the signature of the maastricht treaty. I dont know exactly why they keep the regime of the country alive.
Wow, Peter knows these markets as well as any body. If he sais get ready for hyperinflation I'm getting ready!
@ajagt Can you elaborate on this? I didn't know this. Thanks -
The truth is that the debt crisis we see playing out in Greece may soon repeat itself in some of the largest nations in the world such as Japan, the U.K. and even the United States.
Kind of hard to rein in the all the freebies that citizens have gotten. Mandatory 14 months of pay each year, and a full years salary for maternity leave.
@34jwik In fact Greek banks have over 100% of gdp in savings they are over about 200 billion euros or something according to statistical data of Bank of Greece. So the private sector funds his operations with his own savings. Greece must oust the euro denouce 250 billion euros in total debt (which over 70 billions are owed from germany for war reparitions that they were never paid back) and another 70 billion from German and French banks +50 hold from ECB and make a fresh start
@silverbluejc Are you serious? He called the sub prime implosion years before it happened. People called him crazy to his face when he said the derivatives were junk. Oh, and P.S. The Dow closed down under 10K today and was almost down to 9K.
am I hearing this correct, r u telling china and japan not to borrow to the US?
@1stGenGamers This video is about the sobering 1000 point drop for the week, in which the people are protesting the potential end of the booze party and the great hangover that comes after.
@34jwik I read it somewhere you didn't seem to be against that so I thought you were fine with that.
It's strange that so many people paid so much more attention to the health care "reform" bill than to the financial aspects of the nation. Yet the finance is SO much more important. I see disaster ahead. Someone told me that the violence in Greece will only get worse as cuts get deeper. Then martial law will be imposed, most likely permanently. As Greece goes, so goes Spain, Portugal, Italy and the US.
schiff for president of Poland :P
..
Debt forgiveness = deflation.
It's an unspoken taboo to suggest government allow deflation. No reasoning for that taboo is asked for, and none is offered, but it remains a taboo.
Is it the dismissed solution, or the inevitable one? Perhaps it's both.
@2uberu Hail to the chief!
@TeRrOrBlAdEgr Something like that would definitely cause Greece to go bankrupt. We're not interested in losing our money, we're interested in Greece paying us back.
funny, I already have no hope..
@aw3212 Yes it doen't matter..print more money...the Fed will start printing again soon don't worry...
Interest rates have to go up there is no way around it.
welcome to the alive and alert world. We live in a debt system. our currency has no value. It's smoke and mirrors; and people are beginning to realize that. The dollar is a note - a promissory note - a debt instrument from its inception - it is not real money - it is a promise to pay - it is not a medium of payment - it is a medium of debt transfer and delay. The dollar has no intrinsic value. there is no money - just your toil and your signature, which is real money, and your credit.
Peace
@2uberu How 'bout keeping the taxes at a level that actually pays for what we spend on without borrowing from other countries? Kinda like the healthcare bill that Obama made sure would be paid for by taxes and wouldn't add a dime to the deficit.
Is the Fed run by the govt or big banks?
If the big banks own it and give 0% interest bonds to themselves which they use to buy high interest Federal Reserve bonds wont they become richer by having a large portion of the American debt?
Second! Send this video to everyone! The US as we know it is coming to an end thanks to career politicians!
@dikkydoo1 Your welcome...
I'm in France, we are next on the list after Grece, portugal, spain and Italy.....
We have gun control....it sucks so bad, i don't want to be burned alive like those poor guys in Greece.
@Search4TruthReality Money does not have intrinsic value...and that is how it should be....A check has no intrinsic value but people use those with no problem....money checks credit are all means of liquidity like oil in an engine to keep it moving..
I always said from day one that the euro story stinks like the socks you wear for one week. You cannot SIMPLY have the same currency or interest rates like Germany. It defies ANY economic logic
@eatandtravel
you do know there's not enough gold to go around right?
100 certificates for every once
Yo! Pete ! I agree about 99.9 percent but just wanted to say take your vitamins bcz you're getting bags under your eyes! Looks like you need a break.
@Wcoltd Ask the Germans....and French.
@qkholster yep, and thats the sad truth isnt it? i think obama has a place in his heart for the european way.
one good thing could come of this ...we might get rid of the Euro...and the Amero will never be talked about again...
@TeRrOrBlAdEgr yes but u know this is not possible cause as u say and i say we must pay too other countries 300billion euro and u know why we own so much euro ???????? cause every time we wont help countries like germany and france and england say too as ok we will help u we will give u 200.000.000 euro but u must buy from us tank and submarines and helicopters and ....... soo u understand that is u fold . u say becareful turkey buy weapons but the 2 countries is in nato i dont get it .........
CamelsOwnage Greece is European country my friend
I enjoy watching your videos but THEY ARE JUST TOO LONG! Certainly, you could condense them down to 5 minutes or so. I think you really need to think about this or make one video and ask your fans what they think. Hope you end up reading this.
@IWashMyOwnBrain real money has intrinsic value; but it's against public policy to use real money that has intrinsic value - silver & gold. A check is another instrument drawn against other debt instruments on deposit - Federal Reserve Notes / "money of account" / numbers in a computer system representing the share of public debt you've accepted in exchange for your labor in the form of Federal Reserve Notes.
To see more vids about hyperinflation, and specifically what New Hampshirites are doing about it, click my channel. Then...come back and watch more Schiff vids!!
Peter. Americans today to not eve know why inflation is bad. I think you need to do a video on the negatives of inflation.
@btmcguir25
Do a Google search for local coin shops. Then go there with cash & buy your silver. Don't ever buy silver or gold online or you'll end up on a list of silver buyers. Corporate security leaks could lead thieves to your home who will break in looking for silver. Also if the government decides to seize silver, they'll have your name and address and soon their thugs will kick your door in and water-board you and your family until you tell them where your silver is hidden.
@TeRrOrBlAdEgr I've had companies under my control with 600 million euro turnover a year. When I began with that job, it was a big mess. I also had to deal with the IRS in Holland. We have accountants that take care those businesses don't get a fine. The company makes 4,8 billion euro now. I wrote a performance plan for them. So when you talking about money, I'm very interested. Countries that suck, are mostly to find in the transparency intern. index. Oh, I work for Dutch enterprises (only).
@TeRrOrBlAdEgr We didn't want Greece in, in the first place. Look you take it personal. If you have 1,5 million euro and pay your tax, we are happy you doing so. Why? Because we pay tax. Everybody pays tax in Europe. When your country has a problem and you don't pay tax and ask the help of other countries, what do they start thinking about Greece? Now we have to bail you out somehow with 5 billion euro. The rest of the world wants to buy our state obligations, because we are trustworthy.
@scottgellermd Thanks for the education grandpa but to me debt is debt. So you're saying NOBODY paid 84%. Were they only paying 35% then? Probably not. Are there no tax shelters today? Who's not paying 35% today who really should be? And we may not have manufacturing but there seem to be billions and billions to be made in the financial services industry. Come on. There's money out there. We just don't have any politicians who are willing to give up their jobs in order to ask for it.
Geithner sells Treasuries to the Federal Reserve. The Federal Reserve owns a lot of ot them. They use the interest from these Treasuries to loan to the banks. That interest comes from the taxpayer.
The algorithmic computerized trading platforms make up 60% or 2/3rds of the market's volume. who says they don't have the power to crash the markets?
The same banks that use these platforms also can get a free loan from the FR discount window.
Did the banks hijack the market for Greece's bailout?
Someone will try the
New Zealand solution, the only real remedy, imposed by a Labor government
two decades ago, when they shocked everyone by zeroing out all government
programs. The result was an amazing boom, particularly in agriculture,
where huge farm subsidies and regulations were abolished and the entire
department dismantled. Abolishing government programs turned out to
be all upside.
I'm from Germany and I think you're so right with your analysis of the Greece situation, Peter. And eatandtravel wrote about the rise of a new Hitler, you're so damn right. Left wing socialists are getting so strong here nowadays, it's probably only a matter of time until we'll have socialist dictatorship in the very heart of Europe again. :-(
@34jwik There's a rule when it comes to economics. Only by export a economy can grow. Now Germany exports some 800 billion every year, Holland over 500 billion a year and France below 500 billion euro every year. Holland is in the top 5 biggest exporters in the world. There's no Italy in that top.
@brothermikefan Debt/GDP represented War debt. NOBODY paid 84%....tax shelters for all. NO welfare entitlements except SS. European industry still partly destroyed by War. EVERYTHING manufactured here. Totally different scenario today. Poor analogy...............you must be young to not know the above.
@SvrchovaneCechy I take offense to your statement that the Greeks have never acted in a responsible manor. The Battle of Thermopylae (480 b.c.e.) was a great achievement. I'm sure they'll do something that amazing again, you just wait and see... =P
Once all that money is printed and all of your prices go up, people will be rioting in the streets against 'greedy corporations' that want more profits, not understand that the currency was loosing value all along.
@seanboy80
Seeds and bullets is the real shit-hitting-the-fan protocol. Gold doesn't mean anything until after the reordering. I'm not necessarily giving this direct advice, but there it is.
@projectdurden so your saying that to get out of debt you need get more in debt just like the US?
@brothermikefan It should be obvious by now that cutting taxes does not bring prosperity folks.
@Plakosternas YOu can talk and talk. Greek economy today is in shreads and the second call for more money by the Greek government shows once again how this strange government dysfunctions....Why has Germany refused to help ? Because the German government saw the outcome of simply giving cash....we see the result today. Anyway, other european nations HAVE to help Greece, we have to help each other even in a bitter situation as it is unfolding today. Spain, Portugal and maybe even Belgium may...
@Plakosternas There are so many taxes in Europe too. Greeks were living on credit for years and never bothered until it was no more possible. That's all. They should have known and take preventative measures. They did not because their government just did not care to have a closer look . And we see this happening NOW in the USA where millions live on credit without worries until now and panic spreads and time is NOW to do something about it...The collapse of America? Sort of real isn't it..?
Peter your analysis is very mild and not in depth. First of all you must understand why greece is in trouble? too much borrowing! Why the borrowing occured? to overinflate budgets in all govermental aspects so the politicians can skim away as much money as possible. Do you really now that the politicians are not accountable for their actions is written in THE CONSTITUTION? I really need you to think over this. US will be in the same position pretty soon.. As you have foretold . Hugz from Greece
maybe we are given less money but because of the importance of the matter, profitable solutions that came to light for the first time have come to surface,,if we use this solutions to our advantage then greece will be the next big power in EU..when this happens(maybe today but maybe in 15years) i want you to make a vid saying Sth good (btw "we?" thats just you and a bounch of people that actually believe that greece can get powerful and afraid that when this happen they will fall )
@Brulluhman yes but u know this is not possible cause as u say and i say we must pay too other countries 300billion euro and u know why we own so much euro ???????? cause every time we wont help countries like germany and france and england say too as ok we will help u we will give u 200.000.000 euro but u must buy from us tank and submarines and helicopters and ....... soo u understand that is u fold . u say becareful turkey buy weapons but the 2 countries is in nato i dont get it .........
@Brulluhman if u dint want greece in first place why we were from the first countries that entry in europe before spain before filand before sweden before austria . countries that is near of u and is like brothers too u why u want greece soo much ....... i dont get it and i tell u what if we go out and go with china then europe is 0 cause with us u can control aegean and countries like turkey ally of americans israel and south arabian countries now u get it ? and the cost is too low
In the case of Greece, the private sector did not, in the net, borrow from foreigners: the savings of Greek citizens were enough to cover loans to the private sector. External borrowing was instead done by the government. Indeed, Greece’s external public debt, defined as the part of external debt accumulated by the government, was 89% of GDP in 2009 (or 79% of total public debt in Table 2). Thus, Greece’s external debt essentially coincides with its external public debt.
I would like to mention also that the Euro brought also inflation no matter what Mr Trichet says. The euro lost around 40% of its value compared to basic cost of living expenses like rents, food , gasoline , and so on. The ecb had a target of increasing credit more like 10% to 20% each year. In a way ECB caused the crisis by means of expanding credit and lowering interest rates down to 1%. It was a mistake to join the Euro in the first place it caused a housing bubble and government bond bubble.
couldnt agree more.
As a Greek, I am very sad about the whole situation and even more since the bailout.
Unfortunately, we are ruled (not just in Greece) by politicians who seek short-term solutions to seemingly short-term problems (initially). This was aggravated when the Greek people adopted rent-seeking in their culture.
It's gonna take a long time to recover, considering that we do go bankrupt in 2-3 years. Maybe by 2020...
@csabasand
I think Peter is saying the opposite, that creditors have to take responsibility and fail to get their money back.
Anyone who has landed money to Greece or Chrysler has to lose that money so next time he will do it more carefully. By this way you can land your monex to anyone and if he can not pay you back someone will bail them out, and the creditors will collect they money anyway.
@darthsuriel
Yeah thanks for schooling me in grammar, that's really what matters here.
If you actually knew something about the situation you would also have known that countries like mine that aren't even in Eurozone ALREADY gave billions to IMF to bail out Greece and that one of the plans of EU was that all countires in EU lend money to Greece again. As for our neighbour Slovakia - they will lend the money in the end, their prime minister is only acting now like they wont because of elections
there's not enough gold in the world and what gold there is... hoarded by the wealthy - not to mention what is left, mined in Africa, has made slaves out of the people who live on the land rather than the wealth shared.
There so much more needs to be done before you get to count your gold - justice and equality and if you aren't working for those things first then hope to God we don't convert back, cause the question you will have to ask yourself is can you afford to protect your gold?
@marniespeaks You see that's the beauty of gold. It will rise to market price so that it will stretch farther. The point is not for every one to have a pound of gold just to have a pound of gold. The point is to have enough gold that it's value equivalent to your worth. As gold becomes more popular the price will rise and you wont need as much to be equal to your worth. It's self adjusting, no central bank needed.
Peter.... people in general do not understand world economics like you or I and to think they could understand the choices they are faced with and make a decision they are happy with is unreal. All most of them know is i'm getting less money and I don't like it..... I agree they should not take the bailout but I bet less than half the population would even understand what that ment.
What is the point of risk? If you go to vegas and make a bet are you going to win or lose?
@michealPW Talking about Leeman Bro..? We don't hear about them anymore...that's strange isn't it..? Where are they now? In jail..? I doubt about it But DSK is in prison for much less than that...DSK should give us some advice in these tremendously difficult times...instead of being sued in New York's Courts..? What's your view and Mr. Schiff's?? I am curious...
The decision has already been made. $15 trillion debt. $150 billion/%interest. When interest at 15% all tax receipts are wiped out. $4 trillion enabled by TARP to be lent to the banks so that they can pass it to the gov as debt. They will keep the party going as long as they can. Too bad for the bag holders (us) when they are done.
The part about Greece cooking the books is a fact, it worked while borrowing was cheap. I also agree it's wrong to assume that this problem is only related to Europe, markets show the sentiment at the moment, but in time, we'll see how these situations are connected. Geographic distance isn't a measure of safety.
@christo930 The one thing I can't understand is why this time is any different? The US has been inflating away it's debt for 40 years and even longer to a lesser extent. Why is the inflation going to be a major disaster this time, but it wasn't before? We will just get poorer, that's all and that was going to happen anyway.
Can you imagine that rioting in the US? Can you imagine what our cities would look like? I have already heard of a US city (I forget which one) that is considering firing all their workers and rehiring them at a lower wage. Can you imagine that happening here? Our cities are already war zones. I live in a large city, god help us.
I dont agree with schiff on the point that creditors should also take a haircut. The reason why people lend to governments is because they know governments cannot default. In economics we learned that government cannot default. If it does default, then we are going to have to restructure our whole education system.
Peter, governments all over the world should repudiate their dept like some US States have done in the 1840's. A government doesn't have money and it's immoral for a country to suffer the consequences of one reckless administration.
I know that in my country we would have already bridged a third of the deficit by cutting out interest payments.
@jdl1881 what do you mean all governments would give each other debts? its like saying what if people went to the bank to loan money and then bank would come back to the same person that loaned the money. Nothing would happen it would be just as if nobody loaned any money in the first place. And price of gold and silver would be unaffected by that.
Great video.
The ModernMystic has been keeping people involved with the MMT people in a very nice way. It seems to me there's a wing of the economists profession who feel that the failures of the New Deal were because they failed to spend enough! But it's coming out as economic theory.
To me, it feels like people are preparing to leap off the cliff.
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@407buddy
You can disagree all you want but the fact is that Greece is deep in debt and has to pay it's bills. The "lies" were from the politicians that supported entitlements, easy money and bloated salaries. That sort of thing just doesn't hold up forever. So the reality check is here, time to pay the bill.
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@TeRrOrBlAdEgr When we would get out, our currency (guilder) would be doubled in worth.
If Russia attacked Turkey from the rear, would Greece help?
that was what hong kong government did back in 2002-2003 at the time SARS happened in Hong Kong and Asia, government in HK cut all the people salary and people were not happy. and Hong Kong had surplus. but they still did that. how great Hong Kong government was,
@cnxtrans
Precisely. Unfortunately, it's because of a general lack of understanding of economics. Also, inflation distributes the debt burden on everyone equally, whereas tax hikes and government wage reductions target specific groups of people. Inflation is the ultimate socialization of debt.
Another great video Peter! If you somehow don't win, I'm almost tempted to give up on American's being able to properly vote for the best candidate. It's unfortunate I can't vote for you since I live in Chicago. Schiff in 2010 !!! I hope for all of our sake that you win.
@Brulluhman hahahaa good one man . all the north countries u mean ???. heheh good one my friend . the 3 powers that keep euro alive is germany italy and france .:) and ofc if u dont want us 1 we dont want u 1000 its like that simple and nice :)
What bothers me about Peter´s theory is that he focuses mainly on one side of the inflation equation. Inflation is not only an increase in the volume of money but of credit relative to available goods as well. The US has credit debt as far as the eye can see.
it is coming here... light vers already started with AZ immigration protests(already have had some violence displayed) and the wall st protests a week ago and another coming in about a week.. More important look at who is organizing these events
@Thoukudides So you will emerge stronger than ever after you are done rioting, and after you all go back to work, and after rich Greek shippers and smugglers start paying taxes. Yeah just keep telling yourself that.
Nice commentary Peter. Kind of sad to step back and watch our empire crumbling. It's like a bad dream in slow motion, awaiting a train wreck. Keep spreading the truth - hopefully it can help some people prepare.
@vipero00 Any amount - the "price" of gold would just adjust to reflect the corresponding demand. I believe the latest calculations (to go to a full reserve ratio) puts gold at $9000 an ounce.
@niettevragen
I taught you had confused things. I am not so sure are you right about this one. But lots of Macedonians (I do not know do you recognize them as nation) will now bomb your inbox.
The most ridiculous thing is that countires like Bulgary where the average sallary is more than 5x lower than in Greece is supposed to lend to money to Greece.
That's what I call socialism...
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@407buddy
The Greek citizenry are protesting out of ignorance and denial. They are in denial that the bills must be paid and that the easy money days are over. The entitlements are dried up.
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WoW!! The DOW dropped 1000pts today but came up to a low for the day trade. That's scary, what's tomorrow gonna be like?
ECB and Greek bond holders are in a battle royal-scary stuff.
@2237lemon That happens to every politician it seems like. It seems like politics ages everyone almost over night. Glad to see that you agree with Peter and hopefully he wins CT.
SHORT THE MARKET. 2-3 YEAR SWING
USE SYMBOLS FAZ TZA BGZ SPXU - Quadrouple your money in the next few years. No lie. No catch. Just a straight up short on the INDEXES
@LeeRyan2930 It is normal for gold to go up whith fear.....when the fear goes away gold will move back down...the dollar will remain strong because the euro is history....
@niettevragen
My frien you have mixed all up.
There is no country named Yugoslavia any more. You probably thin about Former Yugoslavian Republic of Macedonia F.Y.R.O.M.
Peter, thanks for sharing your wisdom and knowledge and telling it like it is. Americans had better wake up to reality soon.
Elect Peter Shiff to the U.S. Senate!
I agree they should default, but they should also go after those banks and politicians within Greece who perpetrated the fraud to begin with (the repo105 games etcetera)