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by Ashraf Laidi
Posted: Feb 20, 2010 5:00
Comments: 30765
Posted: Feb 20, 2010 5:00
Comments: 30765
Forum Topic:
EUR
Discuss EUR in this thread
yep,
its from his letter
i wonder if obama manages to escape in glory
just like greenspan did
That's according to Peter Schiff, the best-selling author and CEO of Euro Pacific Capital, who delivered his frightening warning to investors in a recent interview on CCTV.
"The problem with politicians is they don't want to level with the voters and tell them how bad the economy really is and what the cure for the disease is," Schiff said.
The "disease" Schiff refers to is a toxic combination of our massive $16.4 trillion debt and the Fed's continued devaluing of the dollar through its controversial 7-year long "easing" program.
The Fed is currently purchasing $85 billion a month in Treasury and mortgage bonds, a form of stimulus.
President Obama and like-minded politicians claim this stimulus has pushed the economy forward, boosting GDP and keeping inflation low.
But Schiff says "it's another lie."
In fact, according to Schiff, the government has done nothing more than create a "phony" economy that is "completely dependent on the ability to borrow more money that we can't pay back."
"The Fed knows that the U.S. economy is not recovering," Schiff said. "It simply is being kept from collapse by artificially low interest rates and quantitative easing. As that support goes, the economy will implode."
"The crisis is imminent," Schiff said. "I don't think Obama is going to finish his second term without the bottom dropping out. And stock market investors are oblivious to the problems."
That is the biggest monthly dumping of Treasuries by foreign creditors since 1977!
So which of our country's creditors are doing the most selling? None other than our two biggest creditors, China and Japan.
China and Japan sold a combined $40 billion of US debt last month, but that's a drop in the bucket. China and Japan hold $1.27 trillion and $1.08 trillion of US debt respectively, and more selling will lead to even more bond losses.