Baltimore — (TFN): As China grapples with the consequences of its devastating earthquake, it is finally confronting the destabilizing forces bubbling up beneath its economic landscape. This week, several key Chinese officials, usually not known for their candor, conspicuously noted the need to both stimulate domestic consumer spending and bring down roaring inflation. While at [...]
by Peter Schiff
Baltimore — (TFN): With what many have described as a flash of monetary discipline worthy of Paul Volcker, Ben Bernanke reduced short-term interest rates this week to a mere 2%, apparently turning a deaf ear to those on Wall Street who wanted more. But now that the dollar-crushing side effects of cheap money [...]
"By allowing the accumulation of even more taxpayer guaranteed debt, the moves will merely delay and exacerbate the housing problems and will increase the size of losses when these two government sponsored enterprises ultimately fail." — Peter Schiff
by Peter Schiff
Baltimore — (TFN): How do you know when you’re through the looking glass?
A fairly good indication [...]
"The reality is that despite some genuine economic growth abroad, governments are creating so much inflation that food prices are raising anyway." — Peter Schiff
by Peter Schiff
Baltimore — (TFN): As the US economic ship continues to spring leaks, the goldilocks crowd still clings to the false belief that the Fed can easily keep us afloat [...]
Tags: Addison Wiggin, Bill Bonner, CITI, dr doom, finance, Financial, foreign buy-up of US assets, inflation, market, Merryl Lynch, peter schiff, stock market, US economy
"The more catastrophic scenario is one where asset prices hold steady or even resume their ascent, while consumer goods prices rise even faster. This of course is the hyper-inflation scenario, and is the worst possible outcome." — Peter Schiff
by Peter Schiff
Baltimore —(TFN): Among those rational enough to perceive the looming economic downturn, a heated debate has arisen [...]
Tags: ARM, Bush bail-out, CNN, dr doom, finance, Financial, foreclosure, loan freeze, mortgage crisis, peter schiff, property crisis, Real Estate
"Lenders will be on the hook for more losses than had the foreclosures taken place sooner. Of course, as these chickens will likely come home to roost after the next election, that’s a trade-off incumbent politicians will happily make." — Peter Schiff
by Peter Schiff, TFN
Baltimore — (TFN): Without question, the Bush administration’s mortgage rescue [...]
Tags: ARM, Bush bail-out, CNN, dr doom, finance, Financial, foreclosure, loan freeze, mortgage crisis, peter schiff, property crisis, Real Estate
“By understating the true rate of inflation, the government saves an enormous amount of money because so many programs’ benefits escalate with the CPI. These expenditures include social security benefits for approximately 48 million people.” — Peter Schiff
by Peter Schiff, Europacific Capital
Baltimore — (TFN): The price increases that consumers face at [...]
"The credit crunch will spread from mortgages to auto loans and to all forms of consumer lending. The days of Americans borrowing to consume are finally coming to a long over due end. Within a few years most will only be able to buy those goods they can afford to pay for with cash." — [...]
“Another 10% appreciation of the euro against the dollar would cost the European economies half a percentage point in economic growth. While manufacturers and exporters still are sitting on solid order backlogs, it remains to be seen if orders keep coming in when exchange rates alone are adding a 10% premium to European products…” — [...]
Tags: Addison Wiggin, Bill Bonner, decline, demise of the dollar, dollar, dr doom, empire of debt, euro, finance, Financial, hard money, peter schiff
“In December, OPEC nations will convene to discuss continuing their dollar pegs. If they were looking for a reason to drop them, the Fed may have just provided it.” — Peter Schiff
by Peter Schiff, TFN
Baltimore — (TFN): As internal debates in the Gulf and Asian nations intensify over the need to continue propping up the U.S. [...]
“How absurd is it for Italians to come to New York to buy Italian made shoes cheaper than they can find them in Milan? Does it make sense for foreign producers to offer products to Americans for less than their own citizens? Of course not. In short order the free market will correct this by [...]