”To explain business cycles and how they work, the boom is the problem, the bust is the solution. The boom is like an artificial high, like you take heroin, you shoot up and it makes you feel good, it’s artificial. You want to get healthy, then you have to go to rehab, detox. You go cold turkey, you go though withdrawal. The withdrawal symptoms are very unpleasant, painful but it’s necessary if you want to remove these toxins from your system and become healthy again.
The same thing happens in the business cycle, when you have a central bank, same as the 1920s (cause of great depression), you have monetary policy that is too inflationary and you create an asset bubble, you create mal-investments. And the mal-investments need to be purged. The economy needs to be rebalanced” - in PSC
Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
- Gold: The Rally Will Gather Momentum As The Year Progresses
- U.S. Dollar: The World Has A Lot More Confidence Than They Should
- Video: Confiscating Excess Wealth
- Dow Jones Industrials & Gold Parity
- Video: The Federal Reserve Will Not End QE
- What Is Full Employment To Janet Yellen?
- Momentum Stocks Are Having Trouble
- Quantitative Easing (QE) Is An Euphemism For Inflation
- China: No Evidence That Demand For Gold Will Slow
- Video: The Bullish Case For Gold
- ► 2013 (395)
- Why Do We Need A Secretary Of The Treasury?
- Money Printing Is Merely Taxation In Another Form
- The Next Big Move In Gold Will Be Up
- Betting Against Gold Has Been The Wrong Trade
- The High Oil Prices Are A Tax
- Video: Central Bankers Are Clueless
- The Consumer Is Not The Engine, The Consumer Is Th...
- Legitimate Economic Expansions vs. The Inflation-I...
- Explaining The Business Cycle
- Don`t Catch Recovery Fever
- The Recovery Is Not Only Going To Falter - It's Go...
- How Do You Satisfy Unlimited Demand With Limited R...
- Printing Money Is Merely Taxation In Another Form
- The Fed Unspun: The Other Side of the Story
- Videoblog: FOMC Minutes, QE3
- The Fed Is The Biggest Enemy Of This Economy
- We Have To Kill This Phony Economy
- The Substance Is Inflation
- ▼ April (18)
- ► 2011 (308)
- ► 2010 (300)
- ► 2009 (280)