”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.
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