Obama's Economy, US Soverign Debt, and Conn. Senate Race Polls

Schiff Report: Obama’s Economy, US Soverign Debt, and Senate Race

December 10, 2009 By: M.J. Harris Category: Liberty Blog

Topics: debt, economy, obama, peter schiff, senate

by Peter Schiff

“When Obama took office we were not on the verge of a great depression, we were on the verge of a great recession. Because of the policies that he has been pursuing we are now on the verge of a real great depression.”

“All that his policies have done is buy incumbent politicians more time in office. We’ve borrowed more money, we are deeper in debt, the dollar is lower, and the economy is worsening all due to this administrations policies.”

“Yes, a lot of the businesses that should have failed are still in business because they were bailed out. But the losses that were going to drive them out of business still exist, except in a large part they exist on the books of our federal reserve.”

“There’s been a lot in the news today about sovereign debt risk. Sovereign risk is basically the risk that a sovereign government would actually default on its debt. Recently in Greece they had to come out and deny rumors that there was going to be a default. Certainly there is a risk that a sovereign nation could default, but its rare. Other the course of history it has happened many times, especially when you have nations borrowing in currencies they cannot print.”

“However there are countries that do default even in their own currency. In some cases, a legitimate default is more honest and preferable to the kind of default that is likely to happen in the United States. We have borrowed too much money, and we’ve spent it all. There’s no way we can pay back the money. There’s no question about the “risk” of a US default, because its a 100% certainty we are going to default.”

“The question is what is the form of the default is going take. Obviously the U.S. government is not going to be honest enough to acknowledge that it can’t pay its debts. So its simply going to default through inflation. The creditors are going to get their dollars but they won’t be able to buy anything with them.”