US Action News

Peter Schiff explains how current government policies are leading us to a depression worse than the Great Depression and possibly coupled with hyper inflation. He says there never was a recovery, just an artificial bump from massive spending of printed money.

Depression or hyperinflation then Depression are the two choices staring at economic policy makers. And the situation is so far gone that short of dramatically cutting government spending there is no way to avoid destruction of the currency.
No economic policy that I know of can bring us back from this fate.

Mr. and Mrs. Obama fear inflation when they make their personal investments. Their investments concentrate on short-term Treasury debt, shunning the higher interest rates of long-term Treasury bonds, which carry the higher risk of inflation.

Thomas Jefferson and Andrew Jackson understood “The Monster”. But to most Americans today, Federal Reserve is just a name on the dollar bill.

When Money Dies, the horrifyingly true story of post-World War I Germany’s experience with hyperinflation, was first published in 1975. Largely because the world has been forcibly reacquainted with central banks, and specifically, the U.S. Federal Reserve’s “quantitative easing,” this essential book was republished and re-released in 2010.

Peter Schiff on gold and silver. “The fundamentals have not changed. … The fed has got the monetary pedal to the metal.” “The dollar hit an all time record low against the Swiss Franc.”

Even the European Central Bank has expressed its deep concern at America’s weak dollar policy. In the private sector, the University of Texas has invested $1 billion in physical gold. This represents an unprecedented vote of no confidence in this Administration’s stewardship of fiscal and monetary policy.

The solution to the problem of soaring prices of food and fuel lies in Washington. If Congress, the president, and the bureaucracies would restore free markets in food and fuel markets, prices would come down. If Bernanke and the Fed would quit expanding the supply of Federal Reserve Notes, upward pressure on prices would be diminished. It’s that simple, economically.

If they are wrong about there being no damaging consequences from the quantitative easing, they could ignite a 1970’s-type inflation, or worse.

Republicans only need to point to the price of gasoline and food. There is a direct co-relation between the rising price of commodities and the declining popularity of the president. Obama says there is no “silver bullet” that can bring down the price of oil. Republicans point at all of the administration’s actions to regulate and tax further oil and gas companies.