Peter Schiff: “We Will Never Pay It Back, We Can’t Pay It Back”

Someone sees the problem. “Calling it borrowing is wrong. That means you intend to pay it back.”

He also actually discusses the collapse of the U.S.dollar.

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5 Responses to Peter Schiff: “We Will Never Pay It Back, We Can’t Pay It Back”

  1. RJ says:

    “dollar is going to fall worse than the 70′s interest rates were at 18% for Mortgages with 20% down, it killed our construction business.

    everything is relative I remember gas went from about .32-.35/gal to around .95-1.05
    bread from .35 to about .89

    in todays cost gas 3.50 to about 10.50
    bread 2.50 to 7.25-7.50

  2. notamobster says:

    The Federal Reserve is the largest holder and buyer of US Treasury debt! China has been unwinding their risk for quite some time!

    The Fed just doubled-down on their 3rd failure at propping up the economy. Check out my chart on the front page. It’s getting shorter & shorter between unsterilized debt purchases. QE5 will be in early February! That puts QE12 around July 1st and QE13 on July 2nd.

    Look at current long-term US Debt interest rates. Invest your cash for 30 years and get what? 2.8%

    Peter Schiff is absolutely right. There is no intention of paying it back. The FED will have $4T (4,000,000,000,000) on it’s balance sheet, by the end of FY2013. It will pay for short term notes it bought with more long-term debt and keep switching it’s bill-fold from one pocket to the other until someone checks them on it.

    My analogy of using credit cards to buy useless crap – then long term home equity loan to pay off credit cards – then using the newly available credit cards to pay of the home equity and get another home equity loan to buy more short term debt works pretty well.

    It’s ABSOLUTELY UNSUSTAINABLE!

  3. R.D. Walker says:

    My right hand can write IOUs to my left hand all day. With borrowed funds, my right hand can live high on the hog while my left hand rests comfortably that it is making good money on the interest on its loans. My left hand can live high on the hog too.

    It’s a win/win Nota. Quit complaining.

  4. notamobster says:

    :-)


    When in doubt, print it out!!! “One of these things is not like the other…”

     

    The S&P 500 futures contract has never closed red on the day of a QE announcement before…

     

    VIX closed higher for the first time ever on a QE announcement day…

     

    10Y Treasury Yields rose for the first ime ever on a QE announcement day…

     

    From the FOMC announcement, Gold and Silver closed green but stocks, bonds, oil, financials, and apple all lost ground (as did the USD very modestly)…

  5. notamobster says:

    Oh, hey – I’d expect the metrics for U3 and the CPI to be changing in the future. The Fed said they had a target of 6.5% U3 (unemployment) to stop printing money. They can’t stop printing money and they know it. Thus, they’ll just change the metrics.

    Keep making it sound pretty to those who don’t care to understand.

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