I have to give props to Ben over at The Financial Ninja for finding this video as it is absolutely hysterical how Art Laffer mocks Peter Schiff. If this bear market/credit crisis has done one thing, it’s exposed who really knows how economies work and who hasn’t got a clue (*cough, Kramer, Art Laffer). It’s been pretty amazing how dead on Ron Paul, Jim Rogers, and Peter Schiff have been at forecasting this situation America has found itself in. The amazing part is that nobody wants to listen to them still. Even though you can go back and see how they predicted all this mess that we’re in, nobody wants to take the proper steps to correct the situation. From memory here are what these brilliant minds have proposed is needed to get this country back on the right track:

  • Raise interest rates to promote saving
  • Invest money into infrastructure
  • Let the banks/brokers fail, don’t prop up zombie banks
  • Stop devaluating the dollar by printing endless amounts of money
  • Don’t approve the $700 billion bailout
  • Return to the gold standard
  • Embrace the recession, as it serves a function of the business cycle
  • Cut Government spending and decrease the overall size of Gov’t
  • Bring our troops back home not from just Iraq, but everywhere

Remember, the markets are bigger than any government.

Date: August 28th, 2006

4 Responses to “Listen Up When They Speak”

  1. ShortBus Says:

    I am quite sure that it was not "$7 million bailout" But a lot more 🙂 Add some zeros

    The gold standard bullet point is the only one I am skeptical about. Tight government control over the printing of the currency would mean that gold standard would not be needed, and it was proven the Gold Standard did not work either, otherwise no one would have been tempted to remove it. Governments can make or break rules with or without Gold Standards.

    With today's electronic money you could print gold in to existence from the computer just as easily. Is the Gold from the reserve still there, or has it all be leased out ? current lease rates are at 3%, not bad if you can take real interest rates to 1%.

    How many gold transactions are backed by physical delivery these days, and not just financial vehicles supposedly backed by the physical instrument. Creating Gold is not as hard as it might once have been.

  2. Headlinecharts Says:

    Peter Schiff had it right, but he is so obnoxious no one listened. He is so certain he is completely right about everything that he just interrupts other speakers and then pretends they don't even exist.

  3. Jeff Pierce Says:

    Good point. I guess I was amazed at how correct he was that I overlooked his arrogance. However, if I didn't manage my own money and I would have taken his advice and gotten out of equities before the big crash I wouldn't be concerned about his attitude. I'd be grateful he saved my retirement. I was fortunate enough to be in cash or short for a good bit of this move down.

  4. Jeff Pierce Says:


    Thanks for the correction as I rushed when writing that entry. A lot more zeros were in order.

    I agree with you on the Gold standard that was Ron Paul's suggestion. I don't think it could work either, or rather I have a hard time visualizing how that monetary system would work.

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