Posts Tagged Peter Schiff

Thinking the unthinkable: Sell U.S. Treasuries | The Japan Times Online

Peter Schiff gets interviewed by AP, and the Japan Times quotes him.

Peter Schiff, chief executive of Euro Pacific Capital, a New York-based investment company, said the current accumulation of debt by the U.S. government is unsustainable.

“The more money the world lends to America today, the more money they’re going to have to lend tomorrow,” he said in a telephone interview.

“It’s a giant Ponzi scheme. Nobody is ever going to get their money back.”

Japan would be venturing into untested territory if it decided to reduce Treasury holdings.

via Thinking the unthinkable: Sell U.S. Treasuries | The Japan Times Online.

So….. reducing its Treasury holdings is “untested territory” and that’s of greater concern than “Nobody is ever going to get their money back?” I must be missing something!

(Update:) In case readers think Schiff is the only expert out there with this opinion, here’s another one, from Mike Shedlock: “The global financial system is bankrupt. There is no way loans that have been made can be paid back. That statement applies to the Eurozone, the US, the UK, China, Australia, Canada, and for that matter nearly everywhere one looks.”

And here’s some more fun facts and figures:

“The holdings translate to ¥1 million per Japanese taking this risk in shouldering U.S. debt, all without their fully being aware of it,” said Kenji Nakanishi, a lawmaker in Your Party, a new opposition party that made significant gains in the last election.

Nakanishi said that Japan shouldn’t sell all its holdings at once, but should reduce them by about ¥10 trillion each year, and earmark some of that money for recovery spending in the Tohoku region, which was devastated by the March 11 earthquake and tsunami.

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Economics books that help you tell the future

Atlas sculpture, New York City, by sculptor Le...
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Historian and Austrian economist Gary North writes that many people are confused by the media’s pronouncements on gold, inflation and deflation:

Self-Inflicted Confusion and Paralysis: Thinking About the Economy Without Understanding Economics

If called upon to outline the arguments of each position, they could not do it. They have no idea of what they have read. They are utterly confused. Why? Because they do not read books on economics. They read only websites.

For years, I was one of “they”: I was trying to educate myself about finance, investing and economics by reading only websites. I wasted a lot of time. I eventually discovered the 3 books that Gary North recommends below.

If you are confused, you can get clear by reading three short items: Rothbard‘s mini-book, What Has Government Done to Our Money? (pdf), my mini-book, Mises on Money, and Rothbard’s The Case Against the Fed (pdf). All of them are free. If you really want to understand, read Rothbard’s textbook on money and banking, The Mystery of Banking (pdf). It is free. Then you will be ready for the booklet published by the Federal Reserve Bank of Chicago, Modern Money Mechanics.

I sent the above quote to a friend who wrote back that he finds reading economics books incredibly tedious. Not long ago, I would have had the same reaction. What changed? Read the rest of this entry »

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