The Real Crash: America's Coming Bankruptcy, How To Save Yourself and Your Country
Chapter 1 Excerpt
by Peter Schiff
As I stated in theintroduction, thereal crashI predicted in my firstbook is still coming.You see, before 2006, I had been predicting an economic catastrophe inthe United States, with the burst of the housing bubble being the catalyst.Once that bubble burst and major banks went to the brink of failure, peoplebegan crediting me with “calling the crash.” But what we saw in 2008 and2009 wasn’t the crash. That was the overture. Now we have to sit through the opera.
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The same bubble machine that fueled the last two boom-bust cycles— the Federal Reserve— is already back in high gear, and we must turn it off. TheFed needs to stop fueling inflation and start sucking dollars back out of theeconomy. It also needs to let interest rates rise. When the Fed does these twothings, Washington’s free ride will end— it will no longer be able to borrowat near zero interest. As a result, Congress will have to slash spending, fixour entitlements, and generally shrink government.
These are the right things to do today— they were the right things todo ten years ago. But soon they will become inevitable. We will have nochoice.
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Our economy today is once again built on imaginary wealth. Like theproverbial house built on sand, it will collapse. When that happens, whenAmerica’s tab finally comes due, it will probably be as bad, or worse, thanthe Great Depression. You’d better be ready for it.
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I’ll explore this “how-we-got-here” story in more depth in Chapter 2, but for now, I’ll make this point:
Just as the housing bubble delayed the economic collapse for much of lastdecade on the strength of imaginary wealth, the government bubble is propping us up now. The pressure within the bubble will grow so great that theFederal Reserve will soon have only two options: (a) to finally contract themoney supply and let interest rates spike— which will cause immensely morepain than if we had let this happen back in 2002 or 2008; or (b) just keeppumping dollars into the economy, causing hyperinflation and all the evilsthat come with it.
A whole lot more: http://lewrockwell.com/schiff/the-real-crash-excerpt1.html
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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