The cause of the U.S. economic crisis – it’s not what you think
October 10 2008 12:49 am | Economics
If you know Peter Schiff then you know his views on the cause of the U.S. economic collapse. If you don’t know his views and you think the cause is sub-prime mortgages then your wrong, the cause isn’t the mortgage thing, the cause is the we don’t make stuff any more thing. We don’t make stuff anymore, China does, Korea does, Japan does, Taiwan does. All we do is service each other. Services export about as well as buggy whips.
If you import everything and export nothing, what happens? Your income goes down. How do you fix this? Seems obvious, make stuff, make better stuff, make a lot of stuff. Nah, that’s too hard, just borrow the money. Why? Because the Federal Reserve told us to. How? By keeping interest rates so low it made credit insanely easy and cheap. Greenspan and Bernanke, current U.S. Federal Reserve Chairman, did what Bin Laden couldn’t do, destroy America.
The final nail in the coffin: liberals. The liberals suckered us into allowing Fannie Mae and Freddie Mac to lower their standards and start giving sub-prime people sub-prime mortgages. Eventually all these sub-prime people defaulted and that, my friends, is the ton of bricks that is now breaking the U.S. economies back. The mortgage problem wasn’t the cause, it was merely an accelerant, it would of happened anyway. Here’s Peter Schiff himself to explain:
Who to vote for, McCain or Obama? Which one can fix this? Neither. It doesn’t matter because the damage has been done and there is no undoing it. You just have to let the disaster happen then rebuild from the rubble. The important thing now is to get involved, no more apathy. Don’t trust anyone, especially politicians. Ask questions, let them know your watching. Learn all there is to learn about the cause of this and don’t repeat it. America will be back, in 5 years or so, better, leaner and definitely meaner. A little warning to anyone or any country who kicks us while we’re down or tries to take advantage of our temporary weakness: you will regret it because we won’t forget it.
