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Bubble economy

Posted by Jesse on February 17, 2008

A little history and a little prophecy
February 2006 Peter Schiff U.S. Bubble Economy

February 28, 2006
Resistance…Denial…Debt
by Bill Bonner

Around the world, people are beginning to notice the signs. While no maturing economy can avoid some sag, bulges and lines, it is the resistance, denial and debt that produce the real problems.

The Russian newspaper, Pravda, reports:

“The United States is heading to financial crisis at top speed. That is correct, America will default on its foreign debt sooner or later if the actual trends remain unchanged. Consequently, the whole dollar-based world (including savings in U.S. currency) may crumble. The picture looks pretty grim this time around. Several factors will have an extremely detrimental effect on the dollar, according to U.S. Secretary of the Treasury John Snow who forwarded a letter full of ominous predictions to 21 members of U.S. Congress. The letter was made public after the markets had been closed for Christmas and New Year’s holidays – a rather appropriate precautionary move in terms of the international foreign exchange market, which is extremely sensitive to any sound produced by U.S. bureaucrats.

“Besides, the U.S. Federal Reserve is going to stop publishing the so-called ‘M 3 aggregate’ reports i.e., data on increase rates in money supply. Given the New Year’s predictions by John Snow, the Fed’s intentions look pretty suspicious. In other words, the international community will have no tool for measuring a real value of the dollar…

“The Fed is going to pull the plug on the data in March this year. Several events should occur in different countries more or less at the same time and thus damage credibility of the U.S. securities. Risk-averse investors get rid of speculative securities e.g., the dollar securities under the circumstances.

“All in all, the situation is quite alarming though it looks like a play being staged on purpose.”
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December 14, 2007
A Review of Peter Schiff’s Crash Proof
by Bob Murphy

Ever since I had my epiphany and realized that Peter Schiff had been right about the imminent collapse of the U.S. dollar, I’ve been meaning to write a review of his book. When the stock market became increasingly volatile, I thought, “I’d really better write that review soon!” But the final straw came today, when I read that wholesale prices in November rose at the fastest rate in 34 years. LRC readers need to learn how to protect their wealth, while they still have some left.

Schiff is president of Euro Pacific Capital, a broker-dealer specializing in foreign markets. He is very well read in Austrian economics, and his pessimistic analyses on CNBC and other outlets have earned him the nickname “Dr. Doom.” You might say that the maverick Schiff is the Ron Paul of investment analysts.
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Comedic Investment Banker explains the Subprime mess

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4 Responses to “Bubble economy”

  1. […] Bubble economy […]

  2. […] rideronthet wrote an interesting post today onHere’s a quick excerptA little history and a little prophecy February 2006 Peter Schiff U.S. Bubble Economy […]

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