gavin12
01-29-2008, 10:50 AM
I watch Glenn Buck last night. On his show addressed a person who heads up the IMF. The person gave a speech over the weekend which the person warned foreign countries should lowering interest rates because "it will get us out of the turmoil oil we are in" meaning " by the way, it's shows real fear over the dark clouds which America is maybe heading that the direction". The person who heads up the IMF saying that foreign governments need to start spending more and run up on deficits like America. The IMF person should follow America's lead by using big government welfare stimulus plain as a model for the rest of the world. Beck introduce Peter Schiff is the president of EPC (Euro Pacific Capital) and author of "Crash Proof: how to profit from the coming economic collapse"
The transcripts of Glenn Beck & Peter Schiff
BECK: And I read -- I read this bulletin from the IMF, and it took me like four times to read it because I couldn`t believe that their advice was to infect the rest of the world with our disease.
SCHIFF: Yes. You know, it`s like, you know, a lot of teachers grade on a curve. So they have one student, the American kid in the class, who is smoking dope, cutting class, he`s not studying, so he`s flunking out. And rather than talking to that student to improve his study habits, he`s encouraging the rest of the class to smoke dope and skip class so the whole curve can go down and then everybody can get a passing grade.
BECK: But it doesn`t -- I mean, honestly, I hate to sound like -- you know, like these conspiracy theorists that say the bankers are all in it together, but it`s so stupid, it`s almost like they are intentionally designing a collapse.
SCHIFF: Yes. You know, especially coming from the IMF, because for years these guys have been warning about the big imbalances, the current account and trade deficit in the United States. They`ve been warning about the consequences.
Well, here they are. And instead of saying suck it up and do the right thing, they are trying to put more Band-Aids on it, they are trying to encourage the Europeans to be irresponsible to take the pressure off our currency and our economy.
But, you know, I don`t think it`s going to happen. You look at the ECB, they are talking tough, they`re talking about inflation. They are not going to let European governments start deficit spending because they will reign them in. They will raise interest rates and they will undercut it.
BECK: True or false, Peter, that this is -- I read some place last night that these guys -- this was a real sign of how much trouble they think we`re really in.
SCHIFF: Well, they know because they have been warning about it. Again, you know, we`ve got to suck it up. America has to suffer through this recession.
We can`t look for ways to postpone it like we did before. That`s how come we got the housing bubble, because we didn`t want to face the music four years ago.
BECK: Last night, Peter, on "60 Minutes" they were talking about, you know, oh, look at this, what a surprise. Look how bad it is.
This is something we`ve been talking on this program for a long time. You`ve been talking about this particular scenario for three years now.
SCHIFF: Sure.
BECK: So let me ask you what`s coming in the next three years. What`s it going to look like in three years?
SCHIFF: Well, you know, our whole phony economy, which is based on borrowing money from the rest of the world to consume, is going to fall apart. You know, American consumers acted as if they won the lottery when they owned a home. They were borrowing and spending trillions of dollars because they believed that this home equity was real.
Well, now they`re waking up to the fact that it was an illusion. The only thing that is real is the mortgages that they have, and now they`re walking away from them.
You know, that "60 Minutes" reporter was surprised that somebody didn`t want to pay $3,200 a month for a 1,200 square foot town home. And they said, well, why? You signed up for it. And they said, sure, we were willing to do it when real estate prices were rising, but now that they`re falling we don`t want any part of it, we`re walking away.
BECK: Peter, thank you very much.
The transcripts of Glenn Beck & Peter Schiff
BECK: And I read -- I read this bulletin from the IMF, and it took me like four times to read it because I couldn`t believe that their advice was to infect the rest of the world with our disease.
SCHIFF: Yes. You know, it`s like, you know, a lot of teachers grade on a curve. So they have one student, the American kid in the class, who is smoking dope, cutting class, he`s not studying, so he`s flunking out. And rather than talking to that student to improve his study habits, he`s encouraging the rest of the class to smoke dope and skip class so the whole curve can go down and then everybody can get a passing grade.
BECK: But it doesn`t -- I mean, honestly, I hate to sound like -- you know, like these conspiracy theorists that say the bankers are all in it together, but it`s so stupid, it`s almost like they are intentionally designing a collapse.
SCHIFF: Yes. You know, especially coming from the IMF, because for years these guys have been warning about the big imbalances, the current account and trade deficit in the United States. They`ve been warning about the consequences.
Well, here they are. And instead of saying suck it up and do the right thing, they are trying to put more Band-Aids on it, they are trying to encourage the Europeans to be irresponsible to take the pressure off our currency and our economy.
But, you know, I don`t think it`s going to happen. You look at the ECB, they are talking tough, they`re talking about inflation. They are not going to let European governments start deficit spending because they will reign them in. They will raise interest rates and they will undercut it.
BECK: True or false, Peter, that this is -- I read some place last night that these guys -- this was a real sign of how much trouble they think we`re really in.
SCHIFF: Well, they know because they have been warning about it. Again, you know, we`ve got to suck it up. America has to suffer through this recession.
We can`t look for ways to postpone it like we did before. That`s how come we got the housing bubble, because we didn`t want to face the music four years ago.
BECK: Last night, Peter, on "60 Minutes" they were talking about, you know, oh, look at this, what a surprise. Look how bad it is.
This is something we`ve been talking on this program for a long time. You`ve been talking about this particular scenario for three years now.
SCHIFF: Sure.
BECK: So let me ask you what`s coming in the next three years. What`s it going to look like in three years?
SCHIFF: Well, you know, our whole phony economy, which is based on borrowing money from the rest of the world to consume, is going to fall apart. You know, American consumers acted as if they won the lottery when they owned a home. They were borrowing and spending trillions of dollars because they believed that this home equity was real.
Well, now they`re waking up to the fact that it was an illusion. The only thing that is real is the mortgages that they have, and now they`re walking away from them.
You know, that "60 Minutes" reporter was surprised that somebody didn`t want to pay $3,200 a month for a 1,200 square foot town home. And they said, well, why? You signed up for it. And they said, sure, we were willing to do it when real estate prices were rising, but now that they`re falling we don`t want any part of it, we`re walking away.
BECK: Peter, thank you very much.