dmitchell
09-19-2007, 01:45 AM
Tonight Glenn Beck interviewed economist Peter Schiff, who has endorsed Ron Paul. Important excerpts are below, but the full transcript (http://transcripts.cnn.com/TRANSCRIPTS/0709/18/gb.01.html) is online.
BECK: OK. Peter, the one thing that you talk about in your book is that the dollar is going to be worthless. And I will tell you that I've talked to people who are bulls. You guys are both bears. I've talked to bulls, and they are extremely concerned that we've only got a few levers and knobs to do again and to pull. And if we start to cascade down, we might open some valves. If we're hit by a terrorist attack or something like that, the government will not let these banks fail. Things won't fail, so they'll just start printing money. You're talking about massive inflation.
SCHIFF: I think the best-case scenario is the dollar only loses half its value. The worst case is much worse. I mean, the worst case would be hyperinflation that was inspired by a government effort to postpone the recession. The best-case scenario is that we have the recession sooner rather than later, and it's going to be a very severe recession. Housing prices are going to collapse. But consumer prices, what we pay for what we consume, those prices are going to go up dramatically during the recession.
BECK: Have either of you guys read "The Forgotten Man," I think it's Amity Shlaes? It's a tremendous book. And she talks about the real causes of the Depression. And, Peter, it's pretty much what you were saying. Michael, I'd love to hear your comments on this. But the Depression, the reason why it was as bad as it was, is because the government got in there and screwed around with it.
SCHIFF: Of course. I mean, the government created the conditions. First, the Federal Reserve blew up the bubble. They were too easy with monetary policy. They created too many dollars. They created the speculative mania of the 1920s. When the bubble burst, both Hoover and Roosevelt came in, compounded the situation by forcing employers, not allowing employers to reduce wages, by destroying food, by trying to artificially keep food prices higher, they created the Depression. It didn't have to be that bad.
BECK: Hold on. Wait, wait, wait. I've got to ask you this question. What you guys are talking about is really scary stuff. The terrorists -- Osama bin Laden wants to stop our economy, wants to kill us through our economy. Do you believe that if we had a major spike in war or oil, with all of the stuff that you're talking about, do you believe this is a knockout punch, possibly, for the United States?
SCHIFF: Look, they don't need to kill us. We've already committed suicide. You know, we've borrowed trillions of dollars.
BECK: No, no, don't. Just answer this clearly, Peter. Do you believe this is a possible knockout punch for the economy of the United States of America?
SCHIFF: The economy of the United States of America is a house of cards and is about to collapse.
BECK: OK, guys, thanks a lot. Going to sleep well tonight. Not enough valium on the planet. If you'd like to hear more from Peter Schiff in particular, please go to glennbeck.com right now, subscribe to my magazine, "Fusion." Peter has written a great and frightening article for us on the worst-case scenario for our economy. If you want to prepare for the worst, it is a must-read. Deadline for getting this issue is tomorrow, and your dollars may be no good by tomorrow, so you better do it now. And we will not take payments in gold, yet.
BECK: OK. Peter, the one thing that you talk about in your book is that the dollar is going to be worthless. And I will tell you that I've talked to people who are bulls. You guys are both bears. I've talked to bulls, and they are extremely concerned that we've only got a few levers and knobs to do again and to pull. And if we start to cascade down, we might open some valves. If we're hit by a terrorist attack or something like that, the government will not let these banks fail. Things won't fail, so they'll just start printing money. You're talking about massive inflation.
SCHIFF: I think the best-case scenario is the dollar only loses half its value. The worst case is much worse. I mean, the worst case would be hyperinflation that was inspired by a government effort to postpone the recession. The best-case scenario is that we have the recession sooner rather than later, and it's going to be a very severe recession. Housing prices are going to collapse. But consumer prices, what we pay for what we consume, those prices are going to go up dramatically during the recession.
BECK: Have either of you guys read "The Forgotten Man," I think it's Amity Shlaes? It's a tremendous book. And she talks about the real causes of the Depression. And, Peter, it's pretty much what you were saying. Michael, I'd love to hear your comments on this. But the Depression, the reason why it was as bad as it was, is because the government got in there and screwed around with it.
SCHIFF: Of course. I mean, the government created the conditions. First, the Federal Reserve blew up the bubble. They were too easy with monetary policy. They created too many dollars. They created the speculative mania of the 1920s. When the bubble burst, both Hoover and Roosevelt came in, compounded the situation by forcing employers, not allowing employers to reduce wages, by destroying food, by trying to artificially keep food prices higher, they created the Depression. It didn't have to be that bad.
BECK: Hold on. Wait, wait, wait. I've got to ask you this question. What you guys are talking about is really scary stuff. The terrorists -- Osama bin Laden wants to stop our economy, wants to kill us through our economy. Do you believe that if we had a major spike in war or oil, with all of the stuff that you're talking about, do you believe this is a knockout punch, possibly, for the United States?
SCHIFF: Look, they don't need to kill us. We've already committed suicide. You know, we've borrowed trillions of dollars.
BECK: No, no, don't. Just answer this clearly, Peter. Do you believe this is a possible knockout punch for the economy of the United States of America?
SCHIFF: The economy of the United States of America is a house of cards and is about to collapse.
BECK: OK, guys, thanks a lot. Going to sleep well tonight. Not enough valium on the planet. If you'd like to hear more from Peter Schiff in particular, please go to glennbeck.com right now, subscribe to my magazine, "Fusion." Peter has written a great and frightening article for us on the worst-case scenario for our economy. If you want to prepare for the worst, it is a must-read. Deadline for getting this issue is tomorrow, and your dollars may be no good by tomorrow, so you better do it now. And we will not take payments in gold, yet.