Peter Schiff: Retirement Will One Day Soon Be As Rare As Single Income Households
Money With Melissa Francis | Fox Business Network | February 4, 2013
http://www.youtube.com/watch?v=ySVwJeXfvFs
http://youtu.be/ySVwJeXfvFs
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Peter Schiff: Retirement Will One Day Soon Be As Rare As Single Income Households
Money With Melissa Francis | Fox Business Network | February 4, 2013
http://www.youtube.com/watch?v=ySVwJeXfvFs
http://youtu.be/ySVwJeXfvFs
People don't get that with high interest rates, capital must be allocated more efficiently than with lower interest rates. That is what needs to happen, liquidate bad companies and let the better companies buy up their assets. The people loaning out the money will make sure their investment is good and sound, and the economy will benefit as a whole because there will be more better companies. Also, there will be less capital tied up in questionable investments and more capital available for great new ideas so the economy is also more flexible.
OK. Whew! For a moment there, I thought I had been sucked into the Twilight Zone.
I thought that Spencer Patton guy was the Obama administration Treasury advisor.
Every time he talked, I thought, "WTF? Am I hearing this right? This can't be!"
Then I re-watched the introductions - just to be sure.
Turns out the woman is the Obama administration Treasury advisor.
Now the world makes sense again ... (or rather, the world is still insane in the same, familiar way) ...
On the other hand, there is the opportunity costs of what else to do with money. If you can put it into an account and get ten percent then you will have to find another thing to invest in which offers you a return of greater than ten percent which will reduce the things you are willing to put your money into. If say you think a new idea may yield you a five percent return after your costs and you can get ten percent, you probably won't put your money into that venture. If interest rates are three percent they you might be more likely to invest in it. Thus less investment vs savings when interest rates are higher. (If rates are higher the costs of borrowing are higher as well).Quote:
Originally Posted by Confederate
Yep, high interest rates are an indicator to not borrow and if it is not artificial in either direction, it will prevent the extreme business cycle.Quote:
Originally Posted by Zippyjuan
Honestly I wish he would retire. Does he not know what is going on today? Does he have no idea how many people are already retired even in their 50s now because they can't find a job? The guy is so out of touch with reality.Quote:
Originally Posted by Confederate
hahahaha I did the same thing... When he started on the FED I was like, wait...what?Quote:
Originally Posted by Occam's Banana
What makes it possible for so many to retire in their 50s?Quote:
Originally Posted by RickyJ
They are not retired by choice!Quote:
Originally Posted by Danke
Damn, I am not in twilight zone am I?
I guess "retired" means something different to me.Quote:
Originally Posted by RickyJ
Are you saying "unemployed?"
The single income household point needs to be hammered again and again.
In the 1950's the average income in today's money (using gold or silver) was about $120k/year compared to 40-50k/year today.
That's purchasing power of the dollar directly stolen by the Federal Reserve and the fiat money system hence the two adults need to work in order to support an average family (2 kids). The worst part is most of the additional income then goes on child care costs.
The Federal Reserve is making America poorer. It's insidious by nature but the result is to make society poorer despite the technological advances since the 1950's. In another 50 years of this madness the average salary will barely put food on the table. Actually scratch that; with the way the printing press has been cranked up lately and in the future more like 20 years.
The best advice: start buying physical precious metals while you can and while the dollar is worth something because one day the dollar will be toast. It's their policy to destroy it.
Peter is right. We have squandered our wealth, so retirement will become a rare thing.
So in this instance the men were right and the women were wrong, VICTORY!
Another point Peter has been making for a while is that the big government Americans have been voting for themselves needs to be paid somehow. If people think that tax rates can remain the same with current (and future) levels of spending they are insane. Unless the federal budget is slashed by 25-35% over the next 10 years I expect marginal rates to go up by at least 5-7% per bracket and that won't even cover the deficits.Quote:
Originally Posted by K466
i don't know what you're so excited about, that's always the case.Quote:
Originally Posted by QuickZ06
:D
Price of silver was pegged to the dollar in a fixed ratio (meaning the price of silver was not exactly free to fluctuate) so it is not valid to compare its value then to its value today and in turn try to use that to measure wages over time. The price was also manipulated to keep it there. If you compare purchasing power (as measured by the CPI) incomes today are slightly higher than they were in the 1950's.Quote:
Originally Posted by itshappening
http://www.silverinstitute.org/site/...ory/1950-1960/
Quote:
From the end of World War II through the early 1960s, fabrication demand for silver rose sharply. The rebuilding of Europe and Japan and a worldwide movement toward electrification, housing construction and durable consumer items was responsible for this uptick. Many electrical appliances, as well as electrical generation and transmission systems, use silver, which was one of the major factors behind this extended boom in industrial silver usage. Also key was the advent of mass-market photography, which uses silver in its films and papers.
However, there was another important reason that fabricators were eagerly turning to silver during this period. The U.S. Treasury had a stockpile of silver dating from decades earlier, which it sold off in order to keep the price of silver below its “monetary value” – a number that would correspond to the increased demand and unchanging supply. In summary, the post-war period saw silver demand rise sharply, while mine production and other supplies were relatively stable. Additionally, the actual growth of the overall economy increased the need for circulating coinage. One reason for the Treasury’s sales was straightforward: if silver’s market value rose above its monetary value, $1.29 per ounce, holders of U.S. silver certificates, one form of currency in circulation at the time, could trade in these $1, $5, and $10 bills in exchange for silver bullion. Also, there would be an enormous incentive for individuals to melt down the silver coins in circulation.
Had the Treasury not been present as a seller of silver, market supplies from other sources would have been hard pressed to keep pace with the growth of fabrication demand, and the price of silver most likely would have risen sharply during the late 1950s and early 1960s.
Conversely, was the dollar free to fluctuate? If the dollar is a competing currency to silver or gold, I wouldn't want them tied together, but if the dollar is a bank note redeemable in silver it better not be fractionalised.Quote:
Originally Posted by Zippyjuan
Shocking, the government and/or federal reserve manipulating the economy. Even the price of wages are manipulated by the government.Quote:
Originally Posted by Zippyjuan
There is no need to compare todays wages to todays other goods and services and then compare wages of previous decades to other goods and services of previous decades. The dollar i earned in 1980 should purchase about the same as now. If it is worth less it is inflated. If it is worth more it is deflated. Deflation would solve that retirement problem. The price of wages are like the price of any good or service. It would be silly to compare them to other goods and services. Would you compare todays price of a hotel room to todays price of a bag of apples and say there is no inflation in relation to decades ago? You could compare the price of an apple from decades ago to today and the cost of hiring a kid to mow your lawn today compared to decades ago. Maybe the price of todays wages compared to the price of wages decades ago is the best example of monetary inflation. And don't ever forget that most wages are the last price to adjust to monetary inflation. This is how they bleed your wealth in the moment.Quote:
Originally Posted by Zippyjuan