Peter Schiff: Black Friday Not Healthy for the Economy | More People in Debt

[FrankRep]

Black Friday, Fiscal Cliff, Gold, Dollar

November 23, 2012


https://www.youtube.com/watch?v=WATn7PMOTLo


The Schiff Report - Black Friday

[itshappening]

Peter is right, as usual ...

[Matt Collins]

Peter is right, as usual ...

He kinda lost me during the first minute into it when he mentioned that it was bad that we were buying things from other countries... kinda came off as a protectionist.

[itshappening]

He kinda lost me during the first minute into it when he mentioned that it was bad that we were buying things from other countries... kinda came off as a protectionist.

He is saying consumption is not necessarily good for the economy, production and saving is. Peter laments the fact that the US is producing less as evidenced by the large trade deficits.

[jbauer]

Schiff is a one horse pony. He's probably right on most stuff but he hasn't said anything in a long time. If you beleive what he has to say you'll listen and listen. If not you'll disagree and it will turn into a pissing match.

[Brian4Liberty]

Has anyone noticed how much they have been pushing cyber-Monday in the media? It's ridiculous. Non-stop stories about how everyone needs to shop, and that bosses and businesses should make exceptions for this special day. "Let your employees spend all day shopping on the computer, it will be great for the economy!"

Debt is the drug, and they are pushing it at all levels. The biggest addicts are in DC, and the biggest dealers are on Wall St.

[Zippyjuan]

You need all three. Without consumption, there is no need for production and investement in new productivity.

Consumer debt has been falling- not rising.
http://news.equifax.com/2012-11-08-T...ained-Cautious

Total Consumer Debt Fell In Third Quarter, as Americans Remained Cautious

ATLANTA, Nov. 8, 2012 /PRNewswire/ -- Across the country, consumers remain cautious about taking on new debt. Overall consumer debt levels fell $256 billion in the third quarter versus the same period a year ago, according to new Credit Trends data released by Equifax (NYSE: EFX). However, the 2.28 percent year-over-year decline is the slowest rate of decline since the second quarter of 2009, showing that some of the caution may be starting to lift.

"Generally speaking, consumers are showing discipline and caution about debt coming out of the recession," said Loughran. "Even though people are taking on debt to get new automobiles, we also know they are driving their cars longer. We expect the trend of the 'disciplined consumer' to continue for some time."

Black Friday- Steely Dan

[Matt Collins]

He is saying consumption is not necessarily good for the economy, production and saving is. Peter laments the fact that the US is producing less as evidenced by the large trade deficits.

Are trade deficits really a bad thing though?

Yes I agree people should be saving and investing more instead of consuming, but if you can buy things cheaper over seas it ultimately helps your economy to do so because it leaves other money available to use on other things.

[jbauer]

Are trade deficits really a bad thing though?

Yes I agree people should be saving and investing more instead of consuming, but if you can buy things cheaper over seas it ultimately helps your economy to do so because it leaves other money available to use on other things.

Trade deficits is the ONLY thing that is allowing us to export all of our inflation. Its still amazing to me that we can hit print and some other country is willing to send us their resources and labor for worthless paper. For me, the only problem with trade deficits is it eventually bites you in the ass. But for now I say eat cake.

[Zippyjuan]

Trade deficits are not necessarily a good thing or a bad thing. What is the reason they exist is important though. Let us consider the US and say Saudi Arabia. Small country in population compared to the US so they don't have a lot of demand for our goods overall. But they do have a product we want a lot of- petroleum. Let us look at the United States vs say Haiti. We are both bigger and wealthier than they are so it is natural that we would have a bigger demand for goods from them than they would demand from us- our economy is better off then theirs is in addition to the size issue. Now if we are importing more because we are unable to provide ourselves with enough goods or natural resources, that is not necessarily a good thing. If it is becasue we are wealthier, then the deficit does not mean we are worse off.

[Occam's Banana]

Are trade deficits really a bad thing though?

Yes I agree people should be saving and investing more instead of consuming, but if you can buy things cheaper over seas it ultimately helps your economy to do so because it leaves other money available to use on other things.

I don't think Schiff is saying that trade deficits are a bad thing per se. Zippyjuan points out how such deficits may or may not be a bad thing, depending on why the deficit arises. As I understand it (based on things he's said & written elsewhere), Schiff pretty much shares Bastiat's view that exports are the "price" we pay for imports. So in this particular case, I think what Schiff is complaining about is that the current trade deficit is a result of the fact that we're not paying for our imports by making & exporting stuff. Instead, we're paying for imports by borrowing & inflating. That's why he thinks the trade deficit is bad. If it weren't for this, I don't think Schiff would have any particular problem with it.