Schiff Backs Down from Hyperinflation Debate

[Jordan]

http://globaleconomicanalysis.blogsp...om-debate.html


Schiff's changing his tune. In a recent interview he said, "I still say that hyperinflation is a worst case scenario. I never say we are going to have it for sure."

He's also backing down from a commitment to debate Mish about hyperinflation.

[Zippyjuan]

Schiff in 2009 on Glen Beck (repeated in the NY Times December 2011):
http://krugman.blogs.nytimes.com/201...n-predictions/

Peter Schiff on Glenn Beck, Dec. 28, 2009:


PAYNE: So, where are you then, Peter, with respect to inflation? Do you think this is going to be the big story of 2010?

SCHIFF: You know, look, I know inflation is going to get worse in 2010. Whether it’s going to run out of control or it’s going to take until 2011 or 2012, but I know we’re going to have a major currency crisis coming soon. It’s going to dwarf the financial crisis and it’s going to send consumer prices absolutely ballistic, as well as interest rates and unemployment.

PAYNE: And what does that mean? For people watching this show, what does that mean for the average American?

SCHIFF: It means their life is going to get a lot more difficult. It means things that they need to buy, things like food and energy, are going to be much more expensive. Ultimately, interest rates are going to rise and their entire standard of living is going to plunge.

And I’m hoping the government doesn’t respond to this inflation with price controls because that’s going to make it even worse. Now, you’re going to be waiting in long lines to get basic food items or to get energy because there’s going to be shortages. People might be going to the black market.

PAYNE: You’re talking you’re talking Zimbabwe, Weimar, Germany — I mean, you’re really talking about something like that actually happening in this country.

SCHIFF: It will happen if we don’t change policies. There is still time to change.

PAYNE: Right.

SCHIFF: I mean, I’m running for the United States Senate, so I can try to change that myself. But if we don’t reverse course, if we continue to stimulate, then we will end up with hyperinflation and it will be like Zimbabwe.

[ctiger2]

Schiff has nearly always qualified the hyperinflation call as a worst case scenario and not guaranteed. The only time he doesn't qualify the hyperinflation call is when he's on some combative panel of CNBC idiots and he gets all worked up. Schiff has a gigantic chip on his shoulder from being laughed at for years on financial media.

[Zippyjuan]

Just curious- has Schiff ever had anything positive to say about the economy- even before the current economic crisis- or is he always bearish?

[Zippyjuan]

Interview in 2002 when he was also predicting doom. He said we were entering a bear market and was predicting high inflation in the next couple years back then as well. Prediction was for the DOW to go down to 2000 and NASDAQ to 500 and interest rates "through the roof". DOW was 10,000.

[thequietkid10]

Think this is bad someone should do a "best of Alex Jones" (hello Hot Topics)

I for one find apocalyptic rhetoric and the idea that abolishing the fed is a cure all to be dangerous.

[sgt150]

Think this is bad someone should do a "best of Alex Jones" (hello Hot Topics)

I for one find apocalyptic rhetoric and the idea that abolishing the fed is a cure all to be dangerous.

Dangerous to who? The fed?

[Kotin]

Lol been a while..

[jj-]

Mish is a bloodsucker and Schiff doesn't want to feed him with his blood.

[Acala]

I have yet to hear any reasonable explanation of how the US government can pay its debts and meet its promises. That means it will either default by not paying or it will "meet" its debts and obligations by creating money. If someone has another escape route, I would like to hear it.

Given the two choices of simply NOT making the payments versus making the payments with a vast flood of new, devalued money, I predict the second path because it can delay the day of wreck-oning. Politicians are mostly cowards who will postpone facing reality.

The dramatic expansion of the money supply needed to "meet" its obligations WILL cause inflation. Hard to say if it will be a hyperinflation, but that would be my guess. In any event it will be enough inflation to turn the economy on its head and ruin millions of lives.