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Peter Schiff Discusses Savings vs. Credit on Fox Business

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Layoffs are an Epidemic.......

Most of the employees are facing anxious moments due to the recent layoffs. The employer needs to take necessary steps to face the global recession like reducing the number of employees, reducing the pay rates to make sure of their sustainability. Layoffs are an epidemic. It seems at times that a return of the plague would be preferable to more layoffs (Not really.) Well, the number of layoffs and more payday loans being taken out are attributable to the people that many thought to be the newly untouchable group – the hi-tech industries. Well, hi-tech isn't quite high profit as much anymore. The recession has forced people to cut back on their tech toys, so software and hardware developers have been shedding employees. IBM, for instance, just farmed out 5,000 jobs overseas. (Executive bonuses and oriental rugs in the office MUST be protected.) It's a sad day in yuppie communities, as the thing they wished to avoid from the blue collar world is now hitting their neighborhoods as well: Layoffs.

Discouraging Saving, Keep Borrowing

Inflation discourages saving. Who wants to "save" their money simply to have it devalued the longer it is held. Now credit card companies don't want people to borrow because they are in a losing position and hence the reason why they are offering incentives for people to pay off their cards and close their account.

Watch the film "THX1138" online for a glimpse into the future.
http://www.pyrabang.com/view.php?ref=THX1138&post_id=7484

Indeed. People will invest their

FRNs in "stuff" that holds value better than dollars!

h-daddy

Off Topic

Holy Moly! I just saw Peter Schiff and Jim Rogers on the BBC, in the space of a few minutes, on some program called "The Oracle".

This is from the channel that (in my recollection), mentioned Dr. Paul a grand total of one time during the primaries and that was on some Internet blog that nobody reads.

Anyone know anything about this Oracle program?

yup. it's run by Max

yup. it's run by Max Keiser.

funny guy

The slogan press on has solved and always will solve the problems of the human race. No person was ever honored for what he received. Honor has been the reward for what he gave.

- Calvin Coolidge

Talking right past each other...

Schiff isn't addressing what Whitney is talking about nor answering the interviewer's question.

Of course, what he says makes perfect sense. But, What fraction of credit card users accumulate substantial long-term debt? How many never pay it off? I am fairly certain that the vast majority of credit card users use them prudently.

A free market in credit is essential to free market capitalism.

h-daddy

Schiff isn't calling for intervention here.

He's laughing at government's attempts to "get banks lending again". He's laughing at the idea that borrowing makes us wealthy. He's right. It doesn't.

http://brits4ronpaul.blogspot.com/

http://lpuk.blogspot.com/

http://northwestlibertarians.blogspot.com/

The point being made is that

prudent use of credit is vital to commerce. Turning off all credit is simply not necessary. Schiff seems to equate all use of consumer credit as imprudent and that credit users can not be savers. Not true by any means.

h-daddy

I agree that we all need to save more.

But jobs don't pay enough to support one person, in many cases. With massive layoffs it is going to be an employers most cherished dream, no raises, just tell the employees to be thankful they have a job. Same old story, in good times and bad, the workers will be expected to work more, for less.

That's true, regarding wages.

But using consumer credit is always a bad idea. It is never a good idea. People are going to learn to save.

One big problem on the horizon, though--as soon as hyperinflation kicks in, people who saved "cash" (worthless FRNs) will be even more hurt than people who abused credit.

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Support the Constitution of the United States

Liz <3 Peter

How could anyone argue with

How could anyone argue with what he just said?

I'm sure a lot of people

I'm sure a lot of people can, like my dumbass bus187 teacher at sjsu that have a strong foundation in the Keynesian belief.

Egads...

I hope this man runs. He's go my vote in 2010 if he does so. I'm tired of looking at Dodd's helmet hair and face (Lord forgive me I want to pound it into a pulp so badly), as well as Leiberman's hang dog visage. WE need new blood in CT.

I hear a resounding chorus in my head...

Sound Money...Common Sense...

SOUND MONEY...COMMON SENSE...

Too bad that up until the last two years or so, I didn't understand the former, and only started using the latter in terms of how I used and abused my money.

Oh well, live and learn, and hopefully survive in the process.

Bump'n

Illustration: http://www.jessedavidyoung.com

bump for liberty!

peace patriots*)

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