Peter Schiff 13.01.2012 Fox Business News.Sytuacja w USA gorsza niż w Europie. PL


yes for stocks bad you know bonds stole money coming into the United States but it all happens at an interesting time these worries about debt dominating the headlines that we’re talking about coming out of Europe and what are we doing here well we want to borrow more money of course with President Obama making that official request for Congress to raise the debt ceiling again Peter Schiff starts us off today joining us from his radio studio as a matter of fact CEO and global strategist at euro pacific capital it’s always good to have you on the show now Peter logically you look at this and you do say boy it is kind of funny to see us wanting to borrow more money and aren’t we learning a lesson from Europe but I’ll put it to you this way I think that’s disingenuous in some ways because to me the situations are much different and the number daikin showed you one point eight percent 10-year note is much more important as bad as they are the money still comes here and we have to raise that debt ceiling what choice do we have what do you say well first of all you’re right the situations are different the situation is worse in America than it is in Europe we are able right now to benefit from the European problems because people are buying dollars because they’re afraid of the debt in Europe even though the debt is bigger here right and we are making it even bigger welcome really decimating our problems we should be we should keep that ceiling where it is wait a minute if you raise it whenever you get there we need to be reducing debt in this country we need to be that’s exactly what I’m talking about in terms of being disingenuous so you have this crisis in Europe which is a legitimate there’s our national debt by the way and i know this headline grabs everybody and it’s obviously a ton of money 15 trillion dollars but you have this crisis that’s legitimate in europe and then we’re good we create our own here if we didn’t raise the debt ceiling and how can you say things are worse over there then the money wouldn’t be flooding you’re worse over here first of all 15 trillion that’s just the tip of the iceberg we have a lot more federal debt than that and of course we have a lot of state debt and American individuals are in debt the whole nation is it that we just had our trade deficit that came out today run most 60 billion dollars for the month of November we are living way beyond our means we’re consuming too much we’re not producing enough we’re not saving we’re borrowing all this money and right now we can do it interest rates are at record lows but what is going to happen when they go up that’s a no esta interest were very very low in Spain and Italy and France and Greece a few years ago now rates have gone up what’s going to happen in America when weights go up do you think it’s going to be any better than it is there i’d say we are even more dependent on cheap financing than italy well that’s your question here because we’ve got a bigger a problem with you it I’ll ask you a question that does give you credit using this analogy that the you were out there screaming and yelling here and everywhere else about the previous crises talking about 08 before most people were including the Federal Reserve by the way we had the we found out today really that back in 2006 they were pretty much clueless Ben Bernanke and everybody else had no idea what was coming so you were right there a lot of people didn’t think it was going to happen it did in this case how do we know when because the interest rates at one point eight percent of the 10-year note I mean at some point they’re going to just spiked up overnight but what’s going to happen yeah well remember the mistake that the Federal Reserve made among many and that other people made was assuming that real estate prices would never fall that was the underlying assumption that gave this rosy scenario well the same people are making the same mistake now or similar mistake with interest rates they don’t understand the potential for interest rates to really rise and what that’s going to do to the economy what that’s going to do to the banks what it’s going to do a real estate what it’s going to do to the government’s fiscal situation right and the more debt we add now the more dependent we make the financial sector and the government on cheap financing the bigger the collapse when interest rates go up because they’re going to go up eventually and they’re going to go much higher than anybody thinks and the damage to this economy is going to be catastrophic either crisis that we are creating is going to be much bigger than the financial crisis of 2008 and if our leaders couldn’t see that one coming it stands to reason that they’re not going to see this one come well the 06 quote we put up for Bernanke does look kind of silly at hindsight but such as it is Peter thank you very much for taking time out today we’ll talk to against

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