7/31/14

From a conversation about our economy

"most people don’t realize that as big as their investment risks are today with many markets being [artificially] over-inflated and so forth, their biggest risks are actually political risks.

The biggest danger to you is your own government.

...that 50% of Americans are reliant upon the government for their income alone is a [historically likely indication] of bad things to come.

...statistically we’re also getting close to the next recession. Just by the probability, how long the expansion has been, yet we’ve never begun a recession where rates are still at zero. We’ve never begun a recession while they are still stimulating from the previous recession.

...the numbers that they crank out to make everybody feel good [appear to be] almost as phony as the numbers that the Argentine government cranks out.

...I would say that inflation is realistically in the 8-10% range here in the US

...The growth is all a fantasy. It’s all a result of the assumption that there is no inflation, when there really is because what we have is inflation masquerading as economic growth. But the bottom line is the economy is really contracting, that’s why the labor force is shrinking, that’s why we’re using less energy, that’s why the people’s standard of living is going down, and real incomes are falling and job opportunities are disappearing. It’s because we’re in a recession and no one wants to admit it.

...I just wonder what the social consequences are going to be when the economy goes into a free-fall again

...The real bubble is in the bond market, and the bond market is much bigger than the stock market, so when the bubble in bonds bursts, it’s [most likely] going to be very ugly."

http://www.internationalman.com/articles/peter-schiff-and-doug-casey-on-the-real-state-of-the-economy

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