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Investment guru Peter Schiff explains why he says the kabuki theater over the debt limit doesn’t matter, and why Americans are going to get hit hard...
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Republicans are busy patting themselves on the back for avoiding revenue increases in the debt deal.
But this ignores -- raising the debt ceiling means it permits the government to borrow more.
To finance spending just doesn't force a future congress to raise taxes to pay for it.
Or does it.
Peter -- the president of Euro Pacific Capital joins me now Peter welcome back to freedom watch thanks for.
Having judge does doesn't this basically just kicked people use that phrase but I will kick the can down the road.
And due to us what LBJ -- his Jenna into the future generations would LBJ -- -- -- have done to us well you know you as you said they may be patting each other on the back but -- kick in the tax payers and the growing.
-- this is a complete victory for the Democrats there are no spending cuts whatsoever in this plan.
And in fact the Republicans are claiming there are no tax increases that's a -- to because the an enormous increase in the national debt represents a tax increase.
We have to pay it back and I think you're wrong on one thing.
We're not leaving it to our kids we're gonna pay for would massive inflation we're gonna have to run the presses point 47 to buy -- all this additional debt which is massive inflation.
Which is attacks on this generation -- not our prosperity -- right rate if they can't pay back fourteen point three trillion out of I think they kept it -- -- the last seven trait they can't think.
Of these things go the one bit of irony here is the president thinks that they've raise the debt ceiling enough to get through the next election.
I think he's probably wrong I think the economy is gonna be so weak between now and then.
That the deficits could be so much worse than they think it's gonna be that and we might run into this new debt ceiling long before the November 2012 election.
Based investments while so little -- -- -- that's why the dollar hit a record noted a against the Swiss franc a record low today.
Against the Japanese yen the -- reason it's not even weaker is because people are preoccupied with European problems which in my opinion are far smaller.
-- our own problems but.
That is the tax -- we're gonna pay these massive deficits trillions of dollars of debt a year.
It's gonna be financed by the said.
They're gonna print money they're going to call it QE whatever it is but it's -- tax.
And it hits every American who -- savings who has investments who worked for wages.
And so if you wanna avoid the biggest tax increase of all you cannot own US dollars or any debt denominated in dollars including -- when you say it's -- -- if you wanna avoid the biggest tax increase of all you mean that the value of the dollar will go down.
Seriously down as a result of what the congress is probably going to agree to do tonight and the borrowing that will follow that agree absolutely when the Federal Reserve prints money out of thin air to buy those bonds so the governor can spend money.
That diminishes the value of everybody else is dollars so prices go up when when oil prices are rising.
When food prices are rising that increase is -- tax is going up because the government is running deficits and there's no other reason.
Happen if the government offered bonds and nobody liked them.
Well nobody wanted to -- the money to the government consider wanna go through the odds of them that they once -- over the weekend wondering if they're gonna get paid back until.
More and more people aren't buying foreign nations aren't buying and that's why the Federal Reserve was doing the QE in the first place because they needed buyers for our debt.
And eventually nobody will wanna buy whose gonna want -- buy our bonds and 0% interest or close to it when inflation is running out of control.
You know that that's why the government wants to keep lying about inflation.
Because if people knew how bad it was nobody would buy -- If we had a gold standard with the government be able to do this I absolutely not why do you think they oppose the gold standard because they want the big deficits despite what they say -- fish it was a pleasure thank you very much for joining us.
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