"Pilate saith unto him, What is truth? And when he had said this, he went out again..."

Location: Tampa, FL, United States

Tuesday, March 03, 2009

Peter Schiff Embarrasses the Keynesian Camp

Peter Schiff (Euro Pacific Capital) leaned heavily on Austrian economic principles (see mises.org) in the face of much laughter and ridicule in '06 and '07 in his accurate prediction of the falling apart of the subprime market, the housing market, the stock market (especially financials) and a recession. This compelling video is a montage of clips from various financial shows in '06 and '07 where Peter is pitted against multiple economic "experts" such as Peter Laffer, Ben Stein and others, all who staked out the all-is-well-and-looking-better position. As we know Peter was spot on while the others were embarrassed to no end.

Austrian economic principles see the need for savings and capital accumulation, and smell problems when debt-based consumption rises secondary to inordinately low interest rates set by a central bank. Schiff didn't need fancy formulas to be right.

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