PETER SCHIFF

PETER SCHIFF

Tuesday, May 4, 2010

The Schiff Report Default Vs. Inflation



Peter Schiff explains the similarities and differences between the Greece economy and that of the United State of America :"Greece borrowed a lot of money , the Greek government running large deficit mainly because the Greek politicians wanted to stay in office and so they promised very lavish benefits in terms of pay packages and pensions to government workers in Greece , they did not want to raise taxes to pay for those benefits so they borrowed the money and everything was fine as long as there were willing lenders they were able to accumulate more and more debt which is of course is always a problem with the credit bubble we experienced that here in the real estate market , people were able to borrow money until the lenders discovered that they won't be paid back and they did not want to lend anymore well the same thing is happening in Greece now Greece has a situation that every nation will have when they borrow a lot of money , they can either cut back on government spending or raise taxes or default , more or a combination through restructuring , and of course Greek politicians they do not want to cut the benefits and there is rioting in the streets people are protesting the benefits cuts they do not want to raise taxes substantially because that also is not going to play out well in the polls , they do not want to default but the problem as far as some economists can see , well Gee if they can only print money , if they only were back in the old good days when they had the Drachma they had no problems they can simply print Drachma , well first of all if they were still using Drachma they were not probably could not to borrow so much money interest rates would not stay that low for so long because creditors would have been worried about them printing Drachmas , they figured that there was more discipline with respect to the Euro "...etc...
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