Peter uses his usual common sense in talking about a myriad of issues. While I agree with about 95% of what he’s saying, the one line I don’t necessarily agree with is that Asia, and in particular China, has strong fundamentals. In fact they have self-induced bubble fundamentals.
But I did like his take on the “cash for clunkers” debacle and was just thinking last night how ridiculous that program is. Americans should be outraged that the government is handing over OUR MONEY so that our neighbors can go out and buy a new automobile that is inflating the PRICE of both new and used autos while giving billions to automakers and indebting all of America and in particular those who are trading in their “clunkers.” And Schiff brings up even more distortions that are created by such a lunatic program.
We have definitely entered the realm of Wonderland, that’s for sure. Economic Mass Psychosis abounds, but Schiff does a good job of pointing out the lunacy of it all.
GDP, cash for clunkers, dollar, debt, depression (10 minutes):