Source: The Schiff Report
Source: Euro Pacific Capital – Cyprus Lifts The Curtain
“This episode (Cyprus) also puts into starker focus the inadequacy of deposit insurance. By offering the illusion of systemic safety in bank deposits, government guarantees encourage recklessness by banks and depositors. They provide the same incentives that federal flood insurance does in convincing homeowners to build on flood zones. Consumer choice and risk aversion are powerful forces that could bring needed discipline to banking. The FDIC in the U.S. is in the same situation as insurance giant AIG before the crash of 2008.”
Source: Cambridge House – Epic debate featuring faceoff between Peter Schiff and John Mauldin
Honestly, I don’t think this is even near epic of a debate between Peter Schiff and John Mauldin. All of the speakers on the panel were talking some sense except John Mauldin who seems to be conjuring impractical scenarios and flip-flopping when challenged.
Source: RTAmerica – Peter Schiff explains how a US depression can cause a global ‘death spiral’
From Peter Schiff:
“We are definitely headed for a real economic crisis in the United States. What happened in 2008 was just the opening act. The main event is still coming in.”
“The US is going to be held accountable for the trillions of dollars that we borrow and spend. And we are simply unable to pay it back. And we created a phony economy that is completely dependent on the ability to keep borrowing more money than we can pay back.”
“Cyprus is the tip of a very big iceberg.”
“American depositors are already suffering a deposit tax. It’s called quantitative easing. Zero percent interest rates is a way the government confiscates the interest you would ordinarily earn on your bank account. And quantitative easing means there is inflation, it means prices go up. We are paying a very severe deposit tax every year in the United States. Unfortunately, I think it is going to get larger as the years go on.”
“Some people that got stranded on an island, and I think it was 6 or 7 were Asians and there was one American and as soon as they were on the island they had to divide up the jobs.
And one Asian was given the job of fishing, the other one was hunting, one of them got the job of gathering fire wood. So they all had jobs, and the American was assigned the job of eating.