Peter Schiff: Congress Sells America Down the River to Avoid the Fiscal Cliff

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Peter Schiff

Congress Sells America Down the River to Avoid the Fiscal Cliff

In a disgraceful show of political expediency, Congress put its own political self-interest ahead of the national interest. They "saved" us from a contrived crisis of their own making, only to condemn us to far more horrific fate when the real crisis arrives. This one will come not because we went over the fiscal cliff, but because we avoided doing so. Going over the fiscal cliff merely represented a small down payment on the solution. By failing to make it, the ultimate price we will inevitably pay will be that much higher.

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Peter Schiff: Inflation #1 Concern Among Registered Voters

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Peter Schiff

Fox News poll confirms: Inflation #1 concern among registered voters A just released Fox News Presidential Poll confirms that inflation is a bigger concern for voters than unemployment and the housing market combined. In fact, more than twice as many registered voters are concerned about the "inflation" tax as are worried about all other federal taxes combined!

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David Stockman: "Federal Reserve & central banks are fundamental threat to economic future!"

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David Stockman on Federal Reserve Arrogance and Monetary Mission Creep!

Welcome to Capital Account. Now that the Fed has announced QE3 and Japan announced QE 8, Brazil is threatening defensive measures and bringing talk of Currency wars back, according to multiple press reports. Brazil's finance minister coined the term 'Currency Wars' two years ago as governments battled to lower exchange rates to boost competiveness. We talk to David Stockman, former director of the Office for Management and Budget during the Reagan administration, about the malignant effects of Federal Reserve policy and the lack of market-set interest rates!

Our guest, David Stockman, author of "The Triumph of Politics," recently had some choice words Federal Reserve, stating:"The Fed (and the lunatics that run it) are telling the whole world untruths about the cost of money and the price of risk." We talk to him about monetary policy, taxes, sound money, and more.

Plus, the U.S. Senate panel probing JP Morgan's multibillion dollar 'Whale Trade' loss plans to unveil its findings to press regulators to tighten the Volcker Rule. We ask David Stockman if this would be enough to rein in too big to fail bank risk.

Also we launch our Facebook page today! Check it out at www.facebook.com/pages/Capital-Account. Lauren shows off the new page and discusses your comments in Viewer Feedback.

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Peter Schiff: Fed Launches Operation Screw, Goes All-In on Quantitative Easing

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Peter Schiff

Operation Screw: The Fed Goes All-In on QE

The geniuses at the Federal Reserve have concocted a bold new plan to revive the U.S. economy -- print a bunch of money, loan it to Americans at super low interest rates so they can speculate on rising real estate prices, extract the appreciated equity and spend it on consumer goods. In other words, build an economy of real estate, by real estate, and for real estate. The only problem is we've been there and done that. The last time it almost destroyed the U.S.economy.

I guess almost isn't quite good enough for the Fed, so now it's determined to finish the job. These actions will destroy Americans' savings and hurt people on fixed incomes. To protect yourself, I recommend a strategy of foreign equities, commodities, and gold and silver.

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Peter Schiff: Fed Must Fess Up and Level With the American Public

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Peter Schiff

Bernanke Must Fess Up and Level With the American Public: Schiff

According to Peter Schiff, president of Euro Pacific Capital, those of you looking to learn what's happening in the U.S. are better off paying attention to almost anything other than Fed Chairman Ben Bernanke's Congressional testimony. "You might be able to to trade off what he has to say but it doesn't have any bearing on what's actually happening," he states.

It would be ideal for Bernanke to start pulling the plug on the monetary stimulus we have to allow the economy to detoxify. We have serious structural problems exacerbated, if not directly caused by fiscal and monetary intrusions already. Comparing our economy to Keith Richards, cancer patients and other terminal cases, Schiff thinks it's long past time to "'fess up, level with the American public and tell them what needs to be done."

Comparing the economy to a heroin addict avoiding withdrawal, Schiff says the only remedy is going cold turkey. The pain of such a move would be brutal for many Americans, but for working taxpayers picking up the tab the relief would be immediate and welcomed. Sounding like a more Draconian version of Ronald Reagan or even Bill Clinton, Schiff thinks reducing benefits will get more people off the dole, drive prices lower and eventually result in a more healthy economy.

None of which you'll hear from Bernanke. The testimony of today and yesterday bring out the worst instincts in everyone involved. Bernanke will evade and the politicians will pander while groping for that one soundbite that will be perfect for an campaign ad. Speaking into microphones and in front of cameras on the Hill is the best way on earth to ensure nothing useful gets done.

"Everybody is resisting the needed reform because it's bad politics," shouts Schiff. Whatever you think of his solutions it's hard to disagree with that assessment.

Breakout with Jeff Macke

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USA Sovereign Debt Now Exceeds GDP: Greetings From Big Brother

Greetings American Citizen:

It has come to my attention that the USA public debt is now greater than the annual GDP. That is, the debt ratio has exceeded 100%. Egan-Jones warned about this in their recent downgrade of United States sovereign debt to AA. This is disturbing plus foolhardy for me to continue giving you a free ride. Your share of the United States public debt is $49,843 and it would help a bunch if you could chip in another $1,349 for your share of this year's interest expense. When can I expect payment?

Where's Uncle Sam? You ignored his collection letters over the years. He retired in frustration. I'm his totalitarian sibling who's running things now. Sam says I have control freak issues. If this spending and borrowing habit doesn't stop, I'll have to do a reset after hyperinflation and economic collapse. Then I will have total power!

You can't pay your share of the debt and interest? You really should, but I tell you what, for now, let's kick the can down the road. In memory of Uncle Sam and the Good Old Days. No one wants to face a Day of Reckoning, even when they know it is inevitable. I'll give you a short-term extension, but it's just for a little while. This living on debt must stop otherwise the crony capitalists and foreigners will buy up all the assets at Depression level prices someday!



Your children and grandchildren can surely figure out a way to pay me for all of these wars & military budgets, Homeland Security, TSA, NSA, & police state infrastructure, federal employee & military pensions & benefits, corporate welfare & subsidies, individual tax breaks & credits, social benefits & care, and all the other free stuff and handouts every last one of you Americans want. You keep telling everyone how smart your kids and grand kids are. They better be! I hope you aren't fibbing, or delusional, like when you say you live in the Land of the Free.

You haven't been noticing, maybe actually ignoring or denying, what's going on? Oh, you were busy posting their cute pics and videos on Facebook while watching TV, movies, and other mass media. FYI, the Republic was lost while you've been self-absorbed and apparently ridiculously gullible. Oops!



Poor Ben Bernanke, he's working so hard to help you, printing money just as fast as he can to keep America afloat. Then he has to worry about those darn interest rates and keep them crammed down in a zero-rate environment. Otherwise, the interest expense on the USA's ever-increasing debt would skyrocket. Not only that, some of the Too Big To Fail banks might actually become insolvent from interest rate shock and counter party panic. The entire frigging financial system might meltdown! On top of all these worries, his bosses keep pestering him about more and more for them - the Wall Street Banksters!

Most likely your progeny will have to pay for all this apathy and greed of yours in unspeakable ways. But, by God, grandpa and grandma got to live the good life! Who said you couldn't be bought? Your price was easy for you, you cheated and haven't paid. You are so selfish plus been bought and sold by the political system.  I won't tell anyone, I understand. It's been tough these past few years and it's still hard out here for an American, right? No worry about your current situation, the price I will extract is the future prosperity and freedom of your children and grandchildren. In the meantime, continue enjoying life as best you can!

Please refer to Greece, Spain, former Soviet republics & satellites, Latin America, et. al, for a preview of the early stages of upcoming American despair. It's difficult to tell you the latter stages when I am in complete command. Of course, the bi-partisan political and corporate corruption will get worse and worse. Freedom, liberties, and rights will vanish as the government and major media, the corporate advertising delivery system,  fuel fear about terrorism, always scaring you with an enemy to justify perpetual war and domestic crackdowns. That's when your descendants will curse you for being a selfish coward and bum as their Bill of Rights is destroyed by tyranny. It gets really, really bad in the New Amerika. Say hello to and tell those precious kiddies of yours to cowboy and cowgirl up! It's going to be a rough ride!

 /s/ Big Brother




Charts consist of the latest data available from the Bureau of Economic Analysis (GDP at 3-31-12), U.S. Treasury (Public Debt at 4-27-12), and U.S. Census Bureau (Population at 4-30-12):
Public Debt $15.62 trillion GDP $15.46 trillion
Population 313.46 million
Annualized Interest Expense $422.71 billion
Effective Interest Rate 2.78%

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