Tuesday, November 25, 2008
Schiff Was Right
This video sequence offers a compendium of appearances (covering the 2006-2007 period) by Euro Pacific Capital president Peter Schiff, who is a frequent -- and frequently disrespected -- talking head on cable news shows. What astonishes is not just the accuracy of his dour predictions about the economy but the sheer arrogance of every other person appearing on these programs.
I don't know who comes off as worse -- the supremely snotty Ben Stein, or the well-named Arthur Laffer. I just wonder how Ben Stein feels about the financial markets as an investment now.
This is an astonishing compilation of clips. It just keeps getting more outrageous as it goes along.
Every time Schiff says something sensible, the pundits surrounding him snort and howl. They treat him with undisguised contempt and hatred, as though he had just called for ending the laws against homicide or reducing the age of consent to three.
What did these "experts" hope to gain by attempting to conspire against reality?
(By the way, I am aware that Schiff was the economic adviser to Ron Paul. I still don't like Libertarians, and I'm sure that Schiff has an ideological angle. But when a guy proves that he can call the shot, then one must give him credit.)
Over the last few days, I have been pondering the real cost of the "bail outs" to date and after googling a bit, I think I have the actual cost and I would like to put it into proper historical perspective.
If we add in the Citi bailout, the total cost now exceeds $4.6165 trillion dollars.
People have a hard time conceptualizing very large numbers, so let’s give this some context. The current Credit Crisis bailout is now the largest outlay In American history.
Crunching the inflation adjusted numbers, we find the bailout has cost more than all of these big budget government expenditures – combined:
• Marshall Plan: Cost: $12.7 billion, Inflation Adjusted Cost: $115.3 billion
• Louisiana Purchase: Cost: $15 million, Inflation Adjusted Cost: $217 billion
• Race to the Moon: Cost: $36.4 billion, Inflation Adjusted Cost: $237 billion
• S&L Crisis: Cost: $153 billion, Inflation Adjusted Cost: $256 billion
• Korean War: Cost: $54 billion, Inflation Adjusted Cost: $454 billion
• The New Deal: Cost: $32 billion (Est), Inflation Adjusted Cost: $500 billion (Est)
• Invasion of Iraq: Cost: $551b, Inflation Adjusted Cost: $597 billion
• Vietnam War: Cost: $111 billion, Inflation Adjusted Cost: $698 billion
• NASA: Cost: $416.7 billion, Inflation Adjusted Cost: $851.2 billion
TOTAL: $3.92 trillion