Below The Beltway

One Response to “Peter Schiff On Dow 10,000: So What ?”

1. Fraser Tothus says:

   October 15, 2009 at 8:51 pm

   Any and every investment demoninated in US $ is subject to what Mr Shiff is talking about, I think. So, How does one profit by such foresight? Trade the fiat dollar for the somewhat less fiat euro, keep the bills in a safe deposit box? We can’t invest in calls on oil options, for example, if we do that in dollars, investing and obtain returns in the same ill-fated dollar. Is this unsound thinking? Having looked into this a bit, I find that for a minimum $20k initial funds, the average joe can ALMOST remove the sealed exits and the nationalist strait-jacket, invest and get divs or interest in euros, eg (but perhaps not surprisingly, not the Chinese Remibi (sp?); We can hedge using foreign currency etc by the funds they want sold, but they are hardly a disinterested advisor. Conditions are the opposite of what Adam Smith understood about labor being mobile and capital (land) being tied to place/community, thus accountable. Now it is capital that is mobile (unaccountable), and labor that is forbidden from the global job market(work permits, entry restrictions, etc). For myself, I’ve lost about a third of what I had in the market, and feel I must cash out, take my losses, and convert all but my day-to-day cash needs into a foreign currency. I’d buy the “undervalued” Chinese, and open an account that earns its interest in Chinese, with a broker who can trade for me the Chinese stock market, but I can’t as a US citizen, apparently (unless someone knows something I don’t). Had the US invested in the workers, paid them the disbursment of their own money back to them to use to pay their bills in hard times… but then I’m dreaming of what a democratic republic looks like. Insted the gangsters are made whole, our money stolen fair and square. Invested in labor instead, it would have actually produced something, and that would have cancelled out any inflationary tendencies a flood of fiat dollars nescessarily produces. Nothing of value was created with the trillions to the banksters, who had been scheming, bidding up to fantasy levels the future value of labor, labor (and it’s potential) that had not and hasn’t occured. Is this not the control that Jefferson warned of, where we grow up poor in the a land of such riches? The emperor has no clothes, and is broke besides, owing all monies into perpetuity to the usurous banks, when the US has plenty of wealth. Have you seen the bigger piggies in their starched white shirts?