Here is what Schiff had to say: “My biggest worry is that capitalism and the free markets will get the blame when it really hits the fan. When we get the real crash and everything implodes, and it’s really an Armageddon style collapse, my fear (again) is that capitalism and free markets take the blame for problems that were created by government.”
“Then we just finish our journey on the road to serfdom. We totally become a totalitarian, centrally planned, police-type state, where Constitutional rights go out the window. And really the only thing you can do as an American is leave.
We might have to have a violent revolution years in the future or maybe our children or grandchildren will have to fight for their freedom….
“That’s the fear. I would hope we would understand the error of our ways, learn from our mistakes, and go back to the free market principles and Constitutional limited government, sound money, all of the things that the Founders endowed us with from the inception.
If we can go back to that, those traditions, then we have a bright future as a nation. If not, maybe there’s a bright future, but it’s far, far in the distance.”
Schiff went on to warn: “The unfunded pension liabilities are enormous (a staggering $4.6 trillion), from the Federal government on down to local school districts. All politicians around the country have been buying the votes of government workers with promises of huge pensions down the road.
The problem is as these government workers are retiring, there’s no money there. And the only way to keep these commitments is to massively raise taxes on the people who still have jobs. It’s a huge problem.
Ultimately the governments are going to have to admit they can’t pay these pensions and government workers are going to be in for a rude awakening. It’s not just the taxpayers, everybody is going to lose in this deal, especially if the government prints massive amounts of money to pay for these bills.
We have already seen a couple (of municipal bankruptcies) in California. There are a lot more dominos that are going to fall and not just in the state of California. All throughout these 50 United States you are going to be seeing bankruptcies. This whole phony economic model, that’s been kept together by cheap money and debt, is imploding all around us.
Bernanke testified today, and he basically refuses to acknowledge his mistakes. He’s coming up with one excuse after another on why we are not having a recovery. He doesn’t understand that it’s his policies that are the problem.
He says that his critics are wrong because they predicted inflation in 2008 and it hasn’t happened yet. Well, just wait because these are the same critics that were forecasting for years that the Fed was blowing up a housing bubble, and that it would be a catastrophe when it burst.
For years Bernanke said those critics were wrong. Well, they’re the same critics. They were right back then and they’re right now. It’s Ben Bernanke that’s wrong. He’s consistently wrong, and the US economy is going to have to pay the price.”
When asked about the gold market, Schiff responded, “I think it should be a lot higher. The last two days of Bernanke’s testimony, gold has lost ground. This is just a little bit of a pause before the next move up. But I think people who really understand the dynamics of what’s at play here, know they need to be buying into this complacency.
Don’t believe the naysayers that are trying to say gold is the bubble, that gold is going to collapse. It’s the dollar and other fiat currencies that are going to collapse, and gold will thrive in that environment. I think people need to get positioned (ahead of that).”