Mr Schiff challenges Nobel Laureate Joseph Stiglitz on his recent Keynesian pronouncements about America needing more ‘stimulus’. Schiff explores the distinction between a government stimulus funded by taking money out of the private sector — via taxation, crowded-out borrowing, or money printing — and a market stimulus generated by free individuals seeking profits.
Schiff also reports the continuing fall of the Dollar index and wonders if this nine-week fall will beat the record of an eleven-week fall, though he does speculate that there could be a dead-cat bounce before the eleven-week record is impaled by the current run.[The predicted dead-cat bounce did happen on August the 13th, after this video was recorded on August the 7th.]
Schiff finishes with his take on the speculation that Obama will be ordering Fannie Mae and Freddie Mac to ‘forgive’ the debts of various groups of irresponsible voters, who used their houses as ATM machines, to boost the Democrats in the upcoming US November elections. Mr Schiff is predictably robust when it comes to discussing such politically inspired moral hazard: