17-Jul-18
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This podcast features Peter Schiff, an American businessman, investment broker, author, and financial commentator. Schiff is CEO and chief global strategist of Euro Pacific Capital Inc., and he also hosts his own podcast, “The Peter Schiff Podcast.” The conversation with Joe Rogan covers a wide range of topics, from the 2008 financial crisis and the current state of the economy to the rise of socialism and the future of cryptocurrency.
Major Topics:
- The Occupy Wall Street Movement:
- Schiff’s experience engaging with Occupy Wall Street protesters, highlighting their lack of economic understanding.
- Schiff’s belief that the protests should have targeted government intervention in the economy.
- The connection between Occupy Wall Street and the Bernie Sanders movement, showcasing the rise of socialist sentiments.
- Schiff’s argument that socialism is emotionally appealing to people who lack economic knowledge.
- The Current State of the US Economy:
- Schiff’s prediction of a severe recession within the next 3 years, citing an unsustainable economic bubble.
- Schiff attributes the current economic optimism to artificial factors like tax cuts and government stimulus.
- Schiff argues that the real unemployment rate is much higher than reported due to discouraged workers and underemployment.
- Schiff criticizes the US educational system for failing to produce qualified workers, leading to a skills gap.
- The Role of Government Intervention:
- Schiff advocates for a significant reduction in government spending and regulations to stimulate genuine economic growth.
- Schiff argues that the US trade deficit is a symptom of government intervention, not a cause of economic problems.
- Schiff critiques the tax cuts enacted by the Trump administration, stating they exacerbate the debt burden.
- Schiff warns that the government’s response to the coming recession will likely involve further inflation, ultimately harming the dollar.
- The Future of Cryptocurrency:
- Schiff expresses skepticism about Bitcoin and other cryptocurrencies as viable forms of money due to their lack of intrinsic value.
- Schiff predicts a collapse of the cryptocurrency market, leading to significant losses for investors.
- Schiff views cryptocurrency as a highly speculative asset, comparing its enthusiasts to members of a cult.
- Schiff argues that government-issued cryptocurrencies could further increase government control over the economy.
- The Appeal of Socialism:
- Schiff attributes the resurgence of socialism to a combination of ignorance about economics and a desire for quick fixes to complex problems.
- Schiff points to the historical failures of socialist policies in countries like Sweden and New Zealand, highlighting the eventual need for free market reforms.
- Schiff argues that socialism appeals to people who lack understanding of how economic freedom creates wealth.
- Schiff believes that the upcoming economic crisis will create an environment where socialism will appear more appealing, further exacerbating the problems.
- The Importance of Individual Rights:
- Schiff emphasizes the importance of individual rights, particularly the right to discriminate, arguing that government intervention in private relationships is harmful.
- Schiff critiques the expansion of government power and the erosion of individual freedoms through regulations and social programs.
- Schiff highlights the hypocrisy of those who champion individual freedom in social and personal matters but support government intervention in the economy.
- Schiff believes that the government’s role should be limited to protecting individual rights and ensuring a level playing field for businesses.
- The Role of the US Constitution:
- Schiff emphasizes the importance of the US Constitution as a document that limits the power of government.
- Schiff argues that the government frequently ignores the Constitution and acts beyond its enumerated powers.
- Schiff believes that the judiciary has failed to enforce the Constitution, allowing the government to expand its reach.
- Schiff advocates for a return to constitutional government, where the government is bound by the law and respects individual liberty.
- Puerto Rico’s Economic Challenges:
- Schiff argues that Puerto Rico’s economic problems are largely due to government intervention and socialist policies.
- Schiff critiques the Jones Act, stating that it significantly increases the cost of living in Puerto Rico and harms its economy.
- Schiff argues that the influx of wealthy entrepreneurs to Puerto Rico, attracted by tax breaks, has been beneficial for the island’s economy.
- Schiff warns that Puerto Rico becoming a US state would only exacerbate its economic problems, leading to increased reliance on government assistance.
- The Importance of Personal Responsibility:
- Schiff emphasizes the need for individuals to take personal responsibility for their financial well-being, particularly in the face of an impending economic crisis.
- Schiff advocates for investing in assets outside the US and owning real money, such as gold, to protect against inflation and market crashes.
- Schiff encourages individuals to develop financial literacy and to avoid relying solely on government assistance.
- Schiff believes that a focus on personal responsibility and economic freedom will create a stronger and more prosperous society.
5 Memorable Quotes:
- “The main reason I went there was not so much to try to convince the people there that they were wrong and that, you know, capitalism was, you know, the solution, not the source of their problems and that they you know, should be protesting Washington, the Federal Reserve, or Congress. It was for the people that I knew that would watch it on the Internet.”
- “It’s great to have charity, and I’m all for private charity. But if you look at the wealthiest men in history, even though they’ve been incredible flanterpers and they’ve given away a lot of money, they helped a lot more people amassing their fortunes than gifting away what they made.”
- “You can’t buy something that doesn’t exist. Something has to be produced before it can be consumed. So it’s the production that drives the economic trade, not consumption.”
- “The problem is our economy. So, Rob, when you say let the bubble crash, like, what what would that entail? Well, basically, look, the problem the basic problems with the US economy, and this is because of monetary policy, physical policy, is we don’t save anything.”
- “The government is like, you know, It’s like if you’re trying to run a marathon and you’ve got a 50 pound sack on your back. Right? You know, you’re not gonna run very fast. The secret is to take some of that, you know, weight out of the pack.”
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