Unfortunately, Schiff says there's no pain-free cure for the recession. Regarding economic stimulus, Schiff says:
Any jobs or other economic activity created by public-sector expansion merely comes at the expense of jobs lost in the private sector. And if the government chooses to save inefficient jobs in select private industries, more efficient jobs will be lost in others. As more factors of production come under government control, the more inefficient our entire economy becomes. Inefficiency lowers productivity, stifles competitiveness and lowers living standards.So what does this portend for the fiscal policies that both president Bush and president-elect Obama have been pursuing? It means that we can expect higher inflation for years to come. Many of the actions they have been taking to protect the American dream are simply delaying the inevitable.
Please president-elect Obama, don't fall for the next wasteful bailout congress legislates. Don't you see that the current treasury secretary, Hank Paulson, is just another Wall Street banker looking out for the interests of his cohort? The Fed will not be able to rescue us from the predicament the American people have put themselves into. America will see a dramatic redistribution of wealth and widespread hardships sooner or later, regardless of fiscal or monetary policy.
I say rip the bandage off now. We're going to have to suffer through a reduction to intrinsic -- meaning dramatically lower -- values for our real estate. We'll have to see salaries for jobs that do not deliver tangible value to society, such as insurance agents and securities dealers, fall back to five-figures. We're going to have to reduce our collective personal debt and increase our savings, which means fewer flat-screen TVs and SUVs with leather seats. After all that has happened, our economy will again become strong and Americans will again be able to fulfill the American dream!
