Survival of the Unfittest Peter Schiff on Obamanomics

From LewRockwell.com

Renowned investor and economist Peter Schiff, the president of investment firm Euro Pacific Capital and author of Bull Moves in Bear Markets said government stimulus is the problem, not the solution and that this recession is ‘necessary’ as it would allow the market to correct itself from the sins of the past. We cannot keep on reflating a busted bubble, says Schiff.

Speaking in an exclusive interview with Dan Mangru of Moneynews.com Schiff said: “As painful as it is, this recession is necessary.”

“We’re never going to have a vibrant economy if we keep concentrating on reflating a busted bubble”.

“The government is taking money away from people who are doing it right and giving it to people who are doing it wrong. That’s a recipe for disaster,” said Schiff.

“Why should successful companies be punished to bail out unsuccessful companies?”

Capitalism is about the survival of the fittest, but government stimulus are making it the survival of the unfit, he said.

Can anything be done to save the US economy? We will go through a serious retrenchement brought about by the sins of the past, but the US can rebound.

“Capitalism is a dynamic system,” but we need to unleash it, Schiff said.

“We need to get the governement out of the way,” he says because their acions are digging a deeper hole rather than allowing the market to fill the hole up.

“We stimulated our way out of that (2001–2002) recession into this depression,” he says.

Schiff said the theory that the world economies are linked like a train and that the US is the engine, is wrong.

“I think the world represents the engine and the US the caboose,” he said.

Read the rest (and watch the video interview):

http://www.lewrockwell.com/schiff/schiff43.1.html

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