Peter Schiff, James Bullard and Alan Blinder Argue Over Ben Bernanke

Putting Peter Schiff on a panel with St. Louis Fed President James Bullard and former Fed Vice Chair Alan Blinder is asking for trouble or, at the very least, a heated debate.That’s just what occurred last Sunday night in New York at an event sponsored by Princeton’s Business Today.Predictably, Euro Pacific Capital’s Schiff disagreed with Bullard and Blinder on just about everything, including the government’s role in causing the crisis, and the outlook for the economy and the dollar.But the most contentious moment came toward the end of the evening when a student asked the panel to comment on Ben Bernanke’s 2005 “global savings glut” theory, and what role China’s high saving rate played in the credit bubble.Schiff’s response, “Ben Bernanke has never gotten anything right,” generated some guffaws from the crowd and a sharp retort from Blinder and Bullard, who rose to Bernanke’s defense.

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Peter Schiff says, The Economy Is Getting Worse Not Better

The Fed upgraded its view of the economy Wednesday, declaring: “Economic activity has picked up following its severe downturn.”But forget all the talk about recovery, V-shaped or otherwise. The economy is actually worse today vs. during the depths of the recession, according to Peter Schiff, president of Euro Pacific Capital and author of Crash Proof 2.0.”Ben Bernanke is keeping his record of perfection intact of never getting anything right. Once again he’s gotten it wrong,” Schiff says. “If the Fed really thought the economy was sound, why does he have it on life support? If he pulls the plug, our sick economy is going to die.”Although the Fed never said the economy is “sound”, Schiff is referring to the FOMC’s renewed pledge that “economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”Nothing that’s occurred in the past six months has changed Schiff’s view that America’s economy is headed for disaster. In fact, he’s even more convinced a true “currency crisis” awaits, and that China will soon stop enabling our reckless borrowing, the basis our “phony” economy. The coming collapse of the dollar and bursting of the Treasury bubble will have devastating consequences for ordinary Americans, and any investors based in dollars, he says.The economy today is “worse [because] we are much more deeply indebted than in March,” Schiff declares. “We’ve dug ourselves a deeper hole.”

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