Top Three Videos – June 3 2023

Detailed Key Insights:

US Debt Crisis and Economy

• The debt ceiling crisis was a contrived crisis for politicians who wanted to run up more debt, but the real crisis is the debt itself, which will burden American families through higher taxes or inflation.
• The United States has one of the highest debt to GDP ratios in the world and most countries with a similar ratio are having a lot of trouble right now.
• The US has a much bigger problem than Japan as it has both a budget deficit and a trade deficit, which means it has to borrow over a trillion dollars per year to maintain its standard of living.
• Schiff accurately predicted the rise in interest rates from zero to over five percent, highlighting the potential consequences of high debt and current market conditions.
• Peter Schiff believes that “we have so much inflation in the pipeline because of 12 Years of money printing” and that it will continue to rise in the future.
• The US government is consuming almost a trillion dollars a year in interest on the national debt, making it impossible to finance with higher interest rates.
• The risk of hyperinflation increases when the Fed has to print more money to buy treasuries that nobody else wants, leading to an already elevated inflation rate spiraling out of control.
• Schiff argues that creditors of the United States will ultimately lose either through honest default or inflation, and that there are no other options.
• Real estate market is a house of cards built on the foundation of low interest rates, which is no longer there, so whatever was built on top of it comes collapsing down.

Peter Schiff’s Views on Bitcoin

• Peter Schiff, has now become a Bitcoiner, stating “I was wrong about Bitcoin” and “I didn’t realize that Bitcoin could actually be the digital gold.”
• “I was wrong about Bitcoin” and that it is a legitimate store of value.
• “I got tired of arguing against it and I decided to join it.”
• Schiff admits that Bitcoin has drastically outperformed gold over the last two to three years, despite his previous skepticism towards the digital asset.

Criticisms of the Banking Industry

• Schiff believes that the government guaranteeing bank deposits was a mistake and that banks should have to compete with one another based on safety in a free market.
• He warns about the dangers of banks pretending to hold assets to maturity, which can lead to huge losses when rates go up and customers want their money back.
• He believes that the banking industry is a “phony house of cards” that is dependent on government backstops, and that the current system is not true capitalism.