Thursday, May 20, 2010

May 20 Peter Schiff on Stock Market, Economy, Financial Regulations, Exchange Controls

Schiff says the financial regulations (that passed the Senate today) will make things worse - not addressing Fannie, Freddie, FHA, giving more power to the Fed instead of reducing the power, taxpayers on the hook for more losses. Lawmakers are clueless.

Commenting further on the new regulation about foreign brokerage firms, Schiff says that the US citizens can no longer have an account with foreign brokerage firms. Under the current law, foreign brokerage firms cannot solicit business from US citizens but if they are contacted by US citizens then they are allowed to do business with them. Not any more.

Why? The government is closing off the 'escape valves'. One step closer to exchange controls. The government knows their policies will destroy the value of US dollar, that massive deficit spending and huge tax increase are on the horizon, and Americans will want to move their assets out of the US to protect. The government is taking away our freedom to manage our own financial affairs.

What the US government has been doing is to limit (if not outright stop) the flow of money and capital - lifeblood of a free society - in the name of financial "security". As Schiff says, if the government is worried about the flight of money and capital, they should remove the root cause of the flight - stifling and costly regulations themselves.

(But nooo, no way! Lifeblood of a government (and this particular government) are more regulations over more aspects of human existence.)


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