On the dollar as the world's reserve currency:
"As a foreign country, you're willing to take dollars because you know some other country will be willing to take dollars. That other country will take dollars because some third country will take dollars. If this sounds familiar, it's because we've seen it before [dot.com stocks, real estate flipping]...This is only slightly different from a Ponzi scheme. It all depends on the existence of a greater fool. Eventually you run out of fools and the bubble pops."
Well, yay...good times ahead for all.
And here's something I need to look into: Schiff states that "economists and politicians point to government spending as economic growth. After all, it counts in our GDP, right?"
So...does that mean that even government spending that is financed via debt counts toward our GDP? In which case, what does that say about the (very slight) economic growth that has been reported for the past couple of years in news reports? Is there actual GDP growth? Or would GDP be in negative territory if not for the inclusion of a trillion+ dollars a year of deficit spending? Anyone know?
Finished. I'm liking (well, okay, maybe "agreeing with") a lot of what he says. Maybe we'll get some new, more frugal blood in Washington in 2012, leaders able to turn us around before we plummet off the cliff. But it's hard to be very optimistic.