Monday, December 8, 2014

Media ignoring the right economic policies

Low inflation, or even deflation, is not a threat to the economy but to the asset bubbles that the Fed has inflated in order to create the illusion of economic growth. 

Without the Fed creating inflation, the bubbles will burst and the government will be forced to deal with its insolvency.

Given that Wall Street economists have a vested interest in downplaying concerns about asset bubbles, it is understandable that the big financial firms have failed to point out the Fed’s historic response to low inflation. 

It is somewhat more troubling to see how the media have completely ignored the past in passing judgment on how the Fed should act today.

Peter Schiff is a smart investor and author of several best selling books. He correctly predicted the economic meltdown of 2008 - 2009