Peter Schiff to Bernanke: “I’m Your Biggest Critic”
Peter Schiff spoke briefly with Ben Bernanke at the SkyBridge Alternatives (SALT) Conference yesterday. Approaching the former Federal Reserve Chairman, Peter warned, “In full disclosure, I’m your biggest critic.” Bernanke didn’t miss a beat: “You have a lot of competition.”
Of course, it’s no secret that Peter has been a highly respected critic of the Federal Reserve’s monetary policies since well before the financial crisis of 2008. Peter consistently argues that the Fed’s go-to “solution” of zero-percent interest rates and quantitative easing is only prolonging the Great Recession that the Fed itself created.
Yesterday, Peter published his latest criticism of the Fed. “The Embarrassment of Transparency” skewers the central bank for its terrible track record of economic forecasting. Using the Fed’s own public GDP forecasts, Peter demonstrates that the Fed “has been consistently, and sometimes spectacularly, wrong.” He argues that Fed officials are either (a) simply terrible forecasters, (b) ignorant of the true economic effects of the Fed’s policies, or (c) knowing cheerleaders for a misleading recovery narrative.
Peter’s biting and contrarian viewpoints seem to have been somewhat welcomed at SALT, at least as reported by the national media. As The New York Times put it:
Mr. Schiff, who is bearish on the United States economy, drew applause and laughter from the audience when he likened taking a long bet on the United States to being long on subprime mortgages, which helped ignite the financial crisis in 2008.”
Peter also pushed back against the government’s claims that declining employment figures are simply due to retiring Baby Boomers. Instead, he emphasized for the crowd of hedge fund managers and business titans how the economic slump has hit young people hardest:
They used to say if you don’t want to work at McDonald’s, go to college. Now they say if you want to work at McDonald’s, go to college.”
Want to hear exactly how Peter’s conversation with Bernanke went down? Click here to listen to Peter’s podcast on the encounter.
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Awesome! Peter, you are the man. They will never make a video titled “Ben Bernanke was Right”.
What an awesome exchange! Almost fell off my chair!
This is awesome for sure. It is high time someone get in the FEDS face for their on going B.S. I totally know P.S. is right on all of it. Harry Dent is a pretty wise guy too. Bottom line the US is NOT healthy and anyone not paying attention is simply STUPID!
Yellen JUST said 2 days ago she feels there is no worry of a bubble at this time. WOW scary! Who hired her oh yes Obama and Congress. Talk about idiots. Does anyone recall her saying the same thing in 2007 about housing? Look it up. Run from whatever this BAG says she is clueless.
What an awesome podcast. Actually quite brilliant.
Peter embodies the entrepreneurial spirit of the USA. I’m not sure of his stance on a flat or consumeable tax, but wow, this guy is an inspiration to me. I’m for a C tax because I pay it every day in running my business and have a bad taste in my mouth when I have to fork out extra to supply the spending frenzy I never indulge in, yet am charged for.
I bought my first house with the cheap 5% down and got transferred a year later and sold it before the adjustable rate mortgage kicked in.
I’m a firm believer in cranking up the interest rate and dealing with the impending pain and suffering it will cause. But that one single stab, along with the inevitable gain eventually reaped, coupled with either one of the above mentioned tax reforms, the latter being my favorite, would kick start this economy beyond belief.
I think a ripple effect, although somewhat reluctantly perceived by certain “freeloaders”, once grasped and understood, would draw out the stagnators who FINALLY get what the American dream embodies and embrace it.
Intelligent, witty, fiscally knowledgeable and extremely entertaining in the laymens “now I get it sense”,
Peter Schiff truly is an American GOOD GUY and home grown hero!!!!
I would have love to be a fly on the wall and watched the body language of the people in the room. 😉
Will definately tune in. Thanks for your work Peter.
Did you ask him to name a product that people want to pay more for?
I’d have never thought The Bernank would face Pete, especially so soon. Please post the exchange!
Fed has to be: (c) knowing cheerleaders for a misleading recovery narrative.
Behind closed doors, Helicopter Ben must’ve admitted this.
Schiff an angel of light meets Bernanke a prince of darkness
Great work !
Bernanke just doing what he had to do,to keep the Titanic afloat for a few extra years.That’s what the Fed is doing.They operate in crisis mode.There is no long term game plan.Just keep the game going,until the next captain takes the helm.The only thing that will end the game,is a Dollar crash.The Fed isn’t going to reveal the truth.That would be like yelling fire in a crowded theater.All the financial community is in on the game.They want the game to continue too.That’s why they go along with the nonsense GNP,inflation and other phony govt statistics.I think most know the truth, but many aren’t talking.
Peter,
I listened to your podcast about the encounter and I don’t understand one thing. You say that Bernanke truly believed what he preached and he believes what he did was right. However, you also “checkmated” him in your conservation about who caused the financial crisis. I believe he did not want to answer your question is because he knows his thinking is short-sighted and flawed but did not want to admit it.
anyone noticed the dark reaper behind Ben’s left shoulder?