It seems like everybody is getting a bailout right now. The government is handing out money it doesn’t have left and right. This is all justified because of coronavirus. Even conservatives who normally oppose government bailouts have jumped on the stimulus train. “This is a crisis!” they cry. The government has to step in. But as Peter Schiff explains in his podcast, the government crippled the economy in the first place. A government crutch isn’t the solution to the problem.
Last Thursday, we embarked on a journey through the Southeast for business purposes and to check up on our kids who live in Kentucky. In case you were wondering, it is as crazy out there as you might imagine if you’re sequestered in your home following events through the news or social media.
Don’t worry; we practiced social distancing…mostly. And there was a lot of hand-washing.
As you may know, several years ago, Peter Schiff relocated to Puerto Rico. Have you ever wondered why? What are the advantages? And what can his move teach us more generally about economics and politics?
Peter recently appeared on the Puerto Rico ICON Podcast and answers some of those questions.
As you probably know, Warren Buffett has never been a fan of gold and has publicly disparaged the yellow metal on more than one occasion. About a year ago, he compared investing in gold and stocks, arguing that over the long term gold is an “unproductive asset” that “doesn’t produce anything.” So, why have it, unless you just want something to “fondle.” At the time, we argued that Buffet’s comments fall apart when you realize that gold is money. After all, I doubt you would ever hear him say “never hold cash because it’s an unproductive asset.”
Well, Buffet is at it again.
In his latest podcast, Peter Schiff reflected on Independence Day. He said he loves the holiday because it’s uniquely American and it celebrates the sacrifices the founding generation made to bring forth a country conceived in liberty. But he said the Fourth of July also makes him a little sad because it reminds him of what we’ve lost.
I’m sad that we no longer have the nation our founders created for us, that we have lost all that it means to be an American.”
There is a mass exodus from Illinois.
According to the US Census Bureau, the Prairie State lost a net 33,700 residents in fiscal year 2017. More people bailed out of Illinois than any other state in the US. And based on calculations the folks over at ZeroHedge worked out, the exodus was even worse than the Census Bureau numbers indicate.
Of course, the net population loss masks the true gross outflow of Illinois residents as it doesn’t account for natural births/deaths. Assuming that Illinois has the same natural population growth as the US as a whole (0.7%) implies that the state lost a staggering ~125,000 residents in aggregate, or roughly 1 man/woman/child every 4.3 minutes.”
So, why the big rush to bail out of the great state of Illinois?
In all of the talk about tax reform, nobody is considering the more fundamental problem facing America – the size and scope of the federal government.
Peter Schiff has described the Republican tax plan as “tax cuts masquerading as reform.” When it’s all said and done, Americans aren’t going to get tax relief. They are going to get big government on a credit card. The balance will come due down the road.
The real issue is the total cost of government. In an article originally published on the Mises Wire, Ryan McMaken argues that if Republicans really want to ease the burden of government, they need to cut spending.