{"id":44220,"date":"2019-03-05T17:21:32","date_gmt":"2019-03-05T22:21:32","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44220"},"modified":"2019-03-05T17:21:34","modified_gmt":"2019-03-05T22:21:34","slug":"peter-schiff-were-not-borrowing-ourselves-rich-were-borrowing-ourselves-broke","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44220","title":{"rendered":"Peter Schiff: We\u2019re not Borrowing Ourselves Rich; We\u2019re Borrowing Ourselves Broke"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/schiffgold.com\/peters-podcast\/peter-schiff-were-not-borrowing-ourselves-rich-were-borrowing-ourselves-broke\/\">Peter Schiff: We\u2019re not Borrowing Ourselves Rich; We\u2019re Borrowing Ourselves Broke<\/a><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/i2.wp.com\/schiffgold.com\/wp-content\/uploads\/2018\/05\/empty-pockets.jpeg?fit=600%2C330&amp;ssl=1\"><img decoding=\"async\" src=\"https:\/\/i2.wp.com\/schiffgold.com\/wp-content\/uploads\/2018\/05\/empty-pockets.jpeg?fit=600%2C330&amp;ssl=1\" alt=\"\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Peter Schiff has been saying that despite the recent stock market rally and all of the optimism about&nbsp;<a target=\"_blank\" href=\"https:\/\/schiffgold.com\/videos\/the-greatest-deal-in-the-history-of-deals-or-much-ado-about-nothing-video\/\" rel=\"noreferrer noopener\">an end to the trade war<\/a>, a&nbsp;<a target=\"_blank\" href=\"https:\/\/schiffgold.com\/peters-podcast\/peter-schiff-the-recession-is-a-done-deal\/\" rel=\"noreferrer noopener\">recession is a done deal<\/a>. There is plenty of economic data to back up despite the recent economic growth. In his most recent podcast, Peter Schiff said that while the GDP number might look pretty good, the growth is unsustainable because it\u2019s all built on debt.<\/p>\n\n\n\n<figure><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/kUv8KXfVdYU\" width=\"560\" height=\"315\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Last week, we got the first look at Q4 GDP. It came in slightly stronger-than-expected with a rise of 2.6%, on an annual basis. That compares to trade expectations of a rise of around 2.2%. If that holds, total 2018 GDP may well come in at Trump\u2019s target of 3%.&nbsp; This would be the biggest GDP number since 2005.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Peter put this into a little different perspective. Consider this: in 2005, the national debt increased by $554 billion. That borrowing \u201cpurchased\u201d 3.5% economic growth. In fiscal 2018, the national debt increased by $1.27 trillion. That\u2019s more than double the debt increase of 2005.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>So, we had to add a lot more debt in 2018 to buy not as much growth as a much smaller amount of debt in 2005. So, the takeaway from that is this is unsustainable because the growth came at a heavy cost. We had to increase the amount of debt that we had by a lot more than the percentage that the economy grew.\u201d<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">And of course, it\u2019s not just government debt.&nbsp;<a href=\"https:\/\/schiffgold.com\/key-gold-news\/us-household-debt-breaks-another-record\/\">Household debt is also at record levels<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As Peter put it, \u201cWe\u2019re not richer because of this economic growth.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>If your debt is growing faster than your economy, then you\u2019re not getting richer. You\u2019re getting poorer. You would have been better off without the debt and without the growth \u2026&nbsp; We\u2019re borrowing ourselves into poverty. We\u2019re not borrowing<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Peter Schiff: We\u2019re not Borrowing Ourselves Rich; We\u2019re Borrowing Ourselves Broke Peter Schiff has been saying that despite the recent stock market rally and all of the optimism about&nbsp;an end to the trade war, a&nbsp;recession is a done deal. There is plenty of economic data to back up despite the recent economic growth. In his [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[4365,195,21879],"class_list":["post-44220","post","type-post","status-publish","format-standard","hentry","category-economics","tag-borrowing","tag-debt","tag-schiff-gold"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=44220"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44220\/revisions"}],"predecessor-version":[{"id":44221,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44220\/revisions\/44221"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}