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Peter Schiff: Debt Ceiling Not The Problem; It's The Lending Ceiling

PETER SCHIFF: Well, you know, I think the stock market is going down because it was in need of a correction. I don't think it's panicking because of the debt ceiling or the Washington shut down. Although, a resolution to that phony crisis may be the catalyst for the ended of the correction but that doesn't mean it caused it.

But the real threat is that debt, not the ceiling. The main thing that stands between America and more debt is that debt ceiling and that's why the president wants to raise it. It's because he doesn't want to actually pay any of our bills. He wants to continue to borrow money instead of paying the bills, yet he's pretending that raising the debt ceiling is the fiscally responsible thing to do when it's the most reckless thing to do.

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PETER SCHIFF: This is not the real crisis. You're talking about rates skyrocketing. Eventually, when the Fed loses control, rates are going to skyrocket and then default is going to be inevitable. Right now, we're just talking about it because interest rates are still so low that we can service the debt, and so, we don't have to default yet. But eventually when the markets lose confidence because we have so much debt and they know that we're going to keep printing money. That's why we can't play this game anymore, because it's not about the debt ceiling; it's about the lending ceiling because we won't be able to borrow unless the Fed prints. And then we're facing a currency crisis and the only way to avoid that is going to be to default.

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