Peter Schiff says America's economy is crashing

-- Look at paragraph. Good call we've been waiting for Peter -- and he is Johnny on the spot right on time we wanna talk about the jobs report. With Peter -- he's been against -- on the common touch -- foreign debt Peter July CEO of Euro Pacific precious metals good morning to Peter welcome back to WRKO. Excellent so we're expecting numbers today in about an hour on the latest jobs report respecting. Well you know I don't think the report is gonna be as robust as people may I don't think it'll be a disappointment but I think more importantly than that I look at -- job to work creating they're not the right kind of jobs they're not. Well up producing jobs. Here you know their -- consuming jobs during the service sector. And you know because we're not manufacturing enough. We end up having to import all the products that we're not producing -- of these jobs are actually making as pork. Not richer because they run up our trade deficit we go deeper into debt. So work the there aren't good jobs coming right now quote unquote they are. -- low level hourly type jobs. Well that just doesn't even into their higher paying if they're not productive we get we have a lot of jobs in finance. -- health care and education in retail. We don't need more those kind of jobs we actually have too many people working in those areas we need to have a real restructuring of our economy but it's not gonna -- Happen as long -- that it -- and the stimulus related jobs are making those pork and they're gonna go away when the stimulus goes away. Need help me don't understand. -- let's assume the Fed does exactly what you just said tell -- don't understand how steel fabrication. -- comes back to the United States I mean we were the steel capital of the world for so long and now what. Happens elsewhere is that likely to re migrate back here. Well if we get -- the government gets out of the way we have to remove a lot of the punitive regulations. That it made it's so expensive to manufacture things in this company in the country particularly when it comes to you know labor. You know there's there's there's activity things that make employing Americans very expensive and very risky so a lot of that activity that has been -- -- brought. So we have to repeal lot of regulations but we need more American capital and we get that with higher interest rates. Higher interest rates encourages savings and now we have money to invest. In building those factors right now nobody saving all the money is on Wall Street created by the Federal Reserve. You know it's all speculative that we don't have a real content -- have a gigantic bubble that's built on debt financed consumption. And it made possible by the artificially low interest rates but it destroyed our economy it's enabling our government to grow to this start gargantuan size. And the bigger the government yet. The -- the economy becomes because he had caught up to support all that's not productive government activity. Do you think American wages however an environmental law should be brought in to our kind of equity you know. Equal balance with say China or Taiwan -- steel manufacturing -- currents. Well certainly -- American wages right now and -- more importantly labor off have to come down. And it -- portion of those labor costs are created by government the regulatory call that the taxes. But yes you know we've got millions and millions of Americans who were unemployed. And the only way we're gonna employ them is up wages come down to a level where they can be hired profitably. It is so unfortunately wages are gonna out of all of this country to reason that raises rose before was because we were more productive we had. Machines we had wolves to give workers. We don't beat the world now and capital investment and so our workers are not as productive as they used to be and therefore wages happy yeah. But I think that if we get rid of a lot of government regulation that would take care of good portion of the problem and it wouldn't necessarily fall. On the backs of workers but it worked out big government all these regulations and all the government spending that the only thing can happen in the fall in wages and -- -- -- lot -- fall much further as a result. So let's back up a few years listen to what you're saying and trying to integrated in if say when it went Chrysler and GM were going under they'd been allowed to go wander. That the natural development from that would have been. Good things that we would have had new companies -- rise. That would have been more productive leaner and meaner and smarter. And the net effect would have been better than what we've been going through is a correction and the government tries to fight the correction and block it from happening so. Yet the government preserve all the problems at General Motors and Chrysler and so those firms are never gonna emerge from this process. You know as healthier better companies what we -- and how -- a real bankruptcy and you of the the president wants us to believe that had the government not -- -- Companies out. That they just would have disappeared. And all of their plants would have been mothballed. And none of the auto workers who have had jobs actually the opposite is true had we actually went through a real bankruptcy the new owners of those plants would have operated a much more efficiently. And would -- -- far more people and we have a better automobile industry than the one we have today if we let the free market restructure its. Rather than a President Obama because he restructured it. For the benefit of the labor unions. But what's good for the labor unions is not what's good for these companies. And there are going to be perpetual money losers the only reason that you have some short term profits at GM and and I think Chrysler. Is because -- basically sub prime lending in the automobile market where the US government is is financing all the automobile loans. And a lot of people are buying cars -- really can't afford them. And ultimately I think you're at huge losses in the finance arm as a lot of Americans and up not a pain they're they're car payments. But in this case in the meantime we're bringing forward years and years of auto sales. Now to -- the earnings that GM and Chrysler to make it appear as if this bailout was successful when it's gonna be a colossal failure. Peter a lot of really leadership as I guessed by the way end of Peter a lot of the that the recipe that you give us -- Getting back into a growth pattern comic in capital intensive society. If falls into the political -- fortunately or unfortunately is there anyone out there in the political world that you think -- set that they -- understands the prescription that you are sharing with us. Would that Iran follows that Paul Ryan is it anybody are they all literally they all. 12 and certainly Ron Paul mean -- the public figures that most understand the gravity of the situation. And the type of policies that are necessary. To correct it it's Ron Paul and he understands that we eat free market solutions to government created problems. But we're not gonna get those solutions until the government get out of the way and he understands the danger that image that the Federal Reserve is doing with artificial interest rates paid the price of money is one of the most important prices and a free market he can't beset by decree. You know we can't set interest rates in this country the way the Soviet Union uses that the price of Brett. We need to market to do what we -- supply demand and that the market was sitting interest rates they would be much higher than they are today and as a result without a lot more savings. It would have as much borrowing we wouldn't have as much debt we have a much sounder economy instead of that accident -- to grow the government. And that is the underlying problem you know I get into all the political solutions I've got a new book that's coming out about two weeks. Called the real crash America's coming bankruptcy -- a -- yourself and your country. And not only do I describe you know how bad is gonna get but I actually lay out -- the foundation for what we needed do. To dictate to dig our way out of -- hole I don't even think avoid that collapsed is is even possible at this point we're gonna happen real day of reckoning. That's going to be much worse than 2008 but the question is are we just gonna make the mistakes worst. Like we did last thought with the bail outs in the stimulus or we filing that do what we need to do to address these problems long term. So we can return to -- viable economy have really got a broken by lay out exactly what we needed do in that new. What's the answer to people like Paul Krugman who would say look over to your and see that they've pursued austerity. And what that does is it it kills our economy so they don't bring in the money necessary. Took it to pay off the debts and things get worse. -- well you know it's like if you're sick. And you have to take medicine often -- the medicine doesn't take that and when you do austerity yet in the short run the austerity doesn't taste good and Paul -- it is pointed to that bad -- And saying hey the Europeans -- -- -- that up parity out because it doesn't taste good. We know what -- -- suck it up right they will be results. They -- -- long term benefits from what they're doing it short term pain for long term gain but all part of it he can't see beyond the short term pain and he thinks that that short term pain in the problem it's not it's the solution -- America what we wanted to know McCain we we we we don't -- deal with the pain. We wanna get a so -- high -- stimulus. We want we don't. It we will also gives works both ways so what kind of time line is that I mean you're gonna look great in five years and we're going to be a mass or. Gonna move there you know you whoa yeah we're gonna be a disaster five years and Europe will be. Or what have improved now the only thing I I I criticize what's gone on in Europe I think he should be even more last year I don't think Europe's daddy's gone far enough I think they got bigger pot. You know and -- -- so and I think it would -- even bigger day that they put even more pain in the short run but I understand the politics dot C. Stimulus is great politics because it's like snake oil it is it's like telling people a miracle cure for weight loss what the Europeans are doing is diet and exercise. That's what works. You know -- at this steak while that we console does that work in fact if we think we're gonna lose weight on -- -- that we keep beating you know all the junk food and blocked batter. That's the problem. Okay quick question I just wanna understand so if the Fed was not artificially keeping down interest rates. The it would be expensive to get money but to make up for that there'd be more capital around so would be easier to get loans in that week -- -- Well it would be easier for businesses to get -- it would be much harder for consumers to borrow money to buy dot. Which is what we -- and it would be much harder for the government to borrow money to spend it. But we have more capital for entrepreneurs and businesses who were making capital investment because they can afford the higher rates of interest because of the returns on that capital. But we we can't try to you know continue to finance this consumption would people borrow money to buy stuff. That does not make us stronger -- does not grow the economy is -- those pork. Because we borrowed money to consume. In the mud is so when you -- played -- you actually out. You know as physical -- that you plant and equipment that can produce things to help desk is going to bite something that -- bet -- that's not the case. All right Peter -- great to have you on once again Euro Pacific precious metals. Good to talk with you sir thank you are -- Peter. What's the name of the book again. On the new book is Americas and note the real crap should America's coming bankruptcy. Out of -- yourself and your future you -- pre order right now on Amazon or Barnes & Noble and don't forget he ought I have I know reassure the Peter -- show. At -- on your radio dot com every day from 10 AM to -- Perfect as were the -- at that point. Hot hot hot hot here well the data thank you I thank the leadership you can just.