Peter Schiff Launches EuroPac Canada (2011) Part 1 of 7

For the latest Peter Schiff, go to http://PeterSchiffBlog.com There isn't the same of of urgency to get out of the Canadian dollar as there is to get out of the American dollar. Although the Canadians have problems, they are nowhere near the level of severity as it is in the United States. Although Canada is relatively safer compared to the United States, it still makes sense to invest your money around the world. There will be tremendous opportunities in Southeast Asia in the next few years. The United States is probably the most important player in the world's economy right now. Not because they are the most productive, but because so many other countries are intertwined with the United States economy. If you have read Crash Proof, then you know that the crash that we have experienced wasn't the crash that I was talking about. I did mention the housing crisis, but I knew that that would be only the precursor to the real crash. The stock market bubble in the late 90's was not nearly as bad as the current housing crash. In the first case, most of the stocks were bought by people with their own money and savings. Of course there was a lot of speculation happening, at least it was with their own money. In this case, people were purchasing houses with other people's money. They were borrowing massive amounts of money to buy multiple houses. They were speculating and hoping that the price of the house would increase in the next few years. This housing bubble is only the beginning. Eventually will come the collapse of the dollar and of the bond market. That will be a much bigger crash and shock to the economy compared to the housing market. The United States pulled everyone around the world into their bubble. We have already seen major problems with countries like Greece and Ireland. There will be more. Borrowing money is like a disease. We are addicted to it. The cure is to save and consume less than what we produce. There is an expression: Shop til you Drop. This is exactly what Americans have done. They shopped a lot, and now they must drop. Like any drug, the effects of the stimulus plans will subside. At the same time, a larger debt has been accumulated. The economy, which desperately want to shift resources to more productive uses, has been prevented from this by the government. The coming crisis will be much like what has happened in Ireland. When interest rates go up, it will be impossible for governments to make payments on the debt. No one seems to care about the national debt, but they should.