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Peter Schiff on The Real Crash, Austrian economics and Ron Paul

Thomas Mullen
Washington Times
August 31, 2012

Like Ron Paul, Peter Schiff was predicting the 2008 economic meltdown long before it occurred. Schiff is the president of Euro Pacific Capital, a firm that pursues investment strategies based upon Schiff’s contrarian economic analysis. Clients who took his advice over the past decade did very well, even after the financial crisis.

Both Paul and Schiff are proponents of the Austrian school of economics, which emphasizes free markets, sound money and Carl Menger’s subjective theory of value. Asked to describe what the “Austrian school” is, Schiff quipped, “It’s kind of like you’re asking me ‘What’s Science? Or what’s astronomy, because you believe in astrology. Austrian economics is economics. Keynesianism is like a witch doctor. It’s all a bunch of nonsense, but politicians love Keynesianism, because it justifies what they want to do to get elected, which is spend more money, promise something for nothing, play Santa Claus.”

Schiff was Ron Paul’s economic advisor during the 2008 campaign.

Schiff became a national sensation when the predictions documented in his 2007 book, Crash Proof: How to Profit from the Coming Economic Collapse, came true. Not only was Schiff the darling of nationally televised financial and investing programs, but he found a whole new audience among Ron Paul supporters, who drove millions of page views to the You Tube video “Peter Schiff was right.”

Schiff made an unsuccessful bid for the Republican nomination for U.S. Senate in Connecticut in 2010. However, despite being up against well-funded Linda McMahon, Schiff was able to garner about 20% of the vote by running on a Paul-style domestic policy platform.

“I was up against a combination of the establishment in my opponent, Linda McMahon of world wrestling fame. She spent $30 million of her own money to beat me in the primary – in a tiny state like Connecticut,” said Schiff.

Schiff has a new book out called, The Real Crash: America’s Coming Bankruptcy – How to Save Yourself and Your Country. In it, Schiff argues that the government cure for the 2008 meltdown was worse than the disease.

Schiff also hosts The Peter Schiff Show (radio) weekdays from 10 AM – noon ET.