Tuesday, January 29, 2013

Contra Krugman et. al., Peter Schiff Does NOT Predict Hyperinflation

Paul Krugman and others repeatedly and dishonestly say Peter Schiff predicts hyperinflation. In reality he says the path we are on will eventually result in hyperinflation, but he expects cooler heads will prevail before high inflation turns into hyperinflation. In other words, he doesn't expect hyperinflation.

Asked if there will be hyperinflation in a recent interview, Peter responded:
I hope not. I don't think we'll have Zimbabwe-style hyperinflation because I think cooler heads will prevail before it gets that bad. Maybe before it gets that bad we'll discover the error of our ways and take the very painful steps necessary to prevent hyperinflation. But it's still certainly a scenario that is not impossible or even improbable. If we continue to do what we're doing it's inevitable. The question is will we continue on this path or will we reluctantly ultimately change directions. But I know that the longer we wait to do that, the more painful it's going to be and maybe the less likely it will be.
As someone who has closely followed Schiff’s commentary for years, I know this is what he has been saying all along. Krugman does too; he is not really an ignoramus, just clever, dishonest, and wrong.

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