I reviewed Peter Schiffs' interview on Morning Joe and was struck how Schiff's understanding is as deficient as the single entry accounting it is foundering on.
Yes, I know he's wildly popular with segments of the population, most notably ideologically pure Libertarians. None-the-less, his one-sided world view explains his fundamentaly flawed real-time predictions on actual market trends.
I enjoy Schiffs' passion, it's the blind ideology that puts me off. Perhaps he'll explain how our global trading partners will sabotage their largest financial asset: dollar denominated bills, notes and bonds. This isn't a poker game. No one is 'up' and no one can walk away with 'their' chips. There's no other game, and by virtue of walking away you devalue the purchasing power of your chips.
Additionally, while getting it right about many of the phenomena exhibited by the creation of the credit bubble, Schiff misplaces the blame. It's not 'the government' unless you admit it's the government WE'VE chosen. It's unrewarding to point the finger (with 3 pointing back) unless pointing in a mirror.
We're rationalizing beings, much more than we are rational. Many remain delusional until reality rears its ugly head. In this instance of crisis, one aspect will dawn on many as the contraction of credit continues, that is, we've been broke for a while now, but borrowed to live beyond our means. Payback and deleveraging are a bitch. And, it has a long, long way to go, as we've added more fuel to the fire.
We await a deeper understanding of what the new normal will be like, after the smoke has cleared. That knowledge will come as the unravelling of mood, confidence and will continues to seek a real, sustainable bottom from which to build - on a solid foundation, not financialized chicanery - a new and lasting prosperity.