Peter Schiff’s Self-Contradictory, Flawed China Investment Thesis and Sucker’s Fund
This episode of Fast Money aired on Dec 11, 2009. What does Peter Schiff parrot on and on about in interviews about whats wrong with the USA, why its economy is unattractive and going down the tubes? Perhaps, some of these ring a bell?... 1. The already large and growing government and its spending 2. Bailouts, stimulus and crony capitalism 3. Government regulation 4. Government policies regarding the "free market" or government intervention in the private sector Now, lets examine how these apply to China, where he is "extremely bullish" on: 1. The CCP is the largest government structure in the world and spending in GDP % terms is comparable to the US 2. China is doing its fair share of money printing to stimulate the economy and most of the money ends up in the hands of special interests. Crony capitalism is the prevalent model in China - and it is one of the most corrupt places in the emerging markets in which to do business 3 & 4. Obviously, government regulation is an integral part of the Chinese system and economy - in fact, most industry sectors are still highly controlled. The most prominent leaders within the Chinese economy are still state owned enterprises. Major banks are almost all government owned or controlled It takes a total clown to go on air, make a maximum doomsday case about the USA using these arguments and then turn around and tell people that he is maximum bullish on China, which is an even worse example of the exact arguments he made ...




