Summary Crash Proof by Peter Schiff

- Summary -
Crash Proof
Peter Schiff
#1
USA consumption drives world economy is
reinforced by media, not true
Nobody has ever asked Warren Buffett:
"If you're so smart, why ain't you rich?"
US economy

now world's largest debtor

depends on
foreign suppliers
foreign lenders






,
inflation
actual
core
 moderate

 excludes: food + energy

PPI
CPI
like if in debt
bad
 reduce purchase power

 upward pressure bond rates

interest government
 1 secret high

 2 efficiently low


service based
to consume

produce

borrow
so much
so long
 an entire nation cannot






, economies

market
increased living standards by capital accumulation
by more productive labour
result: greater output/worker
increased
 consumption

 leisure

capital investments only by savings!
by under consumption + self sacrifice


service
money = medium of exchange
wealth = what is received in that exchange
you cannot replace manufacturing with information!
 insufficient Q

jobs pay less than manufacturing jobs!
jobs
 high end

 low end: growth USA! hamburger flipping

 skilled

 unskilled


baby boomers
consumers, not savers!


China
wartime economy