The Impact of Schiff Officially Running for Senate
“I think that's my greatest attribute, the fact that I haven't had experience ruining the country.”
That’s what Peter Schiff said on Morning Joe, the left-leaning MSNBC morning show, as he officially announced his candidacy for U.S. Senator.
Schiff’s recent foray into the mainstream media has been sudden, but equally entertaining. His thoughts have been direct and different which always makes for something interesting.
Schiff explains his reasons for running for Senate:
[Schiff] believes that the massive increases in government spending since the beginning of the recession are actually making the economic disruption worse than it would otherwise have been. He sees another crash on the near horizon.
“What I've decided is that I cannot sit idly by and just watch a trainwreck in slow motion. I think it's important for me to stand up for the American taxpayer, for our country, and try to put a stop to this. [Senator Chris Dodd] represents all that's wrong for Congress.”
Schiff says he is among “a growing number of Americans out there who are fed up with what's going on, who understand that Washington does not represent the solution to our problems but the source of our problems. And unfortunately, the economic collapse that I predicted is going to get a lot worse precisely because of the things that the government has done over the last year to try to solve the problem that they've created.”
Clearly, Schiff’s take on the economy is certainly not very closely aligned with the mainstream, but not too much besides the official white house press releases are.
But as an economist, Schiff may just have a shot. Rasmussen Reports have Schiff within 2% of Dodd. This would be a major upset in the very left-leaning state of Connecticut.
At Q1 Publishing we are looking at things from an investment perspective (we’re investors working towards achieving financial independence). So from an investment perspective, there are two very positive events which could come from this.
The first benefit is the public will continue to realize the government cannot solve a single economic problem. They can only create them.
This has never been made more apparent than when we sat down with Dr. Robert Murphy a few weeks ago. In the interview Murphy goes into great detail about how the specific government actions at the start of and throughout the Great Depression only made things worse. Agriculture price controls reduced food supply, high wage mandates eliminated jobs; sharp increases in taxes eliminated capital available for investment, import tariffs reduced free trade, etc. etc.
Right now it appears the government is doing the exact same thing as in the Great Depression. In just the last few months, import tariffs have been implemented, minimum wage mandates have increased, and states across the country have increased taxes (Feds will follow shortly).
Schiff could be in a position to help shed light on how self-defeating all this is and will – eventually at least – be looked back as huge mistakes.
The second benefit of Schiff’s election could be to gold investors. Schiff has been a “gold bug” for years. And his presence on a national media stage – successfully elected or not – will only help bring more and more public exposure to the gold market.
At the Prosperity Dispatch, our 100% free investment newsletter, we continue to like gold and gold investments. Schiff’s run may help or it may not, but there are a lot of other fundamentals to send gold stocks much higher in the months and years to come.
