Schiff: Obama's wrong when he says we have to raise the debt ceiling because we have to pay our bills

President Obama has often repeated that not raising the debt ceiling is an acknowledgement that the United States (Government) can't pay its bills.

What's the contrary position?

"When President Obama says that have to raise the debt ceiling, because America always pays its bills, he's wrong. The reason we have so much debt, is because we never pay our bills. And the reason that we have to raise the debt ceiling is because we can't pay the bills. So we want to borrow more money instead. If we leave the debt ceiling alone, then we finally actually have to deal with the bills. And the problem is, we borrowed so much money, it's impossible to pay it back. And that's what president Obama doesn't want our creditors figuring out." Peter Schiff on The Street (Video)

Are modern economists right that eliminating deficit spending will decrease GDP?

From a recent op-ed in Capitalism Magazine:

According to modern economists, an elimination of deficit spending will immediately cause a dollar for dollar decrease in GDP. For example, if the government stopped sending food stamp payments to poor people, then grocery stores would lose business, employees would be laid off, and the economy would contract. But this one dimensional view fails to appreciate that the purchasing power of the food stamps had to come from somewhere. The government can’t create something from nothing. Taxation transfers purchasing power from people living in the present to other people living in the present. In contrast, borrowing transfers purchasing power from people living in the future to people living in the present. The good news for politicians is that future people don’t vote in current elections (and current voters don’t seem to appreciate the cost to their future selves of current policy).

Schiff: 'If you thought 2008 was bad, you ain't seen nothing yet

Video: Peter Schiff in Maryland 2012 (playlist)

Video: Peter Schiff in Maryland (Part One)

Writings in Review, Vol.1

When Government Safety Nets Break || Gary North

Obama's Pretzel Logic || Peter Schiff

How To Skin Naive Conservative Donors, Decade After Decade, and How To Avoid Getting Skinned || Gary North

Video: Peter Schiff on Interest Rates

A 1-minute classic.

NIA is a Scam -- Do not promote their videos

I've distrusted this source since early last year. See my post "A Note on the National Inflation Association."

NB Interview: Peter Schiff on Media and the Economy, OWS | NewsBusters.org

From the NewsBusters blog:

For conservatives, one of the bright spots of the Occupy Wall Street protests was when millionaire investor Peter Schiff went down to Zuccotti Park with video camera and a sign reading "I Am The 1% - Let's Talk."

On Tuesday, I had the pleasure of speaking with Schiff by telephone in a sweeping interview about his experience at OWS, how the financial media are doing, and ending with his rather frightening view of the economy and the future of our nation (video follows with transcript)

NB Interview: Peter Schiff on Media and the Economy, OWS | NewsBusters.org

Video: Young Peter Schiff Discusses the Tech Bubble in 2002

Video: Schiff and Woods on Government Nonsense

Peter Schiff on Herman Cain's Hidden Nine

It's really a 9-9-9-9 deal, Schiff says.

However, the plan has deep flaws, the most glaring of which is its creation of a hidden payroll tax which represents a fourth "nine." This serious pitfall has been unmentioned by Mr. Cain and overlooked by those who have analyzed his plan. 

Peter Schiff, Herman Cain's Hidden Nine

Video: CORNEL WEST vs PETER SCHIFF

Video: Peter Schiff on the Dismal Future of the U.S. Economy

Peter Schiff on the Problem with Democracy

The voters want something for nothing. That's the problem with democracy.

Peter Schiff, Peter Schiff on the Dismal Future of the U.S. Economy

Schiff: I was fined because I hired too many people

How the Government Can Create Jobs by Peter Schiff

It's about what is seen and unseen:

Despite the understandable human tendency to help others, government spending cannot be a net creator of jobs. Indeed many efforts currently under consideration by the Administration and Congress will actively destroy jobs. These initiatives must stop. While it is easy to see how a deficit-financed government program can lead to the creation of a specific job, it is much harder to see how other jobs are destroyed by the diversion of capital and resources. It is also difficult to see how the bigger budget deficits sap the economy of vitality, destroying jobs in the process.

How the Government Can Create Jobs by Peter Schiff

Video: Dan Mitchell & Peter Schiff on Keynesianism

The Keynesian Crackup Continues: From Space Aliens to Food-Stamp Stimulus by Dan Mitchell

Schiff: Superhero Paul Krugman Saves World from Imaginary Alien Invasion!

Schiff: Creditor's willingness "type of ceiling that can't be raised by an Act of Congress"

Since Congress can vote to raise the limit, its existence has been more of a political nuisance than an actual barrier. The operative factor is not how much we allow ourselves to borrow, but how much our creditors are willing to lend. That type of ceiling can't be raised by an Act of Congress. Once our creditors come to the conclusion that they have lent beyond our capacity to repay, they will be very reluctant to lend more.

Peter Schiff, Debt Deal is a Blank Check

Schiff: Republicans can force cuts by not raising debt ceiling

House Republicans already have the power to avoid tax hikes and force significant spending cuts. All they have to do is refuse to raise the debt ceiling under any circumstances. That’s it.  At that point the only discussion would be where to find spending to cut.

Don't Be Fooled By Political Posturing, Peter Schiff