Mike and Phil Discuss Debt and Inflation for the 3,007,634th Time

Mandeville, LA – Exclusive Transcript – You know what I say, Phil, at the end of all this?  Who cares?  Literally, who cares?  You just said it yourself.  The dollar crashes in some manner, the Euro goes first, some of the European currencies crash, then the dollar crashes.  There will be a period of hyperinflation which will then be followed by deflation, I believe.  I know Peter Schiff and other economists believe it’s going to be hyperinflation.  You’re going to have to have $170 to buy a gallon of gas.  I think maybe for a time you have hyperinflation, but I believe that ultimately you have a serious deflation.  Then you’re going to have people that are not going to be able to live the fake lifestyle they live today because it’s supported by debt.  The government runs debt up on your behalf. Check out the rest in today’s transcript…

 

Begin Mike Church Show Transcript

Mike:  Phil is in Florida.  Hello, Phil.

Caller Phil:  Good morning.  I called today to talk about the two percent tax increase.  I’m so tired of hearing this administration beating that talking point to death every single day.  They’re not saying anything about the other 356 days that we need to resolve.  The budget is upside down.  The tax increase on the rich is going to do little to solve that.  Nobody has called him on it.  Certainly the press is not calling him on it.  Every day they get up there and drone about the two percent.

Mike:  That’s because they have an agenda.  Their agenda is clear.  The agenda is not to do anything about the out-of-balance federal monstrosity’s budget.  They’re not going to do anything about that.  This is a head fake.  By contrast, though, it’s also not fair to say that there is someone else that would do something about, because the Republican alternative, the one that Boehner has submitted, is almost equally as awful.  There’s only a $600 billion difference over ten years.  The Boehner plan adds $5.2 trillion to the national debt, the Obama $5.7.  We’re talking peanuts here.

Caller Phil:  Where does it end?

Mike:  You know what I say, Phil, at the end of all this?  Who cares?  Literally, who cares?  You just said it yourself.  The dollar crashes in some manner, the Euro goes first, some of the European currencies crash, then the dollar crashes.  There will be a period of hyperinflation which will then be followed by deflation, I believe.  I know Peter Schiff and other economists believe it’s going to be hyperinflation.  You’re going to have to have $170 to buy a gallon of gas.  I think maybe for a time you have hyperinflation, but I believe that ultimately you have a serious deflation.  Then you’re going to have people that are not going to be able to live the fake lifestyle they live today because it’s supported by debt.  The government runs debt up on your behalf.  The government is creating money out of thin air that should not exist.  This is what creates the illusion of an improving lifestyle. Your lifestyle is not improving.  When you look at hard data to see what you could buy with your dollars that you earn today, you cannot buy today what you could buy in 2001.  The fact of the matter is, most Americans are as much in hock and in debt as their government is.

We know it happens.  You can’t run the debt up forever.  Somebody at some point in time will say: All right, fork it over, pay up.  It is irresponsible and a dereliction of state legislatures’ duties, and I’ve been on bended knee begging my state legislature to do something about this, to prepare for what it is that’s going to happen, both militarily, meaning if there is some civil disobedience as a result of this you better be prepared for it.  The other thing is, the states better be prepared to legalize some gold and silver coinage and pick it up and provide money.  Somebody is going to have to provide money.  The federal government’s money is not going to be trusted any long.

Caller Phil:  Do you think the administration thinks this is a forgone conclusion as strongly as you?

Mike:  I don’t know what this administration thinks.  To tell you the truth, I’m really tired of obsessing over what the administration thinks.  I’m worried about what the Jindal administration thinks, quite frankly, sir.

Caller Phil:  I understand.  I just don’t understand why, despite whatever you think about their politics, which I don’t necessarily agree with, why would they stand idly by and let this happen?

Mike:  There can be a couple reasons for that.  One could be ideological.  Perhaps they have an ideological predisposition to believing that this is the only course.  Perhaps their position is economical and they believe, like Paul Krugman and some other people that call themselves economists believe, that you can run debt up, if you’re a government, till the end of time and there is never a need to repay it.  You just keep printing money.  Don’t worry about it, just ignore it, and there are no consequences for that.  I just don’t think that is a practical point of view.  Perhaps there is a sinister point of view.  I don’t know.  Maybe there is a New World Order out there.  Maybe the Bilderberg Family is in on it.  Hell, maybe the Knights Templar are responsible.  It’s Christmastime, Phil.  Let’s sing a Christmas carol.

Caller Phil:  Thanks for taking the call.

Mike:  I wish I had an answer for you, sir.

Caller Phil:  I wish there was an answer.

Mike:  Phil, you know what the answer is?  Pray, sir, pray.

Caller Phil:  I’m doing it.

Mike:  Keep doing it.  Keep doing it my friend.   Pray.

End Mike Church Show Transcript