Book Review: The Real Crash By Peter Schiff

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Hi Bobby-readers, I’m very excited to share with you this first book review: The Real Crash by Peter Schiff.

OFFICIAL SUMMARY

In The Real Crash: America’s Coming Bankruptcy-How to Save Yourself and Your CountryNew York Times bestselling author Peter D. Schiff argues that America is enjoying a government-inflated bubble, one that reality will explode . . . with disastrous consequences for the economy and for each of us. Schiff demonstrates how the infusion of billions of dollars of stimulus money has only dug a deeper hole: the United States government simply spends too much and does not collect enough money to pay its debts, and in the end, Americans from all walks of life will face a crushing consequence. 

We’re in hock to China, we can’t afford the homes we own, and the entire premise of our currency—backed by the full faith and credit of the United States—is false. Our system is broken, Schiff says, and there are only two paths forward.  The one we’re on now leads to a currency and sovereign debt crisis that will utterly destroy our economy and impoverish the vast majority of our citizens.  
 
However, if we change course, the road ahead will be a bit rockier at first, but the final destination will be far more appealing.  If we want to avoid complete collapse, we must drastically reduce government spending—eliminate entire agencies, end costly foreign military escapades and focus only on national defense—and stop student loan or mortgage interest deductions, as well as drug wars and bank-and-business bailouts. We must also do what no politician or pundit has proposed: America should declare bankruptcy, default on its debts, and reform our system from the ground up.
 
Persuasively argued and provocative, The Real Crash explains how we got into this mess, how we might get out of it, and what happens if we don’t. And, with wisdom born from having predicted the Crash of 2008, Peter Schiff explains how to protect yourself, your family, your money, and your country against what he predicts

MY PERSONAL REVIEW

In the process of criticizing the American economic system, Peter Schiff brings his readers into the fascinating world of macroeconomics, policymaking, the history of money and the rise and upcoming fall of what used to be the richest country in the world. I personally learned a lot and I took a real pleasure in reading this book. Plus, Peter Shiff writes in simple terms, which makes the book accessible to most people.

However, Peter Schiff has his own ideas about how to fix the economy. He his extremely libertarian and anti-keynesian. He refutes any involvement from Government in citizens’ lives and firmly believes in the privatization of every sector of the economy, including social security, retirement, health care and education (traditionally run and funded by the public sector in order to ensure a fair redistribution of wealth and opportunities).

Consequently, the book is filled with very right-winged reform proposals, like the abolition of the income tax and the welfare state, the legalization of drugs and prostitution, and the annulment of public education, public pension plans, medicare and government subsidies.

The author is a complete free-market utopian, so some readers may be shocked by several of his arguments. However he’s also right about a lot of things (America going bankrupt, government intrusion into a market compromising the laws of supply and demand, the upcoming government bubble, the negative impact of inflationist monetary policies, the explosion of U.S. national debt, etc).

Finally, the author also gives some investment advice, in order to help the readers protect their wealth under the current financial and economic uncertainty.

Overall, good book, but when you’re done, take some distance and use the knowledge provided to construct your own opinions.

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