The following is somewhat lengthy interview with Peter Schiff, so the translation there, is you get 25 minutes to soak up a TON of valuable information. To begin, the hosts start off by asking Peter about one of the financial bubbles here in America getting a lot of attention lately, and that is the student loan bubble. Like all bubbles, as well as so many of the other problems inherent within our economy, government steps in and attempts to solve a problem (sometimes a real one, sometimes only a perceived one), and once they inject themselves into the market, it’s all downhill. Of course, like Obamacare, Illegal Executive Amnesty, and the Dodd-Frank “Consumer Protection Bill,” liberals in government always have a publicly stated reason for the program, and then the real reason for the program. Sadly, 99% of Americans never get passed the bunker sticker slogans from the stated reason for the plan.
Take the school loan bubble. A few years ago it was at roughly $300 Billion dollars. Now it sits close to $1.4 TRILLION DOLLARS. I’ve met many of my dad’s college buddies from his generation. Most, including my father, were extremely successful baby boomers. I don’t recall any of them graduating with student loans, or if they have loans they only owed pennies compared to today. Best of all, because employers knew how hard kids worked, and because some worked two and three jobs to put themselves through school, the value of the degree was worth something, Employers knew the sheet of paper represented the achievements of the man who’s name was on it. Then, in comes big government, and promises students they can get better grades, and therefore be more valuable to the workplace if they don’t work and just focus on their studies. After that, the snowball effect took place. Schools realized kids were never going back to working several jobs (as the rule, not the exception), and furthermore schools knew that government would guarantee whatever loans were needed, and so began the vicious cycle or skyrocketing tuition.
Combine drastic drops in academic quality, with today’s generation feeling they are “entitled” to what those before them had, along with the fact that many were raised by very successful baby boomers, so they never went to bed wanting, and the end result is what today’s college degree is worth in more cases than not. SQUAT! I know mine was. Now, with a hemorrhaging economy, 94 MILLION Americans out of work, over 50 MILLION living in poverty and on food stamps, not only do kids not have the means to pay back the loans, why should they bother? What did they get in return for all the money they were essentially conned into borowing? They got a really pricy disco with books, booze, and bud? As our economy gets worse, more and more of those loans will go into default, and then guess what? If you ARE someone making good money, YOUR taxes will go up so you can pay for the schleprocks who didn’t. Isn’t socialism fun?
In the first video, Peter goes around talking to bar tenders, pet cab driver, people who take out the trash, all with college degrees, if it was worth it, and the answer is clearly no. That’s not to suggest certain people shouldn’t go to college, but this notion that all kids must go to college to be successful in not only false, its downright burying many kids under a mountain of debt they can never escape from.
I’m a bit more harsh than Peter in my explanation, but I totally agree if I had children, I would not be pushing for college, not right after high school. If you’re not familiar with the time value of money learn about it. Peter doesn’t talk about, but it’s a simple concept. It is VERY possible a person who begins work right out of high school putting away the full amount for an IRA and gradually building over time, could very well retire with more than the kid with the 100k in school loan debt.
President Obama promotes the myth that everyone must go to college. That if you don't go, your life will be ruined — that you will end up waiting tables, or trapped in some other mundane occupation. The truth is, even with a college degree, you may still end up waiting tables, you'll just begin your "career" four or five years later, tens of thousands of dollars in debt.
Here is an example of some of the plumb jobs college grads were able to land during the Obama administration. Not just liberal arts majors mind you, but graduates with degrees in mathematics, robotics, neuroscience, engineering, accounting, business administration, economics, biology, communications, graphic design, marketing, and linguistics.
Of course when it comes to education, it's not just the Obama administration that deserves a failing grade. For years, politicians of both parties have pandered to students by promising more aid in the form of direct or subsidized student loans. As a result, colleges and universities are freed from competitive forces that would otherwise keep tuition low. Easy access to cheap credit enables students to bid up tuition, benefiting the educational establishment at their expense. Politicians secure student's votes by promising relief from skyrocketing tuition by providing even more loans. Ironically, the loans themselves are the very reason tuition is so high in the first place.
Before the Federal Government got involved, college degrees were much more affordable, and ambitious students from poorer families could easily work their way through. In addition, as fewer high school graduates actually went on to college, not only were college degrees much less expensive to obtain, they were far more valuable to have. With so many high school grads now going on to college, a college degree is actually less valuable in today's job market, despite its inflated price tag, than was a high school diploma in the 1950s. The only solution is to get the Federal Government completely out of higher education, and let the free market fix what the government broke!
For those of you who feel a college degree is essential to financial success consider John D Rockefeller, Andrew Carnegie and Cornelius Vanderbilt. Rockefeller dropped out of high school and began working full-time at age 16. Carnegie didn't even go to high school and began working full-time at age 13. Vanderbilt dropped out of school at age 11, and by age 16 had started his own ferry business. All three were born poor and became self-made billionaires, who attained estimated net worths (in today's dollars) of approximately $670, $300. and $175 billion respectively. To put those numbers into perspective, the richest living American, Bill Gates, who dropped out of Harvard during his sophomore year, has an estimated net worth of just $65 billion.
In the second video, Peter goes more into how the Student Loan bubble is the least of our problems. Obama has also created stock market bubble, real estate bubble, bond market bubble, consumer loan bubble, and we are one pin prick away from annihilation the way the links I provide below illustrate.
FOR LINKS TO UNDERSTAND THE ECONOMY & THE COMING ECONOMIC COLLAPSE:
Peter Schiff: Everybody Is Preparing for Wrong Outcome in US Economy
The Elite Have Prepared For the Coming Economic Collapse – Have You?
The Elite Have Prepared For the Coming Economic Collapse – Have You?
50 Best Investment Blogs Giving You Straight News Without The Nonsense!
China Issues Warning Confirming It's Been Liquidating Treasuries
2 Day Crash That Was Larger Than Any 1 Day Market Crash In U.S. History
10 Signs the US is Transitioning to Third World Country Status (Videos)
Peter Schiff On China's Currency Devaluation and the Federal Reserve Board
10 Horrifying Realities Americans Find Too Awful To Face
Gerald Celente: Massive Market and Trade Instability Will Cause WW III
Warning: New Technological Breakthroughs Threaten Up to 47% of U.S. Jobs
China Knocking on the Door of Reserve-Currency; World Teeters on Collapse
Peter Schiff on Greece, Puerto Rico, and America’s Looming Economic Crisis
Peter Schiff: Greece Was a Sideshow. Americans Need to Worry About Starving
Gerald Celente Predicts Economic Collapse Means World War III (Video)
Can You Imagine Empty Grocery Stores?
Putin Makes Chilling Threat to Obama That Could Change Everything
Gerald Celente: America Headed Towards Total Financial Collapse
Peter Schiff: China and Switzerland is Killing U.S. Dollar
So it Begins: The Bond Crash Looks to be Here, and Investors Are Panicking
What Makes The Trans-Pacific Partnership So Bad? You Better Sit Down.
Global Reset Coming! Central Banks Are Losing Control Of Financial Markets
Deathblow to the Dollar – Even Our “Allies†Abandoning U.S.
What Will Happen To You When The Dollar Collapses?
Gerald Celente: “America Is A Collapsing Third World Countryâ€
Trouble Ahead: ‘Within One Year 9 Out of 10 Americans Would Be Dead’
How Will the Dollar Crash Affect ME PERSONALLY?
DOLLAR DOMINATION IS OVER!!!! – OMFIF Discusses Alternatives
Gerald Celente: A Worldwide Panic Is Beginning And “There Is No Recoveryâ€
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