THE REAL CRASH

Schiff (Crash Proof 2.0, 2007, etc.) offers a controversial set of remedies for the economic crash he believes is still on the horizon.

The author, who ran in Connecticut's Republican Primary for U.S. Senate and advised Ron Paul's presidential campaign in 2008, makes no bones about his political agenda. For him, the coming bankruptcy of the United States is the main driver of ongoing economic crisis and the top issue on the political agenda. “The U.S.A. is insolvent,” he writes, “and should enter the sovereign equivalent of Chapter 11 bankruptcy.” Schiff concedes that the measures he proposes will be painful. Among them, he advocates abolishing the payroll tax that pays for Medicare and Social Security, repealing the minimum wage, killing unemployment insurance “to allow wages to fall,” eliminating the FDIC and getting rid of other regulatory bodies or making them “optional.” The author insists that “lower wages” would mean a better quality of life, and he proposes long-term changes as these shock-therapy quick fixes take hold, directing his fire against primary education and the college system, which for the most part “wastes everyone's time and money.” Schiff consistently claims that to secure protection against the disasters looming ahead from debt growth and dollar devaluation, the need is for “shorting the U.S. government”—he recommends investing in gold-mining stocks and foreign currencies like the Chinese RMB. The author also opposes the war on drugs and favors legalizing prostitution and gambling.

Caveat lector. The inclusion of contact information for Schiff’s various investment companies highlights the element of self-promotion for both his businesses and the political approach he advocates.