Peter Shiff has been trying to use the political process to get the government back to the constitution and to limit it’s spending.
Let’s do a thought experiment and imagine what happens if the policies and ideas of Shiff, Ron Paul or Rand Paul were implemented in the US.

Let’s imagine that Peter Shiff becomes a senator or even president because the press covered issues that were of great importance, including debt and the lack of funding of social security.

What happens next? Peter makes sure the government budgets are slashed down 90% overnight. According to Peter and austrian economics, what would happen after that?
There would be a massive depression, much more severe than 1930s depression, because this bubble has been building since about 1971. What would be the people’s reaction to a severe depression?

While they are loosing their house, loose their jobs and loose everything they have while the Chinese buy up every asset on the continent, would the people remain rational and just accept that “OK, we have to go through a generation of austerity, but that’s all right, Shiff says this will be beneficial in the long term, and we’ll have more freedom after a severe depression”.

Not a chance people would do this. There would be riots after a few days. Such a change of policy would be the death blow to freedom on this planet, or at least in the US for the next 200 years. People would NOT blame the previous bad policies for their irrationality, they would blame all the bad things on the current ones.
The worst possible solution to freedom in the world would be to get libertarians into a political position. Freedom introduced in a society of dependent people is a guaranteed failure. Just like burning churches doesn’t make people atheistic, in the same way tearing apart the government and cutting spending will not turn people into libertarians.
The US is too far gone from ever being recovered, and the sooner libertarians figure this out, the better off freedom on this planet will be.

Shiff is claiming that policies of the government and FED are so stupid, as the policies are throwing new money at insolvent banks that should be allowed to go bankrupt. My argument is that any libertarian wasting their time on politics and economic activity in the US are even more stupid. To spend your valuable life trying to fix a system that is beyond bankrupt in both financial and moral sense demonstrates how delusional most libertarians are. This system should be allowed to die, and the further away from the collapse libertarians are, the better. Let the system collapse under it’s own weight of irrationality.
This society is morally bankrupt, and the more libertarians get out before the border closes, the sooner we can start reconstructing a new and better society.

It’s time to give up fighting and get out before the borders close. Ayn Rand was not stupid. She understood that the solution to a collapsing society to stop fighting and allow the system to carry it’s own weight. Thus the title and the central theme of her greatest book: Atlas Shrugged. John Galt and his friends left the society they were living in to build something new, from scratch.

You wouldn’t invest in a company that had no hope of ever paying back it’s shareholders. It’s much better to start a new company. Why then do you waste your time and money on a society that’s far beyond bankrupt?