Peter Schiff's new book 'how an economy grows and why it crashes'

I just finished reading Peter Schiff's book. Not a lot of economic insights to be gained from that book. gives a very simplfied picture of an economy using fishes and then gripes about the lack of savings in the US. This is a common gripe from many mainstream economists. but they fail to appreciate that there is a glut of savings in the world that we are able to borrow upon. Savings don't have much value if there are no borrowers to borrow it to make some productive economic exchange of goods and services. If Able had a glut of fish to sustain him for say 10 years, he could retire from fishing for 10 years but he won't have any other luxury provided other than his meal of fish food. If he wants to get some service provided by others in the island, he has to lend his extra savings to other borrowers so that they can create other services in the island. There needs to be borrowers for Able to benefit from his fish savings - without that, he will be just a bum on the beach able to survive eating his fish.

In my next blogs, I will try to go thru chapter by chapter of his book and try to construct an alternate economic model using his same fish example. I agree with Peter Schiff on some of his scorn for the Keynesian economists. Keynesian govt spending is necessary when the overall economic market goes thru a crisis and liquidity dries up due to build up high distrust in the market. The govt can try to cushion those crisis by deficit spending but they can only do so a for a limited time. If the economy itself has fundamental problems, govt over-spending can't sustain economic activity beyond a short period of time. A limited time could mean about one to two years.