Peter Schiff predicting the present...

Frightening perspicacity in his commentary, recorded August of 2006 with the Dow at 11,350. Even if you don't like "economics," listen to this video for 5 minutes.

When he offered similar insights in December of 2006, he was laughed at by a collection of analysts on Fox news.

Those videos were from two years ago. Here are Peter Shiff's current thoughts:

In truth, the bailout plan substantially increases the threats to the U.S. economy... Make no mistake; had the government resisted the political pressure to interfere with the markets, we would now be experiencing a very deep recession. But by refusing to let the markets work, policy makers are resisting the only medicine capable of curing the economic disease that afflicts us.

The government will now attempt to keep bad loans from failing and real estate prices from falling. Rather then allowing market forces to rein in excess borrowing and replenish savings, it will encourage even more borrowing and drain what is left of our savings pool. Rather than allowing our economy to return to one based on legitimate production, it will continue to encourage reckless consumption.

In the end, by refusing to allow market forces to work their cure, our economy will inevitably die from the disease. Our economy will now face death by hyperinflation, which will cause a complete loss of confidence in the dollar and result in prices and interest rates skyrocketing out of sight. The evaporation of our national wealth will lead to civil unrest, food and energy shortages, and the possible imposition of martial law.

The final paragraph sounds like fearmongering, which I decry, and can be construed as hype for the book he has written. But his comments are worth noting, even if you choose to ignore them.