AARGH. Dave Ramsey BASHING gold on his Townhall for Hope...

[wgadget]

is like fingernails screeching across a chalkboard.

And when he gets the audience guffawing, it's almost unbearable. Reminds me of the GOP debates last year, and the audience laughing at Ron Paul.

Did anyone else hear it? It was on tonight.

 

[Jordan]

Dave Ramsey's an idiot. That's all it comes down to.

His math is fuzzy. His real life scenarios are ridiculous, pizza boys make $3k a month? ha

He's a joke and he knows it. His financial advice hurts more than it helps. He has to appeal to a simple minded audience who knows nothing about money, and even less about logical decisions. He should be a pastor, not a financial advisor.

 

[tpreitzel]

Dave Ramsey ... Dave Ramsey ... Dave Ramsey .... Where have I heard that name before?

P.S. Ahem, he shouldn't be a pastor, either ...

 

[RSLudlum]

Your post reminded me of a pretty good article I ran across last year that compares/contrasts Schiff and Ramsey. Personally I think Ramsey does a good job at encouraging people get out of debt and gets people exited about doing it, but that's as far as I'd go in complimenting him.

Dave Ramsey, Peter Schiff, and decline of U.S. Economy



Dave Ramsey and Peter Schiff are two men that I respect because they exist within a group of little known “truth tellers,” speaking out on the perils of personal debt and a troubled U.S. Economy. But there are two distinct differences in their perspectives concerning our U.S. Economy and monetary policy that I find puzzling. Scroll down to watch Schiff’s top interviews.

Also, listen to what Dave Ramsey said about Peter Schiff in January 2008.

In a recent radio show (early January 2008) Dave Ramsey was asked about the state of the American Economy. He joked and said that the media had predicted “36 out of the last 2 recessions”, implying the media was anxiously reporting any negative news in regards to the state of our Economy. Ramsey then went on to mention that GDP and Net Worth figures were steadily rising - and pointed to these facts as proof that talk of recession is nothing more than ‘fear mongering’.

Since Peter Schiff (whom accurately predicted the housing bubble meltdown) is currently predicting the outright collapse of the U.S. dollar and our Economy, I decided to purchase his latest book ‘Crash Proof - How to Profit from the Upcoming Economic Collapse’ to harvest Peter’s thoughts on this very subject - and he delivers.

The Net Worth argument

Peter wastes no time attacking the Net Worth argument (smacks it down in the preface) stating that booming optimism “relies heavily on the familiar but erroneous argument that declining savings rates are belied by high household net worth figures, which we know reflect inflated housing and paper asset values.”

In other words, Americans have record low amounts of Savings (lowest since 1933) - but that’s supposed to be alright because they bought a house three years ago, which has doubled in ‘market value’, so the acquired equity represents Net Worth. As we are currently witnessing, Net Worth based on home equity is dropping sharply. Likewise, paper asset values such as stocks and investments will also drop, because they are based on a maintained global market ‘faith based’ value of the U.S. Dollar. The Dollar is on the way down, along with any markets based on its value. Since most American’s ‘paper assets’ are based on investments backed in U.S. dollars, the Net Worth attached to these paper assets are likely to crash and burn.

How does Dave Ramsey not comprehend this?

The Gross Domestic Product argument

Moving on to the ‘GDP is growing - so the Economy is great’ argument. Peter invalidates this fantasy on page 2 of Chapter 1. The problem “is that most Americans, including most economists and investment advisers, have confused conspicuous consumption with legitimate wealth creation. Our impressive gross domestic product (GDP) growth, dominated as it is by consumption, is not a measure of how much wealth we have created but of how much we have destroyed.”

Our inspiring GDP is based on borrowing and consumption (bad), not savings and production (good). It sounds wonderful to be able to say that life is good because people are spending money. But when you analyze just beneath the surface there is a horrifying catalyst: The Savings of American Citizens are gone, personal and national debt is at an all time high, and the money was used to purchase garbage.

If this is how you measure success - count me out.

Gold investments and the Gold Standard

In regards to monetary policy Dave Ramsey is not a promoter of Gold. Although Dave doesn’t mention hard money or a Gold Standard, he does degrade the precious metal as a poor investment. In Dave’s latest book ‘The Total Money Makeover’ he had this to say about Gold: “The truth is that gold is a lousy investment with a long track record of mediocrity. The average rates of return tracked as far back as Napoleon are around 2 percent gain per year. In recent history, gold has a fifty-year track record of around 4.4 percent, about the same as inflation and just above savings accounts………..It is important to remember that gold is not used when economies fail. History shows that when an economy completely collapses, the first thing that appears is a black-market barter system…” (pg. 55).

Although I don’t doubt that Ramsey’s facts are accurate, his assessment of Gold is backed by his above mentioned confidence in the U.S. Economy. If the value of our U.S. Dollar were to crash - Gold would remain a viable investment (protecting an individual’s wealth by maintaining value on the global market).

This is where Peter and Dave’s philosophies differ.

If Peter Schiff turns out to be correct about a Dollar meltdown - Dave’s investment strategies would fail (they’re based largely on Wall Street Economics). Peter’s attraction with Gold is reinforced by his admiration of the American Economy and Government when our currency was on a Gold Standard. The Gold Standard restricts the creation of credit and helps to keep Government Spending under control. Peter understands this and believes that the next dominating ‘reserve currency’ will be backed by the luscious Gold.

Dave Ramsey is on the right track regarding most of what he says. He encourages all Americans to get 100% out of debt immediately. Ramsey accurately explains that obligations to debt prevent wealth building.

However, after retreating from the debt trap I highly recommend adopting Peter Schiff’s investment strategies (based on foreign markets and precious metals). I know it’s difficult but let’s try and look beyond Wall Street, or as Peter would say “Nations are not served by citizens who refuse to face the truth. Blind optimism, shrouded typically in patriotism, abounds and is going to lead us to disaster.”

http://debtprison.net/wordpress/66/dave-ramsey-peter-schiff-and-decline-of-us-economy/

 

[wgadget]

Thanks for that most excellent article!

 

[HOLLYWOOD]

GDP is one of the most manipulated basis of monetary signals in this country.

Dave Ramsey is an Idiot! It will take some to reveal his true colors/motives.

Yeah these TV Money game show hosts think they're above all in IQ, when in reality they're quite dumb.

 

[BKV]

Dave Ramsey's an idiot. That's all it comes down to.

His math is fuzzy. His real life scenarios are ridiculous, pizza boys make $3k a month? ha

He's a joke and he knows it. His financial advice hurts more than it helps. He has to appeal to a simple minded audience who knows nothing about money, and even less about logical decisions. He should be a pastor, not a financial advisor.

I think he's a stock tool, but I don't think he's wrong about everything.

He's like Dr. Laura, people who need his advice are so stupid, ignorant and troubled any advice is better than none.

 

[BKV]

GDP is one of the most manipulated basis of monetary signals in this country.

Dave Ramsey is an Idiot! It will take some to reveal his true colors/motives.

Yeah these TV Money game show hosts think they're above all in IQ, when in reality they're quite dumb.

I dont think his motives are much more than helping really f-d up people and making money for himself.

 

[jclay2]

I don't think Dave Ramsey is to bad on personal finance, but like others have mentioned he has made some pretty stupid statements about the greater economy and political situation.

 

[BKV]

I don't think Dave Ramsey is to bad on personal finance, but like others have mentioned he has made some pretty stupid statements about the greater economy and political situation.

maybe that's the plan, idiots who fall for him will listen to him later on bigger things.

 

[ord33]

His show tonight wasn't bad overall. He atleast bashed Keynesian economics in the beginning of the show, but I did cringe with his gold comments - but he is right about its performance during the 20th and 21st century. Also, he makes a good point about when all hell breaks loose like New Orleans, other things are used as barter. He doesnt take into consideration a currency collapse though.

I think he does a good job (like others have said) with the basics and getting people out of debt, not much more than that. He is a notch above Suze Orman in my book without a doubt.

 

[hugolp]

GDP is one of the most manipulated basis of monetary signals in this country.

Dave Ramsey is an Idiot! It will take some to reveal his true colors/motives.

Yeah these TV Money game show hosts think they're above all in IQ, when in reality they're quite dumb.

GDP is not only manipulated but non-important. I dont know why people use GDP as an indicator of growth when the GDP is not an indicator of growth. The GDP can be raising and the country can be poorer, and the GDP can be falling and the country getting richer. GDP should not be used to measure growth.

 

[amonasro]

I think he does a good job (like others have said) with the basics and getting people out of debt, not much more than that. He is a notch above Suze Orman in my book without a doubt.

Absolutely. He's not a politician, he has books to live up to and ultimately he makes his living by selling a character. Radio and TV personalities have more in common with actors than the people they're supposed to represent.

 

[jsu718]

Let's not blast the guy for the one thing you disagree with. 90% of what he says is VERY good. His focus on his show is paying off debts, saving up money, and living within your means. To ignore all that and say he is an idiot just because he doesn't suggest investing in an unpredictable (yes it is) area is ridiculous.
Dave Ramsey is NOT an investment analyst. he is an expert on personal finance. And yes, he IS an expert. I don't care about credentials or degrees or anything else. His system works for a LOT of people, and he was one of the few radio personalities that came out with support for Ron Paul (no official endorsement because he wasn't allowed to) and talks common sense about money.
If it helps, look at it this way. Dave Ramsey is like the Ron Paul of the media. He's been out there forever talking about his thing and has never strayed from it. He never fell into the garbage about spending our way out of a recession, and is a great guy in general.
Yes I disagree with his specific points on gold, but that is a VERY VERY TINY part of the big picture, so don't blow it out of proportion.

Also if you are going to compare Dave and Peter... it's not really a fair comparison. Dave speaks to those that are on the low end of the personal wealth scale and trying to get by and get started. Peter speaks to those that already have money and wealth and are trying to improve on it. People should listen to each of them with that in mind.

 

[Nanerbeet]

I would like to know if you lived in iceland and had massive debt before the crash, were you able to pay off all your debt, just by selling your gold wedding band? How much is once of gold word over there now vs. 2 years ago. Inquiring minds want to know!

 

[wgadget]

Let's not blast the guy for the one thing you disagree with. 90% of what he says is VERY good. His focus on his show is paying off debts, saving up money, and living within your means. To ignore all that and say he is an idiot just because he doesn't suggest investing in an unpredictable (yes it is) area is ridiculous.
Dave Ramsey is NOT an investment analyst. he is an expert on personal finance. And yes, he IS an expert. I don't care about credentials or degrees or anything else. His system works for a LOT of people, and he was one of the few radio personalities that came out with support for Ron Paul (no official endorsement because he wasn't allowed to) and talks common sense about money.
If it helps, look at it this way. Dave Ramsey is like the Ron Paul of the media. He's been out there forever talking about his thing and has never strayed from it. He never fell into the garbage about spending our way out of a recession, and is a great guy in general.
Yes I disagree with his specific points on gold, but that is a VERY VERY TINY part of the big picture, so don't blow it out of proportion.

Also if you are going to compare Dave and Peter... it's not really a fair comparison. Dave speaks to those that are on the low end of the personal wealth scale and trying to get by and get started. Peter speaks to those that already have money and wealth and are trying to improve on it. People should listen to each of them with that in mind.

No. He's worse than the picture you paint. Listen to this youtube from January 2008, where he calls Peter Schiff a nutjob.


YouTube - Dave Ramsey calls Peter Schiff an idiot

 

[Bruno]

I would like to know if you lived in iceland and had massive debt before the crash, were you able to pay off all your debt, just by selling your gold wedding band? How much is once of gold word over there now vs. 2 years ago. Inquiring minds want to know!

Great question. I'm interested as well.

 

[stag15]

I was driving to my hometown after work last night and was listening to his show. I almost swerved off the road when someone asked him 'what will lead us out of this economic mess?' His answer was 'the housing market will lead us out of this, it won't be jobs and it won't be the stock market'.

I was like 'are you kidding, the housing market is the reason we are in this mess. how will the housing market lead us out if we don't have jobs?'

 

[stag15]

That video made me sick.

Who is that girl, I want to call her up and see what her opinion is now of Dave Ramsey, because I am sure her dad is laughing.

 

[stag15]

I wonder if Dave has seen that video since then, and if he has changed his mind. My landlord and co-worker is huge Dave Ramsey fan and listens to his CD's during work. Before I could handle it, but now it is going to be rough.