INTERNATIONAL. Renowned investor, economist and author Peter Schiff said by following the advice of the same people who helped guide the US economy to the precipice of total collapse, President Obama now threatens to push it over the edge.

In his weekly commentary posted Friday on the Euro Pacific Capital website, Schiff analysed this week’s State of The Union address by the US President, saying the essence of the current program is for more government spending and larger deficits.

“While he [President Obama] did call for tax cuts for the middle class and offered what amounts to bailouts for those struggling to repay student loans, such cuts do nothing to promote growth in the near term and will add to the deficits in the long term,” Schiff wrote.

Schiff, who regularly appears in the role of a bearish pundit on numerous financial news networks said Obama fails to understand that the only reason the US economy rose to the top in the first place is that “the government left it alone.”

He quoted Spanish philosopher George Santayana’s words “those who cannot learn from history are doomed to repeat it,” to make a point that the US President “cannot even learn from the mistakes of his immediate predecessor, to say nothing of those he made himself while in the Senate or during his first year as president.”

“We are surely doomed to repeat them, perhaps more quickly than Santayana could have imagined,” Schiff said.

Schiff then went on driving a clear wedge between his economic beliefs and the prevailing thinking of the Obama administration.

“Rather than tightening the reins on the reckless monetary policy that undermined our savings, diminished our industrial output, inflated asset bubbles, and led to reckless speculation on Wall Street and excess consumption on Main Street, we are loosening them further, Schiff wrote.

“Rather than repealing regulations that distort markets and create moral hazards, we are adding new ones that do more of the same. Rather than cutting government spending to reduce the burden it places on our economy, we are increasing both the amount of the spending and the size of the burden,” he added.

“Rather than making government smaller so that the private sector can grow, we are making government bigger and forcing the private sector to shrink. Rather than paying off our debts we are taking on even more. Rather than encouraging people to save we are enticing them to spend. Rather than creating jobs, we are merely creating unemployment benefits.”

“As a result, instead of seeding the soil for a real recovery we are setting the stage for a prolonged depression,” Schiff concluded,

Peter Schiff is an American economist, author, commentator and popular video blogger who regularly appears in the role of a bearish pundit on numerous financial news networks. Schiff, the author of ‘Bull Moves in Bear Markets’ is a licensed stock broker and the president of Euro Pacific Capital, a brokerage firm founded in 1980 and later reincorporated in 1996, now headquartered in Connecticut.

In September, Schiff made official his long-expected US Senate bid for this year’s elections.