Economic and political writer Brandon Smith thinks America is in deep financial trouble, and the Fed knows it.
Smith contends, “At the end of last year, I brought up the prospect to the alternative economics community that the ‘taper’ was real, that the Fed would start cutting QE stimulus. I received a pretty negative response from that concept, which is understandable because a lot of people in alternative economics and the liberty movement are focused on the concept of hyperinflation through printing. I am pointing out through my articles on ‘taper’ that there is more than one way to kill the dollar. It’s not just about printing. There is also the issue about debt default and how that can kill the dollar’s world reserve status and kill the dollar’s value in the process. So, the ‘taper’ is a huge part of that process of debt default.”
Smith goes on to say, “I find it interesting the Federal Reserve institutes the ‘taper’ just before we saw major downturns in global manufacturing. The Baltic Dry Index is starting to crash again. We’re starting to see trouble in emerging market currencies.