I would still stand by my assertion that gold will be restored as the world’s “base” currency, however I now am nearly certain it will never have that chance before a world war erupts – a world war that will likely take humanity back to the Stone Age…
Based on the reaction overnight by the stock market futures to the EU/Greek situation- I would hazard the opinion that the zombies on CNBC were slighly off-base when they asserted last week that a Greek default was already “priced into the market.”
If Greece leaves the EU, it will likely trigger the eventual unraveling of the entire EU.
The West is impotent to prevent Armageddon. It is up to Russia and China, and as Washington has framed the dilemma, Armageddon can only be prevented by Russia and China accepting vassal status.
This is not going to happen…
Full MUST READ Coverage Here on TND:
The coup in Ukraine is Washington’s effort to thrust a dagger into Russia’s heart. The recklessness of such a criminal act has been covered up by constructing a false reality of a people’s revolution against a corrupt and oppressive government. The world should be stunned that “bringing democracy” has become Washington’s cover for resurrecting a Nazi state. – Dr. Paul Craig Roberts
“The question that nobody ever thinks about is ‘why is a reserve currency necessary and why would China want to be it?’ I think the future is likely to be no reserve currency”
In the MUST LISTEN interview below, Dr. Paul Craig Roberts joins Rory Hall & Dave Kranzler to cover the completely fraudulent Government employment report, China’s planned yuan-denominated gold fixing and the next global reserve currency.
Presented below is Shadow of Truth’s incredible two-part conversation with Dr. Roberts:
The Stacks Are Loaded Against Reform In Latin America.
Currently Venezuela, Bolivia, Ecuador, and Argentina are on Washington’s list of governments to be overthrown…
The Charlie Hebdo affair has many of the characteristics of a false flag operation. The attack on the cartoonists’ office was a disciplined professional attack of the kind associated with highly trained special forces; yet the suspects who were later corralled and killed seemed bumbling and unprofessional. It is like two different sets of people.
Usually Muslim terrorists are prepared to die in the attack; yet the two professionals who hit Charlie Hebdo were determined to escape and succeeded, an amazing feat. Their identity was allegedly established by the claim that they conveniently left for the authorities their ID in the getaway car.
Such a mistake is inconsistent with the professionalism of the attack and reminds me of the undamaged passport found miraculously among the ruins of the two WTC towers that served to establish the identity of the alleged 9/11 hijackers.
To the average person in the West, the notion that our own governments have a long history of running “false flag” operations in an attempt to terrorize us would seem ridiculous, and downright insane conspiracy theory. But reality is stranger than fiction.
According to news reports, police found the ID of Said Kouachi at the scene of the Charlie Hebdo shooting.
Does this sound familiar? Remember, authorities claimed to have found the undamaged passport of one of the alleged 9/11 hijackers among the massive pulverized ruins of the twin towers.
Once the authorities discover that the stupid Western peoples will believe any transparent lie, the authorities use the lie again and again.
The police claim to have discovered a dropped ID is a sure indication that the attack on Charlie Hebdo was an inside job, and that people identified by NSA as hostile to the Western wars against Muslims are going to be framed to pull France firmly back under Washington’s thumb.
In response to our account of the mysterious large rise in Belgium’s Treasury purchases , it was suggested that the transaction would show up on the Fed’s balance sheet. However, the Fed is under no obligation to show the transaction.
The $141.2 billion in Treasuries purchased into the Belgium account represents 3.2% of the total current size of the Fed’s balance sheet. The Fed is a private corporation and is therefore not beholden to GAAP accounting standards.
However even with GAAP standards applied, a corporation does not have to itemize and disclose the details of any event that represents less than 5% of its assets. In other words, the Fed can easily bury a 3% transaction in its financial statements.
Is the Fed “tapering”? Did the Fed really cut its bond purchases during the three month period November 2013 through January 2014? Apparently not if foreign holders of Treasuries are unloading them.
From November 2013 through January 2014, Belgium with a GDP of $480 billion purchased $141.2 billion of US Treasury bonds. Did Belgium’s central bank print $141.2 billion worth of euros in order to make the purchase? No, Belgium is a member of the euro system, and its central bank cannot increase the money supply.
So where did the $141.2 billion come from?
There is only one source. The money came from the US Federal Reserve, and the purchase was laundered through Belgium in order to hide the fact that actual Federal Reserve bond purchases from November through January were $112 billion per month, necessitated by the actions of an unknown country or countries who dumped $104 billion in Treasuries in a single week.
Former Assistant Treasury Secretary, Dr. Paul Craig Roberts says, “Gold and the dollar are in a fight to the death.” Dr. Roberts explains, “The Fed, in order to save a handful of banks too big to fail that are the mindless deregulation of the 21st century, the Fed has had to create a tremendous number of new dollars. Despite the fact the price of gold has been pushed down since 2011, it still has about the highest rate of return of just about anything in the 21st century. The Federal Reserve, in order to protect quantitative easing, which is necessary to save the banks, began manipulating the gold price in a new and more intense way. They used their bullion banks to short the gold in the COMEX futures market. The trouble with this policy is that it’s been going on long enough that it’s being recognized by people who formerly thought ‘the Federal Reserve would never do anything like that.’ Of course they would and people are catching on.”
Dr. Roberts goes on to say, “This is why the Federal Reserve is so irresponsible.” So are the Fed and Obama Administration trying to crash the dollar on purpose? Dr. Roberts says, “No, they are just stupid and arrogant. . . . If you add up the IQ of the White House and you add up the IQ of the Fed and multiply it by a thousand trillion it might equal 50. These are stupid policies designed to completely destroy the U.S. dollar. . . . I don’t think the United States can win the war against gold.” Join Greg Hunter as he goes One-on-One with Dr. Paul Craig Roberts.
Paul Craig Roberts, Assistant Secretary of the Treasury in the Reagan Administration, has voiced his concerns about the strength of the US economy, US politics, and US civil liberties. Roberts also believes the US is playing fast and loose with the monetary system and the value of the dollar. He speculates that, as the German Bundesbank has begun repatriating its gold from overseas out of storage in places like the Federal Reserve, the Fed will not be able to make delivery because it doesn’t physically possess the gold.
Perhaps this explains the Buba suddenly dropping its original 150 ton gold repatriation request from the Fed?
Driving down the price of gold assists the Fed in its efforts to support the dollar, and the Comex is running out of physical gold available to be delivered to those who decide to take delivery of gold instead of cash settlement.
Manipulation of the gold price is a foregone conclusion. The question is: why is the Fed tapering? The official reason is that the recovery is now strong enough not to need the stimulus. There are two problems with the official explanation. One is that the purpose of QE has always been to support the prices of the debt-related derivatives on the balance sheets of the banks too big to fail.
The liquidity that the Fed has created found its way into the stock and bond markets and into emerging economies. Curtailing the flow of liquidity crashes the markets, bringing on a new financial crisis.
The growth of US debt and money creation is causing the world to turn a jaundiced eye toward the US dollar and toward its role as world reserve currency.
The Fed knows that the ability of the US to pay its bills in its own currency is the reason it can stand its large trade imbalance and is the basis for US power. If the dollar loses the reserve currency role, the US becomes just another country with balance of payments and currency problems and an inability to sell its bonds in order to finance its budget deficits.
In other words, perhaps the Fed understands that a dollar crisis is a bigger crisis than a bank crisis and that its bailout of the banks is undermining the dollar. The question is: will the Fed let the banks go in order to save the dollar?
Economist Dr. Paul Craig Roberts says, “We have a situation where all the markets are rigged. All the markets are manipulated.” As an example, Dr. Roberts points to the stock market. Dr. Roberts contends, “We have a stock market at all-time highs, and where is the economy? There’s not one. There’s no recovery.”
Dr. Roberts goes on to say, “53% of Americans earn less than $30,000 per year. Well, the poverty rate for a family of four is something like $24,000. . . .
If there is no income to drive the economy and there is no credit expansion to drive the economy, then how does it go anywhere? You can’t possibly have a recovery.”
Former Assistant Treasury Secretary Dr. Paul Craig Roberts says, “Let’s cut to the chase. It’s got nothing to do with Syria. The reason they are looking for a fabricated excuse to attack Assad is to continue the radicalization of Muslims in the hopes this spreads into the Muslim populations of Russia and China. . . .
Washington intends to weaken the two giants it cannot run over.” Dr. Roberts goes on to warn, “I think this will lead to World War III, and that, of course, will be nuclear.” One big dilemma Dr. Roberts points out, “The issue is will any aspect of the government have any credibility if they back Obama when the rest of the world already knows he’s lying through his teeth? . . . This time the big lie didn’t work like it did in Iraq.” On the economic front, Dr. Roberts worries, “If they start abandoning the dollar, the collapse of the exchange rate will bring down the whole house of cards in the United States. The Fed will lose control. The banks will fail. Prices will rise dramatically. People will essentially not be able to pay their bills. It will be an unbelievable mess.”
What would happen to gold with a Syrian war? Dr. Roberts says, “If you get a real collapse in the dollar, gold could be $30,000 an ounce. Who knows?” Join Greg Hunter as he goes One-on-One with economist Dr. Paul Craig Roberts.
Former Assistant Treasury Secretary Paul Craig Roberts says, “The country is not being run by the President. It is being run by spy agencies and private interest groups, Wall Street and military security complex . . .They run the country. The President is a puppet, a figurehead.” Dr. Roberts contends, “If you are a lawless state, which the United States is, it obeys no international law. It does not obey the Geneva Convention . . . It tortures people. It doesn’t obey the Constitution. It doesn’t obey anything. It does what it wants. . . . If you are a lawless state, you disguise yourself as a democracy.” Former President Jimmy Carter agrees. Just last week, Carter said, “The U.S. has no functioning democracy at this moment.” Why hasn’t the mainstream media picked up this astounding comment from a former Democratic President? Dr. Roberts says, “Five firms now own what used to be a large dispersed independent media. Nobody can open their mouth, they’d get fired. They have become a propaganda ministry for government and corporations.” Dr. Roberts goes on to say, “My prediction or expectation is by winter, the second downturn of the Great Recession will be in place. Unemployment will explode, more foreclosures are coming. It’s going to be worse than the Great Depression.” Join Greg Hunter as he goes One-on-One with economist Dr. Paul Craig Roberts.
Former Assistant Treasury Secretary Dr. Paul Craig Roberts says new Trade deals with the EU and Asia are meant to backstop the dollar.
Dr. Roberts contends, “Washington is arranging that many countries have a stake in supporting the dollar. That frees them from the consequences of the printing press for now and a number of years.” It may already be working as Roberts points to the recent plight of NSA leaker Edward Snowden. He says, “Snowden tells the whole world the Americans are listening in on your every communication. You have no privacy whatsoever from the Americans and, yet, nobody will step forward and give him asylum. . . . They’d rather have American money than defend the guy who brings them the truth.” Not every country thinks the U.S. will be successful in saving the dollar. Dr. Roberts points out, “China is importing a tremendous amount of gold. They seem to not have much confidence in the longevity of American plans.” Even so, a dollar crash might be pushed back. Dr. Roberts contends, “They can put that off for a long time if these various schemes work.” And if they don’t work? Roberts says, “Well, there’s going to be a big blowup. I think there will be a big blowup anyhow.” Join Greg Hunter as he goes One-on-One with economist Dr. Paul Craig Roberts.
Paul Craig Roberts was Assistant Treasury Secretary in the Reagan Administration, and he warns, “America is going to crash big time.” Dr. Roberts says, “The real problem is not the fiscal cliff.” The dollar is on very thin ice. Dr. Roberts says, “They can’t stop hemorrhaging the debt, and the way they cover that is to hemorrhage the dollar.” In this real time scenario, Dr. Roberts goes on to say, “When you have debt pouring out and dollars pouring out, the dollar can’t keep its value forever. At some point, people will run away from it, and it will start abroad.” Dr. Roberts thinks there is “an impending collapse of the exchange value,” and the U.S. dollar could unexpectedly plunge in buying power. Dr. Roberts contends, “All of a sudden, people walk into Walmart, as usual, and they think they’ve walked into Neiman Marcus.” Dr. Roberts says there are no quick fixes to the bulging debt because “there’s no way to close this deficit when corporations are moving the tax base off-shore.” Join Greg Hunter as he goes One-on-One with Dr. Paul Craig Roberts.
In this excellent interview, American economist Paul Craig Roberts who served as Assistant Secretary of the Treasury in the Reagan Administration discusses the impact of Eurpoean austerity measures on world markets amidst ongoing riots and the fiscal and political situation in the USA, which Roberts states is the NEXT BANANA REPUBLIC.