Former US Treasury Official - Terrifying US Collapse Ahead

KingWorldNews.com / Paul Craig Roberts

The Hindenburg Omen: a technical analysis pattern
that is said to portend a stock market crash. It is named
after the Hindenburg disaster of May 6, 1937, in which
the Zeppelin airship Hindenburg crashed and burned.

Today a former US Treasury Official warned King World News that the U.S. is now headed toward a terrifying collapse. He also cautioned that, despite mainstream media propaganda, the Fed and other Western central planners are now desperately trying to keep the current financial system from imploding. This is without question one of the most powerful interviews Dr. Paul Craig Roberts has ever done.

Eric King: “Obviously the big news this week, Dr. Roberts, was the Fed and how they shocked the financial markets with no tapering. Your thoughts?”

Dr. Roberts: “Here’s the situation for the Fed: All of the markets, and the solvency of the big banks, are totally dependent on the Fed buying the bonds. If they don’t buy the bonds, then the interest rates are going to rise, the prices of all debt-related instruments are going to go down, the insolvency of the banks again reappears, the bond market collapses, and the stock market collapses....

“So they can’t stop QE because the whole system is rigged-dependent on that (QE). The other part of the trap they are in is that the longer they carry on QE, the closer they get to the time when the rest of the world simply loses all confidence in the dollar because of the enormous rate at which new dollars are being created, and they bail out (of dollars). And when there is a run on the dollar the Fed loses control and the whole system blows up. So what the Fed is doing is preventing a short-term blowup with QE -- that is, with rigging bond prices, but the consequence is there is going to be a long-run blowup when there is a run on the dollar.

So what the Fed is doing is simply keeping the system going as long as it can. I don’t see how they can avoid a crash. If they stop QE it’s going to crash. If they don’t stop it, it’s going to crash later. So the Fed is manipulating everything to keep the system intact. And to repeat myself, they can do that, until there is a run on the dollar, and when there is a run on the dollar they lose control. At that point, (the price of) gold and silver will explode.”

Eric King: “How rapidly is that day approaching where we are going to see that run on the dollar? We did see a big gap down (in the dollar) on the (Fed) news.”

Dr. Roberts: “I don’t know. It’s gone on much longer than I thought it could. When I was in the Treasury, if something like this had been happening the dollar would have exploded a long time ago. So I don’t know what Washington has put in place, what kinds of agreements it has established. We’ve pressured the Japanese into printing yen in order to take that pressure off of the dollar.

If everyone is printing, it kind of keeps things balanced with what the Fed is printing. But at some point all of these other countries will realize the potential inflationary problem for their own country as well as the deterioration in their dollar holdings.

One thing we should note is that it looks like Washington is succeeding in isolating itself. For example, they were faced down by Putin over Syria on the basis of the evidence. And the British Parliament voted down Washington’s plans to attack Syria.

So when Washington loses the support of its primary puppet state, the United Kingdom, when they wouldn’t go along with the attack on Syria, that’s an indication of growing political isolation of Washington. And growing political isolation indicates that Washington may have trouble in securing the cooperation of countries to keep the dollar from imploding.”

Eric King: “Dr. Roberts, where does this leave us?”

Dr. Roberts: “It leaves you knowing that at some point the system is going to collapse, but you don’t know when.”
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Paul Craig Roberts [paulcraigroberts@yahoo.com] was Assistant Secretary of the Treasury during President Reagan’s first term. He was Associate Editor of the Wall Street Journal. He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand. He is the author of Supply-Side Revolution : An Insider’s Account of Policymaking in Washington; Alienation and the Soviet Economy and Meltdown: Inside the Soviet Economy, and is the co-author with Lawrence M. Stratton of The Tyranny of Good Intentions: How Prosecutors and Bureaucrats Are Trampling the Constitution in the Name of Justice. Click here for Peter Brimelow’s Forbes Magazine interview with Roberts about the recent epidemic of prosecutorial misconduct.
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Article published here: kingworldnews.com. Audio
URL: http://www.a-w-i-p.com/index.php/2013/09/23/former-us-treasury-official-terrifying