Paul Craig Roberts - Will China Prevail? US Corruption & World Interference Failing
King World News/Paul Craig Roberts
Today a former US Treasury Official warned King World News that US corruption and global interference is failing. He also discussed the desperate situation the US now faces and what this means for the gold market. Below is what Dr. Paul Craig Roberts had to say in part II of this powerful interview series. Click HERE to listen.
Dr. Roberts: “If the dollar loses its role as the world currency, and if the exchange rate falls, I think that hampers the ability of the Federal Reserve and the bullion banks to sell naked shorts, or to control the gold price by dumping all of these naked shorts in the gold futures market....
“I think the pricing of gold would then just move to the physical market. We see the demand for (physical) gold continues to rise. The reason we haven’t seen the rising price, despite the rising demand, is the price is fixed in the paper gold market.
So if the dollar takes hits (in value), that limits the ability of the Federal Reserve to fix the price of gold in the paper gold market. It (the Fed) just won’t have the clout that it (currently) has. I think the demise of the neo-conservative agenda of American world hegemony will come through the weakening of the dollar because it’s the dollar that is really behind American power.”
Eric King: “You were speaking (earlier) about a long-term Chinese strategy.”
Dr. Roberts: “They (the Chinese) do have a long-term point of view, and the United States is always very short-term. So I think they (China) will definitely prevail because they look further ahead.
Also, incomes in China are rising. Incomes in the United States are falling, and have been for several decades. Americans aren’t prospering. Their incomes are not rising, but Chinese incomes have been rising. That also shows the advantage (for other countries) to lie with China.
Also, whatever banking problems China has, the central government is not responding by printing their currency ruthlessly in order to support the banks. They (the Chinese) are apparently going to raise the interest rates, and if the banks fail, they fail.
But what have we done here (in the US)? We’ve essentially debased the currency in order to support a few banks. So this also shows the advantage of lying with the Chinese. They are not as arrogant, bullying, and threatening to other countries as the United States.
So whereas we will be able to continue buying the leaders of other countries for some time, the Chinese will prevail simply because they are more accommodating, less demanding, and they work out mutually agreeable deals that benefit more than the leaders of the countries.
You see what’s going on in Thailand, for example, is that the corrupt politicians that the Americans have bought and paid for are being challenged by massive demonstrations in the streets all over the country. I don’t think this is being reported in much of the American media. But you have these massive demonstrations, probably as large as any that have occurred anywhere (in history). Sometimes it looks like the entire city is out demonstrating -- to overthrow the American puppet government in Thailand.
So, whereas we can buy the government, we usually end up with such corrupt rulers that the people won’t support it. I think this also works to China’s advantage. It looks to me like the policy in Washington is too arrogant. It’s based on hubris and the belief that force can prevail, and I don’t think that’s the case. We saw, for example, that they tried that in Syria, and were blocked by Putin, and also the British Parliament. I think, also, their strategy toward China will fail.”
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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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Source: The Paul Craig Roberts Website/King World News- Photo: © Associated Press
URL: http://www.a-w-i-p.com/index.php/2013/12/02/paul-craig-roberts-us-corruption
