America is Going to Crash Big Time-Paul Craig Roberts

By Greg Hunter’s USAWatchdog.com 

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.

Comments
  1. Michael

    The biggest question that is not being asked is WHY?
    So let discuss WHY.
    WHY is the Obama administration going to go over the proverbial fiscal cliff?
    ANSWER – He gets a fourfer!
    1 – Taxes raised accross the board.
    2 – Defense spending slashed.
    3 – It is all the Republicans fault – Democrats control the MSM and get to craft the message.
    4 – With the crafted message (it worked in the November election), this sets up the take over of the House of Represanatives in 2014 and allows for the completion of the Transformation of America.
    * The only person in Obama’s way is a pink tie wearing cry baby named John Boehner who has already waved the white flag.

    Why is Obama destroying the Dollar by spending into oblivion?
    Answer – Simple by destroying the dollar as a currency, it allows the government to reintroduce an electronic currency that only it controls, thereby determining the economic winners and losers as it sees fit. Private possession of gold and other precious instruments will be illegal and those in violation will be draconially punished.
    Welcome to the brave new world.
    The time has come time for us to say Sayonara to the United States of America that we once knew.

    • Al

      Your answer may be true, but “they” “have even MORE in store for YOU on a very personal basis. Read my comment under “Al says” and begin your journey into to hell my friend—————————

    • SavagePossum

      …and best thing yet, BHO can say it wasn’t his fault that we went over the cliff. This is a 3 way lose-lose-lose situation.
      Battle of Bennington flag bearers stand by.

    • maria oceanna

      so why haven’t all you smarties out there, with all your investments, taken any action besides protecting what you think is your wealth?

      Obama has had the help of the Senate and Congress in all his removal of our liberties. Those senators and congress people voted to support him.

      what’s that about?????? NO OPPOSITION. Shame on you who blame the “sheeple.” You are the educated and wealthy ones.

    • Truelitistnot

      Obama has zero interest in cutting military and defense budgets. Let’s not forget his friends are the same friends as the neoconservative military industrial complex people. Obama is indeed a wolf in sheep’s clothing. Obama needs to negotiate with himself here and the way to do that is for him to fail at bargaining with republicans. Yes he will play the blame game for sure, but more importantly to him is that he can then modify his public agenda to achieve his private neoconservative agenda. He plays bait and switch with himself in public view and blames republicans. He has done this consistently from the beginning.

  2. art barnes

    Greg, Mr. Roberts laid it out in the most rational way I’ve heard for a long time, the 1 percent big shot corporations took our jobs offshore. I have been yelling about that giant sucking sound of good jobs going to Asia and beyond for years now with no one listening. Good jobs means good consumer spending, great tax base, etc. Its not hard to figure, it just a slow grind downward and those of us who have watched this for the last 40 years have seen the changes and have connected the dots between offshore jobs which should have stayed on our shores and a declining economy. Thanks for having him on.

    • kevin

      Jobs went overseas because super high corporate taxes in the US force companies to move overseas to be competitive. In a global market lowest corportate taxes wins. Want jobs, then get rid of corporate taxes. How many times does money have to be taxed? Corporations get taxed for building stuff. They get taxed when they buy basic materials to build stuff. Workers get taxed for building stuff. Then workers get taxed for buying the stuff we make. Investors get taxed for investing in the company to build stuff. If you save money you are taxed. Insane.

    • m podobnikar

      the reason jobs are going over-seas is that our manufactured stuff is just too expensive to compete on the world market. Unions demanded excessive wages and benefits. Companies to stay afloat buy overseas goods. LOOK; If I can buy the SAME item at Kohl’s for 1/2 the price of it at Macy’s, I’m going to do it. So do retailers. You workers on your 4th or 5th year of unemployment checks, get off your fat diabetic butts and re-train. YOUR OLD JOBS ARE GONE FOREVER!!! And BO Wants more unions.

  3. Lawrence Miller

    “there’s no way to close this deficit when corporations are moving the tax base off-shore.”

    Once again Paul Craig Roberts takes a myopic view of events. It’s not a taxing problem and there is no taxing solution. Taxing 100% of GDP won’t solve our deficit and debt problems. It’s a SPENDING problem that draws us further into debt (which is already unpayable) every day. Corporations moving the tax base off shore is not the cause of our unsustainable debt and thinking that is a typical myopic view.

  4. stan

    Hey Greg,
    In college I worked at a camera store. A person walked in and said “I want to buy a cheap made in the USA camera”. I laughed at him as at the time there were no cameras being made in the USA. When we walk into a store do we buy the made in USA item or do we buy the lower priced item that is made in China? If your manufacturing cost is higher because you are made in USA how do you survive when the 99% will buy the lower priced made in China item? We did this to ourselves is my point…

  5. AndyB

    Greg: excellent interview with a “speaker of the truth”. How unfortunate that few understand what the US faces, no matter how long and far the can can be kicked. You talk about the Yin and Yang vise grip the US (and global) economy is in. Perhaps we should define the Yin as the Progressive/Marxist Cloward-Piven strategy of destroying an economy through entitlement dependency (has worked very well, hasn’t it?) and the Yang of crony capitalism, or really fascism to be precise, certainly evident in the conflicting actions of one Barack Obama and the corruptocrats in all 3 branches of government to ensure that the middle class gets all its assets “corzined” while the purveyors of fraud and theft get the proverbial “get out of jail free” card.

  6. Diane Carol Mark

    Hi Greg,
    Your interview today with Dr. Paul Craig Roberts is a fresh breeze. You’ve clearly and succinctly explained the rather complicated economic dynamics that we all need to understand today. I’m sure, based on our past experience, that the challenging end result that is mathematically inevitable, will be postponed as long as possible by our leadership. Of course, this makes it appear as though that disappointing future will not happen … But, 2 + 2 does equal 4 no matter how you sort it.

    Thank you both!
    :) Diane

    • Greg

      Thank you Diane, KC, Eideard, Charlie and Al for the comments.
      Greg

  7. KC

    Greg-

    Amazing interview. I have been visiting this site for the last year. It’s been really great watching your list of guests grow in quantity and quality. Truly a testament to your skill and reputation as a news source. Keep it up!

    -KC

  8. charlie

    Hi Greg,

    It looks like congress has done a lot of stupid things in favor of the rich and corporations that are destroying this nation. Sad.

    • nevket240

      What a stupid statement, typical narrow minded sociopath.
      Your Congress and Admin overall have bought their voter base with unaffordable welfare. 100% tax on everyone will never solve the problems the USSA faces. Rot in hell, you did it to yourselves.
      regards

  9. Al

    How very interesting. This fits perfectly with the info I’ve been reading as to WHY this government has allowed it. The shadow government WANTS our economy to slow down and stop. Why? Unchecked growth will eventually deplete earths resources. And “they” want our Constitution GONE. They want a One World Government run out of the United Nations. POWER. They want more POWER over us. These greedy men [and women] create the problem [behind the scenes] and then offer us a solution. These are facts reported on by hundreds of honest people searching for the truth. Look up ‘Agenda 21′ and see what they have in store for us later on as we starve and are out of work. These people have no cares about us. We will be robbed blind first and then eliminated! Look it up. They must be stopped——————

    • Michael

      Al:
      I am very aware of Agenda 21 and the Democratic Party is jockying the USA into position as I mentioned the strategy above. I did not address the bigger picture as it can a bit brain swirling for most people. In Kalifornia, our state government is leading the way through the efforts and dictatorials of government organized entities such as ABAG and One Bay Area. The way to stop them is to sway their enforcers. Educate your local peace officers and military personel about what the government is doing and WHY so they protect you! Not the politicians.

    • 742

      The first person to use the term, “new world order” was George HW Bush. The only way out of the “fiscal cliff” is to bankrupt the entire country, and then the rest of the world will follow.

      As to how the populations around the world react, I believe it will be different country by country.

  10. Rev. William Joslin

    Awesome interview as usual! :) I say, don’t be scared, be prepared. Hard times are coming. But, those who prepare the most now, will suffer the least when they do. God bless you Greg. Thanks for all you do! :)

    • Greg

      Thank you Rev.
      Greg

  11. tsuki

    I always thought we would go out with a whimper, but Dr. Roberts has convinced me otherwise.

    I am reminded of East Germany. We thought it was going to slowly decline over two years. With a million Stasi, half a million informants, the GDR Army and local police force, the country still collapsed in 24 hours.

  12. Max

    Dr. Paul Craig Roberts delivers a clear and sobering description.

    I wish it were not so,
    but at least now, it is easy to see the frieght train coming at us!

    • Greg

      Thank you Max and Meatdawg.
      Greg

  13. Meatdawg

    Thanks for another great interview with PCR. I can always count on him to tell me “How The Cow Ate The Cabbage”.

  14. James Lanier

    Greg,

    Once again another great interview. I have to say this in all due respect. You’re looking tired out. Your website and your work are very important for this country. If you can take a little time off to relax.

  15. Brian

    The destructive push the “fed” has been making over the last year to keep things appearing to be normal smells like desperation, they are sacrificing the entire system to buy a little bit of time………makes me wonder what it is that this precious time, which we are going to pay for so dearly for them to have, is being used for.

    The best case scenario is that the people in charge are incoherent, totally disorganized and operating on pure short-sighted greed and lust. Sadly this is what I am hoping as the alternative to this is very dark indeed.

  16. Brian

    Gold is 1% of all Global assets. Gold will always be part of the underground economy. Gold is moving towards the monetary system. No confiscation will take place.They need the GOLD market to help them.If tanks are rolling down the street to take your GOLD then there will be no economy period.The electronic currency they create will have no value whatsoever.

  17. JoeJustJoe

    Meanwhile, back at the ranch… the goldies once again fall outta bed along with the general market indicies. Greg, some fellah who spews here often said that gold would trade along with the general market for as far as the eye could see. And that when (not if) America goes to heyell in a handbasket, gold goes with it…contrary to what Dr Roberts was spewin. Is there any chance that guy who spews here constantly could actually be right? And who was that masked man anyway? :-) Already banking MAJOR chachingo based on trades I brought everyone last week. My VIXens are rockin n rollin. Trying reeeal hard to get a break of BAC 10.50 into tomorrow. If that happens >>> Cha-ching! *-) As always, I will continue to bring you the GRRREAT trades so that you fokes will have something to admire while you try and figger out what the “real deal” is with gold. Sure, you can listen to “that fellah” who will be proven correct. Or, you can search for the truth on your own. But is there such a thing as a goldbug who actually knows what “the truth” is??? I rest my case, your honor. :-)

  18. Mitch Bupp

    Thank You Greg and Paul ….. the sh#t storm is coming …

    tax revolt now …. it i the only weapon left to the people…..

  19. Alberet

    It was Reagan, BABYBush, and the REPUBLICANS who started America down the mountain …..
    I never understand why people think Reagan was a great conservative? He was the first of the ANTI-cons aka neocons. Reagan started us on the slide of debt-death, preferring to use “credit cards” to hide his excess spending and shove the inflation/debt onto coming generations. Reagan waged war on the Working People of America (1)Launching the war with his attack on unionization, firing the air-traffic controllers and (2) Introducing the concepts of low paid part-time and contract workers. Remember how Henry Ford introduced the concept that if you paid your people enough money, they would/could buy the products they were building? Well Reagan destroyed that concept, and brought us HERE, to THIS economic crash. Reagan was no “hero” who destroyed Communism. Reagan was a coward who HID the fact that the USSR was dead on it’s feet and collapsing. Reagan created fear in the People to get support for a wasteful looting of the Public Treasury by the Military Industrial Thieves. Finally, Reagan, the week after leaving office, ran over to Japan to collect at LEAST $6MILLION in “speaking fees” which was a nice term for BRIBE for keeping our markets open to the Japanese, and thus SELLING OUT American Workers. No, Reagan was not a great man, he was a Low Life Credit Card spendthrift.
    And another thing — america became a war mongering state on the day that an all volunteer military (another Reagan screwup) became a reality, in the aftermath of the VN war. Thus ensuring more riches for the WAR PROFITEERS
    Then BABYBush compounded the whole mess, and the Repubs just stuffed their wallets.

    The four biggest liars w.r.t. the economy over the past 32 years are Reagan, Greenspan, GW Bush and Bernanke. They are the most responsible for the current economic problems because the consumption-debt build up took off in mid-1980s and continues to this day primarily because of bad tax policies.

    • Greg

      Alberet,
      I’ll repeat what I said to “Stanely”: “Do you really think the Democrats have no sin? Do you really think there is a big difference between the two parties. Both are beholden to the bankers that are sucking the country dry with out a single complaint or prosecution from either side o=f the phony left/right paradigm. Please, that will not work here with this audience. Thank you for your comment.”

      Greg

  20. Stanley Crawford

    Since Paul Craig Roberts was the “Father” of Reaganomics, he is directly responsible for the nearly tripling of the deficit that had nothing to do with the collapse of the former U.S.S.R., while raising taxes seven out of the eight years of the Reagan administration. That took the U.S.A. from being the #1 creditor nation in the world to the #1 debtor one in less than eight years. The entire Reagan revolution was based on massive government spending, your great grandchildren will still only be paying on a fraction of the compounded interest.

    Reagan provided billions of $’s in weapons to his “Freedom Fighters” Saddam Hussein, Osama Bin Laden, Al-CIAda and even Iran. Exchanging more weapons for cocaine with the Contras as the Treason fomenting Iran-Contra scandal proved. That should have had the most convicted Felons to operate the Reagan White House swinging from the ends of ropes. Wehrmacht soldiers were hung for lesser offenses. The farce War of Terror is now costing the country trillions of $’s, tens of thousands of U.S. soldiers killed, maimed and committing suicide.

    If the U.S. had followed through on the Carter Energy Policy, it would already be operating on a grid of mass transit using 2nd-3rd generation of alternative fuels and not beholden to M.E. or Canadian tar sands oil. The U.S. would lead the world in the desirable “Green” technology jobs and not China. Since Reagan fired the union FAA Air Traffic Controllers that began the off-shoring and out-sourcing of American manufacturing, it can now be said the both Reagan and P.C.R. actually admire the C.C.P. form of government. The championing of deregulation spawned the S&L bailouts and every other government handout culminating in the current QE and TARP bailouts of late.

    Reagan’s loosening of E.P.A. laws have allowed corporations to continue to pollute the air, land and water unabated today. The lax enforcement of anti-trust legislation in the 80′s has allowed the “Too Big To Fail” corporations to happen.

    If the M.S.N. had investigated Reagan like it does others today they would have uncovered Reagan was a pedophile-rapist, when president of the Screen Actors Guild; preying on aspiring adolescent Hollywood starlets like Elizabeth Taylor and others. Along with a string of multiple adulteries and having engaged in pre-martial sex resulting in his marrying a three month pregnant Nancy. The the now debt-slave American citizen and innocent killed in Reagan’s wars may have been averted.

    There is nothing to be proud of the unpatriotic, immoral and unethical Ronald Reagan. Paul Craig Roberts opinions he bloviates today run contrary to his actions of 30 years ago and actions of the past speak much louder than words he pens today.

    • Greg

      Stanely,
      Do you really think the Democrats have no sin? Do you really think there is a big difference between the two parties. Both are beholden to the bankers that are sucking the country dry with out a single complaint or prosecution from either side o=f the phony left/right paradigm. Please, that will not work here with this audience. Thank you for your comment.

      Greg

  21. donald

    Would like to call him a conspiration theorist but this is the Assistant Treasury Secretary in the Reagan Administration..

    • Greg

      Donald,
      My thoughts exactly. It’s hard to poke holes in his logic. Thank you for the comment.

      Greg

  22. Larry Carter

    This is the most clear and concise discussion of where this country is and where it is going to end up. Every American should have to see this interview. Gold would already be past $3,000 even with the interverence of the FED. Great info and I wish all citizens could see and listen. Thanks Greg for a great and honest interview.

    • Greg

      You are very kind Larry. Thank you man!!!
      Greg

  23. Liquid Motion

    Hi Greg,
    Love that OL Chestnut…”They can print as much money as they want to indefinitely”…Why…because they can without consequence.
    PCR talks about the destruction of the USD…but in terms of what measure….other currencies…gold….goods….?
    When they (the FED and their crony Bankster cartel) have their hand in every market and pricing mechanism on the planet, then they can limit the side -effects/ consequences. Let me make this clear..”THEY CONTROL PRICING” of everything. If they want interest rates to go up..then they will do it…..forget about the debt cost…”unlimited money supply” fixes that. Oh and if you think that the US will crash …think again….remember Lehman Bros…1 US Bank…sending the WHOLE World into a spin…and the consequence of the USA crashing ….the whole world gets sucked into a BLACK HOLE. From what I understand if the US crashes …the whole world follows. All Central Banks know that…I am quite sure. They all have a vested interest to ensure continuity of Washington. You cannot have a Hyperinflationary event unless you have Velocity of Money. To even get close to the velocity speed that is required to cause the currency to become unstable would require all large holders of US Notes and Treasuries to unwind their positions simultaneously. Arab Nations/Sovereign Wealth Funds/ Japan/ China/ Russia etc would all need to take the same view literally on the same day. This, appart from the obvious, would cause asset devaluation on a scale not seen…EVER. Now tell me …if thats a known/given…why would they (CB’s) choose to cause a hyperinflation when the downside risk would be destructive ? Now that doesnt mean that the process cant evolve over an extended period…say a decade or three. After all here we are in decade two…and still showing no sign of arresting the crisis. My “more than likely” scenario is a lengthy period of stagflation. With intermittent recessions.
    There is one rule in investment …”Dont Fight the FED”. The have the deepest pockets.

    Stop the wars he says…well who funds these wars….where is the money coming from. History does show us that the Elitist Banks do finance wars. Hmmmmmmmm……recently uncovered evidence that HSBC has been involved in various forms of washing,funding,dealing with and in criminal activity. Then there is also the other activities they have been involved in with numerous SA/ME activists/terrorists.
    My my my….and the rest of the world is naive to think that uprisings occur because people all of a sudden have a voice.
    This is not economics 101 anymore. Civilisation has advanced beyond that level of thinking and modus operandi. Control and Power come from having the worlds most powerful armed forces. How did they achieve that….certainly not from having massive trade/fiscal/monetary surpluses.
    How do you have a multi bullion dollar p.a. space program (NASA) for almost 50 years….funded through ……?
    I have done some interesting research recently.
    The connection with BHO and the Kingdom/Republic/Empire of Washington and other ancient civilisations/kingdoms…is strikingly obvious …if you care to look/do a little research of your own. It was written into the script…long before we were born. There is a higher order…and they exist to ensure Washington remains the control CAPITOL of the WORLD.
    The History of Rome…from a Kingdom to a Republic to an Empire spanned more than 1200 years. On that count the USA is but 1/5 the way through its evolution. It has much more to conquer/achieve.

    Peace be with you at this time of year.

    • Greg

      Thank you LM and Art. Peace brothers!!
      Greg

  24. Donna

    Greg,

    What I do not understand about the economy and banking….is that here in my town 2 new banks are being built. We already have over 15 banks here too!!! My town there are new restaurants opening almost every 2 months. The population here is 67,000+. We are a college town as well and have many small towns surrounding us. If the economy is so bad why are they building? Also if banks are being closed, why are they building? Its hard for the average citizen to be concerned about the economy when you see businesses and banks being built. Please explain.

    Donna

    • Greg

      Donna,
      I explain it every week on the site. Here’s the basic fact that people just can’t get their heads around. If the Fed was not printing $85 billion each and every month the economy would implode. Now, former White House Budget Director (Reagan Admin.) David Stockman is also saying the same thing. This is what many of my sources have been saying for months. Here’s the interview that aired just 2 days ago on FOX. Please watch it: https://www.youtube.com/watch?v=uF9UJh8bU70 The economy is being propped up. It is that simple. When the Fed cannot or will not keep printing then all hell will break lose. Things may look fine to you right now but they are not. There is lots of information about the economy on the site please take the time to watch other interviews and read some of the posts. Thank you for your comment and question.

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