By Greg Hunter’s USAWatchdog.com
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.”
When asked how long can this go on, Dr. Roberts replied, “How long can they fool people?” When asked about the recent Fed “taper” of $10 billion a month in bond purchases with printed money, Roberts said, “Foreigners are getting nervous because they see the Fed creating all this new money.” Roberts thinks the appearance of cutting back the money printing “is a way to protect the dollar.” Obama Care is another headwind for the economy as monthly premiums for many double. Dr. Roberts says, “The whole thing is constructed to produce massive income for the insurance companies, and that drains the economy.”
So, what does Dr. Roberts see for 2014? “I would expect, this year, the economy will drop again, and they won’t be able to hide it. So, the deficit will widen . . . and the widening deficit will again cause dollar worries. Who’s going to finance it? It means the Fed will have to print more dollars.” Roberts goes on to say, “The Fed won’t be able to cut back $10 billion a year. It will have to increase it $30 billion a year, $40 billion a year, whatever.” On gold and silver, Roberts says, “The West is draining itself of physical bullion. . . If there is a currency collapses and you try to flee into gold, there won’t be any there. The Chinese will have it.” So, is this the year gold and silver stage a big turnaround? Roberts says, “It’s gone on longer than I thought it could go on. I didn’t realize all the deceptive and crooked methods they would use to rig the markets. The notion that a democratic capitalist country having its markets rigged by its own authorities–it blows the mind. This is not normal. What will they do next? I don’t know.” Join Greg Hunter as he goes One-on-One with former Assistant Treasury Secretary Dr. Paul Craig Roberts.