Money Printing Frankenstein Experiment-Reggie Middleton

By Greg Hunter’s USAWatchdog.com 

Investor Reggie Middleton says the “unlimited” money printing by the Fed is a “real-time Frankenstein experiment.”  Middleton “. . . doesn’t see a positive end to this.”  He says, “Insolvent institutions need to fail and start from scratch,” but global central banks are propping them up because they think they can put the economy back on track with trillions in freshly printed cash.  Middleton says, “We’re going to end up starting from scratch anyway. . . Either you believe in the magic of the Fed or the math of the real world.  Magic simply doesn’t work, even Harry Potter has problems.”  The only thing that is really being accomplished, according to Middleton, is the “destruction of the economy.”  He goes on to say,  “You are basically sacrificing the majority to keep the minority in place.”  Join Greg Hunter as he goes One-on-One with Reggie Middleton of Boombustblog.com.

Comments
  1. justin king

    Greg asked the right Q’s and Reggie answered flawlessly. I’ve never seen an interview so effortlessly correct on every beat. Reggie is a smooth character. An Obama of the financial sphere. // The Big Q is when and if deflation turns to inflation, and is gold-silver a good long term bet or just short term. I’m tearing my hair out on that one.

    • Greg

      Justin,
      Gold and silver have been used as money and a store of value for the better part of 5,000 years. Whit what’s coming (the fed is printing at least 85 billion each and every month) I’s stick with Au and Ag.
      Greg

      • Shawn In San Jose

        Excellent interview with Reggie! Keep it up Greg.

        As to gold and silver they aren’t a great investment when we have moderate growth and mellow but steady inflation. They are a wonderful protection against collapses and turbulence. Since every fiat currency eventually goes to zero its a good thing to pick up a few ounces here and there.

        • Greg

          Thank you Shawn in S J.
          Greg

  2. Larry W. Bryant

    == “Plus ca change . . . ” ==

    In his seminal and prescient essay “The Routinization of Crisis
    Government” (The Yale Review, Winter 1974-December 1973), scholar Donald L.
    Robinson decries the U. S. government’s operating under a permanent
    “siege mentality.”

    Robinson’s dissection of, cum insight into, “the runaway authority of
    the executive branch” reverberates during contemporary times — e.g.,
    George W. Bush’s coronation as the “urinary [er, . . . UNITARY]
    president.”

    My fellow readers/contributors of USAwatchdog.com might find the
    essay’s content (especially its closing paragraphs, quoted here)
    hauntingly relevant today:

    “We are now faced with a far more fundamental challenge. It may be
    stated in classical language as follows: Are we committed to a
    government of laws, or a government of men? The crisis is very
    profound — no less so for being soft and largely unsuspected. Our
    political life is not well structured to expose it. The people are
    inured to crisis, loath to withhold power demanded by their leaders,
    reluctant to appear ‘men [and women] of little faith.’

    “Rousseau offered a maxim to free people which has a baleful sound in
    the present circumstances: ‘Liberty may be gained, but can never be
    recovered.’ Whether or not this nation can endure as a constitutional
    republic depends upon our ability to disprove this maxim.” — Larry W.
    Bryant (3 Oct 12)

  3. Mitch Bupp

    There are only certain sectors of the economy in deflation and they are all related to the asset bubble the banks and FED created. I have said many times over that the FED and banks believe they can print money to keep “complete” deflation of the asset bubble at bay and keep blowing money into the hole hoping to stop the leakage.

    The banks should not only fire the traders but those who created this system of interdependency of the whole system by spreading the risk to everyone. Reggie is right about the business model which I refer to as a systemic problem.

    Also, I am putting you in to debate this “Dick”, Dick Bove who thinks the banks are just getting targeted for no reason at all. He was on WBT, The Brad and Britt Show”, today. This guy is in complete denial about what the banks have done to the country and the banking system!

    The dollar doesn’t have to die for it to be a problem but only lose world currency status. I expect it to move to precious metals and commodities.

    Thank You Greg and Reggie

  4. Diane Carol Mark

    Thanks for interviewing Reggie, Greg. He sounded very down-to-earth and sensible. Hope you’ll have him back on in the future.

    :) Diane

    • Greg

      Diane Carol Mark
      Reggie is a pro. Love his brain.
      Greg

  5. Bill Downers

    In order to sell your metals in the future you’ll need a ready, willing and able buyer with some sort of real money. This is what all metal bugs overlook.

    I tend to see the big collapse as a time where everyone will want to unload everything at the same time, but there will be no buyers because credit and income will be mostly nonexistent, and only the bankers will hold all the paper and their liabilities outstrip their assets.

    You might find you’ll get the equivalent of $10k an ounce but that may also be the going rate for a half loaf of stale bread. The entire city where Joe Sixpack lives (where everyone hasn’t worked a day in months) won’t have $10k laying around, it will all be consumed by the collapse. Instead of buying metals today you could purchase something with real utility such as a hidden hobby farm.

    I theorize that a person with a pound of gold coins during the collapse will only live less than a week longer than those that are broke. In true scarcity and a total supply breakdown, what costs a coin today may be unobtainable the next. Yet the fellow with the hobby farm and plenty of ammo might make it to the 2nd week.

    Why do people think a collapse will be something like a down week on the DJIA, only to be forgotten the next week? This event is something we may never recover from.

  6. Mickey

    What is happening to the rial in Iran will come back ten fold on the dollar! I am sure J.Sinclair was right when he said the USA used its nukes to early with out thought because no one in congress knows a damn thing about economics, just war if they dont have their way! It sucks to see people suffer because of egos & ass holes! Sorry about the words, it’s a FUBAR & is out of any ones control now!

  7. frosty

    Bankers, bankers, bankers! We have a situation in which seven billion people on earth are held in suspense waiting to see how a few dozen bankers might act to manipulate their fiat system and save the rest from economic and social disaster that would result from its demise.

    Why?

    I think its because we are believe the fallacy that it is beyond our power to create, build or produce a single thing unless the banker provides us with a piece of paper to use for compensation.

  8. brad27

    I see Ag and Au as stores of wealth for a period of time, when if wealth were stored in fiat or as entries on your bank statement could be wiped out be inflation, bank failure, or being swept by governments. You could, if conditions were not too bad, trade PMs for useful commodities. If it gets really bad, then gold and silver will not fill your belly nor warm you in the cold of basic commodities are not to be found at any price. PMs can preserve wealth in the interim. Why let what you worked so hard for be simply stolen or just evaporate early on in the game. They will buy you time and give you some economic muscle for a time at least or tide you over for a good, running start when and if things recover.

  9. Andy

    Wow, full scale meltdown here. Let’s bring it on, it’s inevitable.

    Nobody knows how critical the supply interruptions may be, and whether people might quickly implement new, local systems. For sure, there will be intense chaos, but the solutions are all there. We just need to get through the crisis stage. I think you will see amazing creativity and survival skills when the SHTF. This is what we have all been living for!

    We know the system needs to go down. We can’t stand the injustice, and feel deeply for those getting shafted. Don’t underestimate the human spirit!

    Remember, the end result is usually in the middle and not in the extremes. Some areas will destabilize intensely and others will coalesce quickly around survivalist communities.

    I live on Kauai on a small farm. Everybody here is ready. Or maybe none of us are really ready……regardless, the sooner the SHTF the better. Later, the crisis will be that much tougher.

    • Andy

      Reggie’s great and Greg is a good foil. It’s interesting to see Reggie talking up the US currency over the long haul….where does that lead us?

      • Greg

        Andy,
        I don’t know, but as the world’s biggest debtor I would certainly not trust the future buying power of the U.S. dollar.
        Greg

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