Debt Default Will Kill the Dollar-Brandon Smith

Brandon SmithBy Greg Hunter’s

Economic and political writer Brandon Smith thinks America is in deep financial trouble, and the Fed knows it.  Smith contends, “First of all, I’d like to point out that at the end of last year, I brought up the prospect to the alternative economics community that the ‘taper’ was real, that the Fed would start cutting QE stimulus.  I received a pretty negative response from that concept, which is understandable because a lot of people in alternative economics and the liberty movement are focused on the concept of hyperinflation through printing.  I am pointing out through my articles on ‘taper’ that there is more than one way to kill the dollar.  It’s not just about printing.  There is also the issue about debt default and how that can kill the dollar’s world reserve status and kill the dollar’s value in the process.  So, the ‘taper’ is a huge part of that process of debt default.”  

Smith goes on to say, “I find it interesting the Federal Reserve institutes the ‘taper’ just before we saw major downturns in global manufacturing.  The Baltic Dry Index is starting to crash again.  We’re starting to see trouble in emerging market currencies.  You could say that maybe that’s coincidence that the Federal Reserve started the ‘taper’ before those negative indicators started to become visible.  I don’t think that was a coincidence.  I think they knew that those negative indicators were coming, and the Fed is insulating itself using the ‘taper’ concept.  Basically, what that means is the Fed is pulling back its QE because the effects of QE are diminishing.   Stimulus has a shelf-life.  Printing has a shelf-life for its effectiveness in manipulating markets and propping up stocks.  I think we’ve hit the point where QE is no longer effective.  The shelf-life is over.  They are pulling the QE back now because they don’t want it to be known to the public that QE has become ineffective.  They don’t want QE to be blamed for a stock market implosion.  So, they are pulling it back because they know this downturn is coming.”  

What about talk that the Fed is ‘tapering’ QE to intentionally cut the legs out from under the market?  Smith explains, “Ultimately, the Fed is not pulling back from QE because the Fed wants to cut the legs out from under the market.  I think the market is losing its legs regardless.  They are pulling QE back because what happens if we have a stock market implosion while stimulus is running?  I am saying the Fed is removing QE as part of the equation because it knows an implosion is going to happen, and they don’t want to be blamed.”  Smith predicts that another $10 billion of QE, or money printing, will be cut at the next Fed meeting.  Smith says, “The Fed is looking to end this by the end of the year, but maybe even faster.”  

Smith predicts U.S. debt will “explode in 2014.”   Smith goes on to say, “I think the U.S. debt issue is going to be very big this year.  I think where all this is headed is debt default by the United States and intervention by the IMF.  I believe the IMF will intervene in U.S. Treasuries.”  Smith thinks America is headed for one big “final swindle.”  Smith says the government is “cornering the last vestiges of U.S. wealth in the Treasury market and then will cut the legs out from under the Treasury market and thereby destroying the few people left in the middle class and deal with an economic collapse situation. . . . I think we will not see a full-on collapse where we wake up and there is nothing.  We will have a slow to medium speed collapse where we will lose a considerable percentage of the value of the dollar.  We will see major price hikes in necessary goods such as food, energy and electricity.   I think the ultimate goal is to have the IMF move in and take over the management of the U.S. economy.  I think the IMF and the U.N. will work hand in hand to rebuild the U.S. economy once it collapses.”  Smith goes on to say, “I I have never seen so many possible global trigger events in the short time since I started to report on these global events.  If you would have told me back in 2008 that we may one day be on the verge of WWIII in the Ukraine or with China and Japan, I might not have believed you. . . .  I think there is a good possibility of a limited exchange, or limited use of nuclear weapons.”   

On gold and silver, Smith says, “People in the investment market are going to start looking for alternative hedges.”  Smith thinks, “Silver will go way up,” and “gold will be up 20% to 30% this year.”  (There is much more in the video interview.) 

Join Greg Hunter as he goes One-on-One with Brandon Smith of  

After the Interview: 

Smith told me his next article will come out later this week.  He’s going to give his many reasons why 2014 will get “uglier and uglier before the end of the year.”  Smith predicts 2014 will reveal “the perfect storm of interconnectivity, and it is not a coincidence.”   Catch Brandon Smith at    

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  1. MAL

    Hi Greg,
    When Bernanke left the fed he handed Yellen a hand grenade with the pin pulled. If Yellen does nothing and the economy doesn’t tank he can credit his brilliant. policies. If she continues tapering and the economy tanks he can say she should have stopped the tapering or should have reversed it. If she reverses tapering and the economy tanks he can say she should have continued tapering. I don’t think Bernanke ” left ” the fed I think he bailed.

    • Greg Hunter

      You pretty much summed it up with your first sentence: “When Bernanke left the fed he handed Yellen a hand grenade with the pin pulled.” Yes sir he bailed. Quick, write a book before it blows up.

      • MAL

        I’m thinking of writing a book but it will be about fishing so people can learn to feed themselves. I have 30 lbs. of filets in my freezer.

  2. Mark_BC

    Thanks for the great interview I do have one disagreement however when he predicts that we will see a final confiscation of most of the remainder of America’s private wealth via confiscation of retirement funds, etc. Well that won’t be the final confiscation of America’s private wealth because the private wealth of America is mostly held by the elites. You can be sure that the likes of Buffett and the Waltons and the many other less visible elites won’t have their net worth damaged too much. But they are the ones who should be taxed back down to the status of millionaires, but unfortunately they are all part of the group of elites who want the remainder of the middle class’ wealth. And this wealth isn’t going to the government; if it was then the government wouldn’t be on the brink of official bankruptcy. This wealth is going into the private coffers of the 0.001% elites.

    Also, regarding the speed of the collapse, I am having a hard time reconciling a slow or medium length collapse with the numbers I hear about the gold flows into Asia. We are talking massive quantities now. What will happen when the gold runs out and you simply can’t buy any more physical? I would say that virtually all physical gold holders today would not sell at anything less than $5000. So when the gold runs out and no one can buy any, how could they possibly hide that? How could the Comex continue to be the price setting mechanism? At that point gold will skyrocket. When will that happen? Who knows. As suggested in the interview, they will probably try to time this with some token war to take the heat off the US for a little while. But when the gold runs out, I see things falling apart quickly, in the order of weeks. I just don’t see how they could hide that, which is the whole point of gold — it’s supposed to reveal the “truth”, and it does, in physical form in a legitimate market. What happens when a million Chinese gold aunties can no longer buy gold?

    Once again, thanks for the interview.

  3. bob

    greg, you hit another home run. this guy is young, he is unrefined and have great respect for him. i have a problem with so many people in this country willing to be payed off to let there country be destroyed. won’t they be destroyed too, or eventually? so what are these people thinking. then we turn to karen hudes. people didn’t like her but how do you know she isn’t actually trying to do something. sometimes i think the person way out on a limb, may know way more than you think. people can’t stand conspiracies, but in my opinion from brandon and alot of your interviewers fall into that. you don’t here this on mainstream media. everything is great! really? you have basically ran the spectrum, i would really like to see you do some interviews with historians that would open people eyes with what got us to this point. i heard an interview not to long ago, i can’t remember the the name, but was interviewed on coast to coast, who had said that when we won our independence, the british had told us that ,you may have won now, but we will take you down. we were warned in writings of our fore fathers , an yet we are letting it happen. i will be first to admit, i let it happen too. greed is also our enemy. thanks greg for your hard work, it shows everyday.

    • Greg Hunter

      Thank you Bob!

  4. bob

    i forgot one last thing. i have three kids who fall into brandons idea of the younger generation. party like it’s 1999. they are respectful and contribute to society, willing to give the shirt off their backs, but have the idea it’s overwith. how sad. they keep plugging along with hopes that things change. no matter what i tell them it’s there. we are possitive parents, but it seems in their blood that something is’nt right

  5. allen ols

    I can agree with him, slow gradual default, and they will buy our wealth pennies on dollar. Your gold will be gotten by hook or crook, and starvation controls the masses.
    Revelation 6:5-6
    New King James Version (NKJV)
    Third Seal: Scarcity on Earth
    5 When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales in his hand.
    6 And I heard a voice in the midst of the four living creatures saying, “A quart[a] of wheat for a denarius,[b] and three quarts of barley for a denarius; and do not harm the oil and the wine.”
    Footnotes: Revelation 6:6 Greek choinix; that is, approximately one quart
    Revelation 6:6 This was approximately one day’s wage for a worker.

    Because of the Carpathian Mountains.
    …since Ukraine is on the Russian side of the Carpathians… those mountains would no longer be a barrier to invasion and would double Russia’s vulnerability. Russia would need twice the army to guard that border. And, Russia cannot afford to support an army of that size.
    That is why Russia CANNOT allow Ukraine to fall into the hands of the European Union. So, expect Russia to quietly and firmly up the pressure. If Putin can take back Ukraine by covert means, he’ll do that. If the US and EU block covert action, Putin will send in troops…S.H.T.F

  6. William Betts

    Thanks for that interview with Smith. 32 years old. You know I’m 80 and I would never return to that age in the enviornment that we are in today, but I will say the IMF will never take over our gov’t. The shadow gov’t in Washington will start WWIII before that happens. You can bank on that. As a matter of fact the situation in the Ukraine could be the trigger that starts the end of us all… That’s what WWIII will do…..

  7. Rodster

    I remember a few years back 2009-10, Glenn Beck was saying that the US was the final cog or piece towards global governance and global currency. A world with no borders and just being controlled by a few Elites. This has been the centerpiece of George Soros and why he manipulates so many GOVERNMENTS, currencies and markets.

    • Rodster

      Drudge just linked an article which now says that the Obamacare penalty will be now be mandatory and imposed by the IRS.
      1 percent of your household income that is above the tax return filing threshold for your filing status, such as Married Filing Jointly or single, or your family’s flat dollar amount, which is $95 per adult and $47.50 per child, limited to a maximum of $285.
      As confirmed by previous IRS testimony to the tax-writing House Committee on Ways and Means, “taxpayers will file their tax returns reporting their health insurance coverage, and/or making a payment”.

      Once fully phased in, the Obamacare individual mandate tax will rise steeply, to a maximum of 2.5 percent of Adjusted Gross Income or $2,085 – whichever is higher

      • Rodster

        Greg, thanks for posting that web link on China. China is in far worse shape than even the US is and all their gold won’t save them. As the Bible says, man cannot rule himself.

        • Greg Hunter

          I have never seen this many big deal stories that could possibly pop all at the same time. I think is one of thes blows up it will cause a daisy chain of bubble popping.

          • Rodster

            Let’s just pray Karen Hudes was wrong about us being thrown back into the Dark Ages.

            • Greg Hunter

              Amen brother, but I am afraid she will be right on that point.

  8. Mike Gunther

    Very thoughtful young man, would like to hear some more from him in the future. Hunker down Greg, we got along way to go till Spring Plantin’, and the harvest might be more important than ever. God Bless!

  9. smaulgld

    Interesting guest. I have not been to altmarkets.
    Here is a concept I came up with last year: Why The End of QE May be Bad for the Dollar and Good For Good and Silver.
    The rationale is that the entire world now relies on the Fed’s willingness to print in order to get paid interest and principle on their T-Bonds.
    If the Fed stops printing, how will bond holders be paid?
    I call the Fed’s printing press the new gold standard.

  10. smaulgld

    An instructive video on the dangers of keeping your money in the banks:

  11. Jerry

    A really refreshing interview Greg. Brandon is a very sharp young man. He reminds me a lot of my son who is also my business partner. Most of my sons friends who went to college are living with their parents, and are preparing for trips to Florida for Spring break. They could care less about what’s going on in the economy much less the world.
    Sometimes I feel like taking the Blue pill and joining them.

    Personally I think the timeline for collapse is accelerating. This past weekend my son who lives in Florida told me he received a letter from his Bank ( Bank of America ) telling him there were limits on the amount of money he could draw out of his account using his debit card. Since when does a Bank tell you “hands off your own money” ?
    There is a reason why we have bodies of Bankers piling up everywhere, and it has nothing to do with the Fed taper. The Fed taper is just a dog and pony show to draw attention away from the main show, which is the collapse of the derivatives market. Quadrillion is a number I still can’t wrap my mind around, but that is how much debt the Banks have racked up in derivatives. There is literally no way out, but a collapse, and its coming.

    As far as the IMF and the United Nations taking away our Second Amendment rights in order to usher us into some new world currency system, that will be interesting to see. In my state we have approximately 185,000 CCW licensed gun holders. Probably half that number have AR-15’s . Many of them are law enforcement officers, veterans, and retired military. I don’t see very many of them going quietly into some NWO.
    Just my opinion.

    Thanks for having Brandon on. I hope you have him on again. He gives us some hope for a brighter future. Thanks Greg.

    • Greg Hunter

      Thank you Jerry. I took a chance and it paid off. Smith is very bright and gave a different perspective.

    • Galaxy 500

      with you on two things you said…1) Not going quietly to the NWO re-education / concentration camp and 2) as we are main backer of IMF and World Bank, how are they going to back anything. I dont see Russia or China delegating their power to these bozos

      • Jerry

        I have been told by multiple sources I know in law enforcement that if the UN is brazen enough to send in troops to disarm our citizens, they will be on the line with the American people. They are very Constitutional minded.

  12. JC Davis

    Greg. Great interview. Smart young man causing a glimmer of hope in a otherwise hopeless situation. Thanks for having Brandon Smith on. 4 out of 5 stars!

  13. Mike S.

    Great interview. It’s good to see a younger person so informed. You mentioned our Navy ships not having fuel, this has already occurred on several occasions. (Although not with the aircraft carriers, all carriers are currently nuclear, the Kitty Hawk was decommissioned along with her sister ship the Constellation. Which I served on). Now, ALL the ships except subs which escort the carriers are diesel. A large majority of my friends are retired navy. They have told me there has been quite a few times the escorts did not have enough fuel to go with the carriers. My nephew who is currently serving on the U.S.S. Howard which is a destroyer has also said his ship was delayed a few times for “lack of supplies”. Fuel.

    • Greg Hunter

      Mike S.
      This is why retirement money will trun into a national security issue. I think it will be taken in due time.

  14. art barnes

    Greg, I concur with your guest about tapering of the FED & the reasons he gave in support of it to continue. Basically though, the most profound reason in my mind the FED must continue to taper is to be viewed as relevant in their handling of the economy; meaning, it you do a stimulus program (aka QE) to boost the economy and never quit, that is strong evidence that your program (stimulus) didn’t work. The tapering is a ruse that QE (stimulus) worked & the economy is getting better. Tapering is perception of a recovery, albeit a false one. Your guest’s assertion that stimulus has a shelf life is a “known” fact but rarely discussed. Countries who have “perpetual stimulus” become banana republics within 20 years of doing so; also a known fact as their currencies become worthless little by little. That is what we are experiencing now with the dollar with QE1 having commence in November 2008, QE2 in 2010 and so forth; over 5 years now of stimulus and its effect is slowing. Think about it, over 5 years and counting of stimulus, well on its way to banana republic status,therefore, they must stop it or admit it didn’t work & the economy is bottom bouncing at best.

    • Greg Hunter

      Thank you Art, Noel and JohnE for the comments!

    • Mark_BC

      Just a thought. What if they told us they were tapering but actually weren’t? Would we know?

  15. Noel

    That is one impressive young man. Great find Greg. Tweeted this interview as far and wide as I could.

  16. JohnE

    Outstanding interview with Brandon Smith! You are doing a tremendous job of getting important views “out there”, from intelligent thinking people. Keep it up.

  17. Stan

    Greg, another great interview. I hope we all are preparing for hard times by leaning to produce food in the backyard, buying gold/silver, and stockpiling food and items that we need to live. Even if the dollar collapse doesn’t come for a few more years, prices are going in one direction and that is up…

    • Greg Hunter

      I have entered a constant state of readiness. Thank you for the comment.

  18. klfoo123


    There are 4 people suggesting that there will be a currency reset soon.
    Jim Willie,
    V the guerrilla Economist,
    Fabian Calvo,
    Lindsey Williams,

    Here are the list of pundits have been saying economic crisis coming

    Gregory Mannarino, Michael Pento,Peter Grandich, Gerald Celente, Marc Faber, Jim Rogers, Max Keiser, Edward Griffin, William Kaye, Eric Sprott,

    David Stockman, Paul Craig Robert, Rob Kirby, Doug Casey, Peter Schiff, Martin Weiss, Rick Rule, Andy Hoffman, Ann Barnhardt, James Turks, Bill Murphy, Jim Sinclair, Jim Rickards, Kyle Bass, Chris Martenson, Mike Maloney, Richard Russell,

    John Williams, Mike Larson, Bix Weir, Jason Burack, Laurence Kotlikoff, Nomi Prins, Ellen Brown, William Black, Tres Knippa, David Collum, John Rubino, Charles Ortel,

    Chris Duane, Stephen Keen, Reggie Middleton, Michael Hudson, Dan Collins, Jeffery Sachs, James Quinn. Larry Edelson,
    Michael Snyder, Lew Rockwell, Simon Johnson, Mark Hulbert, Joseph Stiglitz, Shah Gilani.

    • Greg Hunter

      These are ALL quality people. How can they all be wrong? They are not!!! Thank you for taking the time to make this point here.

    • Sandman

      Did Chris Duane resolve the legal action with regard to the mulligan mint scam?

  19. Snorky

    Good to have some new guests (and younger guests), Greg. I think he may be overthinking the Fed in regards to his “taper/default” theory. But who knows at this point? NOTE: I am a baby boomer.

  20. Solomon


    Brandon’s contributions and insights are most applicable. My research indicates that his commentary is spot on. What wisdom from such a young lad. Thank you for adding him to your website. IMHO, the interview was a significant addition to your followers and watchers.

    • Greg Hunter

      I took a chance on him but I knew he was a smart guy. It paid off. Many liked him as he added a bit of a different perspective. Thank you for your comment and kind words.

  21. Nathan

    I’m glad to see some youngsters out there who still care but have to agree with the guest that most of the youth could careless . However , recently I was forced back into taking college courses (I’m 40 ) due to the recession and had a glimmer of hope here in Asheville . In between classes I was sitting at the cafeteria and overheard a kid around 20 years old speaking to about 5 other students about the Federal reserve and it’s policies . This kid really had an incredible understanding of QE and it’s effects and the other students were interested in what he had to say . It brightened my day knowing there was still a glimmer of hope . I wish Ron Paul would at least run again so he can keep the movement alive .

    • Greg Hunter

      Yes, all is not lost. We still have many young smart people in this country. Smith is one of them.

    • Tennessee Volunteer

      Electronic elections are a sham.
      Our elections are rigged. Ron Paul was run off by the GOP and then they stole the election for Obama. No way Ohio voted for him, it was stolen.

  22. NIX

    Killer article good guest good worck this guy makes alot of sense.
    peace ( hold on ) and be prepared.

  23. tony newbill

    China is on the verge of a financial collapse of unprecedented magnitude.

  24. andyb

    Smart kid, but he omits the probability of inflation which, all other “triggers” aside, will incur on food items solely due to the California drought

  25. Larry Carter

    What a refreshing ly smart and insightful young man. Brandon has presented us with one more possibility as to how this whole crazy economic worlod is going to play out.
    I can follow his thinking and knowing what I know of humane behavior it is not hard to believe that the Fed wants to try and save their own ass first. People(Fed) do not want to put themselves in harms way. They prefer to create the allusion that they have givne up on a policy and thus anything that happens after the fact is not their fault.
    Good thinking Brandon and thanks Greg for having him as part of your guest liat.

  26. Diane Ryan

    Great interview Greg. I know Brandon personally. He is the real deal; not one to waffle back and forth with the crowd. He believes the Baltic Dry Index is a key indicator. His view that the Feds see a market fall and is tapering QE to avoid blame seems to fit with those you have reported as shorting the market.

    By the way, Brandon may not look like Grizzly Adams but he has written several awesome article on wilderness survival (not so much TEOTWAWKI). SurvivalBlog often links to them.

    • Greg Hunter

      Thank you for adding this info about Smith!

  27. Jeff

    “Smith predicts 2014 will reveal “the perfect storm of interconnectivity, and it is not a coincidence.”………. It’s not a coincidence because that has been Obama’s plan all along. Destroy the economy, dollar and country and hand it over to world rule……..The $10Bil taper is nothing but smoke and mirrors. There is no taper. Money is just being created and directed via other avenues. Purchasers of treasuries are coming from the most unlikely places (Belgium?). We are still printing $Trillions. What was originally a $800Bil original rescue package is really upwards of $17Trillion. Most going to overseas banks……So why are we focusing on $10Bil here or there Brandon ?

  28. Craig Z

    Hi Greg,
    I’m one of your “Target” audience I guess, that being a bit older than your new guest by exactly 2x, but he sure seems to have his hat on straight! I don’t know if I’m THAT informed NOW, but I try to be, and watching USA WATCHDOG is certainly one of my mainstays as far as all of that goes. It is actually stimulating to know that there is at least ONE younger person who’s dialed into differentiating between truth and what we’re all fed by the government. Brandon’s a keeper!

  29. Paul from Indiana

    Friends, I say it over and over again: $17 trillion in ACKNOWLEDGED debt seals the deal. Even if we NEVER borrow another dime (can you say “Obamacare”? Sure you can!), how do we get out from under $17 TRILLION? Oh yeah, that’s right! We can CUT the military so we have more money for VOTE-BUYING, I mean, social programs. The IMF coming in to “manage” the economy is an attempt to make the bail-in palatable! And with this comes the worst: LOSS OF SOVEREIGNTY. Get ready; our time is short. Best always to you and yours.

  30. Jeff

    Case in point. Today’s 5 yr treasuries were taken down by foreign purchasers (51%). Just which countries today are flush with cash to buy a debt encumbered instrument paying 1.5% for yrs to a bankrupt, spending addict we call the US ? It’s all done with a wink-wink, I’ll scratch your back, you scratch mine……… We all know the relationship with Belgium (buyer) and the ECB……… We’ll send over a couple $Trillion to cover bank capital needs. You just need to purchase our $5Bil treasury auction……..A great deal if you can get it………. Not to stray too far but there’s also some political messages being sent out across the world with these announced tapers. Not unlike……you countries (emerging markets,ect) straying from the dollar will get your legs cut off. That’s what the US does. First they warn you, then they just blow up your country.

  31. Galaxy 500

    I was sitting in the doctor’s office where there was a sign, effective Nov 1, we no longer accept Medicare/Medicaid. There was a patient sitting in the waiting room speaking on her phone asking her referring Doc why he sent her to someone who doesn’t accept Medicare? You could tell that the told her my doctor was on the list because the woman said, well they say they they aren’t accepting Medicare and they have a sign up saying they dont. They will see me but I have to pay in full up front.
    Greg, this upset me. Not because the well dressed black lady had likely voted for Obama but because one could see she was in pain and that the doctor she could have seen last Jan couldn’t this year due to cuts in doctor reimbursement rates and extra paper work on top of that. How is any of this supposed to be better?
    Obama stole money from black colleges to give to Hispanic ones in CA. Obama steal from the young to give to the old. He steals from the old to give to the illegals. You have to give it to Obama, he steals from people that worked all their lives to give to illegals or crack heads.
    To top this off, I found out one of my meds are not covered by our new policy but I can get birth control pills or a breast exam for free. I think all men should avail themselves of these freebies so we can collapse Obamacare this year. After all, we are paying for this garbage that we will never need to make it cheaper for others. How utterly communist and unAmerican.

    • Greg Hunter

      Obama Care is not about care it’s about control. I think they want many to simply die off. Thank you for the real world reporting.

      • Galaxy 500

        This ham handed attempt to gain control is going to bring the dems down. The problem is the republicans are cowards

      • art barnes

        Greg, interesting comment about (possibly) wanting many to simply die off. If your comment has even a drop of reality to it it would be the most stupendous planning of genocide in the history of the world, including, but not limited to, the “German Plan of the 30’s”. In some ways is makes sense as the elite, politicians, & the wealthy will get quality care and life saving drugs Obamacare or not, the others will have to suffer & possibly die. I heard a rumor that after 76 years of age under Obamacare you won’t get treated for cancer, I’ve been trying to find out if that is in the law anywhere, or maybe its just implied by the language of the bill.

  32. Joe Epperson