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