Fate of Dollar is the Fate of U.S. Power-Dr. Paul Craig Roberts
By Greg Hunter’s USAWatchdog.com
Former Assistant Treasury Secretary Dr. Paul Craig Roberts says, “The fate of the dollar is the fate of United States Power.” Dr. Roberts goes on to say, “The whole question of the dollar’s longevity depends on the willingness of other countries to continue holding dollars and dollar denominated assets while the Federal Reserve prints a trillion dollars a year to prop up the big banks and to finance the federal budget deficit.” There are many ways countries are currently moving away from the dollar. One of the most startling, says Dr. Roberts, “China is accumulating very large quantities of gold. So, this does show that the dollar may have a limited life as the supreme currency.” With global NSA spying scandals, if the dollar starts coming under attack in the currency markets, Dr. Roberts predicts, “All of this makes it very difficult if there is a run on the dollar for the Treasury and the Federal Reserve to call up these foreign governments and say help us stop this run.” Don’t think the Fed is ever going to stop printing money because Dr. Roberts contends, “They’re trapped because you can’t expect them to say let’s blow up the world right now so we don’t have a crisis in the dollar next year.” Join Greg Hunter as he goes One-on-One with economist Dr. Paul Craig Roberts.
Dr. Roberts mentions again, and in many other cases, that the exporting of the US economy is the reason this situation has come to be. So, an obvious solution to the current problem,is to re-import the economy. This would have the form of going against the global economy trend. This would happen gradually, I think, with increasing tariff barriers on selected goods, the selection aimed at export revenue, and also labor income and the long term economy growth path. The increase in exports would decrease the trade deficit and also increase the reason for trading partners to sell to the US, since they could get repaid in real goods, instead of paper IOU’s. I think I have read something like this from Bernanke some years ago, in the form of saying that if push comes to shove, the FRB will issue a domestic currency separate from the international currency. That would of course throw the international agreements structure into turmoil, but probably would be less painful than the ‘Ker-Boom’ approach.
I do wish that Hunter would let Roberts finish his thoughts, rather than interrupting him when he is not done. This happened again this time when Roberts was thinking optimism, but was not finished.
While the looming economic catastrophe is certainly newsworthy, there is another story that many seem to be overlooking. This threat has the potential to induce a global health catastrophe that will make the financial meltdown and loss of the dollar as a world reserve currency pale in comparison. That threat is Fukushima.
And here are some definitive resources for the real deal- everyone concerned should bookmark & save:
Great interview as always. I like Paul Craig Roberts a lot. He truly tells it like it is.
Thank you Greg for having PCR on once again.
He is the man that delivers in spades. Concise analysis without the BS. Its the cold hard truth …and it helps us all to be liberated from the delusional nightmare they have created for us.
The end of the US Empire is nigh. If we haven’t seen enough reckless behaviour from our elected rulers and those that rule them, then we can expect to see their indifference escalate in orders of magnitude in the years ahead.
The Debasement of the USD is the one characteristic that stands out as being the key to typify the demise of the Empire.
Reality is that vast amounts of people are living in Denial (STILL). Under the 5 stages of grief model, we should have progressed to ANGER by now. When it ultimately arrives, it will create imbalances from within. This will hasten the de-throning and destruct the once mighty.
China …et all….cannot act swiftly enough to bring about what is expected to occur….for they are as trapped as the FED and the US Government. Keep in mind that US Bonds/Treasuries in the order of $1.3TLN is not something that can be unwound in an orderly fashion over a short time period. Accumulation of gold and other assets (as a means of shorting the USD) only partially resolves their over exposure. Again it can only move at an acceptable rate without which we would evidence significant Inflation in Asset prices.
I do not trust the FED or the elected politicians to act in a way that is beneficial to the citizenry. The system will become even more debauched, so much so that it will be unrecognisable and will not be fit for its purpose. Whilst it is only human to believe that there will be a positive outcome here, as you and PCR finally admit, there is little hope for resolution.
I wanted to hear what Dr. Roberts thought about the likely bail-in scenario playing out in the US to assist the banks with their balance sheets. He mentioned a couple ways the US economy could be helped (stop the wars, otherwise reduce the budget deficit, start being more honest) and I think the option of stealing peoples’ deposits is a method that will be used before any of the others.
This is almost an easy sell to the more riot prone members of society after the recent reduction in welfare doled out to the 48 million folks that feel they deserve to get other peoples’ money. A bail-in will be sold as a “levelling of the wealth” in the US. Of course we know this is not true but the folks on welfare certainly won’t be effected by a bail-in and will see it as fair.
I am not suggesting that this bail-in will fix the issue but it certainly will help keep the balance sheets in check and help with any interest rate increases due to inflation or lack of demand. It will also appease some of the sceptical countries trying to reduce their exposure to the US dollar.
“What say you?” (to use your line)
Short and sicklysweet Greg. Could of, would of, should of. Your reply to Todd should be on all are tombstones soon. LOL, forgive me, I aint giving up so soon. Our elite should be in hiding, remember the French revolution. We should all be in hiding if you remember the French revolution. That’s when they must have invented the French fry. lots of France fried. Talk about Obama care, they all got free check ups from the neck up! Watch your necks mate, free hair cuts any body, not to short! Thank you Mr.Paulson! Greenspan should have never saved your skin Kramer and Ben B. you really learned well under Mr.G, how come you don’t listen to him now and start tapering, do you know something we don’t think your smart enough to know? And Austen Goolsby wake up and at least save yer own skin, the life you guys may save may be yer own. Greg get Volker, that Viking giant and put him on the hot seat, he will spill the beans when he knows what your talking about, unlike dear in the headlights Shiller (he couldnt believe there was somebody else on the planet that knows the gig is up). Volky, just might spill his guts and it’ll make headlines on the drive by, main stream (America strong) lol, goody goody, media.
Guillotine for the baksters anyone 😉
I think we should have a lottery or raffle for people who get to pull the rope. I’d by a ticket or two.
“The fate of the dollar is the fate of United States Power.”
While I can understand where Dr. Roberts is coming from, (especially with a PhD & Service to this nation in economics) I don’t agree with this statement as it’s worded for many reasons, but the subject matter and Mr. Roberts background being economics, I suppose it could be understood as an “Economic” Power he is referring to, and only in that context would I agree.
If it’s NOT understood as “The fate of the dollar is the fate of United States [Economic] Power” then I must disagree because:
1. Every nation on earth derives its true power from the One True God, and His Will. The fact that money is the god that bankers and many others serve does not change the truth that there is a God who reigns above all and is Sovereign over the fate of all men and nations. No one, and no nation ever successfully opposes His Will.
2. The Dollar is a fiat, and fiats always end, but nations do continue on and various economic systems are put in place over the time within which a nation persists.
One of the most enduring economic systems in England was “sticks” marked with credits and debits, which lasted several hundred years, more than twice as long as US History.
One of the shortest was tulip-mania as a store of value in Holland.
Neither system lasted indefinitely, but both nations persist to this day because God is not finished with them – not because of their economic systems.
Thank for the interview Greg, and for bringing Dr. Roberts economic insights to bear on such a critical subject.
You wrote, “One of the most enduring economic systems in England was “sticks” marked with credits and debits, which lasted several hundred years, more than twice as long as US History.” Tally sticks were basically IOU’s that were redeemed for coinage (Cooper, silver, gold). The king /queen would sell at a discount to be redeemed when taxes were collected. Consider it as a promissory note as opposed to fiat currencies.
A Federal Reserve Note is just that; an IOU without any value backing it.
The Tally Sticks lasted so long because 1. It was backed with real value precious metals and 2. it was an honest economic system.
President Kennedy offered an alternative currency to compete with Federal Reserve IOU Notes, which President Johnson quickly rescinded when he took the office from Kennedy. Remember “Silver Certificates”? They were redeemable for Silver, and Kennedy made them available for only a short time. The banks feared that no one would want a Federal Reserve Note when they could have instead a Silver backed Silver Certificate Bill.
So my point about “One of the most enduring economic systems in England…” is indeed valid, because it was an honest system backed by real value.
Your shows are just getting better and better, I’ve been following Dr Roberts for a while and this interview was super. Why aren’t shows like this on the MSM (well, I think I know the answer)?!
Best regards from England,
“The whole question of the dollar’s longevity depends on the willingness of other countries to continue holding dollars and dollar denominated assets while the Federal Reserve prints a trillion dollars a year to prop up the big banks and to finance the federal budget deficit.”
I think each of us must ask ourselves the same question all nations are now asking themselves:
How “willing” are we to finance a governments debt, when that government spends our financing to spy on us covertly and against our will, even against the highest Law of the Land (The Constitution) under which they are sworn to duty?
Why would anyone think for a moment that IT’S IN THEIR BEST INTERESTS to support any government who ACTS AGAINST THEIR BEST INTERESTS? Don’t the actions of the Fed erode your “willingness” to continue financing their operation? Especially when the Fed also finances the US Governments foreign Policy and Domestic Policy of spying on everyone?
Certainly. And what we have here is a crisis of confidence not just in the Dollar and the Fed, but in the integrity of every Federal Employee from the President down.
Here’s a post off RT this morning,Found the last sentence very interesting.Anyhow,great interview today and thanks again
US Secretary of State John Kerry has tried to calm Saudi Arabia’s concern about Barack Obama’s diplomacy-driven foreign policy during an official visit to Riyadh. “The Saudis are very, very important to all of us. The Saudis are really the senior player in the Arab world together with Egypt,” said the Democrat politician. A senior Saudi official recently said that the Middle Eastern state was “shifting away” from Washington’s compromise-seeking position on Syria, Israel and Palestine. The country also gave up a temporary seat on the UN Security Council in protest.
Have a great day
” SNAP – BOOM ”
PCR spoke to the audience like they were 10 years old, because that’s what it takes when the world gets so damn complicated.
—–In other words, a GOOD PRIMER for the masses, but the masses ARE NOT LISTENING, because they are too concerned with petty political bickering.
CULTURAL SUICIDE – Arrivederci Roma.
When I heard that phrase “Snap-Boom” in the interview it jolted me like an electric shock, because it hearkens back to the “shackles” (crypto-gear & process)used in the process of executing a command strike.
You may have seen something similar in movies where the President (or other Command officer) breaks open (Snaps) the crypto-codes open from their sealed container to use the enclosed “key-code” to authorize a Quick-Count (Snap-Count) nuclear strike (BOOM).
When these words (Snap-Boom) are used together with words like “Global” and “meltdown” it shakes this old Marine to the Core. I suspect that anyone who lived through the Cuban Missile crisis understands what I am saying.
I wish we had a President who was blockading the escalation to world-wide war, instead of one who has made the US a place of permanent war and constant escalation of force.
Sign me as Michael the Marine who is tired by it all.
Great interview, Greg. You always ask the hard hitting questions. The next you interview Dr. Roberts, Jim Willie or Gerard Celente could you please ask this question: “If the US economy collapses will it collapse the world’s economy to collapse and who survives”? I would love to hear their response.
Rodster and Greg,
As an Australian, this is a question I would very much like to hear an answer to. We did ok in 2008 but this looks very different…
Yeah Kristy, i’m gravely concerned that a collapse of the World’s Reserve Currency, would in turn collapse the world’s largest economy and might ignite a worldwide “Contagon” that once it starts you won’t be able to stop it, just like an out of control wildfire where you just wait till it burns itself out.
My fear is and I pray i’m wrong is you would see within a short period of time economies collapsing from a fear driven event and pack mentality.
While China is seen as the heir apparent to succeed the US as the World’s economic superpower backed by their new reserve currency. I don’t think time is on their side even with all the Gold they are hoarding and behind the scene deals they are working to bypass the $USD in trade. My understanding is that takes decades to pull off and that is only when you have enough Gold and are considered the defacto #1 economy. *I could be wrong on that*
With the Chinese, India, African workers earning low wages I don’t see how they will be able to replace fast enough the consumption of the US consumer.
So fear and panic sets in worldwide, no one is buying, factories in China come to a grinding halt, civil unrest sets in worldwide and there is the uncontrollable wildfire.
At least y’all elected someone with sense. He is tossing the phoney global warming taxes and carbon trading scams that would rob the people and enrich the wealthy.
Greg this statement pretty well says it all.
Don’t think the Fed is ever going to stop printing money because Dr. Roberts contends, “They’re trapped because you can’t expect them to say let’s blow up the world right now so we don’t have a crisis in the dollar next year.”
Greg we are trapped. There is no way out of this debt bubble without a collapse. You know it. I know it. And the Chinese know it. It appears Dr. Paul Craig Roberts economic theories have diverged with reality. Its just a matter of timing.
I saw today that Secretary of State John Carrie was headed to Saudi Arabia for an emergency meeting with the Saudis. I wonder what concessions he’s going to have to make in order to save the petrodollar? I think PCR is right. We may already be toast because there has been such a huge erosion of trust in the U.S. because of the Syrian debacle. If you remember, we identified the Syrian crisis as a “checkmate scenario”, and it sure has turned out to be one.
Greg the table is being set my friend. Its just a matter of time to see who shows up for dinner. Thanks for bringing Paul Craig Roberts on. He’s one of my favorites. Lets not forget, had our politicians followed his economic recipe for recovery, instead of the Marxist theories that have never worked anywhere, we wouldn’t be in the mess we’re in.
Greg great interview! Dr. Roberts pointed us to a path forward out of this mess, but as long as we have a Marx follower leading us that path will not be followed. Keep up the great work
Powerful interview and it really boils down to what he said at the end that the mechanism for alternative monetary system is already in place. Just waiting for the internet that is separate form US and the gold exchanges to be operational then kiss the dollar as a reserve currency goodbye…. right?
Does any one think that US will let this happen and that it will fall down while the rest of the world is smiling and laughing?
Not a chance….!
The following is a satirical parody …. (Ignore this public service message if you are easily offended by the current state of affairs).
A SEE-SPAN Special
We pre-empt action on the floor of the Senate to bring you this important news conference.
V.P. Biden: No doubt you all have been briefed about the events a couple days ago. As everyone is aware, this is not just an act of terror. It is an act of war. Many months ago, the President made clear to the American people that there was a new red line. It was communicated by the President that the brave men and women in the front lines as members of the TSA shall no longer be subjected to criticism and ridicule for engaging in the performance of their duties. Libertarians and Tea Party wing nuts have long been instigators against this fine group of men and women protecting the American people when they travel. Now we are confronted by what needs to be done to once again keep our men and women in uniform safe. That is why the President has instructed me to announce the creation of a new agency with broader powers of enforcement to help keep the American people safe. The new agency shall be called the Super Special group for the protection of all Americans. In short, we shall refer to our new agency as the “SS” or Gestapo if you prefer. The President has appointed a true leader as czar of this new agency, so please allow me to introduce to you the Honorable Mr. Neel Kashkari.
The Honorable Neel Kashkari: Ladies and gentlemen. November first Two Thousand and Thirteen. A date which will live in infamy. My fellow Americans. I stand before you as a patriotic American. I stand before you as a protector of freedom. As you know, I was once called upon to save the international financial system. I made the sacrifices necessary to avoid financial calamity for the country and through my pragmatic leadership have helped the American people avoid another great depression.
Months ago, the President expressed his concern about how the TSA agency has been ostracized by the public and by the entertainment industry. He made it clear that while we would uphold freedom of speech that TSA agents were not to be harassed while in the performance of their duty. Now as a result of the latest murder by a deranged killer with an assault rifle, we are compelled to create a new agency to enforce new regulations protecting personnel within our TSA, NSA, DHS, FEMA, and VIPR agencies. The new regulations require respect from all American citizens for individuals employed by our security agencies at all times, not just in the venue where they are employed. This means that televising a skit criticizing any of these agencies on Saturday Night Live will now be a Federal crime and will dealt with in the harshest terms. To accomplish this, we will be doing the following. First, we will deploy 150,000 new drones to patrol the skies and eavesdrop on likely perpetrators of crimes against these agencies and we will call it Drone Net. Second, we will implement strong educational measures in the schools to instill the ideals of compliance, allegiance and loyalty. Third, we will work cooperatively with all Federal, State and Local police agencies to root out traitors and terrorists. Lastly, we will use the extraordinary measures approved under the War Powers Act to ensure that criminals who do anything to upset anyone employed by our security agencies are dealt with in the harshest terms. We will work with our rendition partners to make the world a safer place. I want to thank all of you for being patriotic law abiding citizens. Now I will take a few questions.
Reporter 1: Mr. Honorable Kashkari … Do you think the addition of another new agency is really necessary ? And what do you really hope to accomplish.
The Honorable Neel Kashkari: It is entirely necessary because we are in a fight to secure our homeland. In the end, we will have accomplished the security of all Americans.
Reporter 2: Mr. Honorable Kashkari … How much will this add to the annual national budget ? How is this program going to be paid for ?
The Honorable Neel Kashkari: Like war time, the financial cost for the moment doesn’t matter. We will find the funds for this program in the future, but right now we are in a fight for our survival.
Reporter 3: So Mr. Kashkari … You see this as a temporary program ?
The Honorable Neel Kashkari: No I don’t. The world is a much more dangerous place than it was 10, 20, or 30 years ago and it is just going to get more dangerous as time goes on. We will undoubtedly need to add more layers of protection as circumstances require. Lets face it my fellow Americans, there are a lot of terrorists that hate our freedom. Next Question.
Reporter 4: Mr. Kashkari, do you really think that adding all these programs are sustainable, sir ?
The Honorable Neel Kashkari: Not just sustainable, but necessary. An added benefit is that we will be creating thousands of new jobs, which cannot be off-shored by the powerful business interests. Now if you all will excuse me, I need to get to work for the American people. God bless the United States of America.
Funny…and sad because it is so close to the truth. Keep the satire coming. You have a keen sharp wit.
mark twain said going broke is slow at first then very fast
I believe Karl Denninger illustrated once that to get spending on a sustainable path, the US would have to decrease it’s budget by 7%… back in the year 2000. NOW that figure is close to 40%. Ripping that bandaid off would be like chemo that kills the cancer patient. This society could not survive that kind of dose of reality.
Portions of Revelation 18–
….For all the nations have drunk the maddening wine of her adulteries. The kings of the earth committed adultery with her, and the merchants of the earth grew rich from her excessive luxuries….The merchants of the earth will mourn over her because no one buys their cargoes any more….All your riches and splendor have vanished, never to be recovered….
Not sure if Babylon is referring to USA or some other world power yet to come, but sounds like a complete collapse.
Greg, do you see any way out of this mess? Or are we facing a complete collapse?
Now you’re “cooking Kosher”, my friend. Stick with what the Word of God SAYS and put all speculation where it belongs; beneath your feet.
Listening to what He SAYS you will soon find the definition of Babylon within the Scriptures without using the typical hammer of dead religion to beat gold around a dumb idol.
God created man to rule over the earth while rightly relating with Him; the Creator, and that is still God’s plan for mankind.
Heaven, as the Scripture states “is God’s Throne…” and His Kingdom is within you, here on earth.
Your words encourage my heart; Beauty.
Great interview. I know that Dr. Roberts does not want to sound so negative, but an interview on the Real News with Professor Bill Black on the bipartisan roll back of the regulating of derivatives says otherwise. I am linking the interview in case you have not seen it.
Thank you for all you do, and especially “Top Stories”.
And the “Headline” on the site says:
“House Passes Deregulation Bill Written by Citigroup”
Here we have AGAIN, fascism, the merger of Corporations with Government. Why aren’t the LAWMAKERS writing the legislation to control the Corporations? Or, are the Corporations CONTROLLING the Lawmakers? DUH!
How much more clear can it be? FASCISM is HERE.
It’s called National socialism.,
Snap-Boom, I think the snap was sounded a few years ago, lets pray to God the Boom isn’t as bad as it is sure to be!
Dr. Robert is such an intelligent man.
Dr. Roberts cares more than I’m sure we can appreciate. It’s written all over him.
It’s really too bad for such a mind to be so sorely disappointed.
Unfortunately, common sense isn’t very common. Actually, it’s so bad that it’s come to the point of childish petulance. Fifty and Sixty has become the new tween. Horrible. Being on the young end in early thirties, I’m rather speechless. It’s beyond reproach.
Thanks for the ignorance 90% of America. We’ll fix it, but just stop crying already. No one is getting a hot chocolate, not even the good boys, so give it up and here’s a shovel. Get to work.
“Dr. Roberts cares more than I’m sure we can appreciate.”
Did Paul Craig Robert’s “care” when as the “Father of Reaganomics”; nearly triple the deficit? Taking the country from being the #1 creditor nation in the world to the #1 debtor one in less than 8 years.
It really looks as if he world is preparing to hand the baseball to the USA, and tell it can just play with itself, then leave America alone on the field. Certainly leadership in America is doing almost everything wrong – domestically AND abroad. Being top-dog in the world has allowed profit and prosperity almost inherently; which is tolerable within a range. But when the upper-hand position is used even illegally, in fraud, manipulation, and blatant lie-ing: there is every reason to start looking for a new dance partner; one that doesn’t knowingly and carelessly steps on your toes. Leaders in America have accustomed themselves with treating other Americans very badly. But they are mistaken if they think they can treat the rest of the world the same way.
Great interview, question: What meant Dr. Roberts with yesterday (when you talked about naked short selling)?
I don’t think either scenario of snap boom will be the way it goes.
The USA is too big to fail.
So a meeting where they use snap boom as a threat is an empty threat.
They can’t ignore us so even if they ignore the US dollar a US crash is a mess they can’t afford to gamble on.
So before a snap boom can happen they will have to slowly get the US GDP down to a point where a snap boom is safe.
Hmm – how do you do that?
Oh of course – Obama
Another thing that can’t be good for our country (certainly not helpful to our dollar value anyhow) has to be the fact that people who make/made their money here are not keeping their money here. I just read an article about this subject earlier today (I think it was at Reason.com ). These rich folks are like rats deserting a sinking ship and it’s partially their fault we’re sinking. They make a lot of their money here but don’t want to pay into the american tax system, so they take their money elsewhere. Apparently they have no conscience about this sort of thing, because it’s not illegal to do this. Not that I think it should be illegal for people to do whatever they want with their money, but when it starts costing the dollar its face value, we need to do something on a different scale. I still think a flat tax for corporations, just like a flat tax for citizens, would be the answer if it were kept to a reasonable percentage. The current administration doesn’t know the meaning of the word reasonable, however, so it would likely have to be done under another administration – and I don’t know if we can wait that long.
The trouble is, too, that globalization of the marketplace has created a new consumer market for these companies and corporations and they no longer need ONLY the citizens of the USA to buy their junk – people all over the world now buy their junk, so it’s no longer a US made market. I guess that’s probably where the share the wealth idea comes from.
What a great interview. Dr Roberts really does present down to earth balanced views about where things stand and what the likely and unlikely outcomes are likely to be. He really tires to be objective. I think he is one of the best commentators that I regularly listen to. What he says really knits together all the different aspects re the dollar, bonds, stocks etc. I think he is right on the money (no pun intended) when he says it all comes down to the value of the dollar. What we see in the markets all makes sense when we consider from this angle.
Thank you for many very good interviews.
Thanks for having Dr. Roberts on again, Greg. I really like him. He’s very sensible, and he tries to present a balanced view. However, I agree with you that it’s not likely that the U.S. government will get its financial house in order. There is no will in Washington to correct our underlying problems. Yes, the budget deficit for the fiscal year that ended Sept. 30th was under $1 trillion for the first time in 5 years. However, unless there are changes to the entitlement programs in this nation and the government scales back our military operations around the world, the trillion dollar deficits will return. Of that you can be sure. As you know, the problems that led to the crisis in 2008 haven’t been fixed. In fact, they’re worse. So another another Lehman-type event is certainly possible.
One wonders why Obama doesn’t just take some advise from Dr. Roberts and attempt to straighten things out. Roberts not only points out the problems, he offers solutions.
I understand Obama has a different agenda, but he might be able to fool people a while longer with some decent strategies.
How did you go bankrupt?
“Two ways. Gradually, then suddenly.”
I have learned a lot from the last few interviews with Dr Roberts. He speaks the TRUTH, something that is denigrated in America. Clearly, the 535 IDIOTS in the US Congress are UNFIT to be reelected. Vote OUT all incumbents up for reelection in Nov of 2014. Trained monkeys could do as well as these Congress critters.
I love your site, I recommend it every time I get a chance.
I was born in 1950 in Glendale in Southern California, and I and many others have seen things go downhill since the 1960’s. I remember my grandmother taking me down to Hollywood Blvd. around 1955 to see a Disney cartoon at a theater. There were still electric trolleys with overhead wires then. All of the people were dressed up in suits, ties and hats, newspaper and magazine stands were prevalent some times my grandmother would take me to a Rexall drug store or small soda fountain for a ‘jerked’ soda. At that time, people wore American made clothing, drove American cars and the early electronics (radios and Tv’s) that I watched Victory at Sea ( with my father who was a WWII Navy vet) and Sid Caeser on were made in America also.
My grandfathers were contractors, insurance and builder developers in Burbank and Hollywood, since the 1920’and before, they built homes for returning GI’s from WWII and Korea, at that time a guy wanted to get married, have a good job, a mortgage and grandchildren and retire. I can still remember my one grandfather, an insurance contractor in Hollywood, around 1958, hanging up his first OSHA sign in the shop and saying something like, “Regulations and Unions” are going to be the death of everything.
In 1975, I bought a house and the payments were $179 a month, the house was $27,000. Around 1976, my grandfather died and we sold one house in Hollywood for about the same price, $28,000.
My dad had built houses in Corona in the 1960’s for $16,000.. I had read an article since 2008, about how Orange County brokers had conspired to raise property prices and look at it now, nobody can afford to live, a family where the dad worked and the mom stayed home is mostly unobtainable now. In fact a family is almost unobtainable now, ask my 32 year old son. Our problem was when we used Real Estate to make big money and a house quit becoming a place to live in and raise a family.
I grew up in the Hollywood Hills, where my dad and grandfather built houses down the street from each other, so in that setting I and others have seen what materialism can do without the tempering of Christianity, my one friend I grew up with, Oden (Preston) Fong, who’s dad was Benson Fong the actor, who owned three high end restaurants, (we both had very dysfunctional families) Oden is now a , Chapel pastor in Huntington Beach.. And me, I have been with YWAM Mercy Ships before and want to go back again, or with some other relief group. I read recently that Howard Ahmanson’s (whom my grandfather did some investments with) son is also a Christian philanthropist.
My birth father (I was adopted) went out of business in the San Fernando Valley in 2008, partly because of foreign competition, and partly because of the economic crash.
Now I do security work to supplement my Social Security, I see a lot more shoplifting, fights in parking lots, people panhandling, theft from Edison Electrical substations, some Edison Substations look like POW encampments with cable fence and razor wire. One older employee at Edison told me that Edison is employing more and more armed guards now.
Many of the managers and store clerks where I work security (for about 4 different companies) tell me that people are flat out stealing stuff from markets, and also that workers hours are being cut to 32 (obama care) at places like Walgreens, CVS, Superior grocers etc. One cashier who was cut back to 32 hours said she had 3 kids and she would have to go on food stamps..
My step daughter is going to college to be an RN, she changed it to Pysicians Assistant because of the over abundance of people going to RN school, and the lack of jobs because of, my step daughters work hours were just cut down to below 40. My 41 year old daughter is an RN up at a Berkley Hospital, a few years ago I used to go up and do security at the nursing strikes, my 41 year old daughter says RN jobs are the same up in the San Francisco area, too many people have come here to go to nursing schools and then expect jobs, like jobs appear out of thin air. I believe that the school system in California is a ‘degree machine’ only benefitting the teachers, Tell me Greg, hows that going to work? How is that ‘moving ahead’?
I think that this government, city, county, state and federal has been mismanaged for a few decades now (like 3 or 4).. My son says, “Dad, you saw it when it was good”..
Out here in Southern California, we used to have Kaiser Steel, aircraft factories, american auto factories, furniture factories.. now all we have are new tilt up buildings that house foreign products that have been shipped in (that replaced our beautiful citrus groves). So the jobs are Del Tacos, Pho Mais, Starbucks and forklift operators for the storage and shipping places.
I am going to start doing armed security again (I had a little company in the 70s and 80s) because it pays more, and because some who live here and have seen it when it was good, think there are going to be real problems here.
I don’t want to be standing in front of a market doing security when there is no EBT.
One manager told me lately (a market in La Sierra) that until security shows up in the evening, people load up shopping carts and try and sneak/shove them out the door.. La Sierra used to be a quiet Adventist community a few decades ago.
Most managers I talk to say that EBT is about half of their business. I just learned that food stamps are to be cut that will cut the amount of profit of the stores, which cut the employees hours. We don’t think in common sense anymore.
In my estimation, we have been like a snowball rolling downhill, picking up more and more weight and going faster and faster, and all that is being done is rhetoric, nothing to stop the big snowball before it crashes. I live in the city of San Bernardino which is now bankrupt.
Keep up the good work Greg,
What a testimonial
Economic acrobatics are all well and good, but fail to recognize that the system of usury is the real problem. Its use is denounced by every major religion on earth and was sternly warned against by America’s founding fathers. Why? Well, because it’s a system which functions to constantly transfer wealth from the debtor to the lender at a quicker and quicker pace. The debt level must eventually approach infinity and infinite debt is an impossibility. Thus the system will always blow up sooner or later, either after the poor have been so impoverished that they rebel or they have submitted to total and absolute enslavement and become as a mere commodity to their owners.
Though usury is at the core of our problem, its ramifications run far deeper than can be expressed in economic terms so it needs to be looked in a broader context. Fiddling around with QE’s, or bonds, or bail-ins or bail-outs, or interest rates or derivatives is simply equivalent to rearranging the chairs on the Titanic after it had already collided with the iceberg.
Looked at in a larger context, in the diabolical scheme of things, a global system of usury will inevitably enslave the world’s population under a world ruling class that legally owns them. Now, to rule the world is a tall order, that’s for sure. Few have dared attempt it and all have failed to accomplish it through the use of military might. The global system of usury, however, will likely succeed simply because it provides a method by which people willingly participate in their own impoverishment.
If the religions are correct in their predictions, a tyrannical world ruling body will come to fruition and it will be headed by one beastly human being known to Christians as the Antichrist and to Muslims as the Dajjal. Is this is what we’re facing?
Interestingly enough, the choice of whether or not to continue participating in our own destruction (accepting the mark of the beast) is not one made by the politicians or bankers but, ultimately, by each one of us as individuals should we have the courage to take it. These are interesting times.
What is your definition of usury? Just curious. I know some religious people, both Christian and Moslem, who believe charging interest on money loaned is immoral…of course, this belief was fostered by the religions wanting money for free. Read the parables Jesus taught, the one where a master gave silver to his servants and left. Upon his return, he called all to settle their as accounts. To those that much is given, much is expected.
I believe you are correct that interesting times are ahead. Personally, I do no believe interest is evil or against God’s law. However, excessive interest rates used to pray on the poor and weak are against God’s law and should be against man’s law.
Jesus spoke in parables to present abstract spiritual principles to a people who could not understand them literally. In the parable you speak of, the man going into another country is Christ, the other country is heaven, the servants are Christ’s disciples, the distribution (some given more and some less) are abilities and talents (gifts) with which the servants are endowed, the return of the man is the second advent, the accounting is the judgment. Those who have improved on their gifts are rewarded while the slothful are punished. It is not about earthly profit to be gained by the big boss man. Its’ about developing a heart aligned with the will of the Creator (spiritual treasure) and reaping a personal, heavenly reward.
Usury is something loaned at interest, without risk, solely for personal gain. The lender requires collateral to cover the principle and interest to insure a profit whether or not the borrower succeeds. It is a purely self-serving transaction that profits one party by degrading the other and so, carried to the highest level, it ultimately destroys the borrower and is suicidal to the lender. It is a parasitic process involving both parties whether “excessive rates” are charged or not.
Both those we call “the elites”, who have become rich and powerful through implementing this process of usury, and those being degraded by it it should hear and understand that parable you mention above and then decide whether service to self or service to others represents the path most aligned with the will of the Creator. The fruit is there to see and,as Jesus said, “Therefore speak I to them in parables: because they seeing see not; and hearing they hear not, neither do they understand.”
In an earlier response, I neglected to address your comment about religions fostering the belief that usury is immoral because of an ulterior motive…. “religions wanting money for free”.
I ask you to consider the meaning of charity. It is something given freely, without strings attached ,and serves to benefits both the receiver as well as the giver. The receiver appreciates the good will behind the donation while the giver feels better for having helped another being. We have a win-win situation.
Now consider what happens when “charity” is given conditionally; taken by force, under the condition that refusing to give involves fines or jail time or damnation to hell. Now things change drastically. Those who extract such charity are rewarded by gaining votes from, or increasing control over, those who receive its supposed rewards. Those who receive are no longer grateful but feel entitled and become dependent upon it. Charity forcefully extracted eventually fosters resentment so that bad will replaces good will.
Neither can charity be accepted under the condition of usury as this would require a pay back of more than was loaned. That the church humbly begs for charity, given freely and unconditionally, to fulfill its purpose to serve others simply reflects an understanding of the true meaning of the word charity as well as an understanding that God can not be mocked by men defining charity in any other way.
Great interview with P.C.R. as always Greg!
Great interview. It was a eye opening when he said you could devalue and maintain reserve currency status. I hadn’t given that part any thought.
Greg, I get tired of telling people that the dollar will be propped up by a military action, after all, if money can be made by magic, also called fiat, then a war can be had the same way, remember weapons of mass destruction? Look out, G. Celente is correct, first currency wars, then real wars, the rich will demand it, but from their ivory towers of course.
I know the Progressives have convinced many that we are still a supposedly free market, capitalistic society. But beware when President Pinocchio and his ilk plans for nationalized health care and the redistribution of wealth go awry. History shows the primary tool of a socialist is force! (All those hundred of 1000s of rounds of ammo purchased by our various governmental agencies will then be utilized to convince the American public to “Stand down, shut up and do as you are told.”).
Yes Art; I recall that Mr. Saddam Hussein was sabre-rattling his intent to abandon the US Petrodollar – before GWB invaded Iraq.
Excellent point! However; now that the major players like China, Saudi Arabia, Russia etc… are rattling the same sabre, I don’t think the military option is going to carry as much influence.
Also remember that China successfully launched a missile from a submarine WITHIN our ocean surveillance nets offshore from California, such that most of Southern California could see it.
Dr. Roberts is a true scholar, expert, and a gentleman, with unique experience and impeccable credentials. I love listening to him talk. Would that we had someone like him running the country, or even the Treasury (again). Not much room for an honest man there these days.
If the collapse of the dollar means the end of the endless US wars, then I am all for it. I worry, though, that those with their fingers on the buttons will not willingly walk away from their weaponry, and that a collapse is more likely to be heralded or accompanied by a full-fledged use of force both home and abroad.
I can’t see President Obama EVER admitting he was wrong about anything, it’s not in his personality, just like a leopard can’t change his spots. He will blame others, but never blame himself. Isn’t that a narcissist?
The only way things can turn around is if we had a true honest leader with integrity as our president….and we all know….the world knows….that is not the case.
Therefore, SNAP BOOM is inevitable.
Dr. Paul Roberts responded to your query as to whether there could be a SUDDEN drop in the value of the dollar and I quote “not if you are the reserve currency”
What Mr.Roberts did not mention however, is the fact that YOU CERTAINLY COULD have a sudden drop in value of the dollar if you had a domestic dollar and an international dollar. The International dollar (reserve currency) would in some fashion be stabilized to hold value to protect the foreign investors with their dollar/dollar denominated assets whilst the domestic dollar (non-reserve) would be debased to high heaven resulting in a catastrophic situation here at home which in truth has always been their objective
IMO this is the reason why we now have the new 100 dollar bill. it is not the propaganda reason of attempting to stop counterfeiting. It is the DOMESTIC version of the DOLLAR and it is targeted to be debased.
IMO TPTB (including the Chinese) are all pretty much one united group with the singular mission of WORLD DOMINATION AND SLAVERY FOR ALL.
China say…., when gold no longer cheap, no more teat. When no more teat, no longer cheap, when no long cheap, not long for sheeple.
No fat, no Crack, you get missile up a$$ets. No jack, no longer cheap at, RadioShack! Try sell that, Uncle Smack!
L O R O L
Space Between the Ears Systems
T H E W O R L D L E A D E R I N T R E A S O N
Of Palo Alto Californication, with
our Pals, Red China, in a cage, nation.
Subsi derrie’rre les apparences of MacDonald Duckless & Associates
B.S. Bill still says, thanks LORAL, fer yer donations, that made him King of Da woiuld! Every time China threatens US with Nukes, Hill an I, are thinking of you! Don’t be so stupid people, the next time you donate $100,000, Fiat currency, to yer government subsidized Uni., just remember that’s Bills fee for his chewing the fat with yer sons and Daughters at Uni. Red China, Bills also still, so sorry for bombing your consulate, in Belgrade and killing that young Chinese couple on their honeymoon, its to bad he turned it into a parking lot, or I mean, (forgive me), he thought, it was a parking lot! It was so long ago, who can remember? We know you don’t, just fergive and ferget, OK? If not, we will be looking up and thanking, LORAL & HARDLY, as were being blown up, to kingdom come! Praise the LORAL and pass the missiles or should I say, flithy lucre. Its just a bad dream! No, its Live, from Old York, Its Saturday Night and were all dead, Hurrah fer Hollywood!!!
How China Conquered America; The real Bill Clinton Scandal…
On going and coming to a western US city near you?
Recent China nuke threats that you cant even make up in a movie!
“QE props up the balance sheets of the banks” DR. Roberts
I wonder how many realize that what has happened in the banking industry is also happening in the insurance industry. The balance sheets of insurance corporations took a major hit of red-ink when the value of commercial real estate dropped by 40% during the same period the housing bubble popped. Did you know that insurance companies store their wealth and propped up their balance sheets by investing in appreciating commercial real estate for decades? Yes, they lost money net-net on their insurance policies, which enabled them to get rate increases virtually every year, but their balance sheets showed billions in reserves based upon the appreciating value of their commercial real estate investments. Those billions of reserves are required to prove solvency against claims, and the US Gov’t isn’t supposed to allow them to operate (just like the banks shouldn’t operate) without substantial enough reserves. So when commercial real estate dropped, threatening collapse, so too did the balance sheets of the big insurance corporations. The truth of the matter is that insurance companies selling commercial real estate to each other at ever increasing prices is analogous to what the Fed is doing by artificially propping up the banks’ balance sheets with the high prices of bonds. There is a bond bubble just as there is a commercial real estate bubble, and was a residential real estate bubble – that popped. The banks MUST BE CLOSED (or bought out by other banks) when their reserves drop too low, and so too MUST the Insurance Corporations when THEIR balance sheets no longer provide substantial enough reserves. Since corporations write the laws for the senate to approve, and since the insurance corporations are now operating on a much less healthy balance sheet (do their books reflect the true value of commercial real estate?), they desperately need a nation-wide influx of higher premiums just to remain solvent.
How convenient; ObamaCare.
The insurance corporations who wrote the health care law also become the primary beneficiary of that law. That IS the current face of fascism: Corporations using the power of government to advance their own private and for-profit agenda, using the law to cram massive rate increases down our throats via government.
So how’s this for a future HEADLINE:
“How ObamaCare props up the balance sheets of the Insurance Corporations who helped write the law”
Just like the Fed props up the balance sheets of Banks (to keep them from bankruptcy while they displace the bad derivatives and toxic debt to someone else).
What I mean by “Future Headline” is this:
This time around the Commercial Real Estate Bubble shall PoP! Whether by failure of BoboCare, or by failure of the Bond Bubble, or any other means…
Are you savvy boys listening? Heh heh heh!! Gonna do a quick acid test on those annual reports? And change into your shorts this fall?
Can you hear the tune Gerald would be humming in one of his videos? “NationWydes on your backside” but you won’t have to put up with it much longer! The States’ farm is broke too! You all be safe out there.
(humming my own tune) “…to the shores of tripoli..”
PS Neither do I give investment (or divestment) advice.
Mike the Mariners,
Did you spend anytime at Paris Island, SC in mid 60’s to early 70’s?
Yes I did, Gal500. 65-66 and 73 at PI and Beaufort too; remember the “Fighting Shamrocks” (Trip-Trey) VMF333? Lived in Laurel bay 65-66. I have a daughter and grandson in Beaufort right now. She’s a Masters and teaches at the University. I still have PI sand between my toes, and not so fond memories of the no-see’s.
Hi!, Patrons Of USAWATCHDOG.COM Et Al:
Greg. besides mentioning that Dr. Roberts provided US with an excellent interview on your program especially designed to point out what the future may be for OUR US $,
not only is OUR Government and the FED. trapped but so are we the people being involuntarily trapped with them aren’t we? Furthermore, is it worthwhile mentioning that, added to Dr. Roberts’ emphasis for example, is the fact that the US has put off Germany’s request for its’ gold supposedly held in TRUST in New York or half of it in 7 years with an unknown date for their gold balance? Plus, doesn’t this throw some light of suspicions whether or not we have their gold plus any gold besides to back our promises, because on August 15, 1971 President Nixon destroyed any link between our supposed gold in Fort Knox, Kentucky etc. basically telling the world nobody can tap OUR Treasury for any amounts of our supposedly depository gold? Do we have proof that we hold what volumes of depository gold or only unclear suspicions? Also, according to Article 1; Section 10 of OUR US Constitution calling for all American Citizens to have only gold and silver coins in their possession for use as their money, if there is repository American gold in Fort Knox etc., should that gold be in OUR citizens pockets where true accountability and trust should be placed? Lastly, isn’t the debauchery of a nation’s currency one of the steps required under a government controlled dictatorship?
RUSS SMITH, CA. (One Of Our Broke Fiat Money States)
art.1,sect 10 “No STATE shall make anything but gold & silver a tender in payment of debts;” the Constitution says nothing about gold & silver coins in possession of American citizens.
re-read what you quoted AND rethink your argument as it is fatally flawed
I read how people say gold and silver is a good bet or a bad bet. Using basic logic, the only way to lose is to avoid gold and silver as there has never been a time in the last five thousand years that gold and silver HAVE had a zero value while fiat currencies fall to zero.
Under Hunter ‘s top stories, the first story is about a democratic (heavy on demon) candidate proposing a law mandating that doctors be required to take Ocare. The writer goes on to propose that everyone be given $500/month to procure health care. The idiot doesn’t seem to understand that it will cost a 150 billion a month. What a macaroon!
Does anyone wonder why Obama postponed the employer mandate? Because it will cause 50-60 million people to lose their employer issued health care. Add that to the millions in the private insurance market that are losing their insurance and it would be impossible to elect another social democratic…EVER. They knew what the numbers were going to be so they postponed it. The Obamaites just didn’t believe a few million middle classers losing their insurance would be a big deal and Obama lied that people could keep their insurance. Thank God Obama is wrong, and he over reached as evil men of power oft do.
Vote them out…
How about we prosecute Holder for his many crimes?
“Global Financial Architecture and Economic Systems on Verge of Collapse”
When the economic foundation cracks and the financial architecture teeters
Herein lies the greatest challenge of the 21st century regarding the consequences of globalization and current state of worldwide banking and commerce. The world is now one huge marketplace. However, the current global marketplace was assembled over decades (and centuries) by the piecing together of a multitude of little markets. A veritable hodgepodge of financial patchwork and economic mishmash has been somehow jumbled together to make it all stick together to function as a cohesive global economy.
How the markets (read global marketplace) continues to function, given all of the obvious flaws and inherent weaknesses is anybody’s guess. Truly, only by the daily manipulations and monthly machinations of the Hidden Hand does it really continue to present some semblance of order and efficiency. Were it not for the artificially propping up of so many collapsing platforms, the whole House of Cards would have fallen many years ago. The following quote sums up the true state of affairs quite well.
“The global money matrix, worldwide financial architecture and planetary economic landscape most closely resemble the proverbial House of Cards in the form of a Pyramid-Ponzi scheme superstructure built on quicksand.”
Thanks for the great interview with Dr Paul C. Roberts.
It would be interesting to hear Dr. Roberts feed back on what would happens after a collapse of the dollar.
Would we resort to a temporary barter based system?
Would the economy eventually reset?
Would commerce rebuild from the ashes?
Would a gold based currency be established?
What would day to day life be like in the United States?
A sad day for the fourth largest city in North America, Toronto. The mayor of Toronto is a drunken crack head. Like Obama, he claimed media is treating him unfairly. Both are liars.
Remember when “Dear Leader ” bowed to the Saudi King?
Saudi Arabia is unlikely to be angry at Obama for long. Whatever they’re doing, they’re doing together. That includes demolishing Syria.
There is a video out there called Collapse
This is the biggest problem of all
We are heading into a serious shortage of oil.
When we run out is not known for sure but we will run out and that will be in the near future.
The short term crisis is due to a monetary system that doesn’t work.
Debt based systems thrive on quick expansion but always reaches a point where it hits a limit. A point where expansion can no longer happen.
Debt based systems are also extremely wasteful as we have seen.
Our resources are limited and a debt based system wastes it for no good reason.
Yes we are heading for most likely the biggest crash ever recorded in history.
We are at the beginning of a new era.
A point in time where there is no longer plenty.
Not so long ago during the 1950’s and early 1960’s we felt that anything was possible. The New York Worlds Fair which marked the beginning of the end of great dreams.
We are now sadly at a point of a rude awakening which will be upon us fairly soon.
Paranoia and fear are our enemy.
Understanding what is before us will help guide us.
Those that follow many of the people the Greg Hunter has interviewed will fair much better as here you get a good feel as to what’s around the next corner.
Last I like to say to Dr. Roberts I am glad you are still in the game for you are always one that gives a clear understanding of our government and it’s problems.
Roger & Greg.
We can philosophize all day long about what the reset will look like, but there is a much simpler methodology to get your answer.
Go to the electrical box in your house and flip the main power switch. When the room goes dark, imagine it is happening all across this country. While you are setting in the dark, think about what your next move is going to be? I can guarantee you it won’t be about what the price of gold is. That will come later if you manage to survive the first initial shock of going from a techno age to the dark ages. Some might say I being melodramatic, but just remember the power companies are public utilities that run on the grease of the almighty dollar, and when the dollar is gone, they are gone.
I agree with PCR and many others, that say .”we have shot our financial” wad around the world, and there will be no one left to step forward and bail us out this time. For all intensive purposes we are on our own. The only thing we have left, is the possibility that the Saudis still need us to deal with Iran. If that is the case I would expect a war sometime soon. Gerald Celente is right again.
Has anyone read “Atlas Shrugged”?
Ayn Rand ‘s warning is coming true
I’ve been waiting for quite some time for someone to mention what this country is so desperately lacking these days (especially from our political “leaders”): Humility. Not surprised that it came from a true Southern gentleman such as PCR. You would think that a country with $17 trillion in debt, a gutted manufacturing base, 47 million people on food stamps, and 22% in real underemployment just might show a bit of humility now and then. Thanks again for a great guest, Greg. I am more concerned than ever because PCR seems as abject about our future than I have ever seen him before. Sobering.
On a NC radio news program reported that BCBS of NC reports one person enrolled in Obama care since 10/25. The affordable care act isn’t affordable in NC.
BS! Christie is more democrat than republican and he sure isn’t a conservative. He may have a conservative gall bladder but the other 350lbs are liberal democrat.
Sorry for all the posts Greg.
WTF!!! DHS is going to have an armed mercenary force on American soil! What does DHS need armed Mercs to protect…nothing. Question is what/ who are they going to be attacking in the US? My guess is that it’s us…anyone that disagrees with the obamachrist.
I really enjoy your links and comments! I was just wondering if you caught the news story about the union’s push to arm the TSA. I was shocked (not really) that the useful idiots want to now arm thieves, pedophiles and convicts. There’s an old military phrase that may apply here: “Don’t forget the Preparation H; it looks like we’re in for a future arse reaming.”
Greg, Dr. Roberts is a brilliant man. He understands that at the very root of the global trauma, is the outsourcing of jobs to Asia, Mexico and other as-yet developed countries. He also correctly understands, that any jeopardy the US $ faces, will manifest abroad, and not within the US. However the notion that China or Japan, or any other substantial US Treasury bond holder, will attempt to dump treasuries all at once, is not reasonable. These countries are far from being that naive. Citizens may cause a run on banks, but nations will not cause a run on debt. They will, however, gradually unload their US instruments. They have been doing this, and they will continue doing it. I feel C. Fitts did an excellent job of describing how we’re in for a slow burn, rather than a quick fall. But she also went over the psychological attraction, to anticipating an all-out collapse. As she said, it’s a fantasy. Look at the whole “taper” ordeal. Political pressure to “taper” was enough to send the stock market down, and interest rates up, putting enormous pressure on the US Economy. The Federal Reserve turned an abrupt about face. And from that point forward, Janet Yellen, the easy money chairman, stepped into her pre-determined function to keep money easy, and manage the political consequences. I hope this makes sense.
Sam Clemens (Mark Twain) DID say:
“The first thing we must realize is that we are all hopelessly insane”. He was speaking of the world and the mentality of everyone trying to make sense of it.”
The collapse of the US dollar will happen. No doubt, just a question of time. One day, we will wake up, it will be happening and nothing will stop it. The only reason why it is still the world reserve currency is simply because China is not quite ready to send their economic bomb yet, but they are getting a little more ready every single day.
So, you have the US facing the biggest threat of their history where countries are slowing dumping their currency. You still have the biggest and most advance military in the world. Do you think they will sit and watch China take their spot as supreme ruler of the world?
Everyone making a move against the dollar pays the price whether by invasion or sanctions. The US knows the ONLY way to can keep the US dollar as world reserve is to enforce it! They have no chance with a conventional war against China… They will hit as hard as they can so no one (North Korea, Russia, etc) will dare to retaliate.
They are so desperate to start this war, they will do anything they can to make it happen. I believe Syria and Iran is the door to drive China into a war. Don’t be surprise if talks with Iran later this week will fail… On top, Today, Nov. 5th, check at the news, US intelligence are bringing back to the table the Syria case. Apparently Assad would have kept secret chemical locations, also Turkey caught 3 trucks loaded with chemical trying to cross to Syria which is most likely orchestrate to put back Syria in the hot seat. The US will build their case on this in the next few days.
The very sad thing is, a lot of people died for the US dollar thinking they fought freedom and the worst is yet to come.
A few reason the decline of the dollar will be slow enough to adjust to in an orderly way:
1. The dollar is currently the reserve currency and we are the world hegemon.
2. We are the largest world export market, so countries exporting to us will be hurt as much as we are, so they will want the transition to be slow so they can adjust to it. China has already demonstrated their reluctance to allow their currency to appreciate too fast.
3. The Fed will continue to shore up banks until they have written off all their bad paper using their current high profits.
4. The upside is in our favor. As the dollar declines our balance of payments will improve, higher import prices will be offset by higher profits on exports. As other countries rely less on us, our world hegemony will diminish, both financially and militarily. The costs of maintaining that hegemony will be reduced. Our manufacturing will come back. Unemployment will decline.
We’re talking about a decade or more for all this to happen based on current trends. Meanwhile we plod along making do. The Japanese have done it for two decades. The world hegemon could survive at least that long and prosper in the long run.
Dr. Roberts is right on most counts, but he admits he doesn’t know the time scale and is always taking the pessimistic view.
There is a saying that “it’s darkest just before dawn”.
At the great reset of the calendar (from BC to AD) it was a very dark time. Taxes were being increased by a king (Herod) who also was a true “baby killer”, a census was being taken and everyone had to return to their own home town to be counted and taxed… while only a few wise men were seeking out the new King, who, due to that census, was born in Bethlehem according to the prophesies.
Moses walked into the darkness too, and found God in the midst of it. So while we should all be prudent in times like these, don’t forget the pattern that God has established from the beginning: it is in times of great darkness that He brings forth the Light. And the darkness can not comprehend it!
So there is significant reason to have hope! We are NOT left alone, we just don’t often learn from the past too well.
Just ran across the below article…may be interesting to your readers. Thanks so much for bringing us the REAL news!
Any chance you could ask Dr. Roberts to show us some of the pictures on his wall? They have to be very interesting given his past and he does put them in his interviews!
I am sending much of what Paul Craig Roberts writes and says to Crapo, Risch, and Simpson, my three legislators.
I live in Salmon Idaho (much as it was in 1930 with TV and cell phones now) so as an activist I can’t do much here.
I added some of this to my website as solutions: http://treegrower.org/about/Rocky/Solutions.html
Dr. Paul Craig Robert’s “Gross Ignorance” of his being the “Father of Reaganomics”; where the nearly tripling of the deficit in the 80’s. Took the U.S.A. from being the #1 creditor nation in the world to the #1 debtor one in less than 8 years, while raising taxes (Revenue Enhancements). The entire Reagan “revolution” was based on massive debt spending, whose compounding interest and those of successive administrations will never be paid off.
Yes, Paul Craig Roberts, your past actions are an accessory to the problems the U.S. faces today, but many of the uninformed readers of your articles who agree with you are ignorant of them. Interested in only in what you pen of late.
I have no family! I chose NOT to have children after Reagan became president as I knew where the U.S.A. was heading 30 years ago.
Paul Craig Roberts lives in denial of what his economic policy Reaganomics = Voodoo economics did to the country.
What PCR writes today is contrary to his actions of the past. You and many others may agree with what he bloviates about today, but that doesn’t change what PCR did.
I’ve never voted Democrat, or GOP, always a 3rd party and NOT the Tea Party. Jill Stein in the last election.
Part of that federal debt you refer to is residual Reagan debt (Paul Craig Roberts “Father of Reaganomics”) with compounding interest added to it. I’ve read in PCR articles claim the Reagan debt “didn’t matter”-All federal debt matters. That your progeny will only be paying a fraction on. How’s that “trickle down” working out for you and your family now? I’ve also read where PCR claims the U.S. “Won the Cold War”- Russia today is a far more serious threat to the U.S. than it was 30 years ago.
Today the U.S. is calling former Ronald Reagan “Freedom Fighters” Saddam Hussein, Osama Bin Laden, Al-CIAda, the Taliban and Iran – “Terrorists”; who in the 80’s received billions of $’s in conventional/chemical weapons, that is now costing the country trillions of $’s and scores of U.S. soldiers killed, maimed and committing suicide in the farce War of Terror. PCR is also an accomplice to War Crimes, with the Reagan administration supporting Death Squads in El Salvador and Guatemala.
Reagan fired the union FAA Air Traffic Controllers, that green-lighted CEO’s to begin off-shoring and out-sourcing of American manufacturing to Asia.
P.C.R. has written that the deregulation of the financial industry began under Clinton, which is a lie. Clinton may have continued the deregulation of the financial industry, but it began under Reagan with the S&L bailouts. That caught V.P. Bu$h’s son Neil receiving kickbacks on loans he approved when a board director of the failed Silverado S&L in Denver.
If the U.S. had followed through with 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., Central/South American, or Canadian tar sands oil today. The U.S. would lead the world in the desirable “green” technology jobs and not China. Instead Reagan had the solar panels removed from the White House roof and gutted federal funding of alternative energy research.
The lax enforcement of Anti-Trust legislation under Reagan allowed the “Too Big To Fail” corporations. The continued polluting of the nations air, land and water continues due to Reagan gutting EPA laws.
PCR is now an old man in denial of his being an accomplice in criminal past behavior, trying to re-write his history with those articles those ignorant of his past actions blindly agree to; stroking his ego. Who still writes in envy of a snitch and pedophile rapist (when president of the Film Actors Guild). Contributing to the delinquency using alcohol of aspiring, adolescent Hollywood actresses like Elizabeth Taylor and others, so he could rape them. Who was a multi-adulterer and engaged in pre-martial sex (to marry a 3 month pregnant Nancy), Treason fomenting (Iran Contra weapons for cocaine scandal). That should have had the most convicted Felons and others who were a part of the Reagan administration swinging from the ends of ropes, as Wehrmacht soldiers were hung for lesser crimes. War Criminal (supporting the above mentioned Death Squads in El-Salvador and Guatemala), wife and political party swapping Ronald Reagan.
PCR contributed to the very deficit he now vilifies, a hypocrite, a liar and swindle-er, a shill. May he ROT in H#!! after he dies, with the rest of the Reagan administration scum who took the country from being the #1 creditor nation in the world to the #1 debtor one in less than 8 years.
That’s why I have never voted Democratic, or GOP! They are both to blame for the current state of affairs the U.S. is now in and only 3rd party candidates (NOT Tea Party) will straighten it out.
There is a lot of crap the U.S. is embroiled today in that is hold-over from the Reagan years.
Obama promised “Change”, but my own opinion he was chosen to be president to continue the policies the powers that actually make the agenda the U.S. follows as the public would have never tolerated another Republican as President after Bu$h Jr.
PCR makes some valid points in his articles, but refuses to admit his part in past malfeasance.
Since there was no accountability with Iran-Contra, the scandals successive administrations have committed have gotten worse.
I worked in China 2003-2012 at medical schools related to hospitals my great great grandfather built. You can read my stories written to date at http://www.chinamissions.com.
While they have there own corrupt system where the Jiang Zi men’s, Wen’s and Hu’s families have profited from there positions held in government, there has also been those who have been held accountable like Bo Xi li. If the CEO’s of Chinese financial companies had tried to do what U.S./European ones did in 2007, they would have been shot and their organs harvested.
I don’t know if you have ever been to China/Asia, Russia, or India, but I have and after seeing first hand where they are heading the U.S. does not stand a chance (with its present government representatives and policies), to compete against them.
I love my country (U.S.A.), but fear its government!
Mr. Roberts expects the USD to tank. But in the next leg of the financial crisis the USD WILL go through the roof (AGAIN !!!!) . And a USD going through the roof is actually the worst thing that can happen to the US.
Because then the US Current Account Deficit will disappear and even turn into a Surplus. A Surplus means that countries outside will be FORCED to sell US T-bonds in stead of buying T-bonds.
This man has his head squarely on his shoulders! Intelligent and well spoken. He has the sense to explore different scenarios, unlike a guest last week who suggested that a dollar plunge is “very unlikely” and “not a chance!!” to currency collapse.
Dollar collapse is their worst nighmare, Greg, their worst nightmare! The collapse of the dollar would begin if China, Russia, India and others start dumping dollars and Treasury Bonds. When that happens, that is when the powers-that-be lose control of the world. Game over! The collapse of the dollar is the powers-that-be worst nightmare!
Anyway, thank you for having a sane guest on, Greg! Thank You!