If Bullion Were Not a Threat Government Would Not Attack It- Paul Craig Roberts

1By Greg Hunter’s USAWatchdog.com 

You want to know why gold and silver prices are down?  Listen to former Assistant Treasury Secretary Paul Craig Roberts.  He says, “When gold hit $1,900, the Federal Reserve panicked because they realized with the dollar deteriorating so rapidly, compared to bullion prices, that soon it would also deteriorate its exchange value with other currencies.”  So, Dr. Roberts contends, “The Fed had to cap the price of gold and stop the rise. . . . If bullion (gold and silver) were not a threat, the government would not be attacking it.”  Not only is the Fed debasing the dollar, but the Fed and IMF encourage other countries to do the same thing.  So, gold will continue to be acquired, and Dr. Roberts, who holds a PhD in economics, goes on to say, “They can’t forever suppress the gold price because if you look at actual demand for physical possession of the metal, it continues to rise. . . . They are desperately concerned about the dollar.”  Join Greg Hunter as he goes One-on-One with Dr. Paul Craig Roberts.

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Comments
  1. Rev. William W. Joslin

    Great interview as always Greg! As Gerald Celente says currency wars + trade wars = real wars. WWIII is just on the horizon and most Americans don’t even realize it.

    • Greg

      You are correct Rev. Thank you for the comment.

      • Tad

        Arma gettin outa here! Now! Not later!

        • Tad

          Cant Afford Nieman’s Marcus Ariliuse! It’s all to silliouse!

  2. Dwain

    Along with job offshoring, labor eliminating machines and corporate consolidation contributed. Socialistic governments happily took advantage, competing to blow wealth and welfare bubbles. After decades of playing charades and can kicking games the day of reckoning has arrived.

  3. Mike R

    Hi Greg,
    I’ve held gold bullion since before the year 2000, and started buying my first few coins when the price was below $300. For the longest time I was concerned about inflation. Also I studied a lot about deflation. I’ve followed folks like Jim Sinclair, John Williams, and many other guests you’ve had on here for interviews. I’ve followed these guys for quite sometime and far before the popularity and followers they have today. The reason I begin with this preface, is for the past year or so, I’ve been changing my mind about causes and outcomes.

    First of all, I do think gold will hold its value. Probably other precious metals will too. But not quite for the reasons people talk about today. The race to debase, as I call it in terms of currencies, is really a misguided reaction by monetary policy makers. Ok, nothing than probably any of what your guests might suggest.

    However, I truly don’t think we are going to get hyperinflation, and we will likely continue to experience a continued gradual deflation in a whole lot of consumer goods, services, and durable goods.

    The reason I say this, is actually very simple to say, but far more complex in terms of the impacts occurring and the acceleration of numerous convergences. Primarily, we are witnessing a wholesale transformation in the use and adoption of technology. Up to now, job destruction here has been a combination of outsourcing of cheaper labor, better use of more effficient machines, and global competitive currency devaluations.

    However, in parallel, and about to rapidly accelerate in the next 5 years, is going to be the massive adoption of machine learning practices, neural networks, and fuzzy logic as it relates to all sorts of industries. Entire industries are going to be turned upside down worldwide, if not destroyed forever. This has been happening in earnest for the past 2 decades, but it’s going to really increase now. The US labor participation rate is declining because of this, and many millions are getting left behind. Our country truly cannot educate, and convert its populace fast enough, despite our economy being the most advanced in the world. This is occurring worldwide, and is why we are seeing massive unemployment in so many countries across Europe, and even Asia. China, Asia and Russia and India are in the worst possible position. Why ?

    Well for one, their populations, mostly china and India, have been on the verge of gaining an actual middle class. The problem now is that technology advances are going to simply overwhelm the worlds ability to keep so many billions employed. Many are on the precipice of being kicked back into the stone age. Sure we have a lot of worldwide debt, which is problematic it of itself, but all that debt could be destroyed with the stroke of a few pens, written off completely,and we could have an entire global reset. That still leaves us with the primary problem. Technological advances in crucial areas, enabled by the ever increasing collaboration and communication fostered by the Internet and computers and mobile communications, is simply going to render a good portion of today’s “labor” in the way we know it, obsolete, and unneeded. Machine learning, which fairly closely resembles the critical thinking of the human mind, is advancing things like robotics and manufacturing lines, sorters, and even the most previously complex and/or minute tasks normally done by humans, such that it is going to more rapidly than ever before replace the need for humans. Couple that now, with massively rising healthcare costs, taxes, and other costs, the company’s that do far more with far less human labor are going to wipe out the ones who refuse or don’t know how to adapt. This has been ongoing and seemingly gradual, as extremely low cost labor, essentially created and fostered by US business in other countries, the developed by those country’s governments, brought a whole lot of the worlds population out of an agrarian, or poverty ridden culture. They have risen close to the middle class, but essentially those “billions” of humans can never be educated quickly enough to become an integral part of a very advanced society. People who have kept up with this and adapted, and are largely above American middle class standards, will likely survive and prosper.

    Others, and largely, probably 75% of the worlds population won’t be needed for the labor, to produce the goods or services the rest of the world can afford. It’s complicated, but truly we are at an major inflection point in human history. The path from here, will be governments attempting to figure out how they can support 75% of their populations, with only 25% needed for “labor” much of it being critical thinking, innovation, working on computers and working with advanced technology. Some governments might (diabolically speaking) decide they need a war, to “cull” the population, while others may attempt vainly to take a more “humane” approach and adopt a much more socialist model. (ie. the many, living off the “backs” or rather “minds” of a few.

    Thus in this type of environment, I am hard pressed to see any sort of inflation no matter how much money is printed. As the money, simply won’t be getting into the hands of the populace, unless they are at work. As labor participation rate keeps dropping, more people are going to be on government “welfare” or family and community welfare. Why are we seeing records of numbers of people on food stamps ? It’s not because there are no jobs. It’s because they simply have not learned, and many not ever learn, the skills needed to obtain work that is mind work, rather than just labor or basic thinking. They either need to adapt on their own, which may be very hard, if their iq’s are around the average of 100, or even just above that at 120. People can be mentored and coached to a certain degree, but these machines, robotics, computers, are simply going to continue to proliferate at an accelerating pace, fostered by companies who strive to stay relevant and in business. Monetary policy, and debasing currency doesn’t solve this problem. Only human innovation will. Our governments have no idea how citizens will react, as the critical mass of unemployed, and not seeking employment increases. Which is why we are probably seeing the billions of rounds of Ammo purchased, and an increasing number of so called “FEMA camps” being built. These may never be needed, ever, but they have to prepare for worse case. In the meantime, the best thing everyone can do is focus focus focus on getting educated and using the internet to access resources and materials on advanced skills and technology. There are only so many policemen, fireman, teachers, garbage collectors, or news people needed. Of course government service workers will be growing, as will health care workers. But it’s impossible for those to be high paying jobs. If America is lucky, it will have a massive energy boom, to allow it to export a lot more in the way of energy, technology, and keep a whole lot businesses ultra competitive, serving the billions of others on the planet. Most likely those others it serves will have to be upper middle class or “rich” to be afford the goods we provide. Fewer and fewer people will be operating machines. So that won’t be a solution for employment. Who knows how this all evolves. But rest assured, 5 years from now we won’t be in hyperinflation, we will likely be still dealing with many deflationary pressures, and whoever is fed chairman, will either be printing money or very very very slowly raising interest rates.

    • josh

      wow. very impressive analysis for mike r.

      there is definitely something to this. remember an interview asking an expert in computers why some silicon fabrication plants were still opening in the us when the labor costs were so high here. the response was that labor was not the most expensive cost because the fab plants were so highly automated. shipping costs were more significant because most of the product was being sold here.

      manufacturing and farming is never going to employ the number of people that it used to and there won’t be enough intelligence worker type jobs created to replace them. a lot of people have written on this subject.

      if jobs for the masses go away, there are two huge problems for the corporations and their owners:

      1) who is going to be left to buy the stuff they make?
      2) social unrest will make will make the situation unsafe for everyone

      i don’t know if what’s happening now is a systemic shift on this scale but it may be…

    • John Galt

      @ Mike R
      “Robots building robots……..it’s perverted”. CPO3 to R2D2 1979