Financial writer and precious metals expert Bill Holter has been asking the same question many others have been asking. How long can the heavily indebted and manipulated global economy go before it blows or can it go on indefinitely? Holter says, “It can’t keep going because it’s already stopped. The inflection point has already been hit. If you look at credit growth, it’s not credit growth. It’s either credit stagnation or credit contraction. The global financial system is a Ponzi scheme. In order to continue to reflate it, you have to have . . . exponentially more debt. That’s where we’ve been, and now we are at the point of debt saturation. There is really no ability to add more debt. Look at the U.S. for example. The U.S. pays $300 billion to $400 billion a year going all the way back to the 1990’s. That number never went higher, even though the amount of debt doubled and then doubled again. The reason it didn’t go higher is they pushed interest rates from 7% down to basically zero percent. So, the debt service amount never grew, and now it’s growing, and it’s growing at a time when the U.S. has basically already crossed the banana republic threshold of 100% debt to GDP. In the past 12 months, we spent $550 billion in interest, and it’s on its way to the moon.”
So, what are people going to do in a world of “exponential debt”? Holter says, “Gold and silver have no liability. They have no liability whatsoever. They are pure monetary assets. There is no currency anywhere in the world that is backed directly by anything except the full faith and credit of the central banks. That’s the key. The world is awash in credit and awash in liabilities, and as this thing bursts, and it’s bursting right now right before your very eyes, and you are seeing it in the stock markets and bigger in the credit markets, when this thing bursts, people are going to scramble to get out from under liability. There’s only one way to do that . . . when credit begins to evaporate, then the cover over gold and silver is going to be lifted.”
There is going to be a reset of this unpayable debt, and Holter says, “It’s going to happen, and I hope for not a very long period of time. I am hoping it’s just a two week or four week event where the system goes down and goes back up. If I am wrong, then you are looking at a Mad Max world. . . . Basically, nothing works. Your electricity doesn’t work. Your car may or may not work. We may have an EMP or it will work until you run out of gas. When credit breaks down, then distribution breaks down. If credit doesn’t come back up, then distribution is gone. That means every Walmart, every grocery store is empty. Basically, you are on your own.”
In closing, Holter warns, “The balloon has already been popped. The pin has popped the bubble, and now we are just going to work its way out. The workout, by the way, is going to be a complete and utter financial collapse. It is a house of cards, and it is all going to end up flat.”
Join Greg Hunter as he goes One-on-One with Bill Holter of JSMineset.com.
Greg is the producer and creator of USAWatchdog.com. The site’s slogan is “analyzing the news to give you a clear picture of what’s really going on.” The site will keep an eye on the government, your financial interests and cut through the media spin. USAWatchdog.com is neither Democrat nor Republican, Liberal or Conservative. Before creating and producing the site, Greg spent nearly 9 years as a network and investigative correspondent. He worked for ABC News and Good Morning America for nearly 6 years. Most recently, Greg worked for CNN for shows such as Paula Zahn Now, American Morning and various CNN business shows.