Former Assistant Secretary of the US Treasury warns of financial ruin

Discussion in 'Politics' started by Grandluxe, Mar 20, 2013.

  1. Fresh warnings of eventual financial system collapse
    Anthony Halley | March 17, 2013

    Outspoken, controversial former Assistant of the US Treasury Paul Craig Roberts spoke yesterday about the problems that Western policymakers face and the inevitability of the current financial system ending in ruin:

    <b>"There are no economic policy solutions. You can’t deal with [the excessive money printing] by cutting spending because you already have high unemployment. How are you (the Fed) going to contain the inflation? Are you going to jack interest rates up and wreck what little is left of the economy? The whole thing is a disaster waiting to happen."</b>

    Eric Sprott of Sprott Asset Management continued with the same theme yesterday in response to Roberts' comments:

    <b>"They are so lucky because they get to borrow money at zero (percent) and lend it to people. They are given this right to make money, and then they turn around and lever it up, and throw derivatives on top of that. I totally agree that someday it will just fall apart and we will find out that none of the counterparties can pay. I’ve never been hopeful for the financial system.

    Nothing is allowed to liquidate, whether it’s Fannie, Freddie, various banks, nobody is allowed to liquidate, and I know exactly why they are not allowed to liquidate, because if they liquidated the first domino falls. And once the first domino falls, everyone starts worrying about counterparties and the whole system fails.

    That’s why they need to keep propping it up week after week. Somebody is always getting bailed out. It’s just ongoing and anybody who has any common sense at all knows it will end in ruination."</b>
  2. pspr


    An interesting website to be reporting this news. I don't see it picked up by any recognizable news org. At his own website he has some 'out there' articles but I don't see anything about this speech.

    Interesting, none the less.