Ron Paul: It’s Going to Get Much, Much Worse

What if the Fed could not buy government debt? What a different world it would be. Everybody said this would be a disastrous to the economy but what if people accommodated with this?

What if there was a dependency on saving? What if we did have a market rate of interest? And what if that resulted in less bubbles? All of a sudden the world would be a different place.

But no…The only thing they can even do is spend more and more money. That is the only tool they have.

So, for that reason, I am not shocked at the numbers. I guess I am more surprised that the whole thing holds together so long. Because when you look at this, and you look at the foreign debt, and the national debt it is so outrageous, and there is still confidence in the dollar, the world – they do not have a good currency, so the best they can come up with is the dollar, but even the dollar is less popular than it used to be. It is being held a lot less now as reserve currency, but we can still buy oil, and we can still buy our stuff from China, and they take our currency.

But what amazes me is that it holds together. So I think monetizing debt and spending and deficit is going to get much, much worse until the world rejects the dollar. And there will be a rejection here at home, and prices will soar, and eventually interest rates will break loose and they will start rising.

More…

      
Plugin by: PHP Freelancer
This entry was posted in Editorial, Financial and tagged . Bookmark the permalink.