By Greg Hunter’s USAWatchdog.com
In October of 2019, former Assistant Treasury Secretary (in the Reagan Administration) Dr. Paul Craig Roberts predicted on USAWatchdog.com that “The oligarchs of the New World Order (NWO) will do anything to boot President Trump out of office.” We got a global economic shutdown in March of 2020 because of an overreaction to a virus that started in China. Now, we are seeing massive money printing to bail out everything and everyone. How does Dr. Roberts, who holds a PhD in economics, see this? Dr. Roberts says, “The problem is there is already more debt than can be serviced. That’s why they are trying to bail it out by issuing more debt. It’s like kicking the can down the road until it blows up. When does it blow up? It didn’t blow up with a $4.5 trillion Federal Reserve balance sheet. Will it blow up at $10 trillion or does it have to be $15 trillion, or does the Fed’s balance sheet have to be the size of the US GDP before it blows up? I can’t say that I know, but I do know bailing out debt by creating more debt is not a solution.”
What is the solution? Dr. Roberts says, “We need a debt jubilee. Debt jubilees were widely used in the ancient world. The way economies tend to work is through time, debts expand. People get more and more indebted, and before long, they don’t have any discretionary income, and they can’t buy any increase in output and they can’t service their debts. Either the system goes into collapse, or you write the debts down and you start over. So, that’s what I think. I think . . . we need a debt jubilee, and debts need to be written down. The debts do not need to be written down all the way, but they need to be written down to a level that they can be serviced. . . . They are not fixing the problem by creating more debt to bail out existing debt. That doesn’t fix the problem. You’ve got to get rid of debt. It’s not the federal debt that we need to worry about. They can print all the money they want to redeem US Treasury bonds. Individuals and corporations cannot print money to get rid of their debt, and that is where the problem is and they are not addressing the problem. Again, either you paper it over again, or you don’t succeed and everything blows up.”
What about the rising gold price during this new round of bailouts? Roberts says, “In the previous bailout, it did not affect the dollar. The question is this bailout, on top of the previous bailout, is it going to affect the dollar? Are people going to say, good heavens, do we really want to hold dollars when they are creating so many? People are saying we don’t know how this is going to play out, but they can’t print gold, so let’s get into gold. . . . I don’t know how people are going to see this, but the enormous money creation, no doubt, worries some . . . . If they are successful in reflating the stock prices, then the problems with the dollar is over–for now. . . . Again, bailing out debt with more debt is kicking the can down the road. How long can you kick it? We don’t know until we will find out you can’t kick it any further.”
Join Greg Hunter as he goes One-on-One with former Assistant Treasury Secretary and award winning journalist Dr. Paul Craig Roberts.
After the Interview:
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