Former US Treasury Official – Fed Desperate To Stop Collapse
April 24, 2013
Today King World News was given exclusive permission to publish an extraordinary piece by former US Treasury Official Dr. Paul Craig Roberts, which warns that the Fed is now acting out of desperation in an attempt to prevent a total collapse of the financial system. Dr. Roberts also discussed the Fed’s continued intervention and shorting in the all-important gold and silver markets.
Below is a portion of this tremendous piece that KWN was given exclusive rights to publish by Dr. Roberts:
ROBBER BARONS ARE STEALING PENSIONS, BANK DEPOSITS AND DEMOCRACY
By Dr. Paul Craig Roberts
April 24 (King World News)
“The real concern about US bank deposits is that they are denominated in US dollars, and the supply of new dollars has been increasing by about $1,000 billion per year for the last several years. The demand for dollars has not been increasing by the same amount. Indeed, as more and more countries implement measures to settle their trade balances in their own currencies, the demand for dollars is falling.
When the supply increases and the demand falls, the price falls. The exchange value of the dollar in terms of other currencies has escaped sharp declines because of the dollar’s traditional role as world reserve currency and safe haven and because the sovereign debt crisis in Europe has caused flight from the euro to the dollar. The Japanese, the Saudis and the oil emirates have large dollar holdings and no interest in destabilizing the dollar.
The Chinese (who also have large holdings) attitude toward the dollar could be adversely affected by Washington’s aggressive “Pivot Asia” policy of surrounding China with military bases.