the former head of Goldman Sachs, John Whitehead, was also the former head of the New York Federal Reserve. And I met with him, and he said as soon as the Fed stops buying all the debt that we’re issuing—which they’ve been doing, the Fed’s buying like three-quarters of the debt that America issues. He said, once that’s over, he said we’re going to have a failed Treasury auction, interest rates are going to have to go up. We’re living in this borrowed fantasy world, where the government keeps on borrowing money. You know, we borrow this extra trillion a year, we wonder who’s loaning us the trillion? The Chinese aren’t loaning us anymore. The Russians aren’t loaning it to us anymore. So who’s giving us the trillion? And the answer is we’re just making it up. The Federal Reserve is just taking it and saying, “Here, we’re giving it.’ It’s just made up money, and this does not augur well for our economic future.
The section of Mitt Romney’s “gaffe” tape you haven’t heard – Glenn Beck
1 comment:
I have a question. Isn't it possible that the Federal Reserve policies will cause itself to be destroyed? If and when the dollar is finally ruined and the US economy collapses wouldn't the FR fall with it? In the end, only hard assets such as precious metals and land will be valuable. In that situation, why wouldn't the Federal Reserve system crumble too? The bankers might fight tooth and nail to hold onto power but the anger against them will be too great.
That scenario is difficult to believe but it's almost inescapable. That bit of doubt keeps me from putting all that I have into silver.
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