Appearing on CNBC yesterday, former Congressman Ron Paul warned that if
the US continues on its current course, the dollar will collapse, and
gold will literally be priceless.
"Eventually, if we're not
careful, it will go to infinity, because the dollar will collapse
totally," Paul said on CNBC.com's Futures Now.
"As long as we
have excessive spending, and excessive computerized money, we are going
to see gold go up," Paul urged, noting that as the value of the dollar
is destroyed, everything measured against dollars will increase in
value.
Paul added that recent drops in gold prices do not factor into the long term outlook.
"If
you look at the record of the value of the dollar since the Fed's been
in existence, we have about a 2-cent dollar. And gold used to be $20 an
ounce. So I'd say the record is rather clear on the side of commodity
money." Paul said.
Financial experts have slammed the Federal
Reserve's decision to proceed with "QE unlimited" by refusing to taper
its money printing madness, with famed investor Mark Faber predicting
the move will lead to a "total collapse" of the economic system.
Despite
expectations amongst many that the Fed would scale back its $85 billion
a month bond purchase plan, the central bank announced yesterday that
it would prolong the policy.
Investment guru Mark Faber reacted
by telling Bloomberg that the decision not to taper was all about
protecting the financial interests of the elite while ordinary Americans
will suffer the consequences through higher gas, food and energy
prices.
"My view was that they would taper by about $10 billion
to $15 billion, but I'm not surprised that they don't do it for the
simple reason that I think we are in QE unlimited. The people at the Fed
are professors, academics. They never worked a single life in the
business of ordinary people. And they don't understand that if you print
money, it benefits basically a handful of people maybe--not even 5% of
the population, 3% of the population," he said.
"And when you
look today at the market action, OK, stocks are up 1%. Silver is up more
than 6%, gold up more than 4%, copper 2.9%, crude oil 2.68%, and so
forth. Crude oil, gasoline are things people need, ordinary people buy
everyday. Thank you very much, the Fed boosts these items that people
need to go to their work, to heat their homes, and so forth and at the
same time, asset prices go up, but the majority of people do not own
stocks. Only 11% of Americans own directly shares," added Faber.
Asked what the endgame was, Faber responded, "The endgame is a total
collapse, but from a higher diving board. The Fed will continue to print
and if the stock market goes down 10%, they will print even more. And
they don't know anything else to do. And quite frankly, they have boxed
themselves into a corner where they are now kind of desperate."
Veteran
investor Jim Rogers also slammed the Fed's excessive money printing,
warning, "The world will suffer very badly when this comes to an end.
It's an artificial sea of liquidity."
The chairman of Rogers
Holdings added that the only factor that may stop central banks around
the world from printing money is if markets say, "we're not going to
take your garbage paper anymore." healthcare.gov Obamacare.
While
20-year highs for the CNY may be enough for many to question the USD's
ongoing reserve status, it is clear that there are many other plans
afoot that undermine the dominance of the greenback.
Did you know
that the U.S. national debt has increased by more than a trillion
dollars in just over 12 months? On September 30th, 2012 the U.S.
national debt was sitting at$16,066,241,407,385.89. Today, it is up to
$17,075,590,107,963.57.
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