Former US Treasury Official - Fed Desperate To Save System...April 3, 2013
Today a former Assistant Secretary of the US Treasury warned King World News that the Federal Reserve’s recent market interventions are a clear sign that there is something desperate going on behind the scenes. Former Assistant of the US Treasury, Dr. Paul Craig Roberts, also cautioned KWN that the Fed is trying to maintain control so the whole scheme doesn’t blow up. Below is what Dr. Roberts had to say in the first part of two extraordinary interviews which will be released today.
Dr. Roberts: “As I have explained, the orchestrated move against gold and silver is to protect the exchange value of the US dollar. The Federal Reserve is creating one trillion new dollars per year, but the world is moving away from the use of the dollar for international payments and, thus, as a reserve currency.
The result is an increase in supply and a decrease in demand. That means a falling price. The orchestration against bullion cannot ultimately succeed. It is designed to gain time for the Federal Reserve to be able to continue financing the federal budget deficit by printing money and also to keep interest rates low and debt prices high in order to support the banks’ balance sheets.
When the Federal Reserve can no longer print due to dollar collapse which printing would make worse, bank deposits and pensions will be grabbed in order to finance the deficit....
“The manipulation of the bullion market is illegal, but as government is doing it the law will not be enforced. It is an act of desperation. If bullion were not a threat, the government would not be attacking it.
The fact that the Federal Reserve is short selling bullion means that there is something desperate going on, and I assume it’s related to the US dollar. If the dollar drops sharply in exchange value the Fed can’t control the interest rate and the bond price and so all of the bubbles would blow up.