Former US Treasury Official - The Fed Is Facing Collapse

Dr. Paul Craig Roberts:  “I think the decline in gold and silver prices is due to intentional shorting in order to protect the dollar.  The Federal Reserve (is trapped), until it can get all of these other protective mechanisms in place, such as these trade agreements.  If the dollar price of gold is rising rapidly, it raises questions about the dollar’s exchange rate to other currencies, and thereby threatens the quantitative easing. 

If the gold price is rising so rapidly, how can the dollar be worth the same amount of euros or Japanese yen or any other currency?  People then start saying, ‘It can’t be, because look at what’s happening to the bullion price.  We’ve got to get out of these dollars.’ 

When you get out of dollars you depreciate the price of dollar-denominated assets.  So the Fed would lose control of the bond market and interest rates would rise.  Their policy would come undone.  I think that’s why they’ve been manipulating the gold price, driving it down, to create the impression that there is no alternative to the dollar.  At some point they will run out of the ability to do that.”

Dr. Roberts also added:  “What people are seeing is an empire that is overextended, can’t pay for itself, even with its NATO puppet states, and that will not give up its drive for hegemony.  So it continues to overexpose itself and this causes it to do things that are unethical and illicit -- Fix markets, lie, and the outcome of that is unpredictable.  So I think we face very unpredictable times.”

Full audio interview at KWN