- John Rubino: Money Bubble Will Pop!
by Greg Hunter’s USAWatchdog.com
John Rubino, author of the new book “The Money Bubble,” can sum up the ongoing global financial problems in a single phrase: “There is too much debt.” Rubino goes on to say, “Debt works the same way for a country as it works for an individual or a family, which is to say if you borrow too much, then your life basically craters. Everything gets harder to do, and you end up doing things in order to deal with your past mistakes that you would never do normally. You start trying absolutely crazy things, and that’s where the world’s governments are right now. . . . We are doing all these things that are essentially con games and getting away with it so far because a printing press is a great tool for fooling people. I don’t see how we can get away with it too much longer.”
On the subject of increasing oil prices because of Middle East turmoil, Rubino says, “If gasoline goes to $5 a gallon in the U.S., which it could easily, that’s like a massive tax increase. This would come at a time when things are not that good and consumers are starting to borrow more and more money again. Governments are already deeply in debt. The derivatives markets are marching towards quadrillion dollars of notional value. The system is incredibly fragile because we borrowed too much money. . . . which causes us to do crazy things to prevent this fragility from turning into a 1930’s style depression or a Weimar Germany hyperinflation? That’s really where we are right now.” What could pop this “money bubble”? Rubino says, “The Middle East could be the catalyst that blows everything up. Derivatives could blow everything up. Japan is insanely indebted right now. . . . A currency crisis there could reverberate around the world. There are big problems everywhere you look.”
On the subject of public compliancy with an enormous financial system that has never been fixed, Rubino explains, “Most people sense that something is wrong. They don’t think the country and world are being run right, but it has been going on for a very long time. They are questioning whether it could go on forever. They have been hearing these gloom and doom predictions for a very long time, and they haven’t played out yet. The reason for that is a printing press is an amazing tool for fooling people.” Rubino also contends, “We could spend the entire show just going through the lies we are being told, one by one, with the stock market and LIBOR and gold manipulation and all the rest.” Let’s not forget money laundering for drug cartels and terrorists, where big banks are only fined in place of criminal charges. Rubino says, “There are crimes basically across the spectrum and nobody goes to prison, for this is a sign of how completely the banking system owns the government now. . . . They basically have made themselves immune to prosecution at a personal level. We could talk about this all day long and not run out of crimes to discuss.”