- Nation of Denial!
by Greg Hunter’s USAWatchdog.com
There is no bigger sign post about the state of the U.S. economy than the Federal Reserve’s announcement in September of “open ended” QE. This is unlimited money printing that is being done by the Fed until further notice. All the talk of the so-called “recovery” was reduced to a gigantic lie perpetrated on the American people. If the economy was in a “real recovery,” the Fed would be raising interest rates, and there would be no need to create $85 billion each and every month to “stimulate” the economy. Former Reagan budget director David Stockman says the Fed is on a “money printing binge.” He said three weeks ago on FOX, “We’ve never had a central bank that has printed this much money. . . . I don’t think they can whistle this tune very much longer.” To that, host Neil Cavuto said, “So if you had a lead suit, you would buy it. If you had a cyanide pill you would take it.” I think Mr. Cavuto was trying to make a joke, but nothing is funny about a dying empire.
Renowned investor Jim Sinclair explained money printing by the Fed on his JSMinenset.com website recently by saying, “The economy is a drug addict. The creation of money is history making in a modern economy and money creation acts exactly like a drug. Like a drug the more you take, the more you need. The more money you create, the more money you must continue to create until it goes to infinity. You go cold turkey on money creation, you unleash the economic wrath of hell in the entire Western world. It all comes down in one great implosion.” How much trouble is the U.S. economy in that its central bank has to create unprecedented amounts of currency to keep it from “one great implosion”? Is there any wonder why Mr. Sinclair predicts gold is going about $3,000 per ounce in the not-so-distant future, and will ultimately hit $12,000 per ounce. (I would take Mr. Sinclair seriously. He has a track record of making very big calls on gold that date back to the 1970′s. I wrote about this 2 years ago.)