'US financial elite destroy the dollar'
Mon, 09 Aug 2010 02:09:29 GMT
Economist Max Keiser
The value of the US
dollar is crashing intentionally as the Federal Reserve has been printing money
without tangible reserves for several decades. President Barack Obama has
helped the bankers to come out ahead in every possible situation while pushing
the middle class into poverty.
The following is a transcription of an interview with Economist specialist Max Keiser who talks about the US economy's downfall and how the answer to fix it is easy.
Press TV: Is the dollar in a freefall or exactly what is going on?
Keiser: Well what's going on is you have the banks in the United States committing a financial holocaust. It is probably the worst holocaust in the last 100 years. What there doing is they're destroying real estate values, jobs, wages and pensions. And they do this by flooding the market with more debt in the form of US dollars. As your package accurately said, the US has no reserves upon which to issue dollars; therefore, by definition every dollar that is issued is debt. This debt holocaust is wiping out the middle class on purpose. Because the rich people in America want to buy those houses. Those millions of houses out there that people are still living in. They want to buy them back for maybe one penny on the dollar. This is a financial holocaust by design. The American bankers are holocaust brokers. They should be in front of a human rights court and taken up on human rights abuses and all hung.
Press TV: Now Max, you're saying that it's by design for the benefit of the rich to destroy the middle class. Wouldn't that in effect destroy the economy as a whole?
Keiser: No, because if you're a Goldman Sachs banker, you are completely protected from this phenomenon. Plus you're buying gold, you're buying silver and you're buying tangible assets. So you are not taking any risks. It's okay to simply wipe out the middle class. It's a holocaust. Just like the holocaust we saw in WWII. In America we are seeing the holocaust of the middle class by a few extraordinary, greedy, corrupt bankers on Wall Street; principally Goldman Sachs, J.P Morgan and the gang.
Press TV: If the US uses the quantitative easing of printing money, do you think they want to get out of this economic downfall or do they want to continue to print the money to basically put the country more into this economic slump to benefit a few? Is that correct?
Keiser: Yes, it's a domestic terrorist attack on a sub-group; in this case the middle class. If they wanted to bring about a solution, the solution is very easy: Ring fence all the corrupt banks, put all of that bad debt behind a firewall like they did during the savings and loans crises of the 1980s. The Resolution Trust Corruption ring fenced all the debt and they restarted the economy by creating some new banks. And these new banks were able to get loans and they could create inflation, which would have the effect of stimulating the economy. That is clearly the way the solution could be offered. But this is not what's happening. So clearly we must conclude that the bankers on Wall Street our not doing the obvious solution but the complete opposite of what should be done. They are increasing the debt load by flooding the market destroying houses, jobs, wages and pensions.
Press TV: Let me interrupt you right there. Are you telling me that there are no independent economists or any individuals in the country, in the United States, that is talking about this; nobody going against it and getting air time? If what you're saying is true, do you see the role of the media being involved with the bankers also? I'm just trying to get an understanding on what you're saying.
Keiser: Well you do hear about this everyday. It's called deflation, for they put it in economic terms. They talk about it in the Financial Times and the Wall Street Journal Now in America people are saying that the problem is not inflation, the problem is deflation. Paul Krugman, famous noble prize winner, recently switched from the inflation camp to the deflation camp. You've got Bill Gross over there, the big co-founder, financial manager from PIMCO (Pacific Investment Management). He was talking about inflation, now he's talking about deflation. So there is an understanding of what's going on. What I'm saying is that Barack Obama, who's an Uncle Tom type character in America today, has sold out the middle class. He's trying to cozy up with the elites that are running the country and he is participating in this financial catastrophe because it benefits a few people. It's all obvious because the solutions are obvious regarding what could be done. They could easily do something more constructive.
Press TV: If it had not been the dollar in the United States up until this time would it have totally collapsed? Because of course as we are saying there's nothing really backing this dollar. It's just basically a printing press and printing more money. So is it sort of like an economic facade taking place in the United States. Where do you see it going from here?
Keiser: Well the US dollar is the World's reserve currency. It's been that way since the end of WWII. It's given America extraordinary privileges in conducting other people's affairs in other countries who all must buy dollars. If you live in Japan and want to buy oil, you must buy dollars first. If you want to participate in the commodity market, you must buy dollars. This has given tremendous support to the dollar. It means the US government can write checks and dollars that they never have to cash. Because when someone comes to collect the money, they write them another check like this fictitious currency: the US dollar. Now what happened over the past 15 to 20 years on Wall Street is whatever little equity there was in the American economy, they've completely hollowed that out. So at the moment the dollar is floating on a sea of absolute trash. The Federal Reserve has trillions and trillions of dollars worth of debt that they took from Wall Street over the last few years. They claim it is worth 60 to 70 cents on the dollar or more. It's actually worth zero. That's what Ben Bernanke is saying when he says the Federal Reserve thinks they may have to roll over this debt, and do some more quantitative easing, which means they need to issue more of this bad debt to take care of their debt problem. Now this is obviously like turning America into the Warsaw ghetto of WWII, and we have a financial holocaust going on. Millions are at risk of dying! That's the bottom line. And the top one percent in America does not care.