Paul Craig Roberts: There Will Be NO WORLD RESERVE CURRENCY!

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Rory Hall of the Daily Coin interviews Dr. Paul Craig Roberts and Dave Kranzler of Investment Research Dynamics. Dr. Robert states:The questions that no one thinks about is – why is a reserve currency necessary? 

The future is likely to see no reserve currency. The discipline for countries will be – if they over-print the currency, it will go down. If they maintain the proper relation between money growth and GDP, it will hold steady. 

There is no real need to have a reserve currency. The British didn’t want the US to be the reserve currency because they used to have the reserve currency and they knew how easy it was to abuse that power.” 

 

Rory: What would a personal citizen expect to see if a gold-backed currency were re-introduced?

 

PCR: I remember talking to Milton Friedman once and he pointed out that if you are on the gold standard and have a central bank, it simply offsets  the movements of gold. If gold flows out because you are running a trade deficit, then the central bank takes steps to increase the money in circulation.

If you have gold as an alternative to fiat money, it still serves to check the central bank, because the people flee the money into gold and then the gold price rises relative to the money. And that’s always been the check, but now they get around that by operating in the futures market with shorts. Really, gold can’t do anything to protect an individual, if the central banks and governments are not prepared to play by the rules.

Rory: They don’t play by the rules.

PCR: They are not. I could never have imagined how “outside the rules” they are now. They rig everything in order to keep the house of cards standing. I think that Nomi Prims and Michael Hudson are right, that a few of these “mega-banks” have taken over everything. Michael Hudson calls it the “financialization” of the economy and Nomi calls it “bankism”.

They control central banks and rely on them to make good on all their bad debts.  The last time it collapsed, but that’s  because the central bank wasn’t rigged. Now it’s the second time – will it collapse? 

I don’t know, maybe the central bank just won’t even report what’s on the books. When they can falsify the employment reports like they do, they don’t have to report what the real balance sheets of the banks are. We may live in this type of situation for a long time.

Dave Kranzler: I don’t see how that’s possible because I don’t see how the amount of money that they need to print to keep everything together becomes way to disconnected from the amount of real wealth output. When the people leaving the workforce, and go on government welfare…at some point it just collapses under its own weight. Eventually, the natural laws of economic nature get a grip on the system.

PCR: What you say relies on some kind of integrity somewhere, where there is none.

DK: This country imports between 60-70% of what it consumes. At some point countries are going to stop exporting to us because they don’t want the dollar as there’s been so much of it printed. If banks could govern the laws of nature, we’d be speaking Latin right now, because we’d still be part of the Roman Empire.

 

Read the rest of the story at GramsGold.com