By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
Financial writer and gold expert Bill Holter says the powers know that it physically can’t put off a financial crash much longer. Holter contends, “The system has gotten too big. The system has gotten bigger than the creators of the system, if you will. It is bigger than the sovereign governments collectively. It’s bigger than the central banks collectively. There’s too much debt. Too many sovereign governments have bumped up against debt saturation. In the U.S., we are over 100% debt to GDP. We are way over 100% debt to GDP if you include all debt. If you include all the off-book guarantees, Social Security, Medicare, Medicaid and all the other promises, we have blown up as far as debt to GDP ratios. So, the ability to prevent a crash no longer exists.”
For the people who think central banks can print money to infinity, Holter advises, “People have the belief in central banks because, to this point, it has worked. So, they extrapolate that it will always work. What they are not factoring in is many sovereign governments have reached debt saturation. In other words, many governments have gotten to the point of Greece or Puerto Rico. It can’t take more debt. The problem in Europe is the individual countries can’t print money. The U.S. can print money. The question is will foreigners accept what we print forever? The answer is no.”
Holter says the Fed will print more money. It will be forced to and it will not work the same as other money printing. Holter explains, “The next one, in my opinion, is going to be ‘QE Forced.’ It’s going to be forced on the Fed.”
The recent announcement the International Monetary Fund (IMF) will put off allowing the Chinese yuan to become part of the Special Drawing Rights (SDR) basket of currencies is a bad omen for the U.S. dollar. Holter thinks, “China being pushed off by the IMF until at least 2016 is a slap in China’s face. They publicly and officially requested to become part of the SDR.
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