If debt has become the chosen drug of the last generation, that makes Fed Chairman Ben Bernanke and Treasury Secretary Tim Geitner the biggest money-pushers on the planet. The Federal Reserve’s decision to crank up the computerized printing presses to create another $1 trillion in debt left the financial markets spinning, dragging down stocks and the dollar while pushing the prices of oil and gold higher.
Conducting Talk Show interviews on this topic is Swiss America Trading Corporation CEO Craig R. Smith, who warns, “Say goodbye to the ‘safe haven’ rally in the dollar of the last six months and say hello to the next government-induced disaster: The COMMODITIES BUBBLE.”
"The Fed is financing our deficit by buying the debt issued by the Treasury,” Craig said, adding, “Common sense should tell us all that you can't re-inflate a burst bubble. The only option is to create a new inflationary bubble.”
Smith calls the Fed actions risky behavior at best, lunacy at worst, saying, “By creating $4 trillion in new debt, team Obama has put the Fed’s freshly created trillions in competition with the hard-earned trillions that investors are presently sitting on. The Fed and Treasury and Federal are pushing the dollar and the world's big dollar-holders, (think China) off a financial cliff.”
Recent headlines screamed, ‘Calls Mount for Treasury Secretary Geitner to Resign!’ Smith agrees but not because of Geitner’s past tax errors or even agreeing to outrageous AIG bonuses -- but for two other reasons: 1) Timothy Geitner failed to prevent this mortgage asset bubble while New York Federal Reserve Governor and 2) Geitner presided over the creation of the banking/credit crisis.
Craig shares with your audience that The Federal Reserve's economic toolbox includes three things; 1) managing interest rates, 2) quantitative easing of loans requirement to banks, and 3) printing/creating money. Craig contends that since the Fed has already cut interest rates to zero and eased loan requirements without success with about as much success as pushing on a string, so they are left with only one tool left in their financial trick box: Creating and pushing money into the system!
Craig predicts six things what we may expect to see next:
1) Calls for Ben Bernanke’s resignation may also be expected as this debt crisis snowballs into an inflation crisis.
2) Treasury bonds will become junk bonds.
3) More Tea-Party revolts around the nation.
4) Gold will rise to $1,250 this year.
5) Oil will rise back above $100 a barrel, bringing gas prices back to $4-5/gallon.
6) The cost of living will go through the roof within two years.
Craig reminds your listeners that the root meaning of the word debt is ‘death,’ saying, “The debtor becomes a slave to the lender. Let’s stop borrowing and spending our future and instead save real money, gold, silver and commodities—preferably before they go sky high.”
ABOUT CRAIG SMITH…
Craig R. Smith is the CEO of Swiss America Corporation and author of many articles and books including Black Gold Stranglehold and Rediscovering Gold in the 21st Century. As an economic analyst, Craig instantly engages audiences with his common-sense perspective on national and global economic trends. Over the past two decades he has been interviewed on over 1,500 radio and TV programs including: CFRN, FOX News, CNN, CNBC, ABC, NBC, CBS, PBS, CBN, TBN, Time, The Wall Street Journal, The New York Times, and Newsweek.
While our big picture short trade fared well, our on-air trade today got stopped out.
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