Paul Craig Roberts is the former Assistant Treasury Secretary under Reagan. He is also a man who is not very popular in Washington. The following interview is as good a reason as any why that is.
[Paul Craig Roberts]: “Washington is its own club. You go along to get along. And they really don’t like innovators…They want people who are going to further the profitable relationships and revolving door with the powerful, private interests. And to keep the club running with the right kinds of people in the club.”
[Greg Baker]: “Who won’t tell the truth…”
[PCR]: “…who won’t tell the truth.”
He discusses how the big banks help keep Treasury rates low.
[PCR]: “How is it possible for the Federal Reserve to maintain essentially a zero percent interest rate for the banks and less than a two percent interest rate on ten year Treasury bonds when the interest rates are less than the rate of inflation?… Now how can this be possible when they are adding one and a half trillion dollars in new Treasury debt every year? How do you do that with practically zero interest rates? And the way you do that is the large banks like JP Morgan, Goldman Sachs, they sell interest rate swaps.”
On the price of gold:
[PCR]: Last year the prices rose steadily and what’s happened this year is the prices are suppressed by short selling.
[GB]: And you think no question, they are suppressed, they should be much higher?
[PCR]: Of course, I mean they should be going through the roof. Instead they knocked gold down $350 an ounce this year. But the gold prices should be rising. Why? Because the debt is rising. The monetization of the debt is rising. The real issues are not being dealt with, so people should be seeking more security in bullion. …the fact that they are driving the price down suggests to me that they are getting more desperate.
On why he no longer writes for the Wall Street Journal:
[PCR]: “The media has been transformed into a propaganda ministry for the government and for the powerful private interest groups that purchase the government with the campaign contributions. So there isn’t a media anymore, just a propaganda ministry.”
At 22 minutes it’s a little long by today’s internet standards… and it takes a bit to get going, But all in all, it offers some very good insights from a man who should know what he is talking about.