they can’t stop QE because the whole system is rigged-dependent on that (QE
The US is a country with a total government debt of $220 trillion, unemployment at 23%, the job participation rate at the lowest level since the 1970s, median household incomes at multi-decade lows, and real-GDP declining since 2006. We have also seen federal debt double since 2006, and consumer credit has been exploding. So the picture is clear....
“So they can’t stop QE because the whole system is rigged-dependent on that (QE). The other part of the trap they are in is that the longer they carry on QE, the closer they get to the time when the rest of the world simply loses all confidence in the dollar because of the enormous rate at which new dollars are being created, and they bail out (of dollars).
And when there is a run on the dollar the Fed loses control and the whole system blows up. So what the Fed is doing is preventing a short-term blowup with QE -- that is, with rigging bond prices, but the consequence is there is going to be a long-run blowup when there is a run on the dollar.
So what the Fed is doing is simply keeping the system going as long as it can. I don’t see how they can avoid a crash. If they stop QE it’s going to crash. If they don’t stop it, it’s going to crash later. So the Fed is manipulating everything to keep the system intact. And to repeat myself, they can do that, until there is a run on the dollar, and when there is a run on the dollar they lose control. At that point, (the price of) gold and silver will explode.”