Today King World News spoke with the man who former President Ronald Reagan called upon to help save the United States when the U.S. was in the midst of the 1980 panic. Dr. Paul Craig Roberts gives a portion of his fascinating predictions for 2015 below and also issued the ominous warning that the West could collapse at any time.
Eric King: “Dr. Roberts, what are your predictions for 2015? What surprises are in front of us next year?”
Dr. Roberts: “At any time the Western house of cards could collapse. It (the financial system) is a house of cards. There are no economic fundamentals that support stock prices — the Dow Jones. There are no economic fundamentals that support the strong dollar….
"To have a bond market in which the purchasers of bonds have to pay a fee in order to have a negative real interest rate makes no sense. When you buy a bond you are automatically getting back less than you paid for it. What sense does that make when the United States' debt is exploding and when the money supply is exploding? It makes no sense at all. No American markets make any sense — they’re (all) rigged.
I think (in 2015) the world will start to see the realignment of power as it drifts away from the West toward Russia, China, India, the BRICs, and the states who ally with them such as South American countries who are tired of American imperialism. You will see a shift in the balance of power that will be unfavorable to Washington.”
Eric King: “Dr. Roberts, is 2015 the year that the gold price manipulation will end?”
Dr. Roberts: “What will end it will be when the West runs out of gold to deliver. When the Federal Reserve and the bullion banks artificially suppress the price of gold it causes a greater quantity (of physical gold to be) demanded. So as they push down the gold price, the demand for gold in China, India, and Russia, goes up. At what point will they (the Western central banks) be unable to make delivery?
What that occurs, that’s when the (price of) gold will break loose. The day the Asian demand for gold at the artificially fixed low price exceeds the ability of the West to supply the gold, the price rigging system falls apart. At that point (the price of) gold can move instantly higher.
I don’t know what the ability of the West to continue making deliveries (of gold) is. I don’t know what aspects of annual production are controlled by the West. Clearly the price of gold being suppressed suppresses the ability to produce more gold. The mines can produce more gold the higher the price (is). The lower the price, the less they can produce because of the cost of production.
When Washington suppresses the price of gold, they drive supply down as the mining companies cut back (production), or else they hoard the ore waiting for a higher price. Yet the demand for the gold goes up. So when you have the demand high and the supply restrained, you are basically operating on stocks (of Western gold). And where are those stocks and how extensive are they?
There has been a lot of speculation that the Fed used up the Fort Knox gold a long time ago. And more speculation they have used up the other countries gold that was deposited with them for safekeeping, such as Germany’s gold.
They (the Federal Reserve) can’t give Germany its gold back. Why? The speculation is they’ve used it up (as part of the gold price rigging scheme). So if there are no stocks (of gold) to fill the gap between falling production and rising demand because of the low price, then at some point the system simply can’t make delivery. When that happens is when it (the Western Ponzi scheme) falls apart.”