US Economy Will Implode, Helpless in Face of 'Financial Pearl Harbor'

Wednesday, 17 Sep 2014 07:49 PM

By Christian Hill

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Peter Schiff warns the United States will win the global currency war, but we will pay a heavy price for the “victory.”

Schiff, the CEO of Euro Pacific Capital and a long-time critic of the Federal Reserve, says the U.S. economy will “implode” due to the measures enacted by our government to win the war, including artificially low interest rates and multiple rounds of quantitative easing (printing money).

The reason, Schiff explains, is the current monetary policy is unsustainable. “We're broke. We owe trillions. Look at our budget deficit, look at the debt-to-GDP (ratio), the unfunded liabilities,” Schiff added. “If we were in the eurozone, they would kick us out.”

Agreeing with Schiff’s pessimistic outlook is Marc Faber, the noted Swiss economist and investor. Faber says the United States is facing a systemic crisis, and “eventually everything will collapse.” Like Schiff, Faber also holds the Federal Reserve responsible for the country’s problems, but acknowledges that Fed Chairman Ben Bernanke isn’t alone in destroying the dollar.

“Bernanke is a money printer, Europeans will print money, the Chinese will print money, everybody will print money.” And the consequence, according to Faber, is “the purchasing power of paper money will go down.”

Faber predicts a global collapse, and says the blame rests primarily on Bernanke’s shoulders. “The monetary policies of the U.S. will destroy the world.”

Nouriel Roubini, economist and professor at Stern School of Business, points to historical evidence from the Great Depression that this currency war will have a catastrophic outcome for the United States.

“In the 1930s, because we made a major policy mistake, we went through financial instability, defaults, currency devaluations, printing money, capital controls, trade wars, populism, a bunch of radical, populist, aggressive regimes coming to power from Germany to Italy to Spain to Japan, and then we ended up with World War II.

“Now I’m not predicting World War III, but seriously, if there was a global financial crisis after the first one, then we go into depression — the political and social instability in Europe and other advanced economies is going to become extremely severe. And that’s something we have to worry about,” Roubini added.

Perhaps nobody knows more about the damaging effects of a currency war than James Rickards, the Senior Managing Director at Omnis, Inc., a consulting firm in McLean, Va.

Rickards has spent more than a decade working alongside the highest ranks of the Pentagon, military, and national intelligence community. He was even recruited by the CIA to investigate unusual insider trading on Wall Street right before the tragic attacks on Sept.11.

Now, Rickards is working with those same government officials, running virtual “war games” at the Warfare Analysis Laboratory to prepare for the currency wars.

Rickards says these currency wars will be a “financial Pearl Harbor” for the United States, and that we are helpless to defend against it.

The surprising — and shocking — statement was made during an exclusive interview with Newsmax titled Declassified: America's Coming ‘Economic Pearl Harbor.’ It is during this interview that Rickards lays out a clear scenario for the destruction of the dollar, and with it, the wealth of millions of Americans.

Editor’s Note: Watch Exclusive Documentary Declassified: America's Coming ‘Economic Pearl Harbor’ Here.

Rickards — just like Schiff, Faber, and Roubini — says the root cause of the coming collapse is the Federal Reserve’s destructive monetary policy.

“The U.S. government is actively at war with the dollar, with dangerous consequences to the wealth of its citizens. By trying to simultaneously make the dollar weaker, lower interest rates, and unsustainably grow the federal debt, the Fed is robbing Americans of their financial security,” Rickards says.

As proof, he states, “QE1 weakened dollar by 21%. QE2 weakened by another 10%. Overall, the Fed has eradicated over one-fourth of your net worth through its monetary easing policies.”

When the host of the interview asked what direct impact this currency war will have on average Americans, Rickards painted a bleak picture.

“The best-case scenario, this currency war will destroy the dollar and your wealth. A worst-case scenario is global great depression and international turmoil that escalates to military conflicts.”

Rickards says a currency war will lead to gold surging to a “bare minimum” of $3,000 an ounce, and oil could become unaffordable, with prices as high as $450 per barrel, but averaging over $190 a barrel.

The reason gold and oil prices will skyrocket is because currency wars always lead to dangerous inflation, unstable financial markets, and financial panic, according to Rickards.

In perhaps the most shocking statement of the entire interview, Rickards recalls testimony he gave to the Treasury, when he said, “Ben Bernanke’s dollar-weakening policies could be more dangerous to our economy and the national security of the United States than al-Qaeda.”

But the powerful interview with Rickards also provides a way to access his “Currency Wars Defense Blueprint” that outlines the steps all Americans can take to protect their wealth as the situation escalates, including international currencies, agricultural funds, and energy ETFs, and even how to maximize the value of your home and retirement account.

“We felt that James’ message was too important to ignore,” explained Aaron DeHoog, the financial publisher of Newsmax and Moneynews. “That’s why my organization spent over $200,000 and involved 50 employees to investigate his claims. And now we feel it is our duty to share this information with as many Americans as possible.”

Editor’s Note: For a limited time, Newsmax is airing exclusive clips from the Declassified: America's Coming ‘Economic Pearl Harbor’ interview featuring James Rickards, including information on how to obtain a copy of Rickards’ book Currency Wars. Go here to view it now.

© 2014 Moneynews. All rights reserved.

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