Looking for His glorious appearing! Titus 2:13

Today a former Assistant Secretary of the US Treasury warned King World News, “This type of situation is extremely dangerous. The world has never seen it before.” Former Assistant of the US Treasury, Dr. Paul Craig Roberts, also told King World News that JP Morgan now threatens the stability of the entire global financial system. And if the Fed loses control and we collapse, “Nothing and no one would be safe anywhere.”

Here is what Dr. Roberts had to say in the second and final part of this extraordinary interview: “I can point out three giant bubbles that threaten the remains of the American economy ... When these bubbles pop, the consequence is obvious: The wipeout of the remaining wealth from bond and stock collapses, and a very strong domestic inflation from the rise in the import prices.”

Dr. Paul Craig Roberts continues...

 “The United States is now an import dependent country. It doesn’t produce its own manufactured products, clothes, shoes. These import items dwarf the import of oil or energy. So what is the potential for happening when these bubbles burst is widespread unemployment, and a rapid increase in inflation, before which the economic policy has no known solution.

 .. It is frightening, and it shows the extent to which the economic policy of the United States is misused in support of four or five big banks that are ‘too big to fail’ ... We now have one bank, JP Morgan, which has derivative exposure equal to the (entire) world’s GDP....

“Unless these derivatives all net-out in some way, the bank (JP Morgan) has no way of covering its exposure ... When you have your top policymakers so utterly incompetent, well, then you are going to be in a huge mess ... So they’ve gone from one crisis to putting in place the foundation of a much bigger crisis.

There is no way for them to avoid it unless people think that dollars can be printed indefinitely without any effect on the value of the dollar. But of course the demand for dollars is not growing in keeping with the supply. So we have a potential massive crisis waiting to happen, but you can never predict what sets something like that off.”

Eric King: “Why are you coming out and speaking like this? It seems a very dangerous time and place in history to be so vocal.”

Dr. Roberts: “I don’t want everything to go to ruin. What kind of social or political stability would you have if you have large numbers of people out of work and rising prices? You are talking about massive problems.

Nothing and no one would be safe anywhere. This type of situation is extremely dangerous. The world has never seen it before. There are no economic policy solutions. You can’t deal with it by cutting spending because you already have high unemployment.

How are you (the Fed) going to contain the inflation? Are you going to jack interest rates up and wreck what little is left of the economy? The whole thing is a disaster waiting to happen. And they (mainstream media and government officials) avoid it. There is no talk about it. It’s so obvious. How can you not see it? And yet they never mention it. So I just feel compelled. It’s my responsibility to mention it.”