by Kevin Michael Grace
Resource Wire

Kevin Michael
Grace spoke with Bob
Moriarty, founder and President of 321Gold.com
November 14.

RW:
What do you think of the prospects for the US economy after the
re-election of Obama?

BM:
I donÂ’t think the election has anything to do with anything.
I think the 800-pound gorilla in the room is the debt situation,
and certainly the US is one of the worst. WeÂ’re an economy
powered by debt, and itÂ’s a fractional reserve system, so thereÂ’s
always more debt than money. Sooner or later you have to pay the
piper. This concept that you can somehow spend your way to prosperity
is like trying to drink yourself sober.

RW: But
thatÂ’s the course the US has been on at least since 2007, and
there seems to be no end in sight.

BM: Absolutely
correct. How can we have a recovery with a real debt of $7 trillion
dollars? I mean itÂ’s going to blow sky high. IÂ’m not saying
this as doom and gloom or anything else. The real deficit of the
US is $7 trillion a year in an economy of $14 trillion. ThatÂ’s
not sustainable.

RW:
The Keynesians, who dominate economics, say that debt isnÂ’t
a problem because sovereign governments such as the United States
can simply print as much money and buy as much of their own money
as they choose. And then one day, for reasons that have never been
explained to me properly, the economy is going to come roaring back.

BM:
ThatÂ’s one of those theories. ItÂ’s like the theory of
Communism. It really sounds wonderful, but I think that everybody
would agree by now that Communism failed, and itÂ’s a bad philosophy.
I donÂ’t think there are that many serious people who believe
that Keynesian economics works. I know the people in government
do, but these guys are out of touch with reality. You can look at
what is going on in Europe; they just came out with a report in
Greece of 58% unemployment among the young people. That is an accident
waiting to happen.

RW:
Since the dot.com bust and the decision by the Fed then not to allow
what should have been a recession, we have had over a decade of
this kind of economics, and the portents become darker and darker.
Yet there seems to be no alternative on the horizon. DoesnÂ’t
this surprise you?

BM:
It surprises me only in its duration. I believe to this day – and
I’ll never change my mind on this – that we should have
let the economy go into a depression in September/October of 2008.
We should have let the banks collapse.

Let me give
you an analogy. I just came back from Albania a week ago. I thought
of Albania as some Third World shithole, that IÂ’m going to
be in a $20-a-room hotel, and theyÂ’ll be driving around in
rickshaws. I was really amazed that itÂ’s a booming economy.
Those guys are absolutely going gangbusters. Now, in 1997, their
economy literally was a lottery, a Ponzi scheme, and it blew up.
So every bad thing that could happen to an economy since 1945 happened
to the Albanians, and theyÂ’re growing like crazy now.

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the rest of the article

November
22, 2012

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© 2012 Resource
Wire