Eric King:  “We had the Fed out with two straight days of propaganda and that was followed up by a smash in gold and silver.”

Dr. Roberts:  “Yes, that’s true.  It shows how irrational markets are.  In fact, there was nothing new in the Fed’s statement.  The markets have known for a long time that at some point the Fed is to taper down its bond purchases and eventually stop them.

So the lack of any real information in the statement makes the market reaction seem puzzling.  And it actually suggests that the too-big-to-fail banks had inside information, the Fed’s statement, and used it to short the stock, bond and gold markets....

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“They (banks with inside information) cleaned up on this Fed statement.  It’s entirely possible that’s what the Federal Reserve is doing is orchestrating events that make huge profits for the banks, and that this is the way it recapitalizes them.”

Eric King:  “What were your thoughts on the gold and silver smash?”

Dr. Roberts:  “Well, it’s clearly intended to drive down the price because they always pick the most unlikely time that anybody who wanted to unload a position for best price would never pick (to sell).  They pick a time when unloading a position like that is guaranteed to drive the price down the most.

That’s the giveaway that they are trying to drive it down.  The other giveaway is the amounts that are suddenly unloaded at one time.  No real investor would unload any position in that way.  So these are obviously orchestrations (by the Fed) and that is the intent (to manipulate gold and silver lower).

I suspect it is related to the concern about the dollar ... I think all of the attack on gold is part and parcel of the process of establishing that there is no safe haven from the dollar.  The Fed has to do that in order to protect its quantitative easing policy.

I myself don’t think there is any prospect of the Fed ceasing that policy because if it doesn’t print the money to support these (stock and bond) markets they are going to collapse.”

Eric King:  “How do you see this playing out going forward?”

Dr. Roberts:  “I think what we have to fear is that eventually all of the money that’s being printed actually finds its way past the banks, and past asset inflation, and gets into consumer inflation.

Once that happens the dollar will collapse and will add to the domestic consumer inflation and we’ll be faced with hyperinflation.  And yet there are no jobs.  So what does the population do when it’s got no income?  And of course by then we don’t know what else the Fed will have done to wreck the remaining wealth.

We know they’ve already wrecked savers dependent on interest income.  If the bond and stock markets go down, there is more wealth lost.  The manipulation of the gold market destroys more wealth.  So you may end up with a population, (where) their wealth has been largely exhausted, they’ve got rapidly rising prices, and no income, and no jobs.  So that’s total chaos.  That’s total political instability.  That’s what I call Armageddon without nukes.”

Eric King:  “What do you say to people who have tried to do the right thing?  They are saving money, trying to invest in hard assets such as gold and silver and they just feel like they’ve had their teeth kicked in?”

Dr Roberts:  “They should persevere ... Eventually the manipulators lose control.  And at that time what price could go up other than gold and silver?  I can’t think of one.  Certainly not bonds or stocks.  Certainly not the dollar’s exchange rate.

So in the end, if you can survive the stress, unless you believe a full-fledged recovery is on its way and will be here by June of next year (laughter ensues), unless you believe that, sticking with gold and silver is the only option you have.”

IMPORTANT - Remarkable audio has now been released.  This write-up is only a small portion of what Dr. Roberts had to say in his extraordinary interview.  Dr. Roberts spoke about gold and silver at length, the Fed’s operations in key markets, the end game and much more.  The KWN audio interview with Dr. Paul Craig Roberts is available now and you can hear to it by CLICKING HERE. 

© 2013 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The audio interviews with Dr. Paul Craig Roberts, MEP Nigel Farage, Rob Arnott, Egon von Greyerz, Gerald Celente, James Turk, Dr. Philippa Malmgren, Eric Sprott, Jim Grant and Art Cashin are available now.  Also, be sure to hear the other recent KWN interviews which include Marc Faber and Felix Zulauf by CLICKING HERE.

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