Eric King:  “Chris, this historic Fed decision not to taper -- what are your thoughts?”

Powell:  “It was a confession of complete and utter failure by the Federal Reserve for its quantitative easing policy.  It has not revived the US economy and it doesn’t seemed to have done much for the rest of the world either.

It is also a repudiation of Fed Chairman Bernanke’s so-called ‘forward guidance’ policy.  They have been telling us for months that they were likely to taper, and then when it came time to do it they decided they couldn’t do it.  I think this is really a disaster for the Federal Reserve as an institution....

Continue reading the Chris Powell interview below...


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Eric King:  “Keith Barron also said to KWN this week that all of this (chaos) was part of a much larger move to a new financial system.  Is that how you see it, Chris?”

Powell:  “I’m inclined to agree with Keith.  I have always suspected that what is underway here is a redistribution of world gold supply, from the West to the East, to compensate the Eastern nations for their dollar surpluses which are not going to hold their value as gold does. 

I think that is probably the secret bargain here -- that China and the other dollar-surplus countries will agree not to pull the plug on the dollar and US government bonds and Western debt generally, as long as they have access to discounted gold.

Everything has been rigged in market terms.  5 years ago in a speech in Washington I said, ‘There are no markets anymore, just interventions.’  Increasingly in academic and journalistic circles this is being called ‘financial repression.’  I suspect and fear that the Fed’s defeat on tapering this week means that we are going to see even more repression. 

The main objective of central banking in the West now, Eric, is to defeat markets.  This will cause shortages (of gold) and crazy misallocations of capital.  I don’t know when it’s going to end.  The system will break down.  (Former US Treasury official Dr.) Paul Craig Roberts told you that today.  But the question is, when?  And I’m afraid the Fed is not going to call me when they are turning out the lights.

The world’s debt is overwhelming.  The debt cannot be sustained.  It’s going to have to be monetized entirely, or currencies will have to be devalued.  I have always suspected that there will be a worldwide currency revaluation where everything gets devalued against gold.

I noticed there are complaints in Australia today that the Australian dollar is rising against the US dollar.  The Australians want a lower Australian dollar.  Well, everybody wants a lower currency because they want to improve their exports.  Their debt is getting in the way and they want to revalue the debt.  Well, one way to revalue the debt is to let gold rise to its market price or at least something closer to its market price.

That would require some international cooperation because all of the central banks are in on the gold price suppression scheme.  But I expect that (gold revaluation) to be done at some point.”

IMPORTANT - The above portion was just a small snippet of what Powell had to say about the historic events which are now unfolding.  He also discussed the increasingly desperate situation the Western central planners face, as well as what is taking place in the ongoing war in the gold and silver markets and much more.  The audio interview with Powell is available now and you can listen 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, Chris Powell, Michael Pento, Eric Sprott, Andrew Maguire, Grant Williams, Bill Fleckenstein, Pierre Lassonde, Art Cashin, Egon von Greyerz and Marc Faber are available now. Also, other outstanding recent KWN interviews include Jim Grant and Felix Zulauf to listen CLICKING HERE.

Eric King

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