Former Assistant Treasury Secretary in the Reagan Administration Dr. Paul Craig Roberts says, “We need a debt jubilee. Debt jubilees were widely used in the ancient world. . . . . Either the system goes into collapse or you write the debts down and you start over. . . . Again, either you paper it over again or you don’t succeed and everything blows up.”
What about the rising gold price during this new round of bailouts? Roberts says, “In the previous bailout, it did not affect the dollar. The question is this bailout, on top of the previous bailout, is it going to affect the dollar? Are people going to say, good heavens, do we really want to hold dollars when they are creating so many? People are saying we don’t know how this is going to play out, but they can’t print gold, so let’s get into gold. . . . I don’t know how people are going to see this, but the enormous money creation, no doubt, worries some . . . . If they are successful in reflating the stock prices, then the problems with the dollar is over–for now. . . . Again, bailing out debt with more debt is kicking the can down the road. How long can you kick it? We don’t know until we will find out you can’t kick it any further.”