Directly from the sunshine of Nassau in the Bahamas, The Duke discusses the 'coincidence' last week of the US Senate voting to re-appoint 'Printing Press' Ben for a second term as Fed Chairman and on the same day increasing the US government's debt 'ceiling' by another $1.9 trillion (which Schiff compares to a cheap sales campaign to charge $19.99 for a product, to keep it below $20 dollars, or $2 trillion in this case, to avoid frightening the horses). Bernanke is needed to fund the 'increase' in this 'ceiling' (some ceiling) with his printing press and no doubt 'Helicopter Ben' will oblige his masters, now that his armoured limousine is booked for the next few years.
The Duke then links this re-appointment to Obama's proposed budget deficit next year of $1.4 trillion dollars (after his 'State of the Onion' speech which talked about 'reducing' US government debt) - always judge a man by his actions, not by what he says.
Essentially, this proposed budget deficit (a trillion here, and a trillion there, and pretty soon you're talking about real moolah) means that the US government is going to spend $1.60 for every $1.00 dollar it raises in taxes.
No doubt this proposed budget will actually increase still further, once we move forward into the year and further economic and military reverses are suffered by the empire, due to government mismanagement.
With the US government and its poodle UK satrap both suffocating their private sectors by crowding out their borrowing markets, plus draining them of increasing taxation, plus sucking down the value of money through spinning up the printing presses even more rapidly, the great fat wheezing public sectors in both countries are going to keep sitting on the chests of their wealth-creating citizens to keep the Anglo-Saxon depression going indefinitely into the future.
It does not have to be like this, if only government could merely restrict itself to only spending what it raises in taxation. But the fairytale nostrums of Keynesianism dictate that the government must keep up its spending, taxing, regulating, borrowing, and inflating to 'stimulate' those of us who produce wealth into 'recovery'. So expect these great fat men to keep crushing and squeezing the life out of their victims, until their victims simply stop breathing.
This increase in dollar borrowing is riding upon the back of the worries over the euro and the Greek situation, with the Germans being expected to bail out the profligacy of the Greeks to keep the European 'Project' going. We shall see what we see there, with memories of the Weimar and post-WWII inflations still keen in the 'Folk Memory' of Das Volk im Deutschland.
However, once this euro 'sideshow' is over, Schiff predicts that the pressure upon the dollar will once again resume, the current dollar bear market rally will collapse, and gold and oil will begin their upward trend once more, once foreign buyers of Anglo-Saxon debt realise just how fragile the dollar (and the pound) really are.
Another splendid monologue from Der SchiffMeister (with some UK speculation added by yours truly, just for fun):
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