The Unresolved Financial Crisis

Herland Report TV (HTV): “How is it that when we have a debt crisis, we want to create more debt? The reason seems to be that the purpose of a Central Bank is to serve a handful of big banks, which they call “banks too big to fail,” says Dr. Paul Craig Roberts.

Dr. Roberts is chairman of The Institute for Political Economy, former editor of Wall Street Journal and a well-known author of many books. He is awarded the Treasury Department’s Meritorious Service Award for “his outstanding contributions to the formulation of United States economic policy. “The reason they are too big to fail is because the Central Banks were supposed to be their regulators. They have failed in their job and allowed massive mergers in the creations of these monstered financial organizations which are so large, that if they do fail, it has such horrendous effects on everybody else that we say we cant let them fail. So, we created a Frankenstein monster and we couldn’t let it fail. So they keep throwing out money, money, money.” “Where does this money go? Very little of it goes into the economy. It’s going into the prices of financial assets. We then have, in the US, these massive stock prices, incredible price earning ratios. Bond prices are so high that the interest rates essentially are negative. You’ve got bubbles everywhere, but they cant stop the bubble. Because if they do that then the whole thing blows up.” ”

Most people who look at this expect a crisis. Yet, in the short run it pays to be in the market because the Fed putting out money and the money goes into the stocks and up go the prices. Or, the Federal Reserve are lending money to businesses who use the money to buy their own stock which pushes up the prices.”

“So you have the consequence of deregulation. The consequence of this belief that Alan Greenspan claimed that markets were self-regulating. They clearly are not! Everything that was accomplished during the Depression, to make capitalism workable, has been taken away. Now we are sitting here, if you’re not in the stock market, it’s a mistake because it keeps going up.”

The previous programs with Dr. Paul Craig Roberts may be viewed here:
-Program 1, Neo-Con Totalitarianism:
https://www.youtube.com/watch?v=Rl1FC…
-Program 2, Totalitarianism in the West:
https://www.youtube.com/watch?v=AbI3H…
-Program 3, The Washington Tyranny:
https://www.youtube.com/watch?v=ihCVP…
-Program 4, Hatred of the White Hetero Male:
https://www.youtube.com/watch?v=hKpMO…
-Program 5, Financial Crisis Looming:
https://www.youtube.com/watch?v=c7GgY…
-Program 6, Military Complex and the Media:
https://www.youtube.com/watch?v=O8ll-…
-Program 7, The Enslavement of the Working Class:
https://www.youtube.com/watch?v=4IK7D…