Rubino: “I Don’t See How We Can Go On Much Longer”

Via Greg Hunter’s USAWatchdog.com,

Financial writer and book author John Rubino says he can see the end of the economic expansion fueled by massive debt creation.

Rubino explains, “Every sector of the U.S. economy is so over indebted I don’t see how we go on much longer…”

“The Fed is desperately trying to prolong this thing. We are running trillion dollar deficits now, and what that is for is to keep the system from falling apart. We are 11 years into an expansion, a record. This is the longest bull market in history, and this is the longest economic expansion in history…

These guys don’t know exactly what’s going to happen in the next recession, but they are afraid that the system is so highly leveraged that even a garden variety three quarters of a percent of negative growth and a garden variety of 20 % drop in stock prices might be fatal. 

The system might not be able to handle that because it would cause so much damage and there are so many different places that can blow up that the system would spin out of control. We would get 2008-2009 again but on steroids because the numbers are so much bigger this time around. So, they want to avoid that at all costs.”

Rubino points out, “Fear is the enemy in a fiat currency system…”

“Everything is based on our assumption that the guys in charge know what they are doing and that the confidence in them is good. You take that away, and they let us see them sweat, and it’s over. There is no real bottom for the dollar, euro or the yen. Their intrinsic value is zero. When the economic players out there in the global financial system realize that the central banks of the world are out of ammo, and nothing these guys do is going to fix our problem, then all hell breaks loose…

What worries me about today’s world is that everything falls apart all at once, and there is no way to fix what went wrong…

We have a lot of examples of governments doing crazy things when everything falls apart.”

In closing, Rubino points out riots and protests around the world, such as in South America and Europe. Rubino says,

“This is happening largely because of financial mismanagement… They see a corrupt elite siphoning off all the wealth in their society. Does that sound familiar? That’s what a lot of people think of the U.S. right now. That’s in an expansion when there are jobs. So, take away a lot of those jobs, but leave that elite in place, and you have a powder keg. You lit the fuse that could get very, very scary. I hate this. The Mad Max scenario is a tragedy beyond belief for some place like the U.S. where it did not have to happen.”

Join Greg Hunter as he goes One-on-One with John Rubino, founder of the popular website DollarCollapse.com.

[youtube https://www.youtube.com/watch?v=U-tMM3eVrSc]

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