100% Fake Recovery-Robert Wiedemer
By Greg Hunter’s USAWatchdog.com
Robert
Wiedemer, best-selling author of “The
Aftershock Investor,” says the
so-called recovery is “100
percent fake.” Wiedemer explains, “If you look at the amount our
economy has grown last year, our GDP grew 2% or $350 billion, but we borrowed
over $700 billion. That tells you right there that we are borrowing more
than we are even growing. Our entire growth is due to government borrowing
. . . it’s
a fake recovery.” Wiedemer, who has totally rewritten and updated his book,
goes on to say, “It would be great if we would adjust our economic figures for
stimulus. What would the figures really look like if you took the fake
money and borrowed money away?” It is supported heavily by printed money
of over a trillion dollars last year. We’re not talking about what’s
driving the recovery we are getting, and it’s powered by massive money printing
and massive money borrowing. Yes, we are getting some recovery, but it is
not driven by something that is sustainable.”
On
the bond market, Wiedemer contends, “The only way you can keep interest rates
low is to print money, and you are printing money to buy bonds.
Ultimately, that’s not going to work. If printing money could do all the
things they say it can do without creating inflation then . . . why don’t we get
rid of taxes? We could print the money instead. The money we are
printing, ultimately, will create inflation.” Overall, the bond market has
turned and turned for good, and you are going to have inflation. That’s
really going to be a problem for the bond market.”
On
the stock market, Wiedemer says, “Fundamentally,
stocks should reflect earnings, and last year, stocks were up 30% and earnings
were up about 3%. So, we’re way out of line with corporate reality, and
we’re way out of line with economic reality.” What’s happening is the feeling of
the Fed’s
got my back, printing a lot of money. Some of that money has to go
into the stock market. . . . So, there’s been this feeling the Fed can boost us
up . . . yes, the Fed can boost us up, but it is not the basis for long term
economic recovery or a long term stock market recovery. As I say in my
book, it’s
the basis for a long term huge, huge explosion.”
On
gold, Wiedemer says to not believe the false narrative that gold is a “risky”
investment. Wiedemer contends, “Let’s look at gold
since 2000. Up 12 years in a row, every single year. That’s
risky? Can stocks say the same thing, you got to be kidding. . . . It did
fall 30%, that’s a big drop . . . we’re still
up over 300% from where we were in 2000. Can we say that about
stocks? No way, we’re now about where we were in 2000 . . . I might add,
on the NASDAQ, you are significantly below where you were in 2000. . . . Let’s
put this into perspective. When did anyone in the mainstream media say
gold was a great investment? What you are hearing is a huge bias not borne
out by the facts.”
On
the Federal Reserve, Wiedemer says, “You are actually getting negative
growth. The Fed knows this. They just don’t talk about it because
their job is to be a cheerleader. They want to try to make everybody feel
good and that their policies are working. If those policies don’t work,
what’s the Fed going to do? What are we going to do? It’s a bigger
issue, but bottom line here is I thinkthe
banks are safe in the sense the Fed can bail them out, but there will come a
point when the Fed can’t and won’t, and that’s when you got a bigger
problem.”
For
anyone who thinks we’ve seen the worst of the bad economy—think again.
Wiedemer predicts,“The
big one is coming . . . we’re
just pumping up the bubbles, and all that’s going to do is make them a lot worse
when they pop. . . . You are just putting more gun powder under the house . . .
that’s a big mistake long term.” (There is much more in the video
interview.)
Join
Greg Hunter as he goes One-on-One with Robert Wiedemer,
author of “The
Aftershock Investor.”
After
the Interview: When asked about the war and what it would do for the
economy, Wiedemer said, “War is not good for the economy, especially when you
are re-inflating bubbles.” There will be a final update to “The Aftershock
Investor” in March; and then
in 2015, a new book with the working title “The
Big One.” It’s about the coming global financial market meltdown.
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