[youtube=http://www.youtube.com/watch?v=GoNMG5-a15k]
“Every time there is an attempt by the market to correct these problems, we bail them out by more inflation…. All it’s going to do is weaken the Dollar.”
“I think we’re facing something we’ve never faced in the history of the world before.”
“The medicine is tough…. You have to allow liquidation of the bad debt. So you want prices to go down so poor people can buy houses again.”
“Because I know it’s tough medicine, I don’t predict it’s going to happen. I don’t think the Fed will do it; I don’t think the Congress will do it. But it means a guarantee that you’re going to have more inflation and more depreciation of the Dollar. We had a similar circumstance, but not nearly this bad in 1979 and 1980. When they tried to turn it off, Volcker had to come in and take interest rates up to 21% to save the Dollar. I don’t think it’ll be that easy this time.”
“I’ve been trying to get this message out for 30 years.”
Transcribed by Jeff Fenske