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Hennecke: Trillion Dollar Bailouts Will Lead To Destruction Of Western Currencies
Posted By admin On March 23, 2009 @ 12:30 pm In Featured Stories,Paul Watson Articles | Comments Disabled
Federal Reserve policies making the problem worse, leading to super inflation around the corner
Paul Joseph Watson
Prison Planet.com 
Friday, March 23, 2009
Associate Director of Tyche Martin Hennecke warned in a CNBC interview this morning that actions such as the Treasury’s announcement today to buy $1 trillion more of toxic debt, allied with last week’s announcement by the Fed to throw a further $1 trillion at the problem, is merely a continuation of what caused the crisis in the first place and that such measures will ultimately lead to the destruction of major western currencies and staggering hyperinflation.
Hennecke said that the Fed was just throwing new money at the problem and repeating the very same actions that caused the crisis in the first place.
“The budget deficit is already out of control, we might be talking about $3 trillion U.S. dollars, which is 20 per cent of GDP, which is absolutely staggering,” said Hennecke, reiterating that easy money was what caused the problems in the first place.
“Artificially low interest rates set by the Federal Reserve and now more easy money, more liquidity, more control of the Federal Reserve – that’s going to make this problem worse,” stated Hennecke, warning that super inflation was on the horizon and that the only protection against the coming storm was to buy gold.
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Hennecke also noted that countries like Greece and Ireland are on the the verge of defaulting, while in the States the FDIC was running out of funds.
“The FDIC is running dry of funds, there are already 20 banks that have failed this year, last year it was 25 for the whole year, the whole of 2007 it was just three, so the FDIC is getting dry – they need new money – they will have to print up increasing quantities,” said Hennecke.
“Last year investors were all afraid of the deflation scenario, just panicking out of any assets, equities, commodities, going to the perceived safety of sovereign bonds or long term corporate bonds and cash,” said Hennecke, noting that people were unaware of what an increasing number of economists are now warning about – hyperinflation.
“Clearly the leading policymakers and economists out there clearly understand where these bailouts are really heading, the destruction of the major western currencies eventually,” said Hennecke, adding that assets in cash will be severely eroded by money printing.
Watch the clip below.
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