US debt is too big for financial repression — Charles Goyette and Alasdair Macleod

Bestselling author of The Dollar Meltdown and Red and Blue and Broke All Over, Charles Goyette, talks to the GoldMoney Foundation’s Alasdair Macleod.

Goyette states that members of the Fed are increasingly realising that their idea of managing the economy does not work and that they have magnified problems rather than solving them. The Fed created trillions of new dollars by buying up toxic debt and it’s absurd to think that these measures will be without consequences.

They point out that money printing is hurting savings, which form the foundation of sustainable growth. Instead the Fed has encouraged credit-based consumption which has led to the accumulation of massive debts. The question now is in what way these debts will be defaulted on, as there is no way of paying them off. Goyette advocates confronting reality sooner rather than later. In any case the value of the dollar will suffer as a consequence.

Both men agree that financial repression is simply not sufficient to get rid of the $120 trillion of US debt. Goyette says that Americans should look to the crisis in Europe as demonstrating that the problem is always bigger than the conventional wisdom acknowledges, and that the solutions favoured by governments are insufficient.

This podcast was recorded on June 20 2012.

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Alasdair started his career as a stockbroker in 1970 on the London Stock Exchange. In those days, trainees learned everything: from making the tea, to corporate finance, to evaluating and dealing in equities and bonds. They learned rapidly through experience about things as diverse as mining shares and general economics. It was excellent training, and within nine years Alasdair had risen to become senior partner of his firm. Subsequently, Alasdair held positions at director level in investment management, and worked as a mutual fund manager. He also worked at a bank in Guernsey as an executive director. For most of his 40 years in the finance industry, Alasdair has been de-mystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man. Accordingly, his mission is to educate and inform the public in layman’s terms what governments do with money and how to protect themselves from the consequences.

One thought on “US debt is too big for financial repression — Charles Goyette and Alasdair Macleod”

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