Gold Backwardation-The Meltdown of All Meltdowns-Karen Hudes speaks to Greg Hunter
September 19, 2013 in Economics
Gold Backwardation-The Meltdown of All Meltdowns-Karen Hudes
Former World Bank Senior Counsel Karen Hudes says, “It’s pretty clear where we’re headed, and that is something called permanent gold backwardation.
That’s a fancy word for people losing confidence in paper currency.
That means the value of currency in the future is less than today.” How bad is “permanent gold backwardation”? Hudes, who spent 20 years at the World Bank, says, “This is not just a bad event.
This is like the meltdown of all meltdowns.
What it means is you cannot finance international trade.” Hudes goes on to say, “Just think about what that would mean in terms of the jobless rate.
It’s going to make any depression we ever had (the 30’s, 2008) pale in comparison.” Hudes says even though the credit ratings agencies rate U.S. debt high, they know just the opposite is true.
Hudes contends, “This is actually an underhanded move because they know the U.S. dollar is going to lose its status as an international currency.” What would that look like to the man on the street? Hudes predicts, “Prices would change on a daily basis.
They would double.
The number of families that would be employed would be in the minority . . . there would be lawlessness.”