August 1, 2012
On the heels of the Fed decision and continued volatility in gold and silver, today King World News interviewed James Turk out of Europe. Turk stunned KWN by saying that US debt is about to be downgraded once again. Turk also warned, “The reality is the Fed is losing control,” and the Fed is now being “overwhelmed.” He went on to say that all of this means right now we are going to see an “upside explosion” in both gold and silver.
Here is what Turk had to say: “The Federal Reserve has made another announcement, Eric, and each one of their proclamations makes it more obvious that the Fed is no longer in the driver’s seat. It is just rehashing the same stuff. The reality is the Fed is losing control. It is slowly but surely being overwhelmed by events, and particularly, the reality that US government finances are out of control.”
James Turk continues:
“The 800-pound gorilla in the room is the US government’s horrendous deficits and addiction to debt. The Fed is keeping interest rates low to sustain the illusion that the US government is solvent, while hoping that low rates will also jump-start the US economy and thereby increase federal tax revenue to service the mountain of debt.
But despite all of the money printing by the Fed from buying government paper, the economy remains in the doldrums, so the US government’s financial position is becoming increasingly precarious….