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Can you explain the general public’s mass acceptance with the unprecedented amount of money being created to drive what you’ve termed the “fake recovery”?

Robert Wiedemer
July 29, 2014
Video Transcript

People should be really upset about what's going on, in terms of massive money printing and massive borrowing. I mean, if you've done this 10 years ago or you told somebody 10 years ago about what we would be doing, they'd be incredibly upset, they'd be incredibly scared, and incredibly nervous. I mean, if you told the Federal Reserve in 2005 they'd be printing a trillion bucks a year, they'd be shocked, but why aren't they outraged now? Why aren't they upset? Instead, they're actually cheering on this massive money printing and this massive borrowing and the reason they're doing that is fear of the alternative. Not typical fear that drives people in the market, you know fear and greed drives the market, but in this case is fear of an alternative-- fear of what would happen to the stock market if you didn't print all that money, what would happen to the economy if you didn't borrow massively. I mean, the stock market could not only correct by 20%, but it could collapse. The economy wouldn't be growing slowly; it would be in a recession or a pretty deep recession. I think people kind of know this even if they don't say it. That's what is really driving that sort of bravado on the surface is that incredible fear underneath, fear of they know what will happen if they're not doing these incredibly irresponsible things. Irresponsible even in their own terms if you just asked them 10 years ago about whether it would be a good thing to do today and they would know instantly it's not. But right now, that fear of that alternative, that fear of what would happen if we didn't do these irresponsible things is what's making them support, or cheer it, or ignore it.

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