Sinclair: “Dr. Roberts said something that most people didn’t really understand in his KWN interview. He was speaking about the limitations of QE. We believe in QE to infinity, but Dr. Roberts clearly pointed out that infinity would be a period of time in which the dollar would begin to reflect the enormous creation of dollars and subsequently weaken.
So in a sense, yes, QE is limited by the ability of the US dollar to have a firm appearance. Right now the dollar is free and clear, but under .79 it comes into question, and under .72 on the USDX it’s (QE is) impossible. That would mean the crisis was at hand if the dollar broke under .72 and QE couldn’t continue.
The situation would then feed on itself and we would see a significantly lower dollar with a contracting economic environment that would create the Mother of all financial crises.”
Read the complete article at King World News here.
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