Paying The Piper

Kevin Michael Grace spoke with Bob Moriarty, founder and President of 321Gold.comNovember 14.

RW: What do you think of the prospects for the US economy after the re-election of Obama?

BM: I don’t think the election has anything to do with anything. I think the 800-pound gorilla in the room is the debt situation, and certainly the US is one of the worst. We’re an economy powered by debt, and it’s a fractional reserve system, so there’s always more debt than money. Sooner or later you have to pay the piper. This concept that you can somehow spend your way to prosperity is like trying to drink yourself sober.

RW: But that’s the course the US has been on at least since 2007, and there seems to be no end in sight.

BM: Absolutely correct. How can we have a recovery with a real debt of $7 trillion dollars? I mean it’s going to blow sky high. I’m not saying this as doom and gloom or anything else. The real deficit of the US is $7 trillion a year in an economy of $14 trillion. That’s not sustainable…

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