It's Supernatural

On It’s Supernatural:  what really caused the economic crisis in America? How will it affect the real estate market? Why are gold and silver better assets than cash? And what is the solution to the economic dilemma?

 

Do angels exist? Are healing miracles real? Is there life after death? Can people get supernatural help from another dimension? Has the future been written in advance? Sid Roth had spent twenty-five years researching the strange world of the supernatural. Join Sid on this edition of “It’s Supernatural.”

 

SID: Hello, welcome to my world where it is naturally supernatural. Is America at its tipping point? I mean is America going to financially collapse? These are questions that everyone is asking themselves, and asking other people. I don’t know a man better qualified in the natural and the supernatural to answer that question than my friend Dr. Larry Bates. He is a former bank CEO, a former member of the Tennessee House of Representatives, where he was chairman of the powerful committee on banking and commerce, Larry, the big question I have is how did we get in such a mess? This country has always done so well economically.

 

LARRY: Well the prosperity has been a facade, you know you can cover up your largesse, the mistakes, the structural aspects, you can paper over it, pretend it is not there, but eventually you have to deal with it. We have a debt-based economy; we have a debt-based monetary system.

 

SID: When you say debt-based economy, explain what you mean.

 

LARRY: Okay back in 1913 we gave a private bank called the Federal Reserve, which by the way is neither federal and has doubtful reserves, it is a private bank that is owned by member banks, we gave them–

 

SID: So if it is private, why do we call it federal?

 

LARRY: Well, that was part of the ruse, you know in Germany one of the old banking families, Nathan Rothschild, said, “Give me control of a nations monetary system and I care not who writes their laws.” And so whoever controls the money, we read it in the scriptures Ecclesiastes 10: 19, “Money answereth all things, but the love of money is the root of all kinds of evil.” So why do we get up and go to work in the morning? To get a paycheck. Why do we save for retirement? For a paycheck. What is a paycheck? It is money. Money buys us food, clothing, housing, recreation, transportation, money is central to everything we do. So if you get control of a nation’s monetary system, you control everything that is going on. And thus we find ourselves in a problem because we have a lack of liquidity in the marketplace; we have more debt than there is cash. And as we have said many times, cash at the crash will be king. So this is where we find ourselves today because of the structural nature of our system. We have roughly a forty trillion dollar domestic debt.

 

SID: that is almost hard for me to fathom, forty trillion dollars in debt, and you think you have problems.

 

LARRY: But see that is not the worst part of it, we have the hedge funds, the derivatives, we estimate that the notional value, and I emphasize “notional value” is over four hundred trillion dollars.

 

SID: You lost me, notional value?

 

LARRY: Three times, three times the total domestic debt of the entire world, and this is what is unraveling right now, it is leverage upon leverage upon leverage. But lets look at the basic stuff the average person is having to face today, forty trillion of domestic debt, the federal government debt of over nine trillion, state county municipal debt, corporate debt, mortgage debt and consumer debt all put in one big pile. Now this debt is like a herd of cows, it is eating and drinking every day, it has to be serviced. So how do we service debt? With money. Then let’s look at the supply of money available. And we look in the Federal Reserves data, the MZM, that is the money zero maturity, that is the broad base of money supply, it is everybody’s walking around money, checkbook money plus their savings account money all put together, it is a little over eight trillion dollars. So let’s do the math, subtract eight trillion of money from forty trillion dollars of debt, we have a thirty-two trillion dollar problem, as they say at NASA, “Houston, we have a problem.”

 

SID: So what can we do about it?

 

LARRY: Well thirty-two trillion, thirty-two trillion of the debt, the debtors have been asked to do the impossible, pay back money that does not exist, this is why we saw the recent collapse of Lehman Brothers.

 

SID: But what about the fact that our United States government is pumping money into these companies that are collapsing; is that good or bad?

 

LARRY: Well it is neither good nor bad, let me put it to you this way, philosophically I think it is bad, but reality says that if they had not done it we would have had a total collapse of the entire US economy that would have a ripple effect that would carry through to the entire world economy. You see take that thirty-two trillion dollars, thirty-two trillion that the debtors have been asked to do the impossible, pay back money that does not exist. And so as a result one of two things will happen, we know exactly one of two things will happen, these are the parameters that Ben Bernanke the Chairman of the Federal Reserve, Henry Paulson, the Treasury Secretary had to work with. Number one if the Fed did nothing, we would have default, we would have collapse.

 

SID: So they have to do something.

 

LARRY: They have to do something.

 

SID: Let me ask you, just interject this question, where does the buck stop, does it stop with the most

powerful person in the United States, the President of the United States?

 

LARRY: Well I was speaking to a conference in Singapore in March of 2008, and this was a group of bank CEO’s, government officials, and corporate CEO’s, we got to question/answer session and one of the people

said, “if you were on the phone with Federal Reserve Chairman, Ben Bernanke today what would you tell him. I said, “Well I would ask him a question and the question is, ‘Mr. Chairman, how much economic carnage are you willing to preside over?'” And the answer is “slim to none.” Then I would say continue what you are doing, continue pumping in more money and credit into the economy but step it up a notch or two, because one of two things will happen, either the collapse or you will have to print more money and more credit. Now Sid, this is the economic equivalent of crack cocaine for the economy, you see it will solve your pain for a temporary period of time, but in the end you have to deal with it again. You see the solution to the problem is what caused the problem to begin with, problems begat solutions that begat new problems that begat new solutions, new problems and on and on and on. Ultimately we will have a collapse, because this thing will get bigger and bigger. The Federal Reserve quite frankly over the past five to ten years lost control of monetary policy.

 

SID: So but what you are telling me is the most power is not with the President, but with the Chairman of the Federal Reserve.

 

LARRY: That’s right.