L: So Doug, we’re on the cusp of a major turning point of U.S. Federal Reserve policy. “QE or not QE?”, that is the question. What do you think, is The Bernanke going to pull the handle on the toilet he’s thrown the dollar into, or let it mellow for a while?
Doug: I think he’ll be forced to pull the handle, and create trillions more dollars. The government has over a trillion of debt it has to roll over in the months to come, plus it has to finance a trillion-dollar deficit – at a minimum. The Chinese and the Japanese want to get rid of the paper they have – they’re not going to buy more. The only logical buyer is the Fed, so the dollar’s fate is sealed, as far as I’m concerned. Meanwhile, there’s something else important on my mind I’d like to talk about: the U.S. so-called Civil War.
L: [Blinks] Ah… Okay. Why now?
Doug: Several reasons. For one thing, we’ve just passed the sesquicentennial, or 150th anniversary of its start. For another, it’s one of the most misunderstood events in American – and world – history, with consequences that still affect us today. And also, because we might be within a few years of seeing trouble on that level in the U.S. again.