Saturday, August 1, 2015

Nomi Prins Interview: Fed Trapped in Money Printing Policy

This is an excellent recent interview by Greg Hunter with Nomi Prins. The comments by Nomi Prins about her recent invitation to speak at the US Federal Reserve were extremely interesting and informative. She provides some great insight into how she was received at the Fed. Below are a few quotes from the interview summary and the video itself. After that a few added comments.


"Best-selling author Nomi Prins says the only thing propping up the system is money printing. The tip of the iceberg was the Greek debt crisis. Prins says, “Before it happened, there was a lot of concern at the central bank level. That wasn’t really discussed very much in the press . . . but I believe behind the scenes there were a lot of fearful conversations about the financial system, not just the relationship of the euro and Greece politically, which was a part of it, but you don’t want any chips to fall off your table. Anything could open the door for a run on liquidity (cash), which is also why I talk about what individuals should do more and more now is try to preserve their own liquidity and to take more cash out of the markets or out of banks to just have on the side before this period of volatility, before we have the actual crash. This is a tenuous situation. I am afraid of things that look like a bail-in up to the level of a bail-in.”
Prins, who was a top Wall Street Banker, says the too-big-to-fail banks are much bigger and will be much harder to save in the next crash. The stats Prins comes up with to illustrate this are stunning. Prins says, “43% more deposits are held by the big six banks in the United States since before the crisis (in 2008). 84% more assets are held by the big six banks and 400% more cash. . . . The point is the big six banks control more deposits, more assets, more trading, more cash than they did before. That’s a fact.”

My added comments:
Readers should pay careful attention to the remarks early in this interview about the reception Nomi got at the US Fed when she made her presentation there recently. Notice that she herself was surprised to be invited to speak. She points out that she told the Fed officials she was opposed to what they have been doing and showed them the slides of her presentation ahead of time. This is important information because it shows that there are people inside the Fed today who take her warnings seriously. If they do, we should too. Kudos to Greg Hunter for providing this interview that gives us insight into some behind the scenes information. This is a very good interview that covers a broad range of important issues. I encourage readers to listen to it.

Added note 8-7-15: Thank you to Silver Doctors for running this article on their site.

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