The Global Debt Trap

Watch the whole 29-minute interview at http://www.goldmoney.com/vogt-interview. Claus Vogt (http://www.sicheres-geld.de/) talks to James Turk, Director of The GoldMoney Foundation, about the global financial situation, especially the dangers of the global debt trap. Claus explains that there is no easy way out of overwhelming debt and that once the burden becomes unbearable and impossible to repay there are no easy exits. Inflation hurts the poor the most and redistributes wealth from savers and the middle class to those close to the source of new money, while default and bankruptcy also causes severe hardships. Nevertheless it seems clear that central banks, lead by the Fed and Ben Bernanke have chosen the inflationary exit. James Turk explains that he considers central banks to be a barbarous relic, a central planning bureau that has no place in a free market economy. They both talk about how the poorest are the most vulnerable and the real victims of inflation, as has been seen by protests over rising food and energy prices throughout the world recently. The interview was recorded on 14 May, 2011 in Hamburg, Germany.