Keiser: US dollar "backed by bananas"

Keiser: US dollar "backed by bananas"

"For the average American, this is what they will experience. The price of food and oil are going to skyrocket due to hyperinflation. The only way they can possibly pay for all these bailouts is to inflate the money supply. This means hyperinflation in America like you had in Germany in the 1920s. This is what the average American will experience: destitution, poverty, social unrest due to flagrant bank mismanagement - and it could have been avoided. But unfortunately the banks in the USA are run by greedy, insane private marketeers and this is the result." ...

"It's not really a doomsday scenario for the rest of the world. Take Iran for example, you've got a lot of oil and gas. Those prices are going to go up. China has huge savings. The Indian people have huge gold reserves. For the rest of the world this is actually a fantastic thing. Only the US and Britain are going to experience this horrible disconnection with the rest of the world economy. So it's a doomsday for them but there's a certain symmetry here. They spent 20 or 30 years with this neoliberal model hoisting trillions of dollars of debt onto themselves and now it's gone belly up." ...

"There wasn't really ever a strong American economy. There was a lot of debt over the past 30 years and this debt has built up. Just look at the average American. They weigh 300 pounds, they waddle around the malls shopping all day. They're not healthy. This is because there's too much debt in the system, too much easy money. Cheap money is what created this problem and it's been going on for 20 or 30 years. Unfortunately the labor movement in America has been decimated. They've been told for 20 or 30 years that it's a trickle down economy and that everyone can get rich in America."

"The problems are here but the people who created this nightmare are gone. Cheney has already got his Halliburton corporation headquartered in Dubai. He's already out of the picture. All these crooks are going to be leaving this country. They're not going to stay for all of the rioting there's going to be in America."

Watch this video interview of Max Keiser: here.