economic collapse

Despite continued mainstream media propaganda, today one of the legends in the business warned King World News that "the U.S. is going to experience one hell of a collapse." This man has lived in 18 countries around the world, and he described his first-hand account of the collapses he witnessed which took place in many of these countries. Keith Barron, who consults with major companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, also warned about the further destruction of the already disappearing middle class.

Below is what Barron had to say in this powerful interview.

Barron: "The Fed did not come through with tapering, so now there is this ridiculous speculation about a future tapering. The reality is that there is a general consensus out there that the US economy is just not strong enough to take away the punch bowl.

So I think we will just see a continuation of the status quo for the time being. In fact, I'm not even sure why that taper talk even happened. It was always just propaganda from the Fed....

Eric King: "Where does that leave us, Keith?"

Barron: "There is going to be a major catalyst for the precious metals. It may turn out to be some entity that is not able to make physical delivery. It may also be trouble coming out of Europe from the PIIG countries. But there are also major problems with excessive debt in US cities, as well as Puerto Rico.

All gold and silver investors have to do now is sit back and continue to be patient. There is definitely going to be another crisis that will run gold and silver prices higher. There has been speculation about the price of gold dropping below $1,000. I don't care what anybody says, that's not going to happen.

This would put gold so far below the cost of production that many large mining companies would simply shut down. Many major mining companies aren't making any money even at current prices. They literally would be hemorrhaging money at much lower gold prices.

So investors need to put aside their frustrations and continue to sight tight because the policies of the US government, as well as other countries around the world that are printing money, are going to be highly inflationary. In fact, it shows the tremendous depth of the crisis the world is now facing that throwing helicopters of money at the problem is not turning the situation around."

Eric King: "What is your vision of the highly inflationary future of the West, particularly in the United States?"

Barron: "I've lived in 18 countries, and a number of those countries have experienced severe inflation or even hyperinflation while I have lived in them. I was in Brazil right as they had just switched from one fiat currency to another. They literally stamped over some of the old money with a rubber stamp and tried to give value to the currency that way, but the people weren't buying it.

I also lived in Ecuador during that hyperinflation, and during the chaos in Russia in the early 1990s. America and Western Europe have been blessed with a situation where there hasn't been hyperinflation for several generations. But if you go back in history, just in the last century in France they had five currencies go to zero.

Of course we also had the very famous situation in the Weimar Republic in Germany where they lopped 12 zeros off of that currency in November of 1923. This stabilized the currency in Germany, but, essentially, their previous currency had gone to zero. There are many of these situations, and not just in third world countries like Zimbabwe. We are talking about countries that were first world. So why should America think they are exempt -- that they have special status and this is never going to happen to them?

The fact of the matter is this has already happened in America under the Continental Congress, and then again during the Civil War where both sides saw their fiat currencies collapse. So this has already happened in American history and it will happen again.

The US dollar has lost 98% of its purchasing power, so there has already been tremendous inflation, it's just been over a long period of time in America. Inflation is an truly an insidious thing because it literally destroys countries as it erodes savings over time.

At some point in the future tremendous inflation is going to take hold again in America, just like it did in the 1970s and early 1980s. We will soon see 10% to 15% inflation rates in the US. Today inflation is already between 6% to 8%, but the government is just lying to the people and telling them there is no inflation.

Even though people are complaining about inflation in the US, the mainstream media is used as a propaganda tool to continue the great lie by telling the people that there is no inflation. But people will become increasingly angry at the erosion of the money. This situation is particularly tragic because it continues to destroy what is left of the middle class in America. The bottom line is the US is going to experience one hell of a collapse."

Barron added: "As the West continues to destroy itself, you can be sure that it will soon be reflected in the gold price. As Western central planners rapidly run out of gold to facilitate the phony discounted paper prices, you will see an explosion in the price of gold similar to what the world witnessed in the early 1970s when the London Gold Pool was overrun. Gold exploded from $35 to $204, a nearly six-fold increase in a very short period of time. We are going to see something similar in the not-too-distant future."