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Re: China to fail
Originally posted by Mega View Post
Hugh's instincts seem to be take financial markets as if they were compressible fluids with conservation of mass in a closed system.
Even he himself suspects that if he's wrong, it will be because the "pressure cooker" blows (see his closing comment.)
I suspect he's wrong. I suspect he underestimates the building lack of trust in America and the Dollar. The shell game he describes of U.S. domestic pension funds and savers bailing out the Treasury won't happen. Continued and increasingly urgent pressure to dethrone the almighty Dollar will happen. The essential basis of a fiat currency is the confidence that people have that the currency will preserve it's value in real stuff for the time period that one is holding/saving currency. That confidence has been enormous; but it is not infinite and the U.S. has been going to the greatest lengths of any civilization in human history to destroy that confidence :eek:. The U.S. is "succeeding" at this destruction, in my view :rolleyes:.
He's right about one thing. If this pressure cooker blows, it gets ugly.Most folks are good; a few aren't.
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Re: China to fail
I wrote:He's right about one thing. If this pressure cooker blows, it gets ugly.Most folks are good; a few aren't.
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Re: China to fail
Originally posted by ThePythonicCow View PostI wrote:Ugly means, in my crystal ball, that once American citizens feel enough pain to cry "Uncle", we elevate go from essentially a U.S. central bank to a world central bank, with sufficient taxing and political power at the world level to enable the Banksters to start putting the world into debt, as it has done with the U.S. this last century. Such debt is always the monetization of future taxing, military and political power.It's Economics vs Thermodynamics. Thermodynamics wins.
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