America blinks! (Well done Germany!!)

[Mega]

http://www.forbes.com/sites/greatspe...d-not-tell-us/

Ha Ha, 4 U Anglo-saxon scum!
Mike

[*T*]

Re: America blinks! (Well done Germany!!)

Yes, ecb was noticeable by its absence.
You have a good eye for reading between the headlines.

[ProdigyofZen]

Re: America blinks! (Well done Germany!!)

Honestly Mega, what is your problem with Anglo-Saxon people?

[sishya]

Re: America blinks! (Well done Germany!!)

http://www.forbes.com/sites/greatspe...d-not-tell-us/

Ha Ha, 4 U Anglo-saxon scum!
Mike

you got that right. FOFOA site has been abuzz recently that FED will bail out EU or else the EU will fire the gold nuclear weapon and the whole dollar based international monetary system will have a sudden stop collapse.
looks like their logic is correct. EU has FED by the balls.

[thriftyandboringinohio]

Re: America blinks! (Well done Germany!!)

you got that right. FOFOA site has been abuzz recently that FED will bail out EU or else the EU will fire the gold nuclear weapon and the whole dollar based international monetary system will have a sudden stop collapse.
looks like their logic is correct. EU has FED by the balls.

sishya- I just glanced over to FOFOA, couldn't easily spot the gold nuclear weapon you mention.
Can you summarize the concept for us?

[brent217]

Re: America blinks! (Well done Germany!!)

sishya- I just glanced over to FOFOA, couldn't easily spot the gold nuclear weapon you mention.
Can you summarize the concept for us?

EU switches to using gold as the world's reserve currency. The USA dollar would almost instantly hyperinflate as everyone across the globe dumps the dollars they have on the open market; and the dollar would then become as worthless as the paper it was printed on, and a HUGE depression (and very likely WW3) would be a quickly following result.

Note that in the last decade every country that has THREATENED to sell oil in denominations not measured in dollars (Iraq, Libya, Syria) is soon given a taste of American displeasure.

[ProdigyofZen]

Re: America blinks! (Well done Germany!!)

The main problem with your thesis is that, the US holds most of the worlds gold. I would tend to think that it will be the US who promotes going back to the International Gold Exchange that ended in 1971. Similar to how we unilaterally ended the gold exchange before in 1971.

As Janszen says, he who holds the gold makes the rules. World Gold reserves attached.

[aaron]

Re: America blinks! (Well done Germany!!)

A lot of the world believes that the U.S. dollar is currently backed by gold. We know better; it is backed by guns and oil. Unless they came out and said they would buy gold for 10,000 Euro or some other super-high (inflationary) amount, why would anybody actually trust this new "gold euro"?

[unlucky]

Re: America blinks! (Well done Germany!!)

This is surely just the same problem that was seen in 2008/09, i.e. European banks have a massive need for dollar funding because during the boom years they invested globally using the cheap dollar funding that was available at the time. Now that time has passed, but the ECB can't fund them as lender of last resort without the help of the Fed. So every time we enter a deleveraging/disinflationary cycle, it's the same old story: the Fed has to fund the "global financial system" (meaning European banks).

If I were the Fed I'd be asking for reports on exactly how successful European bank deleveraging efforts have been since last time round. A "German" Fed would be demanding targets and dates for European banks to reduce their dollar funding needs.

[GRG55]

Re: America blinks! (Well done Germany!!)

Yes, ecb was noticeable by its absence.
You have a good eye for reading between the headlines.

The ECB was noticeable by its absence from what?

Honestly, this has to be about the most pathetic conspiracy theory thread I've ever seen on iTulip. Standards for inventive thinking are sliding around here methinks. Makes one long for the "good ol' days". Things around here are now so bad it's all but impossible to get a rise out of metalman any more...

[ASH]

Re: America blinks! (Well done Germany!!)

Honestly, this has to be about the most pathetic conspiracy theory thread I've ever seen on iTulip.

That is a very tall order.

But seriously, I agree with unlucky that this is really damn simple.

[*T*]

Re: America blinks! (Well done Germany!!)

The ECB was noticeable by its absence from what?

Honestly, this has to be about the most pathetic conspiracy theory thread I've ever seen on iTulip. Standards for inventive thinking are sliding around here methinks. Makes one long for the "good ol' days". Things around here are now so bad it's all but impossible to get a rise out of metalman any more...

Well, my mistake was that I didn't see the ECB in the list of participating CBs. But of course they did.

[sishya]

Re: America blinks! (Well done Germany!!)

sishya- I just glanced over to FOFOA, couldn't easily spot the gold nuclear weapon you mention.
Can you summarize the concept for us?

- Currently eurodollar market is big and if EU banks fail, this dollar market fails and there is no reference for oil market financed by eurodollar market.
- EU has been marking their Gold to "market" since inception. it increased from 30% of their total reserves to 70% currently.
- if the EU banks go under, ECB/BIS will just set a very high price for gold and make a market at a very high price like say $10,000/oz.
- If this happens, paper dollar based gold market will crash immediately, dollar will lose it reserve currency and store of wealth status.
physical assets/Oil/Gold will not be traded for dollar and the dollar system crashes, since dollar liabilities cannot be serviced by foreign banks.
- so FED steps in to provide cheap dollar and continue the system, until a day it is going to break anyway.

[thriftyandboringinohio]

Re: America blinks! (Well done Germany!!)

Thanks, sishya.

Steps 3 and 4 seem a little logically dubious to me (ECB/BIS setting a gold market at $10,000, and dollar therefore losing reserve status).

If it comes to pass, and the ECB starts bidding $10,000/oz for gold, I will likely try to sell them all of mine.

[sishya]

Re: America blinks! (Well done Germany!!)

Thanks, sishya.

Steps 3 and 4 seem a little logically dubious to me (ECB/BIS setting a gold market at $10,000, and dollar therefore losing reserve status).

If it comes to pass, and the ECB starts bidding $10,000/oz for gold, I will likely try to sell them all of mine.

I bet you will NOT sell your Gold at that time.
If that happens, all the wealth stored in Dollar bonds the world over will madly be running from dollar to physical assets/Gold with dollar becoming like any other currency.
I bet you will freeze and think it over again and again.