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mutluit
Registered: May 2011
Posts: 238 |
10-19-12 01:01 PM
My nose tells me that we are at the brink of the biggest market crash ever in history.
The US an UK are creating paper money from nothing to finance their debts, for 0% interest!
How long can this work? What do you think will happen if the interest rate rises? And it must rise!
Then the US will go bancrupt, and with it the whole world!!!
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Spectre2007
Registered: Dec 2006
Posts: 6296 |
10-19-12 01:14 PM
Printing money to buy your own debt and others, central banks are in collusion to buy each others debt and debase currencies relative to hard assets. It can continue longer then you can stay solvent. Betting against central banks that have the same agenda can be deadly. Then next question becomes what can break this?. Only thing that can break it is if the relationships of the counter party are in jeopardy through protectionism.
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mutluit
Registered: May 2011
Posts: 238 |
10-19-12 01:26 PM
Quote from Spectre2007:
Printing money to buy your own debt and others, central banks are in collusion to buy each others debt and debase currencies relative to hard assets. It can continue longer then you can stay solvent. Betting against central banks that have the same agenda can be deadly. Then next question becomes what can break this?. Only thing that can break it is if the relationships of the counter party are in jeopardy through protectionism.
Right, but if that happens, ie. if a developed or big country like Japan starts such a protectionism, then the world economics will break apart as it will have a spiral effect, a devastating impact on the rest of the world economics --> just see what only such a tiny country like Greece causes on the world markets...
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Spectre2007
Registered: Dec 2006
Posts: 6296 |
10-19-12 01:39 PM
Quote from mutluit:
Right, but if that happens, ie. if a developed or big country like Japan starts such a protectionism, then the world economics will break apart as it will have a spiral effect, a devastating impact on the rest of the world economics --> just see what only such a tiny country like Greece causes on the world markets...
Only countries that are on the wrong side of trade balances can be protectionist. The way around it is that free trade continues as long as the country with the advantage agrees to purchase debt..(ie China)..of the country running imbalances. If China and Asian countries stop purchasing debt. USA would enter into trade wars with Asia. So if were shipping wealth overseas at unprecedented rates, what do you do? To fight the country that's holding your paper you debase it drastically so the paper your paying and future interest payments cost less.
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Trvlwanderer
Registered: May 2006
Posts: 3614 |
10-19-12 01:54 PM
A meltdown will allow (never let a crisis go to waster) a new world currency and new method of payment in the future, but time has a way of stretching before "likely" events.
Remember the "doom and gloom" from 2009 through 2011 and now we are in yet another equity bubble.
Tick, tock, tick, tock.
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