If i drive the car and you rob the bank,4 months later when the cops figure it out,they offer me freedom if i give you up,so i' have something over you,but if i went in with you,i would be equally guilty..now if my country allows the trading firms and banks to go off shore and create illegal investment schemes and sell them for 50- 60 times thier worth,then have them collapse,and investigate and let everyone know that we fell asleep,or worse ,were in on it,the world would have us...on the other hand,if we print and get everyone else to print,then we are all in the same boat..now what do we do..well we could all default and go back to square one,pretend it was all monopoly money,have a good laugh/cry and start over.....everything would be fine except for the investors that lost and the criminal trading house and banks that created it...well we can't possibly pay anything back,and it would be foolish for the banks to pay for thier mistakes,especially if they are making the rules,why rule against yourself,and if we default we would lose face ,all our credit is built on this imaginary worth...so we create another scam....the p S uedo D olla R
Not at all. Real output (or consumption) can shrink dramatically while prices rise dramatically. That's a fundamental law of economics. Weimar Republic and Zimbabwe are two examples. Depressions don't have to be deflationary. They can be inflationary, too. The key metric is quantity of goods/services produced or consumed. Not the price value of it. Which is why our GDP numbers are bullshit. Because the deflator used to calculate inflation is way understated.
I think you hit the nail on the head. It's obvious this entire web of debt is run and perpetuated by criminals - both in Washington and Wallstreet - with shared interests. Which is why I see only one probable outcome - a dollar collapse, hyperinflation in the United States, and the emergence of an SDR. You're right. The criminals won't subject themselves to the courts. And frankly, the public is too dumb to catch on. So any meaningful change won't come until it's forced by the market, similar to PIIGS. What concerns me is the Anglo-Saxon banking alliance is too impatient even to let America die an (un)natural death. They intend to drive a fucking stake through our heart. Why? What's the rush? The announcement and timetable stinks to high heaven. It can no longer be reasonably argued the coming disaster can be chalked up to incompetents, fiscal mismanagement and corporate looting. This SDR move is a brazen declaration of war against the US dollar by the US and European Government. American economic supremacy and the entire global system depend on dollar reserve status. After pushing us closer to the abyss for two decades while feeding us bullshit all the while - creating foreign markets for exports, bubble growth is real growth, and socialized bank losses for "Stability" - now, they finally got us hung over the cliff and just said, Ya. We lied to you. You're going over. Of course none of this is for public consumption because the public is financially illiterate and dead to the world. This IMF announcement was for those in the know, who can read a balance sheet and understand the economic landscape. Anyway, this was a coming out. Now that they've declared a conscious, willful intent to destroy America, what's next? Martial law? A nuke going off in California? None of this ends well. 2008 will be nothing compared to a run on the dollar. And look where U6 is even after all the wanton printing to jump start this battered economy. We are in serious, serious trouble.
France leads the G20 charge to end USD reserve status. France, as current head of the Group of 20 countries, will help the transition to a global financial system based on 'several international currencies', French Economy Minister Christine Lagarde said today. http://www.rte.ie/news/2011/0214/g20-business.html At this rate of deficit spending, I thought the greenback had 4 to 5 years before a run. Seems the international cabal of traitors plan to force the issue much sooner. We could see a collapse within 18 to 24 months, depending on how quickly they implement SDR's as a fully convertible, debt-backed instrument. America is done, folks. I hope all you Americans reading this understand what's about to happen and make preparations for your own safety and welfare. 200$ barrel oil looks cheap. And 25 dollar bread might be about right. 2 years ago I posted articles that featured a newly appointed T Geithner who made intimations USD reserve status was obsolete and a liability to the international community. Traders here laughed at the prospect of America abandoning dollar supremecy. Now here are. Not so fucking funny now, is it?
The US has 16.5% voting power in IMF. The bylaws stipulate 85% required to pass certain types of resolutions. The basket calculations comprising the SDR is fixed for 5 years... this seems like an insanely long time. This SDR reform push is recent.. 2011, appears the rest of the world is not happy about us turning on our printing presses. The US is banking on the heavily dollar weighted SDR basket allocation to remain fixed until 2015. The first step and biggest hurdle is underway and that is to allow creation of negotiable SDR backed instruments. Once authorized and created countries can simply counter our treasury QE moves by adjusting their currency rates pegged to the SDR. At the present moment in time they can do nothing... The US has got everyone by their short hairs. These changes are going to happen in a matter of weeks and severely impact the value and use of t-bills.
A matter of weeks??? Care to elaborate? .... I take exception to the inference America opposes SDR-backed debt as a replacement to dollar status. Clearly, they don't. And if they did, America has a sufficient voting interest to block a supramajority. I assume the only way SDR-backed debt can pass is if America votes in favor it? And I say that based on the information you provided. Personally, I don't know if IMF voting interest is directly proportional to each nations currency quota.
From reading: http://www.imf.org/external/np/pp/eng/2011/010711.pdf Appears they are proposing a global settlement system. Page 29. A SDR clearing and settlement system, open to participants worldwide, would be a large value payment system, probably of the net type, as opposed to a Real Time Gross Settlement System, which would require high liquidity. Several settlement cycles during the day could be envisaged to reduce settlement risk and bring settlement finality during the day. From what i can interpret they have devised a way to implement without the need to pass any new resolutions. Essentially without the need for any vote.
This has always been the "planned" US Financial System takedown ENDGAME play! Set up the US into mathematically unending debt cycle (accelerated into an economic pullback) and then pull the rug out (US Dollar no longer the worlds reserve currency). THEY have the US now slumped over sitting down against a tree and a gun to our head (Central Banks handed us the gun). Our unending printing of the funny money is our own finger squeezing the trigger as we are about to blow our own head off.......financial death through SELF INFLICTED WOUNDS! :eek: