Home > Finance and money > Wall Street fiddles whilst the US burns

Wall Street fiddles whilst the US burns

A few weeks back Max Keiser wrote a piece about how a “complete disregard for the rule of law is at the heart of the issue as to why the U.S. dollar is selling off. There are simply no rules against counterfeiting, insider trading, and market manipulation at every level of the banking system including the Fed and the Treasury”

This was echoed by an article from Jim Willie called Deflationists and blind eyes:

“As long as the insolvent big US banks remain in operation and are not liquidated, as long as toxic paper repositories rest under the USGovt roof, as long as the USGovt deficits remain well above $1 trillion annually, as long as Quantitative Easing legitimizes the debt monetization without checks, the GOLD PRICE WILL RISE INDEFINITELY. It is that simple.”

We can’t have deflation without debt destruction. And so far there has been no appetite for debt destruction anywhere in the world.

So what on earth is going on?

It seems that the answer lies in a recent IMF Bombshell:

“According to the latest IMF official forecasts, China’s economy will surpass that of America in real terms in 2016 — just five years from now.”

That’s not long at all. No-one in the mainstream media is communicating the extent of tectonic shift that is taking place in the murky world of haute finance.

The US will very soon lose world reserve currency status (along with monopoly pricing of oil in dollars too). And this will be a profound change to the world order. Only a small number of people understand or appreciate this, and they are plundering the public purse in nervous anticipation.

Wall Street fiddling, whilst the US burns.

And the UK is likely to get more than it’s fingers burned too.

———————

Post script: A slightly lengthy article by FOFOA gives a flavour of what could happen to the dollar. FOFOA foresees a hyperinflation scenario to socialise losses:

“Ultimately, every penny of every debt must be paid — if not by the borrower, then by the lender.. Inflationists and deflationists implicitly agree on this point… we differ only on the question of who, borrower or lender, will take the hit.. someone will pay. But there is a third option that is missing…the hit can be socialized. Human nature has followed this path for thousands of years. You know the old joke about outrunning the bear? Well, these lenders will influence our financial policy as such. They will try to get their debt securities liquefied first, spend the fiat and in this process outrun you and I. Leaving anyone they can beat to the mercy of the hyperinflation bear eating their remaining fiat assets…”

Those in the know then will likely acquire land, resources and physical precious metals (such as Gold & Silver) whilst the fiat valuation is heavily supressed. A legalised land grab right under our noses.

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Categories: Finance and money
  1. July 28, 2011 at 10:38 am | #1

    Further supporting analysis of the impending inflationary debt write-off:

    http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/7/27_Peter_Schiff_-_Expect_Tremendous_Global_Inflation.html

    Schiff’s prediction record is reasonably sound (well sounder than neo-classical economists anyway).

  2. August 4, 2011 at 12:19 pm | #2

    More signs of dollar weakness:

    “The Treasury Borrowing Advisory Committee… said the outperformance of haven currencies and those from emerging nations has aided in the debasement of the dollar’s reserve status”

    http://www.zerohedge.com/news/wall-street-warns-tim-geithner-dollar-staring-lose-its-reserve-status

  3. September 7, 2011 at 5:28 pm | #3

    Perhaps the deflationists and inflationists are both right!

    “Priced in gold, it is cruelly obvious that we are in a deflationary depression.”

    http://azizonomics.com/2011/09/06/america-priced-in-gold/

    So paper currency is inflating away it’s value, whilst real purchasing power is steadiliy declining leading to covert demand destruction. This is little more than debt deflation for the uber-wealthy and savings destruction for the rest of us.

  4. September 19, 2011 at 8:15 am | #4

    “There have been 28 episodes of hyperinflation of national economies in the 20th century, with 20 occurring after 1980….Bernholz analyzes the 12 largest episodes of hyperinflations – all of which were caused by financing huge public budget deficits through money creation. His conclusion: the tipping point for hyperinflation occurs when the government’s deficit exceed 40% of its expenditures.”

    http://seekingalpha.com/article/293312-hyperinflation-and-the-fiscal-case-for-gold

  5. Anonymous
    March 14, 2012 at 10:51 am | #5

    “the differences between deleveragings depend on the amounts and paces of 1) debt reduction, 2) austerity, 3) transferring wealth from the haves to the have-nots, and 4) debt monetization. Each one of these four paths reduces debt/income ratios, but they have different effects on inflation and growth. Debt reduction (i.e., defaults and restructurings) and austerity are both deflationary and depressing while debt monetization is inflationary and stimulative.”

    http://www.zerohedge.com/news/presenting-bridgewaters-weimar-hyperinflationary-case-study

  6. May 31, 2012 at 7:51 am | #6

    The Dollar demise is building pace:

    “All of this suggests a global crash or proto-crash will be followed by a huge global money printing operation, probably spearheaded by the Fed.”

    http://www.zerohedge.com/news/guest-post-enter-swan

  7. Anonymous
    October 3, 2012 at 7:45 am | #7

    “a large portion of the Western central banks’ stated 23,000 tonnes of gold reserves are merely a paper entry on their balance sheets – completely un-backed by anything tangible other than an IOU from whatever counterparty leased it from them in years past.”

    http://www.zerohedge.com/news/2012-10-02/eric-sprott-do-western-central-banks-have-any-gold-left

  8. October 30, 2012 at 8:32 am | #8

    More confirmation of the “inside job” by Hank Paulson back in 2008, by Reuters no less:

    “Paulson was giving inside tips to Wall Street in general, and to Goldman types in particular: exactly the kind of behavior that ‘Government Sachs’ conspiracy theorists have been speculating about for years. Turns out, they were right.”

    http://blogs.reuters.com/felix-salmon/2011/11/29/hank-paulsons-inside-jobs/

  9. Russell
  10. August 5, 2013 at 11:59 am | #10

    China’s long term aims of displacing the dollar are laid out in this piece on Zerohedge:

    http://www.zerohedge.com/news/2013-08-04/did-china-just-fire-first-salvo-towards-new-gold-standard

  11. Anonymous
    November 12, 2013 at 9:36 am | #11
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