OT: Countdown: Three Weeks to Chaos

[NotCranky]

CA renter,
Very interesting.
Tres interesant.
Muy interesante.

It is an interesting idea. A region with unequivocally mutual vital stake in affairs, that is bordered by the Arctic, various oceans and perhaps a tiny land strip border, in the vicinity of Costa Rica.Probably at least inclusive of the Panama canal.( I imagine a few more Latin American countries would comply with the conspiracy).

If you are reading, what do you think Allan from Fallbrook?

[stockstradr]

But it is also possible that it would happen very suddenly, without all involved parties holding hands.

I agree. Good point. The dollar could become unseated very suddenly, losing its stance as the world’s currency.

Here is a question I have been pondering for years:

A typical nation can generally manage the value of its currency because the vast majority of its currency is within its own borders, or at least under its control. However, with the Dollar, the situation is more complex.

In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?

It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?

[stockstradr]

But it is also possible that it would happen very suddenly, without all involved parties holding hands.

I agree. Good point. The dollar could become unseated very suddenly, losing its stance as the world’s currency.

Here is a question I have been pondering for years:

A typical nation can generally manage the value of its currency because the vast majority of its currency is within its own borders, or at least under its control. However, with the Dollar, the situation is more complex.

In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?

It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?

[stockstradr]

But it is also possible that it would happen very suddenly, without all involved parties holding hands.

I agree. Good point. The dollar could become unseated very suddenly, losing its stance as the world’s currency.

Here is a question I have been pondering for years:

A typical nation can generally manage the value of its currency because the vast majority of its currency is within its own borders, or at least under its control. However, with the Dollar, the situation is more complex.

In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?

It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?

[stockstradr]

But it is also possible that it would happen very suddenly, without all involved parties holding hands.

I agree. Good point. The dollar could become unseated very suddenly, losing its stance as the world’s currency.

Here is a question I have been pondering for years:

A typical nation can generally manage the value of its currency because the vast majority of its currency is within its own borders, or at least under its control. However, with the Dollar, the situation is more complex.

In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?

It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?

[stockstradr]

But it is also possible that it would happen very suddenly, without all involved parties holding hands.

I agree. Good point. The dollar could become unseated very suddenly, losing its stance as the world’s currency.

Here is a question I have been pondering for years:

A typical nation can generally manage the value of its currency because the vast majority of its currency is within its own borders, or at least under its control. However, with the Dollar, the situation is more complex.

In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?

It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?

[Arraya]

“It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?”

You hit the nail right on the head.

IMO, one of the most important financial pieces done in a while. This is why Cheney said “Deficits don’t matter”, unfortunately for us the world is starting to think otherwise.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

economy needs oil. Dollar hegemony separates the trade value of every currency from direct connection to the productivity of the issuing economy to link it directly to the size of dollar reserves held by the issuing central bank. Dollar hegemony enables the US to own indirectly but essentially the entire global economy by requiring its wealth to be denominated in fiat dollars that the US can print at will with little in the way of monetary penalties.

[Arraya]

“It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?”

You hit the nail right on the head.

IMO, one of the most important financial pieces done in a while. This is why Cheney said “Deficits don’t matter”, unfortunately for us the world is starting to think otherwise.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

economy needs oil. Dollar hegemony separates the trade value of every currency from direct connection to the productivity of the issuing economy to link it directly to the size of dollar reserves held by the issuing central bank. Dollar hegemony enables the US to own indirectly but essentially the entire global economy by requiring its wealth to be denominated in fiat dollars that the US can print at will with little in the way of monetary penalties.

[Arraya]

“It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?”

You hit the nail right on the head.

IMO, one of the most important financial pieces done in a while. This is why Cheney said “Deficits don’t matter”, unfortunately for us the world is starting to think otherwise.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

economy needs oil. Dollar hegemony separates the trade value of every currency from direct connection to the productivity of the issuing economy to link it directly to the size of dollar reserves held by the issuing central bank. Dollar hegemony enables the US to own indirectly but essentially the entire global economy by requiring its wealth to be denominated in fiat dollars that the US can print at will with little in the way of monetary penalties.

[Arraya]

“It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?”

You hit the nail right on the head.

IMO, one of the most important financial pieces done in a while. This is why Cheney said “Deficits don’t matter”, unfortunately for us the world is starting to think otherwise.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

economy needs oil. Dollar hegemony separates the trade value of every currency from direct connection to the productivity of the issuing economy to link it directly to the size of dollar reserves held by the issuing central bank. Dollar hegemony enables the US to own indirectly but essentially the entire global economy by requiring its wealth to be denominated in fiat dollars that the US can print at will with little in the way of monetary penalties.

[Arraya]

“It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?”

You hit the nail right on the head.

IMO, one of the most important financial pieces done in a while. This is why Cheney said “Deficits don’t matter”, unfortunately for us the world is starting to think otherwise.

http://www.atimes.com/atimes/China_Business/JG30Cb01.html

Page 1 of 4
CHINA’S DOLLAR MILLSTONE, Part 1
Breaking free from dollar hegemony
By Henry C K Liu

The vast expansion of US-led globalized trade since the Cold War ended in 1991 had been fueled by unsustainable serial debt bubbles built on dollar hegemony, which came into existence on a global scale with the emergence of deregulated global financial markets that made cross-border flow of funds routine since the 1990s.

Dollar hegemony is a geopolitically constructed peculiarity through which critical commodities, the most notable being oil, are denominated in fiat dollars, not backed by gold or other species since then president Richard Nixon took the US dollar off gold in 1971. The recycling of petro-dollars into other dollar assets is the price the US has extracted from oil-producing countries for US tolerance of the oil-exporting cartel since 1973. After that, everyone accepts dollars because dollars can buy oil, and every

economy needs oil. Dollar hegemony separates the trade value of every currency from direct connection to the productivity of the issuing economy to link it directly to the size of dollar reserves held by the issuing central bank. Dollar hegemony enables the US to own indirectly but essentially the entire global economy by requiring its wealth to be denominated in fiat dollars that the US can print at will with little in the way of monetary penalties.

[partypup]

“In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?
It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?”

Exactly. You’re not missing anything. That scenario is entirely plausible. How likely it is, we just don’t know. But it’s certainly possible.

Guys, I think what’s important to keep in mind is that we are in UNCHARTED TERRITORY now. Our recent (and distant) history no longer apply. The “rules” no longer apply. So it is virtually impossible to scoff at any scenario under these circumstances. As we move forward in the days and weeks ahead, we will almost certainly become roadkill if we act based upon our prior experiences and the rules we have observed for most of our lives. I think a Black Swan moment is at hand, and new rules for a new world are about to be laid down.

CA Renter, I wholeheartedly subscribe to your mother’s philosophy: bad things happen very quickly — or at least, too quickly for most to act in order to avoid the unfortunate consequences.

On a side note, I read something very interesting today by Jim Cramer, of all people, that tapped into something I’ve been gnawing on for months now. Can it really be the case that so many *intelligent*, *skilled* and experienced professionals in our government did not see the tsunami that was brewing in the unregulated world of derivatives and mortgage backed securities? I acknowledge that greed and political expediency can compel men (to do horrible things, but if I were a prosecutor I think a strong case could be made that the stewards who were placed in charge of our government to guide and protect the citizenry acted with extreme recklessness bordering on…intent to harm.

I don’t know if there are forces at work that are intent on destroying our financial system. But I am almost certain that destruction is unavoidable at this point.

Cramer: Feels like Financial Terrorism to Me

“It almost feels like financial terrorism. It feels like we are in a moment where there are institutions that are willing the destruction of our banks, institutions that want the nation’s financial system to fail.”

http://www.thestreet.com/story/10438230/1/cramer-feels-like-financial-terrorism.html?puc=newshome

[partypup]

“In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?
It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?”

Exactly. You’re not missing anything. That scenario is entirely plausible. How likely it is, we just don’t know. But it’s certainly possible.

Guys, I think what’s important to keep in mind is that we are in UNCHARTED TERRITORY now. Our recent (and distant) history no longer apply. The “rules” no longer apply. So it is virtually impossible to scoff at any scenario under these circumstances. As we move forward in the days and weeks ahead, we will almost certainly become roadkill if we act based upon our prior experiences and the rules we have observed for most of our lives. I think a Black Swan moment is at hand, and new rules for a new world are about to be laid down.

CA Renter, I wholeheartedly subscribe to your mother’s philosophy: bad things happen very quickly — or at least, too quickly for most to act in order to avoid the unfortunate consequences.

On a side note, I read something very interesting today by Jim Cramer, of all people, that tapped into something I’ve been gnawing on for months now. Can it really be the case that so many *intelligent*, *skilled* and experienced professionals in our government did not see the tsunami that was brewing in the unregulated world of derivatives and mortgage backed securities? I acknowledge that greed and political expediency can compel men (to do horrible things, but if I were a prosecutor I think a strong case could be made that the stewards who were placed in charge of our government to guide and protect the citizenry acted with extreme recklessness bordering on…intent to harm.

I don’t know if there are forces at work that are intent on destroying our financial system. But I am almost certain that destruction is unavoidable at this point.

Cramer: Feels like Financial Terrorism to Me

“It almost feels like financial terrorism. It feels like we are in a moment where there are institutions that are willing the destruction of our banks, institutions that want the nation’s financial system to fail.”

http://www.thestreet.com/story/10438230/1/cramer-feels-like-financial-terrorism.html?puc=newshome

[partypup]

“In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?
It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?”

Exactly. You’re not missing anything. That scenario is entirely plausible. How likely it is, we just don’t know. But it’s certainly possible.

Guys, I think what’s important to keep in mind is that we are in UNCHARTED TERRITORY now. Our recent (and distant) history no longer apply. The “rules” no longer apply. So it is virtually impossible to scoff at any scenario under these circumstances. As we move forward in the days and weeks ahead, we will almost certainly become roadkill if we act based upon our prior experiences and the rules we have observed for most of our lives. I think a Black Swan moment is at hand, and new rules for a new world are about to be laid down.

CA Renter, I wholeheartedly subscribe to your mother’s philosophy: bad things happen very quickly — or at least, too quickly for most to act in order to avoid the unfortunate consequences.

On a side note, I read something very interesting today by Jim Cramer, of all people, that tapped into something I’ve been gnawing on for months now. Can it really be the case that so many *intelligent*, *skilled* and experienced professionals in our government did not see the tsunami that was brewing in the unregulated world of derivatives and mortgage backed securities? I acknowledge that greed and political expediency can compel men (to do horrible things, but if I were a prosecutor I think a strong case could be made that the stewards who were placed in charge of our government to guide and protect the citizenry acted with extreme recklessness bordering on…intent to harm.

I don’t know if there are forces at work that are intent on destroying our financial system. But I am almost certain that destruction is unavoidable at this point.

Cramer: Feels like Financial Terrorism to Me

“It almost feels like financial terrorism. It feels like we are in a moment where there are institutions that are willing the destruction of our banks, institutions that want the nation’s financial system to fail.”

http://www.thestreet.com/story/10438230/1/cramer-feels-like-financial-terrorism.html?puc=newshome

[partypup]

“In other words, if the trillions of dollars floating around the world are suddenly dumped by foreigners and traded into Euros/Gold/RMB/Swiss Francs….then WHAT CAN the Fed do to prevent the collapse of the dollar?
It seems to be that in that scenario, the value of the dollar would collapse. What am I missing?”

Exactly. You’re not missing anything. That scenario is entirely plausible. How likely it is, we just don’t know. But it’s certainly possible.

Guys, I think what’s important to keep in mind is that we are in UNCHARTED TERRITORY now. Our recent (and distant) history no longer apply. The “rules” no longer apply. So it is virtually impossible to scoff at any scenario under these circumstances. As we move forward in the days and weeks ahead, we will almost certainly become roadkill if we act based upon our prior experiences and the rules we have observed for most of our lives. I think a Black Swan moment is at hand, and new rules for a new world are about to be laid down.

CA Renter, I wholeheartedly subscribe to your mother’s philosophy: bad things happen very quickly — or at least, too quickly for most to act in order to avoid the unfortunate consequences.

On a side note, I read something very interesting today by Jim Cramer, of all people, that tapped into something I’ve been gnawing on for months now. Can it really be the case that so many *intelligent*, *skilled* and experienced professionals in our government did not see the tsunami that was brewing in the unregulated world of derivatives and mortgage backed securities? I acknowledge that greed and political expediency can compel men (to do horrible things, but if I were a prosecutor I think a strong case could be made that the stewards who were placed in charge of our government to guide and protect the citizenry acted with extreme recklessness bordering on…intent to harm.

I don’t know if there are forces at work that are intent on destroying our financial system. But I am almost certain that destruction is unavoidable at this point.

Cramer: Feels like Financial Terrorism to Me

“It almost feels like financial terrorism. It feels like we are in a moment where there are institutions that are willing the destruction of our banks, institutions that want the nation’s financial system to fail.”

http://www.thestreet.com/story/10438230/1/cramer-feels-like-financial-terrorism.html?puc=newshome

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