tisdag 3 januari 2012

“We Are Going To Kill The Dollar”

Investor Kyle Bass discloses his discussion with a senior Obama admin about how this economic crisis is going to
play out. The answer is to export our way out of this mess by making our exports cheaper by destroying the dollar in a global game of currency devaluation. This simply means that they are going to print more and more dollars until all of your purchasing power is destroyed and you will need more and more dollars to buy the same amount of goods. (ie. Massive Inflation.)

World’s Biggest Economies Face $7.6 Trillion Debt

Led by Japan’s $3 trillion and the U.S.’s $2.8 trillion, the amount coming due for the Group of Seven nations and Brazil,Russia, India and China is up from $7.4 trillion at this time last year, according to data compiled by Bloomberg. Ten-year bond yields will be higher by year-end for at least seven of the countries, forecasts show. Investors may demand higher compensation to lend to countries that struggle to finance increasing debt burdens as the global economy slows, surveys show. The International Monetary Fund cut its forecast for growth this year
to 4 percent from a prior estimate of 4.5 percent as Europe’s debt crisis spreads, the U.S. struggles to reduce a budget deficit exceeding $1 trillion and China’s property market cools.

Basically there are only two ways to try to solve this humongous debt problem. One you either write of all debt - and that's then exit to our financial debt based system as we know it, or you try to inflate your way out of it.

In order for the first to happen you need systemic change, and then really a total new system change not the Obama fake "Change" nonsense and that then means not only a good buy to our financial system as we know it but in fact a good buy for good for all the institutions today supporting our current political system. Best guess is that is what is going to happen but that it will require some real effort and that it will take time.

In the mean time trying to inflate your way out of what then truly is a deflationary issue can only happen if you’re the only one trying to inflate. Given the ongoing and worldwide currency devaluation process that’s not going to make any significant difference in regards of getting of a debt burden. In fact what we now may see is e.g. China devaluation their currency within a not too long timeframe in order to try to adjust to weaker exports as both domestic as well as international consumption is about to shrink even further. Evident then that devaluation the dollar in such a scenario will lead nowhere.

Then and until real systemic change will happen and as the devaluation battle of fiat currencies ww continues what is needed to clear out the debt and get the economy going is a real "cleansing" war effort. That clearly now by the ruling elites the preferred short term "solution". People like e.g. Foreign Minister in Sweden Carld Bild is actively promoting this idea as is in fact everybody with the ambition to be part of the current political and financial system. As an example you cannot claim to be a serious contender for any candidacy for the US presidency if you’re not arguing "we need to bomb Iran".

Now were on the verge of trying at least to get rid of some of the debt and currency issues by killing of Iranian children, women.

In the meanwhile real systemic change is what will happen. Only question is what will replace it? Watch our for people promoting "Democracy" when what in fact what is desperately needed is real "Rule by Law". The ongoing process now in the "developed" economies is "privatization" in a process promoting nothing else than oligarchy.

What is in store for us in 2012? Will the revolts turn into real revolutions? And what impact will it have on the economy? Will the year 2012 bring a second term to Barack Obama? And will the euro survive? Peter Lavelle is joined by Mark Levine from CA, Mark Levine from DC and Jeffrey Sommers.

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