Posted on 09/05/2017 7:37:59 PM PDT by bkopto
Ok. So make your point
Value is created and maintained by continuously improving human productivity.
NOT STUFF.
One consequence of this is China and other countries would need a lot smaller dollar reserves and larger gold reserves.
Today when the DOW dropped 1%, gold jumped 1%.
I accept as an axiom that when something really cannot be done, that it therefore WILL NOT be done.
The US cannot by any means other than devaluing the dollar to a nearly worthless piece of paper make ‘good’ on its outstanding obligations.
Trump will NOT rescue the banking system nor the holders of US fiat currency in other lands by stealing nearly everything the middle-class have earned.
Trump is in office to oversee the bankruptcy of the US.. he is perfect for this role.
What I see happening is Trump somehow bringing back to America the vast holdings held overseas by US firms due to the huge tax hit they would take.
After that $ is safely inside the US system then bankruptcy can be started.
First create a new US dollar, backed by something, not just a fiat paper currency.
Immediately limit EXTERNALLY held wealth backed up by the old fiat US dollar by either not allowing it to be swapped at all for the new currency or at a low rate...say 10%
Internally held old US dollars could be swapped 1:1 for the new dollar.
This would be a US bankruptcy, many foreigners would be very angry with us, the creditors in a bankruptcy generally are pissed off.
There is no other way out.... when large debts and obligations cannot be paid they WILL NOT be paid...it’s really very simple.
There will be a LOT of very angry people...quite a few of them US citizens depending on overly generous private and government backed retirement systems that were always insincerely promised ... there is no way to avoid this...the value of much of the funds that could have sustained these was stolen and squandered by thieves.. simply to buy votes to retain power.
A large bankruptcy is always painful for those left holding the bag.
There is no way to save everyone, even deserving ones, from the effects of such a financial catastrophe.
This will all involve great danger, danger to Trump personally, and for the entire world because war may likely follow such a dramatic shakeup of world finances.
The bill always has a way of coming due :-/
Now that is a 'blow out' photo.
It has been nice while it has lasted: Americans printing dollars that we ship to China and elsewhere in exchange for real stuff that the Chinese and others work hard to produce and ship over here.
: )
Internally held old US dollars could be swapped 1:1 for the new dollar.
This would be a US bankruptcy, many foreigners would be very angry with us, the creditors in a bankruptcy generally are pissed off.
I've heard others hypothesize the opposite of the above. There is an international USD and a domestic USD. The international USD keeps its value, thus preserving international good will. The domestic USD will be subject to serial, imposed devaluations, ultimately devaluing it by 50% or more, maybe up to 75% (leaving you with 25% of your original purchasing power).
Thus, if this scenario is correct, be prepared to swallow some very unpleasant medicine. And stay away from the cities.
The greedy politicians and the dumbed-down, ignorant, stupified electorate that enables the politicians, will have killed the golden goose. But I believe that bankruptcy of the US is necessary in order to flush out all this current infatuation with socialism and all sorts of trivia which currently hypnotizes Americans.
And so often times, I reflect and find that I get too caught up in the "cares of this world" and " and the lusts of other things entering in." A careless word or thought, lust, selfishness, resentment, etc.
It is always the Holy Spirit and God's Word that convicts me. Almost every day, I find myself on my knees in the morning before coffee, asking Him to forgive me; and every single day, I ask Him to help me walk in righteousness.
Christ's words cut like the double edged sword described in Scripture. Just as they did when He uttered them 2,000 years ago on this earth.
China is hallucinating.
You think this means socialism will be weakened? I see the opposite if things go to hell. It would strengthen socialism if there is to be economic chaos.
What are the unpayable obligations?
I don’t know why you keep babbling here. No one ever makes replies to you.
Yeh too bad I didn’t think to post “Blow out photo” and “gold is up to $1340 woo hoo!”. LOL!
Well you and Datura make the good point. If we stop buying useless plastic chit from China they go into a downward spiral dragging the yuan with them. I think China has to create 120 million new jobs per year just to keep up with the birth rate.
Couple that with the fact that the only thing standing between the House of Saud and the Iranian mullahs is the US and the Saudis have passed peak oil while the US is literally swimming in the stuff and the US reserve currency is pretty safe.
Gold is going up because of jitters over North Korea and the likely looming economic downturn and stock market correction. Not because of China’s deal to purchase oil from the Saudis. The ChiCom’s are also buying all that coal we are exporting too.
Woo hoo! :-)
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