WHich is why its good to have your money in a Canadian Bank off shore. Even America's safe banks may not be, because the will be left holding skanky USDs while others hav e converted en masse because they were in the poltical timing loop 9 Citi-Corp, Bank of America, etc)
However the euphoria of Citi corp will be short lived ideed.
The Chinese mean to control the world economy, and they will control America's.
two currencies, it has to come.
from wiki:
Import Certificates are an idea for governmental economic intervention to fix a country’s trade deficit. The idea was first proposed by Warren Buffett. In the United States, the idea was first introduced legislatively in the Balanced Trade Restoration Act of 2006. The proposed legislation was sponsored by Senators Byron Dorgan (ND) and Russell Feingold (WI), two Democrats in the United States senate. Since then there has been no action on the bill.
[edit] Concept
Buffett’s plan proposes creating a market for import certificates that would represent the right to import a certain dollar amount of goods into the United States from other countries. These certificates would be issued to US exporters in an amount equal to the dollar amount of the goods they export, and can be sold to importers, who must purchase them in order to legally import goods. The price of an import certificate is set by free-market forces, and therefore ultimately is dependent on the balance between imported and exported goods through supply and demand.
Proceeds from the sale of import certificates would encourage exporters (who would gain that extra money in addition to the proceeds of their exports) and discourage importers (who would need to pay the additional cost to acquire import certificates as well as the cost to acquire the goods they are importing)
This system would essentially create a broad-based tariff on imports to the United States. Unlike traditional tariffs, however, this would not favour any particular industry or punish any particular country. Market forces would also keep the tariff at exactly the amount required to achieve trade balance, eventually eliminating it when it is no longer necessary.
As a theoretical concept, the idea could apply to other countries besides the United States, but Buffett argues that practical realities make it unlikely to succeed elsewhere. In particular, for any country which maintains a trade surplus the import certificates will be valueless.
I wouldn’t call the banks “Leftists,” I’d call them Internationalist or Trans-national. They don’t try to hide this; they promote and extol it.
It seems like a fair bet for the banks. But I wonder how it might fail? Surely I’m not the only one wondering about this scenario.
Let’s say people jump the gun, and purchase foreign currencies before the banks have a chance to convert: soon the banks are spending already de-valued currency— simple supply —demand comes into play and the payout diminishes.
There’s also inflation. If 0 thinks they were raising hell in Europe, he hasn’t considered what we could do. Leave people with nothing, and they have nothing to lose.
This hinges on a couple of questions: How quickly can banks convert the massive sums without triggering a panic? What are the legal constraints? What are they willing to dare? What if 0&co. wake up and and take full account of political and financial constraints?