Shedlock seems to think that the dollar is “too big to fail”. History would say otherwise.
The dollar is not too big to fail. I cannot make any predictions about the nature of the failure. It may fall suddenly, gradually, or some mixture. The world will not accept $100 trillion new dollars dumped onto world markets. Many governments and traders are plotting to attack the dollar.
Our government bond markets are not transparent. Unfunded pension liabilities are deliberately hidden. Uncertainty over government bond markets has increased leading to predictions of major defaults. Phony government accounting has justified reckless spending. Federal government borrowing is by fiat. Despite inflationary pressures, government bond yields are almost nil and falling. Government bond yields have created another asset bubble since there is no reasonable place to park funds.