Posted on 04/13/2013 5:44:53 AM PDT by lowbridge
Thank Ben Bernake: He is actively monetizing the fedgov’s deficits.
Why should anyone care?
This is a smart move. When entering long term contracts, it is foolish to introduce a variable over which there is no control. The uncontrollable changes in the variable can adversely remove the goal of the contract, orderly conduct of business and profit.
Bernanke does what he's forced to do by the politicians.
With the rest of the world catching up, our ruling class will have to stop basing our future on stupid people.
While this is smart as it saves money and takes a step and a variable out of the equation for China it is about sidelining the US Dollar. Long term they are about making the US financially irrelevant.
Mel
Now countries are going to abandon the dollar one by one. Do you think that will wake us up?
Quite the opposite. Politicians, and the media, do what the central banksters pay them to do.
Sarah Palin is correct about crony capitalism. (which is really fascism lite)
http://www.breitbart.com/Big-Government/2013/03/16/Palin-on-Crony-Capitalism-You-Are-on-Menu-if-You-Don-t-Have-Lobbyist
Demand for dollars affects the purchasing power of dollars. Do you use dollars to buy things?
The U.S. dollar as the world’s reserve currency is headed for the trash can. When enough countries do what Australia/China just did, the Fed will be unable to continue printing money like a madman. The only reason it’s been getting away with propping up the federal government’s deficit spending by printing more and more dollars and injecting them into the world economy has been precisely BECAUSE the U.S. dollar has been the world’s reserve currency. When that distinction is lost, we will see a major domestic economic meltdown leading to civil breakdown, all fueled by rampant hyperinflation the likes of which has never before been experienced by Americans. It’s not business as usual anymore.
We are watching WW3 of currency wars, ironically the battles are conducted by nuking your own currency! Then the opponents need to nuke theirs to stay alive. It is a race to the basement all to keep the too big to fail banks afloat.
The way things are disentegrting we might be better off switching to Bitcoins.
Pathetic.
It must be noted that Australia has not abandoned the US$. Australia has said that the very specific case of trade with it’s largest trading pardner will not involve the unneeded third party currency restriction.
Russia dealing directly with China without the dollar, now Australia...
This is not good for the US.
No, because it has reached a majority of people who either don’t care, even know it is happening or don’t understand the consequences of it.
Trade from afar will break down, you can count on having to deal with that until a viable alternative is agreed upon and enters broad enough circulation to serve as a useful medium of exchange. Until then, you might find that increasingly isolated communities agree to agree upon just what the value of “their” currency is among themselves. It'll continue to “spend” long after it should have been regarded as worthless.
Out and out barter or exchange via precious metals whose value will be debatable, with those holding it wanting to exchange at the actual greatly inflated rate of reality and those who have food or other necessities unable to accept those terms, will be a problem. It's still unstable.
Perhaps not, but IMHO this is a warning sign that things aren’t going in the right direction.
Malarky. They are totally abandoning the USA. Let’s see how much China helps them, or even gives a crap about them. They are only about the oil.
“Why should anyone care?”
Probably no one, except the aussie’s. over 90% of their population lives within 100 miles of their east coast. Meaning that China is licking its chops at the prospect of using some of that vacant land - as is India btw. Sooo, if I were the Aussie’s I would be careful about cozying up to close with the Chinese. How does Esops parable about The Farmer and The Snake go? “Well, you knew I was a snake...” Something like that :)
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