By Quietlike
Paper Con Game
MF Global could is the beginning of loss of confidence in the paper system. Sort of like online poker and Full Tilt, as in your money isn't secured, and depositors get screwed -but many still want to play online poker. However, I think the online poker industry is more reputable compared the financial sector's fraud.
There's a lot of people's saying we're heading toward collapse in both alternative and mainstream media, but could this be the tipping point? It's all a paper con game, and this could be a test of that confidence. How much confidence do you have in a bank when they "lose" depositor's money, and no one goes to jail. Or in an exchange that doesn't guarantee the transactions it facilitates? A run on the banks by investors at the same time as the EU implodes seems unlikely -they can still print and bail everyone out, and "save the world economy."
China's talking downgrading US debt. Gridlock in the super congress is awfully reminiscent of the first downgrade by S&P. The other two ratings agencies haven't done so yet, will they now? The USD has been rising vs the EU due to its debt problems, will this swing that pendulum back to the EU in the currency war?
Print
So.. QE3 from the Fed and QE1 for the ECB (Or ECB loans to IMF, who leverages it to the EU countries) to offset each other's currencies? This could kick the can down until 2013, election year and all the new regs and healthcare begins then. How do they pull it off with OWS going on? They passed TARP w/o peoples' approval, and can do it again. Maybe use war, or some sort of terrorism scare to sway the election, cover the paper game up, and shut down protesters -then collapse the system (and/or begin war) in 2013.
SDR
The alternative to QE is SDRs (which isnt much of an alternative) because what would the rest of the world do if the West just printed a shit ton of currency? If both the Fed and ECB are printing, what would you rather have -FRNs or Euros?
Just a thought.. in a hyperinflationary scenario, it could be done electronically on cards. Food stamps already are. It'd be a good way to introduce a new cashless currency -no wheelbarrows of worthless paper.
Revalue
Celente has been calling a bank holiday for a revaluation of currencies for some time, maybe after Black Friday and Christmas? Gold and silver may tank with everything else, but during a bank holiday, who will have physical cash to get it? -No online dealers, physical will be everything. Or if more MF Globals happen, say an investment bank or an exchange (COMEX), who will investors put their funds with? Even physical cash is better than a bank account, especially considering the low savings rate and inflation.
We've considered this before and its why we have physical. But are things really getting rolling and is collapse as soon as 2013?
dun dun dun...
Links
Quotes on Economic Collapse
http://theeconomiccollapseblog.com/archives/17-quotes-about-the-coming-global-financial-collapse-that-will-make-your-hair-stand-up
MF Global
http://market-ticker.org/akcs-www?post=197878
http://www.huffingtonpost.com/2011/11/19/mf-global-lawsuit-bofa-goldman-banks_n_1102779.html
Another Lehman
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/11/21_Turk_-_MF_Global_Disaster_to_Create_Another_Lehman_Crisis.html
Celente interview from before MF Global
http://geraldcelentechannel.blogspot.com/2011/11/gerald-celente-on-gold-devaluation.html
QE3 ready and waiting
http://www.forbes.com/sites/afontevecchia/2011/11/22/fed-minutes-bernanke-firmly-in-control-of-fomc-qe3-coming/
No comments:
Post a Comment