Well I Told Yall 2022.

[tabs]

http://forums.pelicanparts.com/off-topic-politics-religion/974497-wising-up-chumps.html

Originally Posted by Black968 View Post
"Hey Tabs, do you see a US default sometime in the future? I cannot see your debt continuing on this path and interest rates staying low forever. The government has used up most of their options, except print more money."


Sooner or later gravity will prevail. When is the question? For some reason, probably not a good one I am thinking around 2022 give or take...For lack of a better term let us call it Astrology..the stars are lining up..(on Hollywood Blvd).

An interest rate spike would ruin every bodies day. As the cost of debt repayment would be unsustainable. The FED to date has bought or used proxy buyers when a short fall in Treasury sales has occurred to maintain a low interest rate environment.

As a last resort the FED prints money to juice the system or stimulate the flow of money through a system that is seizing up.

This in turn has created a lot of ill will among holders of USD and Bond Holders through out the world. Can you say China. It was real easy to see that US fiscal and monetary policy in 09 was going to alienate the Chinese. They, one thinks are beyond aghast.

To that end the Chinks have tried to get away from the falling giant as quick as they can without shooting themselves in the foot while doing it.

1. They roll over their US Treasury portfolio in shorter maturity bonds

2. They signed numerous trade deals where the USD is not the currency of trade settlement

3. They have started to build a Blue Water Navy to protect their shipping interests when the US navy will no longer be able to do so

4. They decoupled the pegging of Yuan from the USD

5. They bought a lot of Gold

6. They started a SE Asia investment bank to rival the American World Bank

7. . They have created an Oil Exchange where the Yuan backed by GOLD is the currency of settlement instead of the USD. Thus eventually rivaling the USD as reserve currency for the world. They have earlier called for a "basket of currencies" replacing the USD as worlds reserve currency.

8. They have announced that they want to build a world class military organization, and have been regionally territorial aggressive. You might say asserting their place in the vacuum created by a withdraw or loss of American power or prestige.

With the Chinese penchant for long term thinking and planning you can readily see that they are preparing themselves for not only an end of US hegemony (empire) but a fiscal and monetary collapse of America. The Chinese just might survive it if their Oil Exchange is up and running smoothly. This is a hopeful development for civilization.


The FED has come to the point where the printing of more money will be very deleterious to the health of the system...Without Reserve Currency status there won't be a reason to hold massive quantities of USD anymore and as such they will come out of the wood work to a detriment of the FED's ability to manage the US macro economy. That is the instrument of US destruction...game over America lost.

Americans eat garbage.
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Last edited by tabs; 10-19-2017 at 11:20 AM..