Swiss make short work with Euro

[ikalugin]

Well, won't it be beneficial to the US if China does drop all the depts of USA to China?

I mean that would certainly ease the financial pressure from the states.

[Stealhead]

Originally Posted by ikalugin

Well, won't it be beneficial to the US if China does drop all the depts of USA to China?

I mean that would certainly ease the financial pressure from the states.

Come again?

[Eichhörnchen]

I heard this story on the morning radio news a couple of hours ago: I think the UK deserves credit, too, for keeping away from all this Euro madness.

[Skybird]

Originally Posted by Eichhornchen

I heard this story on the morning radio news a couple of hours ago: I think the UK deserves credit, too, for keeping away from all this Euro madness.

They do not need the Euro to mess up further - their whole financial status is one big mess in itself. Well, almost every Western state suits that description, but still some have even bigger problems than others. This is what happens if you base such a major part of your economic fundament on banking business trading illusive value and debts only. Their deficits and debts are such that there is good reason of why some people say that if the UK would join the Euro, not Greece or France or Spain or Italy would be the most dangerous threat factor, but the UK.

Good ol' Mises. Its all there, can all be read, has all been proven by history since then, is all so damn true. Its just not what politicians want to hear, for it is bitter medicine, and advise countering politicians and showing what criminal jerks they are. Mises, Hayek - read them guys, read them. They were ahead of times and have forseen our situation today by several decades.

Instead, we have chosen for Keynes. What we get from that, serves us right. For he who chooses, is responsible for his choice. Foul excuses are not wanted, with sound reason even back then one could have seen where it would lead.

And then there is Japan.



They are "stimulating" themselves to death. Since decades. Works wonderful. Nowhere else money printers sell so well, they are a real stimulus to the economy.

[Skybird]

Originally Posted by ikalugin

Well, won't it be beneficial to the US if China does drop all the depts of USA to China?

I mean that would certainly ease the financial pressure from the states.

China will sooner or later abandon the Euro. That means a demonstration to the world about a massive loss of trust in the dollar, which is the only shaky ground that the dollar still is funded by: trust, misled because it is basing on false presumptions and misunderstood economical basis. Its like that with just any FIAT money: if the trust that you will get back the material hard value that is printed on the note, is gone, then that rings the death bell for that paper money.

When China starts to turn its back on the dollar, it is a snowballing avalanche racing down the mountain at increasing pace. All others will follow.

And one day the world will wake up and learn that they have gotten rid of much of their worthless US bonds they do not expect to ever get paid back from the US any. China still buys, mostly secretly, gold like crazy. Russia, despite its problems, also buys as much gold as it can get. India as well. And we talk not of EFTs and mine stocks, but physical gold. The demand is high both from industries and private consumers, and the states' central banks.

The Euro will die first, the dollar maybe at the middle of this century next, at the latest. And once the final chapter of it has been opened, things will all of a sudden slide extremely fast. Almost everybody will be caught on the wrong foot.

The dollar today - is just a big bluff. And central bankers seem to think that countries could spend themselves out of stellar debt burdens. That belief is not just an illusion - that simply is a complete shutdown of the human brain. As somebody recently put it: Fiat bankers are like eunuchs: they claim to know how "it" is to be done so so very precisely, but in fact they lack the deciding detail. And when you know that in the US pratci8ally every job in the finance business is more or less directly subsidized and massively influenced by the Fed and that Fed dogma is the daily bread and butter in the financial business, then it is no surprise that you only see Fed mantra singers in the media, in lobbies manipulating politics, and in practically every key node of the business world. Try to make a career from the starting line in the banking business, and see how far you get when you are not howling with the Fed wolves.

All this additionally to the purely practical collapses a turning away from the dollar will mean. You have seen what the Swiss step has meant to banks, fonds and financial institutions in many other countries around the globe, the massive change in the value of the Euro and Franken meant they could not fulfil legal obligations for maintaining own capital, they suffered tremendous losses in their book's bilance and they went bancrupt within half a day. They have disappeared from the market, they are dead, gone. And that was only little, tiny Switzerland!

The Swiss have decided that their losses due to having linked up to the Euro, ha dbeen enough, they had to constantly p9rjnt Franken in order to maintain that linlking'S exchnage goal, and by that the suffered own losses only for supporting the Euro illusion. That is why Euzropoe now is so angry at them: they pointed the fingertip into the wide open wound, the Euro. China also suffers immense losses due to its enormous heap of US bonds, that it has started to sell secretly already years ago, btw. And like the nSwiss the Chiense sooner or later will no longe rbe willing to suffer monumental own losses only to maintain the American fincial system. In America they seem to think that the Chinese will lose more if they do not support the dollar and US bond "economy" anymore. They will one day learn that they were wrong, and then the crying and the yelling will know no end. An end with terror is almost always better than a terror without end.

Until that day arrives, the big bluff will be gambled for until the final breath, without mercy, and any predatory raid against tax payers, any blackmailing and milking of property holders and productive people, and stealing from and robbing of ordinary people will be done, for the holy goal of keeping the illusions alive for as long as possible and delaying the judgement day until the end of current decision maker's careers so that they will not be hold responsible for their decisions.

[Tchocky]

Yield on long-term T-bills down to 2.5% from almost 4% this time last year.

A sign of increasing confidence in the dollar as a reserve currency, or just the product of an increasingly volatile globe?


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Then again the Fed issues T-Bills so we can't believe anything those eunuchs say anyway.

You might say I'm Fed up!

I'm so clever.