Sun is setting on the US Dollar as the world's informal, reserve currency

[DMax]

This is how it could start. Back to the OP

Economics Professor: We Will Be Told Hyperinflation is Necessary, Proper, Patriotic and Ethical : Personal Liberty?

 

[EZLivin]

I hope he is right (hyperinflation). The alternative is worse. If he is correct this would be the first time in history that hyperinflation has occurred with a reserve currency though. Reserve currencies have always crashed and burned in a deflationary collapse and default. Still, as they say, "there is a first time for everything."

 

[DMax]

If we get Hyperinflation and these morons keep printing (Digitizing) then it will collapse. It would be the cloward Pivon move this prez is hoping for. Collapse the system by overwhelming it. At the rate he is going he could get it done before his term is over. I think the silence on this speaks volumes to the end game. While most people at this point are waiting for his term to end to fix the issues. That is all baked into the plan It will be to late then.

 

[Burt Gummer]

Dmax, you have to really admire the USA as a nation/corp economically.

I mean over the last fifty years, and especially the last eight, everything that can be done to sink this Titanic has been done. She's listing on her side, but not yet sinking. Simply amazing.

Another analogy I picture is that of a tough thick-skinned Rhino still breathing after being hit with a thousand spears.

Tic toc, yes, it is dying and our time is coming, but damn TOUGH NATION.

Of course it is not over until the Plutocracy says it is over. Only the top banker families know when they will pull the plug. I am happy they seem to be satisfied with the boiling frog for now.

 

[DMax]

Burt we are a tough nation What is missing is the toughness showing up to stop this direction mess. Unless some unforseen event happens that takes down the current regime polically then the path is set. It may take longer than we think which would provide more opportunities for fixes but I am still preppen not hoping for an everything will be OK moment. We are all going to be saying when this is over "When did that happen" 1% of what we see is not good how about the 99% we don't see.

 

[EZLivin]

...we are a tough nation What is missing is the toughness showing up to stop this direction mess...

I didn't really want to post another Armstrong commentary link since I posted a couple yesterday, but he has been on a roll lately. He is the best monetary historian I am aware of (and is excellent at applying it to present day circumstances) so I'll post one more since it is right on topic. It isn't long (just a few paragraphs). The topic is "MadMax vs Restructure."

"The future course of the United States will follow the same pattern. Pre-Revolution, you had separate states. That became the UNITED states in 1789. We will see a breakup of the states most likely banding together in regions because of the difference in cultural views such as the Bible Belt. The fight over Obamacare illustrates the stark differences and this is fundamentally wrong for it is forcing one groups interests upon another. There is no such thing as equal rights but money is the exception. We are all treated the same even in law (no exception for politicians and bankers) or we are not a nation of equal rights. You can’t be just a little be pregnant! The US will break up, but it should not go into a MADMAX event as long as we reach resistance from the people. If the people keep just watching their sports and never notice what the governments are doing to their future until it is too late, then it can go too far and that in the MADMAX event the ended the Roman Empire."

MADMAX v Restructure | Armstrong Economics

 

[DMax]

Just so I am clear Toughness does not mean physical war althought it could. It could mean standing up with your voice to say enough is enough stop paying taxes do whatever resistance is necessary to get to the goal. If it ends in a 1776 moment so be it. It's what happens when the leaders do not listen to the people. Happens everyday in other tyrannical countries. The difference is we are to far from believing the gov would even do this until its too late. Non of us grew up with those fears in other countries its a daily occurance. I for one don't want the US to break up based on ideology we already have one its call the UNITED States Constitution. That is worth doing whatever it takes to keep it or get it back to its original intent. Period

 

[Jammer Six]

Oh, stop paying taxes! Do that!

 

[Jammer Six]

Do such a thing in-mass, in-sync, all over the country, and I guarantee you that the powers that be will take notice.

Anyone who could orchestrate such an event would deserve to be king.

But you know what? It can't be done.

 

[U201491]

And, you were successfully self employed?
Surely you jest

:laugh1:

 

[Jammer Six]

LOL.

Apples & oranges, combined with ignoring one side of the ledger.

That was an amusing read.

 

[DMax]

<broken link removed>

 

[EZLivin]

Robert Fitzwilson at the Portola Group put out an interesting piece that offers a different take on the $US vs Euro/Yen/Yuan issue. If he is correct, we won't see a massive break in the $US (alone) at some point, but a continual slide the big 4, each of them grappling for position on the way down, with a final plunge in all 4 as the end nears.

"We conclude that what we are seeing is a “Beggar Thy Savers” phenomenon. Instead of currencies competing in relatively free markets and being allowed to weaken, the major currencies are really joined at the hip. If there is a race to the bottom, it will be like the skydiver teams holding hands all the way down. In this case it will be the Yen, the Dollar, the Euro and even the Yuan when that time comes..."

"...The game ends when the existing stock of money becomes worthless for all four players, and the winner is the one who accumulated the most real assets leading up to that point. This could very well be China’s true short-term intention. The real losers are the savers. Their accumulated capital is being debased at an exponential pace. The recognition of that debasement will be in the form of a precipitous decline in purchasing power at some future date when the currencies collapse in unison..."


<broken link removed>

(I wish I could figure out how to get those KWN links to say something other than "my blog" - because it isn't my blog.)

 

[Jammer Six]

It could be worse. We're in the Superbowl. So there's that.

 

[Grunwald]

Robert Fitzwilson at the Portola Group put out an interesting piece that offers a different take on the $US vs Euro/Yen/Yuan issue. If he is correct, we won't see a massive break in the $US (alone) at some point, but a continual slide the big 4, each of them grappling for position on the way down, with a final plunge in all 4 as the end nears.

"We conclude that what we are seeing is a “Beggar Thy Savers” phenomenon. Instead of currencies competing in relatively free markets and being allowed to weaken, the major currencies are really joined at the hip. If there is a race to the bottom, it will be like the skydiver teams holding hands all the way down. In this case it will be the Yen, the Dollar, the Euro and even the Yuan when that time comes..."

"...The game ends when the existing stock of money becomes worthless for all four players, and the winner is the one who accumulated the most real assets leading up to that point. This could very well be China’s true short-term intention. The real losers are the savers. Their accumulated capital is being debased at an exponential pace. The recognition of that debasement will be in the form of a precipitous decline in purchasing power at some future date when the currencies collapse in unison..."


<broken link removed>

(I wish I could figure out how to get those KWN links to say something other than "my blog" - because it isn't my blog.)

It has been going on for a hundred years.
Pull up a newspaper from 1914 and look at the price of items being advertised.
What is happening now is especially insidious because we have hidden inflation (by gov) and artificially depressed interest rates.
Savers are getting stealthly taxed on their wealth.

 

[EZLivin]

It has been going on for a hundred years.
Pull up a newspaper from 1914 and look at the price of items being advertised.
What is happening now is especially insidious because we have hidden inflation (by gov) and artificially depressed interest rates.
Savers are getting stealthly taxed on their wealth.

Agree. We seem to be in the end game of this cycle.

 

[Jammer Six]

Agree. We seem to be in the end game of this cycle.

A lot of gun owners can hardly wait.

 

[EZLivin]

A lot of gun owners can hardly wait.

Only if they are crazy. This happens about every 80-100 years and it is never a pleasant part of the cycle. The good thing is it is followed by period of great economic growth, often as result of new technology(s) coming online. In our case the technologies are on our doorstep, but to take advantage we need to survive as a viable entity. Unfortunately, the longer this implosion drags on the more pain it will produce, and the costlier (in terms of time and resources) the repairs will be.

 

[Jammer Six]

Only if they are crazy.

My point exactly.

You're badly confused about the cycle, and you sound like you're one of them.

 

[U201491]

40 'Frightening' Facts On The Fall Of The US Economy | Zero Hedge

http://www.zerohedge.com/news/2013-05-27/40-frightening-facts-fall-us-economy