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Posts by "cat0nip"
1999 Posts Total by "cat0nip":
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Posts by Anonymous "cat0nip":
Or: does the FED really print greenbacks? No. It doesn't.
When will the FED's possession , USD cash, jump to infinite in value?
When all the virtual money becomes worthless. Then cash is mega king.
Those who stashed physical silver and gold will have to sell it for a handful of bucks.
Ferdinand Lips, the late Swiss banker, had warned of that : one day trillions of virtual money
will disappear in a black hole .
Lips had always favored gold backed currencies.
at this time one shouldn't trade one's opinions. Only trade trends. Some believe Bernanke Trichet etc. don't understand what they are doing, but it could also be the market doesn't understand what those guys are planning. Position trading is over.
a few days after ECB member Stark babbled "strong Irish economy" Ireland lowered GDP outlook
and its ability of pay back bailouts became as questionable as it has always been for those who can do basic arithmetics. Ezone banking system requires more ECB blood transfers and Greece is bankrupt. Spain and Portugal GDP falls, Italy industrial production falls, inflation explodes.
Wait and see which currency the undertaker buries first. My bet stands: the Eur will be long forgotten when the dead USD rallies.
and with mathematical precision at some time the bet is right. This holds as long as one ( or more) currencies don't default and disappear.
hike wages 15%
revalue RMB 10%
and now reduce US reserves by 2/3...
I think there is only one action
free float of RMB
and
hang the criminal princelings higher
hard to believe ...
if RMB is appreciated 2- 5% to the USD the reserves and UST assets will also lose 2-5% in RMB.
This doesn't make sense thus the most probable consequence is USDx raises also 2-5%. If that is so, China makes after all an effective move to quell inflation. Commodities would drop significantly.
saving Ezone banks. No restructuring no haircuts. Since these bailout after bailout is the very same as QE ( but with the difference that it isn't clear how much more bailouts will be needed)
the fx markets bet on a series of rate hikes. Of course the transfer union finds broad support
in the PIIGS ..but nowhere else. Thus the thread the EUR hangs on is much thinner than the USD support. It is clear FED must continue to monetize US treasuries, it is also clear that the US cannot default as it is indebted in its own currency. But US banks don't hold US treasuries while Ezone banks are full to the brim with PIIGS debt. Thus EUR can default from within.
As GS called for oil 200 when it was 150 it fell to 40... russian oligarchs went belly up and GS
raked in... I guess silver will top 50 before it reverses sharply.
More important are protests in China against inflation food and gas, and wages too low.
Apparently a chain of RRRs and hikes had no effect. China has still no matter what China bulls say, no domestic market. The paper tiger will soon be done.