Clown-Free Zone... sorry, no clowns allowed Message Board

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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: RJL who wrote (183347)	7/25/2002 9:40:22 AM
From: Tom Smith	Read Replies (4) of 436258

I do. As I see it macroeconomically, global debt and the effects of deflationary excesses in manufacturing will at some point overwhelm all central banks ability to inflate the economy back to health. Greenspan is involved in a rear guard action in a effort to save an insolvent national and global banking system (his first directive) without destroying the currency (second, implied, directive). If he does nothing the deflation monster wins swiftly (as in the next half hour or so)....so he's been printing USD and dropping rates faster than any time in history...to no avail. The monster is very close now. However, he can't go too fast with the presses because the very banks he's trying to save have fucked him. Tens of trillions of derivatives written to short anything of possible value to shore up the dollar against other world currencies (and particularly, gold/silver) now have his hands tied. The more he tries to inflate, the more derivatives they write against him. So the world is choked with USDs and derivatives...conventionally thinking, at some point these derivatives will blow up....default on a massive scale ensues which "could" massively deflate the money supply....deflation wins and cash would be king (and everything else devalues, including gold). What is cash? It's our fiat money system, a global array of paper subject to free floating exchange ratios issued by the global banking system and backed by the confidence of the peoples using them. What if the confidence in one of these papers such as theUSD fails? We get on the express bus to hell. JPM bailed us out of one hell of a mess at the turn of the last century so we drank the kool-aid (sasparilla?) and turned the banking system over to 'em. Now that firm has boxed us in with what amounts to a form of economic blackmail. Play our game (plus 20%) or we crash the system. Bitch-slappin' these guys must be the only thing on Greenie's mind. So he plays along and tries to keep a straight face....but the world is waking up out of it's coma and recognizing that the system is corrupt and more importantly, vulnerable...let's see, fins to the left and fins to the right.....lotsa blood in the water. Someone else will have to write the hollywood ending where Greenie saves the banks, the USD and kills all the sharks....and gets home in time to take his Viagra and satisfy his lusty, urbane wife...I have exhausted my capacity for suspension of disbelief.

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