"mother of all debacles" M.O.D scenario: USD down. Oil will go down, in nominal terms, since it is priced in USD. Gold goes up to keep where it is in USD terms.
Currencies (Baht, CAD, AUD, YEN, GBP, Brazilian Real, Ringitt, Rouble, Euro, etc, etc) all will go up in tandem. A tide that will lifts all the boats outside the US. You see it happening right now!
The ones who'll suffer more are OPEC countries. They will see their income decrease, since they export in USD ad export in all those other currencies that lift all the boats. They can jack up the oil prices and USD terms, do like Gold does, go up just to keep the value.
USD transnational repatriate their profits from abroad and convert 'boat lifted' currencies and buy cheap USD.
We're beyond collapse. The rest of the world is not the tail. It is the dog.
The US is the biggest economy in USD terms. 13 trillion. 10% haird cut is 1.3 trillion cut on its way returning to natural size. |
