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Strategies & Market Trends : The coming US dollar crisis
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To: carranza2 who wrote (16230)1/11/2009 11:08:30 AM
From: Real Man1 Recommendation  Read Replies (1) of 71456
 
The collapse started and brought down a few large derivative
players. The Fed and the treasury have propped the derivative
markets ever since 2002-2003 (this is way too late for the
actual timing when it all started; 1987 is more like it;
but... in 2002-2003 this became the core of US/treasury/Bush
policy - prop the markets by timed liquidity injections into
derivatives so the economy recovers, a fake recovery at
best and a Ponzi finance economy) and never stopped
propping it, so it all happened despite the
Fed. Yes, they took the counterparty risk. 9 Trillion or so.
The inevitable? The Ponzi scheme collapses, takes down all
the guarantors, the Fed and the treasury, and that IS the
currency run mentioned in the head of the thread. The whole thing
was NOTHING NEW under the sun. It was a continuation of
complete idiocy that led us into this mess. The monster got huge,
and required a lot more feeding.

Without that the
whole house of cards would be down already. The known fact
about Ponzi schemes is that fast growth is absolutely required
or the Pyramid collapses. Thus, even a 5% decline is the
beginning of collapse. The collapse just happened in a
part of the universe, the CDS. The bulk is being supported
by the treasury bubble. Fed sets rates and monetizes the
curve to NOT let the thing unravel.
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