Yes, one year passed and we live in a brave New World where
derivative Black Swans are no longer impossible, even
though the global system has been re-liquified to prevent those
in the immediate future.
So far printing is not a variable that moves currencies, but it
should, eventually. It certainly moved interest rates, and
not in the direction the Fed wanted.
This re-liquification should lead to a mild run on the dollar,
currently in progress... Perhaps, something similar to early
2008, only bigger. I think 80 will be taken out, and
so will 70, in due time. Of course, that depends on the
willingness of Europe to print. Since the ECB is ran
from Germany, the pound and the dollar will be mired in
the vast majority of Quantitative Easing.
A crisis is likely on the way when Western Governments,
Britain and the US in particular, are unable to borrow
cheap in the market.
History tells us once a Ponzi scheme starts to collapse,
that collapse becomes unstoppable. Derivatives are a global
Fed-supported Ponzi, they started to collapse. Enormous
steps were taken to stop it, but history tells us it
won't work.
The conclusion?
We should see the great unwind, either through expiration
of contracts or through Black Swans, or both. |
