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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 366.54+1.2%Nov 5 4:00 PM EST

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To: John Vosilla who wrote (135339)8/30/2017 2:55:16 PM
From: Elroy Jetson  Read Replies (1) of 217545
 
If the Bank of China didn't keep expanding their money supply at such a rapid clip their entire economy would collapse leading to riots in the streets and a revolution as China's unsustainable economy ratchets back, reducing most incomes by 65% as China falls back to it's natural economic size.

Bad loans have been made good by China's bank's exchanging unpayable loans for ownership of previously state-owned companies. With bank assets tied up in dead assets, the Bank of China obligingly greatly expanded the money supply so lending can continue in that country. Sensible Chinese citizens have sold all of their holdings in China's businesses and bonds and acquired bags of rice and gold coins in expectation of the collapse of their economy.

In other nations around the world the impact of reducing monetary growth would be far less damaging but still not pretty. Yet most commodity prices are just beginning to show some sign of balance between supply and demand while other commodities still lie mired in a decade-long economic depression.

Russia's entire banking system is on the verge of collapse with banks runs across Russia as customers withdraw their meager savings and place their currency in what they believe are safer hiding places.
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