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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Amark$p who wrote (100634)	8/10/2009 6:57:29 PM
From: The Vet	4 Recommendations Respond to of 116555

a “New World Order” in global economics, they give few details of how this might be accomplished. The devil is always in the details... 1. This plan screws the Chinese, the Japanese and anyone else with reserves in US dollars or Euros (both would have to drop significantly). 2. It also look like a potential windfall for holders of real commodities and PMs. That couldn't be allowed, so they would find their carefully accumulated real wealth confiscated in advance for minimum value. "Hoarding" would become a serious criminal offense! 3. All savers and creditors lose; all debtors gain. 4. Insurance and future performance contracts of all types would have to be renegotiated. 5. Currency traders and banks engaged in currency trading become redundant. Some traders would face immediate bankruptcy. 6. Price controls would have to be implemented; initially for an "interim adjustment period" but like all temporary government measures they would tend to become permanent... 7. Social security payments, thresholds and taxes would need to be "adjusted" as would tariffs, import and export charges and quotas as well as industry subsidies especially for agriculture where their international nature would cause massive price and supply disruption. The chances of a smooth transition .... buckley's!

To: Amark$p who wrote (100634)	8/10/2009 7:29:59 PM
From: Elroy Jetson	Respond to of 116555

The scheme you found that someone posted on Oracle.com whereby nations around the world might agree to devalue only the U.S. Dollar assumes all industrialized nations would be happy to see American goods priced cheaper than their own - apart from the many disincentives pointed out by The Vet. The Great Depression created an answer to this nonsense called competitive devaluations where every other nation also responded in kind with their own devaluation which left no one better off. This is why the IMF implemented "Quantitative Easing" which was a global devaluation of all currencies through the creation of additional currency in order to prevent a rapid decline in price levels. Oh, you didn't know this already happened and you didn't notice its effects? Well you're soaking in it. No theatrics, no bank holiday, just more money created as the central bank buys debt. Quantitative Easing has prevented the price of gold from plummeting to $140 per ounce. It sounds to me as if some highly leverage gold investors are caught on the wrong side of a price decline in gold. .