To: Real Man who wrote (31707 ) 11/5/2010 5:48:06 AM From: westpacific 2 Recommendations Respond to of 71426 At this moment, I cannot give a precise time-line as to how long the FED and the global central banks can prolong the confidence game, hoodwinking the public and sovereign creditors that all is well. When confidence in banks evaporates for whatever reasons, the consequences will be ugly and there will be massive social upheavals across the globe. ************************************************************ The first indication that the game is up is when US treasuries are increasingly purchased by the FED to make up for the shortfalls by foreign creditors and to finance the ballooning US deficits. All of a sudden, some entities may start to get real nervous and unload the treasuries, and the FED steps in to shore up treasuries. Then, the tipping point is reached and Hell breaks loose! ************************************************************* When confidence in dollar assets vaporises, China will be caught right in the middle. The third and final phase of the Global Financial Tsunami will devastate Asian economies and with it, the greatest depression in history will ensue. Time Line? Between now and anytime in 2011. At the latest, 2012. God help us. Matthias Chang September 22, 2010 marketoracle.co.uk --- Caught this article from September and when I read it a light went off; it really sums up the gamble the FED is taking here and this whole thing could collapse overnight! Note the two lines between the stars which I highlight! He notes what a mess the banks are and I highlighted just this week that Hat Trick Letter goldenjackass.com heard HSBC in England was in deep crap....and could even fail. This guy; whom seems right on the money says as soon as FED buys our Debt the game is over; well we all agree on what QE 2 is right! Watch closely for a flood of selling or any news of this on Treasuries; look Bill Gross has stated he has been offloading hard! And remember the post I had yesterday on the group out of Societe Gen in France said Emerging Markets are going to lead us down and very soon...note this article agrees with this thinking! And also timing this is not going to be easy...it could breakdown overnight. West