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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (84794)	12/20/2011 9:30:19 AM
From: Hawkmoon	1 Recommendation Read Replies (2) \| Respond to of 218108

At present time everyone worships the US monetary system with the huge balance sheet of the US FED stuffed with substantial amounts of questionable paper obligation to pay, Haim, do you concur with the contention that the Fed has been primarily responsible for bailing out Europe? You do realize that Deutche Bank is leveraged nearly 60-1, right? How do they get away with that? "What is notable from the above table is just how massive foreign banks' USD-funded positions are, especially when viewed from the perspective of various GDP numbers. The 6 countries that make up the core of the Eurozone all have foreign dollar denominated claims which are well over 100% of their respective GDPs! These countries took on an amount of Dollar exposure that would take on a country's entire GDP to fund and then some. And the fact that they have done so with the complicity of the Federal Reserve is staggering and a clarion call for a global risk regulator which is distinctly separate from the US Fed, which prompted this intractable risk taking in the first place." zerohedge.com It has been my contention since the Spring of 2010 that the Fed acted to debase the USD out of concern for the Euro breaking down below 1.20. Certainly there were other reasons for QE 1/2, but preventing the Euro from falling beneath it's 1999 initial ratio against the USD strikes me as a compelling reason as well. And as bad as the US debt issue is, it's FAR WORSE in other developed countries like Japan >>"The Eurozone is teetering on collapse and it has been decades in the making. The cause of their problems is 1) excessive government spending leading to 2) excessive government debt coupled with 3) slow GDP growth. If we look at Household and Financial Debt in addition to Government Debt, the UK’s Debt to GDP ratio exceeds 900%. Japan is over 600% and Europe is almost 500% Debt to GDP. The U.S. is over 300%. In summary, Euro, Japan and the U.S. are drowning in debt. And a recent article from economists at the ECB that finds:"<< zerohedge.com So I hear a lot of US bashing about our stricken financial system. But when we look around, we're in a far better condition than most of Europe. Hawk