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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (3198)	9/2/2019 2:57:33 PM
From: Elroy Jetson	1 Recommendation Recommended By elmatador Respond to of 13878

Hong Kong possesses US Dollar assets worth seven times more than their total currency in circulation, and that sounds pretty impressive for the immediate future, even though most of this doesn't belong to the Currency Board. The US has US Dollar assets worth eighty two times more than their total currency in circulation. (US annual income is $19.4 trillion with $123 trillion of assets, but we have only $1.5 trillion of currency in circulation. Global US currency outstanding is 7.7% of income and 1.2% of assets. - and Hong Kong like most economies are just about the same.) Looking at the above figures Honkers says, "The HK$7.8 per U.S. Dollar peg is secure, but the US Dollar may implode at any moment." . . . Really? . . . Really? . A boy named Kyle said, "Honkers only has $120 to live on until next Thursday." But this doesn't include the $215 thousand Honkers has in his Pension Fund, or the paycheck Honkers gets on Thursday. So if Honkers is really hungry before Thursday, or he wants to buy a car, he can borrow against his retirement savings and spend as much as he likes - up to about $190k. But at that point Honkers is flat busted. . . . . Let's forget about Honkers buying a car with his pension fund. If a thousand wealthy residents of Honkers want to move their assets into US Dollar assets today, how many hours does 'US Dollar assets worth seven times more than their total currency in circulation' last? How many hours before Hong Kong abandons their peg of 7.8 Honkers to a US Dollar to stem the outflow? Knowing your savings will get far fewer US Dollars after the peg breaks, wouldn't you want to move into US Dollar assets today, before panic breaks the peg?