天下縱橫

隨筆而已。不必當真。
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The next crisis, currency.

(2010-10-14 14:51:17) 下一個
So as the foreclosure crisis is unfolding, one has to ask what is next to save the banks. I know the TBTF banks will be saved, with the prices of hyperinflation. So QE2, being cooked by Federal reserve bank, has long aimed at the foreclosure crisis. The bankers knew this crisis, FRB knew this crisis, government knew this crisis long time ago. They only wished to cover it up from public eye.

The solution, the only one in policy maker's eye, is to liquidate the liabilities banks have, i.e. QE2 in the price of dollar devaluation. FRB will flood banks to cover the liabilities and credibility of USD will tank. The end game is hyperinflation, after we experience market crash.

We have a lot of people do not want to hear the bad news. They cover their eyes to pretend that nothing is going to be wrong. They blindfold their eye with believe  that Wall Street will heal itself.

Hello, does one really believe the greedy bunch from Wall Street and Politicians in to government can sacrifice themselves to save average American people? The answer is clear unless one wants to have blind faith on them after a sequence of failures of their handling the financial policies.

As far as I recall, I have not seen a sound monetary policy since Volcker years. So the crash train is heading our way.

As Bernanke said in his earlier paper "make sure the depression will not happen under I". We know for sure the quantitative easing is the only thing he knows.

Just be prepared, food shortage, energy shortage will occur when currency crisis hit. How far away will this happen?
A: As soon as FRB implement QE2/QE3, it will trig the currency crisis. Gold movement is telling investors that smart money is moving out of fiat currency system, it is that simple.



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天下無馬 回複 悄悄話 好象我也可以寫得出這樣的文章吧? :)

Almost all writings on this blog is my own...
zytang 回複 悄悄話 這篇文章寫得太好了,太好了,
就是沒有出處
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