We’ve all had time to digest the graphs from Sprott, Denninger and others which lay out the path of exponential U.S. debt growth at it’s present rate. “Unsustainable” is the most widely used term, a word which has become the opposing mantra to such spin-phrases as “green shoots”.

But if US debt was denominated in trillions of yen or pesos, that would be no hill for a climber, right?

Ahhh, much too simplistic you say. That can never be the case, as foreign countries would never stand for such an insidious debasement of their trillions in dollar denominated holdings. The dollar will continue to be propped up by the same artficial forces that inflate the entire (hopelessly insolvent) dollar denominated global monetary system.

Ahhh, perhaps not, I say. For after all, this is what the IMF and BIS are here for, as we turn the corner on the “New World Order” of global, “communal harmony” under the iron boot of Corporatist Fascism. It could be the IMF who rushes in to save the world, so betrayed by the “full faith and credit” of the United States and their stacked deck of poisoned dollars. Perhaps it will be a temporary auction swap of dollar denominated debt for SDR’s at sixty to one or a thousand to one. 

Perhaps the newly granted powers of the BIS Financial Stability Board (which Obama has embued) will usher in a recommendation–no, make that a mandate–that the IMF somehow mitigate the consequences of worthless foreign debt holdings. We don’t know if, how or when such an action might take place, but riddle me this– how else does this unsustainable path, at the current rate of bailout lunacy, and in the current political climate of partisan stalemate play out?

Let’s just suppose for example that the insane currency debasement practices of the internationally governed U.S. central bank –the FED–does indeed debase our currency to the point that it not only permanently replaces the yen as the defacto currency of the carry trade, but that the pressure of the carry trade, guaranteed long-term 0% interest and other egregious currency mismanagement practices ends up in a hyperinflationary blowout. Do you really think there’s no plan in the works to protect the entire global monetary system from complete systemic collapse?

Ladies and Gentelemen, we have one scenario where the entire world collapses and one where the United States collapses. Which is more likely?

But if dollars become worthless, you say, the U.S. still can’t fight it’s way out of debt because it’s gross domestic product will still be denominated in worthless dollars, so the unsustainable path remains unsustainable, just with the grossly lowered “relative value” bar of any third world country. Ahhh, but how about a forced sell-off of national assets. Dollars may become worthless, but land, natural resources, buildings and gold are not:

Joseph Stiglitz, former chief economist for the World Bank, charges it with ensnaring Third World countries in a debt trap from which they cannot escape. Debtors unable to pay are bound by “conditionalities” that include a forced sell-off of national assets to private investors in order to service their loans.  

Pardon me for being such a foolish simpleton, but the scenario where the average middle class American buys a loaf of bread with a bi-weekly paycheck coming from a foreign owned company for which he works seems more likely to me than one where the entire planet is reduced to Afghanistan.

But I’m more than open to the more sophisticated predictions of graduated sustainability out there. Please submit them to me so I can better understand our survival plan amidst the backdrop of a nuclear powered Islamic middle east, whose oil reserves derive continued support from China and Russia despite any talk of “sanctions”, as the dollar continues it’s unmitigated collapse.

I’m all ears and ready to publish any and all predictable sustainable growth solutions that make sense.

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