As I alluded to last month, there seems to be a growing consensus among some pretty astute historians, economists, financial analysts and bloggers that the FED-led U.S. fiscal policy in response to an unavoidable sovereign debt default is in fact intentional currency debasement. It is probably best expressed by Martin Weiss’ latest article:
Since the dawn of civilization, every major nation that has been saddled with unpayable debts and obligations has ultimately resorted to currency devaluations in some form. A wholesale currency devaluation is the only politically expedient way to address a debt crisis as massive as we face today.
Surprisingly well stated and quite logical.
But no matter how you slice the inverted fantasy world of John Maynard Keynes and his behaviorist followers, it always comes out in little pieces of reality. For example, you can dice dehydrated shit into cute little squares, but it still stinks up the kitchen. Unrepayable debt obligations will never magically turn into assets any moreso than little turd squares will turn into truffles, and spending your way out of debt still makes about as much sense as stinking your way out of shit.
But the destruction of the world’s reserve currency in today’s global marketplace has another magical silver bullet in reserve–the notional value of the world’s primarily dollar-denominated derivative positions.
So there’s more good news in the now unstoppable destruction of the U.S. dollar, the U.S. economy, and America itself (as far as it’s soon-to-be former way of life is concerned).
THE DEATH OF THE DOLLAR SIGNALS THE END OF MONETARISM AS WE KNOW IT.
Keep in mind, the AS WE KNOW IT clause, because the destruction of the dollar, for whatever purgative effect it has on the ungodly 1.8 QUADRILLION DOLLARS in financial claims against counterparties, does not really end monetization – rather, think of this now in terms of a transformation to 1.8 QUADRILLION PESOS or YEN.
But do think about this, because while we debate over cancelling the fraud and bankrupting the insolvent system, that same system of valuation underlying these hedged securities is indeed experiencing a fundamental change in relative value, regardless.
In the lost Dollar War, the Empire, and its fraudulent valuation system survives, but the collapse becomes relative to the collapsing reserve currency which everything on the books was denominated in. This must be the “sophisticated thinking” that Global bankers and international Corporatists have been speaking of, so much more advanced than the deliberations of self-absorbed nations and their quaint notions of “sovereignty”.
In other words, only the global fascist Empire of monetarism is fully qualified to value the new shit, relative to the old shit. Ultimately, the middle class flies still end up eating the shit, even if by another name.
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My comment is not for this particular post. It’s the way I view not only this post but your entire site. KEEP UP THE GREAT WORK!!! Our tax dollars has already made these white collar criminals too wealthy already!
But why should they think any different? We’ve bailed out these people several times over the past century. They knew the taxpayers money would come to the rescue when they entered their ‘den of theives’.