Martin Hutchinson writes: Months or years from now, when analysts are studying the death of the U.S. dollar, they'll look back and see that the greenback's demise began on a specific day - Wednesday, April 27, 2011.
As in ... tomorrow.
At 12:15 p.m. tomorrow, at the conclusion of a two-day Federal Open Market Committee (FOMC) meeting, we'll find out whether U.S. Federal Reserve Chairman Ben S. Bernanke and his policymaking posse opted for a sharp increase in U.S. interest rates - which appears to me to be the only solution to a looming third-quarter crunch.
Unfortunately, I don't think that Bernanke & Co. will make the needed move.
And without that sharp rate increase tomorrow, investors can look forward to rampant inflation, an evisceration of the U.S. Treasury bond market and - in a worst-case scenario - the death of the dollar.
Let me show you why....
It's Time to Worry About the Death of the Dollar
For the last two years, the U.S. economy has been supported by the twin catalysts of fiscal and monetary stimuli.
Fiscal stimulus seems likely to continue for some time yet - even the most avid Tea Party budget cutters don't see their way to cutting more than $100 billion or so off this year's $1.6 trillion deficit.
But monetary stimulus is another matter.
The Fed's so-called "QE2" (quantitative easing/second round) purchases of U.S. Treasury bonds are supposed to come to a sharp end on June 30. That makes July a crucial month - for the American economy, for the country's bond markets and, most of all, for the performance of the dollar.
These crucial monetary-policy issues will be reviewed at the two-day policymaking FOMC meeting that begins today (Tuesday) and concludes tomorrow. Policymakers are expected to leave the benchmark Federal Funds target rate in its current range of 0.00% to 0.25%.
If Bernanke wants to devise a "QE3" to follow his QE2, he needs to do it now: The next FOMC meeting is in late June, which is far too close to the expiration of QE2.
The decision as to whether to end quantitative easing - or to extend it - will be a tough one, made no easier by the fact that there is a substantial-and-growing group in the FOMC that did not like QE2 and that will strongly resist a QE3.
More Here..
Voodoo Economics: Policy Responses to the Global Financial Crisis
As in ... tomorrow.
At 12:15 p.m. tomorrow, at the conclusion of a two-day Federal Open Market Committee (FOMC) meeting, we'll find out whether U.S. Federal Reserve Chairman Ben S. Bernanke and his policymaking posse opted for a sharp increase in U.S. interest rates - which appears to me to be the only solution to a looming third-quarter crunch.
Unfortunately, I don't think that Bernanke & Co. will make the needed move.
And without that sharp rate increase tomorrow, investors can look forward to rampant inflation, an evisceration of the U.S. Treasury bond market and - in a worst-case scenario - the death of the dollar.
Let me show you why....
It's Time to Worry About the Death of the Dollar
For the last two years, the U.S. economy has been supported by the twin catalysts of fiscal and monetary stimuli.
Fiscal stimulus seems likely to continue for some time yet - even the most avid Tea Party budget cutters don't see their way to cutting more than $100 billion or so off this year's $1.6 trillion deficit.
But monetary stimulus is another matter.
The Fed's so-called "QE2" (quantitative easing/second round) purchases of U.S. Treasury bonds are supposed to come to a sharp end on June 30. That makes July a crucial month - for the American economy, for the country's bond markets and, most of all, for the performance of the dollar.
These crucial monetary-policy issues will be reviewed at the two-day policymaking FOMC meeting that begins today (Tuesday) and concludes tomorrow. Policymakers are expected to leave the benchmark Federal Funds target rate in its current range of 0.00% to 0.25%.
If Bernanke wants to devise a "QE3" to follow his QE2, he needs to do it now: The next FOMC meeting is in late June, which is far too close to the expiration of QE2.
The decision as to whether to end quantitative easing - or to extend it - will be a tough one, made no easier by the fact that there is a substantial-and-growing group in the FOMC that did not like QE2 and that will strongly resist a QE3.
More Here..
Voodoo Economics: Policy Responses to the Global Financial Crisis
The dollar hegemony system is dead there can be no economic recovery and return to the old standard of living for Americans.
ReplyDeleteThis is now economically impossible.
REPEAT IMPOSSIBLE!!
America is a failed unproductive of profit insolvent failed Ponzi capitalism drowning in a sea of unpayable debts.
OLD Usury debt has its future caught by the balls.
That is not a political opinion but an economic fact
HERE IS THE BOTTOM LINE
Pre- crisis America and its working people were not producing a real profit on capital invested in America , its profits ,the dividends paid out by its corporation after paying taxes ,were only about equal to the foreign capital being invested on loan by foreigners.
This means that while Americans were able to exchange goods and services amongst themselves at their value and make a profit, the internal profits themselves were only derived by gaining a share in the wealth injected into the economy by foreign investors, or from a share in the profits made from foreign imperialist capital investors like Wall Mart. .
This also means that no matter how oppressed they may feel as as debt peons
,the Marxists or liberal whiners cannot claim that American workers are exploited for profits. There were none being actually created in America itself .
That is by definition a failed capitalism!
Americans of all classes are now a nation of parasites that were consuming more wealth than they created on credit.
Even its profits were from foreign credit supply but counted as “American”profits.
As America proved unable to keep up its interest and dividend payments on its debts and on the trillions of dollars in sub prime and other dud bonds the foreign credit supply began to die and crashed the Ponzsi economy in 2008.
Realizing that they were conned by an illusion that the value of fiat $ paper would remain strong and that the value of their past investments and savings in America is being inflated away by the printing press, the old levels of foreign credit supply will not be returning any time soon. America is no place to invest!
America can only print its “profits” now !
With the main purchaser of national debt The Central Bank as debts pass from one pocket to the other in a pass the parcel game.
All America does is PRINT MONEY, borrow to consume imports. And to pay off the past losses of banksters, desperatly trying to to keep them, the property bubble and its dud mortgage bonds afloat.
That is no economy with real profitability at all, other than printing “profits”as national debt. The printing press is the only life support left
The can of debt worms can only be kicked only so far along the road before the debt worms morph into Usury squids and into fat hyper-inflanionary grubs .
Even the American banksters are hoarding their cash waiting for the crash and a final cheap price asset buy up.
As America is not a socialist country or even governed by patriotic capitalists concerned about the American people, after a financial coup the government and the privately bankster owned Fed are only concerned with trying to restore the profits of American and foreign Finance capitalists the TBTF.
Trillions of dollars of government expected future tax revenues have been set aside and reserved as bailout money for its banksters and the bondholder investors in Treasury bills for deficit spending , creating a huge national debt for future generations of Debt Peons..
So there is no national credit money now available after trillions of dollars in deficit spending to even consider investment in nation building investments for say Keynesian deficit spending on infrastructure to rebuild America as was done in the last depression.
Its too late . As America has already blown its bolt , lost its sovereign good name for credit ,in order to save its criminal banksters.
Recovery of capitalism ,is then, now impossible with broke banksters, a broke on militarism government and broke debt Peons.
so everything begins in July.... bring it on!!!
ReplyDeleteI have feeling that not many read the Bible here. The 4th horse is a pale horse. It is actully green in the Greek.
ReplyDeleteThe horse is gasping for air and longing for life. Life and hope leaves the horse and then famine, disease, chaos, and war comes next.
As the man said from the post above, we make nothing to sell to the rest of the world and we import all that we want without paying off the debt we have.
As the old Roman saying goes, "By day they imported spices, silk, and luxury items in Rome and by night they exported horse shit.
Need I say more...?
Sanford and Son
US = fail soon, and that makes me happy. The special unappreciated rights that US women currently enjoy will soon come to an end....
ReplyDeleteQUOTE "Martin Hutchinson writes: Months or years from now, when analysts are studying the death of the U.S. dollar, they'll look back and see that the greenback's demise began on a specific day - Wednesday, April 27, 2011"
ReplyDeleteIs NOT the FED suppose to destroy the Amercian economy...that's what Central Banks do, especially PRIVATELY Owned Ones! And the US 'Dollar' aka Green Back was destroyed long ago... Let the Fed destroy the Federal Reserve NOTE (FRN) - I prefer a currency controlled by Congress as enumerated in the constitution ...and to keep them honest, encourage private currencies for competition. BUT BE WARNED!!! When the FED destroys THEIR federal Reserve NOTE, DO NOT BE FOOLED INTO the proposed International Currency I am sure conveniently waits in the sidelines ALREADY to be implemented!!!
fail by design. not just america but global. don't forget many powerful men and teams of steering advisers and bankers and heads of corporations and states have desired this one world global unity with a single or at 1st regional currency's. it profits them, and they won't allow individual dictators to stand in their way as seen recently. toe the line or be disposed of. in the bringing down the current system it causes much hardship on people which is useful and desired as it forces their hand, forces the populace everywhere to accept their new system form. without it, without the backs to the wall hardships, fear, economic struggles why on earth would people accept a new way? if things where grand like (hidden as it was the ponzi) it had been, everyones employed, gas is affordable, food is plentiful and cheap etc etc nobody would want or accept the new system. no, the trap was setting up for a decades, now sprung. the system as it is now is so entwined and corrupted to be unfixable so will and must crash by a design to force all people everywhere into the new form as they present it.
ReplyDeleteit's a design tried in history, only this time so bad not a man would survive it unless the days be cut short. a time of tribulation like never has been or will be again.
no this time the dictator won't do a bunker job on himself like hitler, instead launching a tremendous final war.
This is the strangest world I have ever known. It was only 20 years ago I was a little boy counting the four states of the world, "China, Arizona, Connecticut, and Chicago."
ReplyDeleteI remember in the late 80s with my foggy child vision how I came to view life. At three years old my friend's father scrame at him and told him, "We're going to go get pizza, see fireworks, then you're coming home to go to bed!"
To me this really left a bad outlook on what life was going to be like.
Going through grade school I came to learn how dumb and primitive mankind was before the Hippies. Only after the 70s did the world finally become a happy place where wars would never occur again thanks to the dope smoking baby boomers. Little did I know those text books were written by former Hippie Communists who now have authority in Washington.
It was only 10 years ago I became Christian. It was only seven years ago I became Buddhist. It was only five years ago I thought interdimensional beings were manipulating the world and taking over the world leader's bodies. It was only four years ago I became a Taoist. It was only three years ago I wrote a book. It was only two years ago I had no idea what Socialism was, the difference between the parties, and Progressivism.
The last two years were even stranger having endured a Kundalini experience. I quit smoking cigarettes, stopped all medication, cured my anxiety, and achieved pseudo-nirvana.
Mankind is about to get taken for the funkiest flight in all its history. Of course, this only goes back to the linear - one dimensional time span of 104 thousand years and not the actual history which is timeless and expands past a linear scope.
But that would include the infinite unseen beings, altered worlds, and parallel histories within our "official" one. The energy needed to contain this level of consciousness isn't out of grasp, but the prolixity of such a book would take the homo sapien another century or two to begin comprehending.
IN RESPONSE TO ------> US = fail soon, and that makes me happy. The special unappreciated rights that US women currently enjoy will soon come to an end....
ReplyDeleteI'M SORRY YOU DIDN'T GET LAYED IN THIS COUNTRY DURING YOUR STAY.
Now my message, Get with God.