US monetary policy is about to lead to disaster

will the $US collapse within 5 years?

  • Yes

    Votes: 6 31.6%

  • No

    Votes: 13 68.4%
  • Total voters
    19
  • Poll closed .
I can see it now. Along with their 4.5 trillion bond balance, they'll wind up permanently owning the 2 trillion dollars of bills in the repo mkt because of (fill in the blank) excuse.
 
the first 3 no votes came very quickly including one in the 1st 30 seconds. it was probably from the easy money resident communist of ET, who read the headline but not the article itself.
 
The only issue I have with predicting a collapse of the US$ is that the fiscal situation in the US would have to be far worse than that of the rest of the world. And that's just not the case. Europe, Japan, China, emerging markets, they're all a disaster - partly attributable to the Fed. A catastrophic collapse in the US would have far worse consequences on the rest of the world.
 
Tsing Tao said:
The only issue I have with predicting a collapse of the US$ is that the fiscal situation in the US would have to be far worse than that of the rest of the world. And that's just not the case. Europe, Japan, China, emerging markets, they're all a disaster - partly attributable to the Fed. A catastrophic collapse in the US would have far worse consequences on the rest of the world.
More...

Agreed.
 
One of these is the head of an organization with millions of religiously fanatical followers...



20150923_spot.jpg


and the other is the Pope.

http://www.zerohedge.com/news/2015-09-23/spot-difference
 
This line of questioning is, in a way, similar to gloom and doom economic conversations... in that once you even get near this stage there comes a self preservation with the Fed and the USD. You saw that the fed had no compulsions regarding QE and what it would do to EM 2010-2015. This scenario would play out x 10 as you go forward with this line. Once EM begin using the USD as a currency substitution and resulting USD demand... the exchange becomes relative. We don't produce large scale gold or copper for the China growth engine but we do produce large scale corn, wheat, soy, beef...and of course military assets and wonderful propaganda/misinformation. In permanent zero interest Fed buys everything and prints for ever models these above assets become very valuable and the nation that produces them holds value is its currency. Yea, gold becomes valuable but EMs that produce high levels of gold will ultimately exchange it for USD and then food. Savers would also exchange labor for USD ... so when you keep reducing the scenario-

Tsing Tao's answer is an elegant, short, quick, to the point answer that saves us from a long- winded game of "what ifs"
 
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