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Tom Chavez
Questions about the US$ and World Economy
Gregg, here’s from zerohedge.com, Chuck Butler and Global Macro Investor. I don’t understand. Perhaps you or someone else can explain why? (Original excerpts in black, mine this color)
COVID-19 appears to have impacted the fiscally-conservative regions of the brains of politicians more than many thought possible as left, right, and center seem to agree that more spending is good, more helicopter money is even better, and more zeros in the national debt is best!
The latest utterance from Speaker Pelosi – that the next, fourth, round of virus-relief stimulus must be at least $1 trillion – appears to have confirmed one thing: both parties supporting gold $10,000.
Don’t forget – the $13 trillion short dollar positions (foreign dollar debt held mainly by foreign corporation and investment vehicles) is the largest position ever taken in the history of global financial markets.
It can only mean a massive, uncontrolled dollar rally. Why? Excess dollars from the politicians should weaken the greenback. And how is that related to $13 trillion in foreign dollar debt?
QE will not fix this. Swap lines will not fix this. A debt jubilee would fix this or multiple trillions of dollars in write-downs and defaults.
It is dollar strength that brings the world to its nadir (just like the 1930s). It is the dollar system that is the really big problem.
The dollar has eaten all of its competitors and now it is going to eat itself. This will eventually break the dollar after a super-spike as global central banks are forced to find alternatives. Is this because all the excess dollars are being loaned out, and a strong dollar makes debts impossible to repay?
The world’s elite have long wanted to replace the U.S. dollar with a single global super-currency, as The World Bank’s former chief economist said in 2014, it will create a more stable global financial system.
“The dominance of the greenback is the root cause of global financial and economic crises,” Justin Yifu Lin told Bruegel, a Brussels-based policy-research think tank. “The solution to this is to replace the national currency with a global currency.”
Chuck Again…. Yes, I want to make something perfectly clear here… All the deficit spending, all the Fed’s measures, all of it, is only here to extend the bad loans that everyone has made, and to provide short-term liquidity…. I’m just saying…
Debtors need dollars to repay/service their loans, demand for the dollar makes it more expensive, and everyone defaults? Is that the gist? How can the dollar and gold both go up in price? Is gold going up in expectation that with a world currency, the dollar is toast?
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