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Jeff
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Global Finance
Sep 24th, 2015 at 8:44am
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SkyChief
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Re: Global Finance
Reply #1 - Sep 24th, 2015 at 12:46pm
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"This SDR system is so little understood that people wonít know where the inflation is coming from. Elected officials will blame the IMF, but the IMF is unaccountable. Thatís the beauty of SDRs ó Triffinís dilemma is solved, debt problems are inflated away and no one is accountable. Thatís the global elite plan in a nutshell."

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That is one of the most dismal outlooks I have seen so far.† But, its better than a total, global economic collapse, I suppose.

I wonder what impact the SDR system will have on the value of precious metals.†

It should cause the prices to skyrocket.† Because PMs cant be deliberately debased like a currency can.

He doesn't offer any hints as to when this will happen. Which suggests that he might not really be certain that it will happen at all.

But, either way, it's a good example of how Keynesian Economics is supposed to work.

Thanks for posting, Jeff.
  
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Jeff
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Re: Global Finance
Reply #2 - Sep 25th, 2015 at 5:03pm
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SkyChief wrote on Sep 24th, 2015 at 12:46pm:
"This SDR system is so little understood that people wonít know where the inflation is coming from. Elected officials will blame the IMF, but the IMF is unaccountable. Thatís the beauty of SDRs ó Triffinís dilemma is solved, debt problems are inflated away and no one is accountable. Thatís the global elite plan in a nutshell."

______________________________________________________________________________

That is one of the most dismal outlooks I have seen so far.† But, its better than a total, global economic collapse, I suppose.

No one knows when. People are very hard working and creative, trying to make money. Lots of people are working very hard to create wealth, which prolongs the demise of any poorly constructed monetary "system".
The dilemma won't be "solved" by inflating the money supply unless magic is involved, and if every nation inflates it's fiat money, it wil take some very powerful magic indeed to prevent economic collapse. Worthless "money" does that.
  

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SkyChief
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Re: Global Finance
Reply #3 - Sep 26th, 2015 at 2:27am
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Jeff wrote on Sep 25th, 2015 at 5:03pm:
The dilemma won't be "solved" by inflating the money supply unless magic is involved, and if every nation inflates it's fiat money, it wil take some very powerful magic indeed to prevent economic collapse. Worthless "money" does that.


In the fiat currency (Keynesian) economic model, Central banks basically have only two magic tricks at their disposal;

1) Increase the money supply, and 2) lower interest rates to make that money more readily available.

Problem is, Magic Trick #2 is no longer an option because interest rates are already near zero.† That means long-term T-bonds have a super low yield and discourages depositors from buying them.

Which leaves ONE magic left.†

Force inflation by increasing the money supply.† Its a race to the bottom.† The first one to completely debase their currency WINS!!!

The collapse will happen when foreign countries dump the dollar as the World Reserve Currency.† The (overseas) dollars come flooding back and become essentially worthless.

Fun times ahead!†

  
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