Monday 25 July 2011

If the Americans could tell a story...

The BIS* suggests the only way forward for the global economy is a complete moratorium on ALL debt. ie: a clean-slate for all... ; which is as probable as an unsolicited visitation by the Decepticons from the dark-side-of-the-moon..

The contrived 'debt-crisis' the US ponders today is just like Harry Potter; outrageously dull-witted. Now, if the Americans were more Chinese in their financial planning ie: for the longer term; then a default could be the prelude to the most amazing fable of them all!

Imagine, if you will, an intentional US debt-default. The ratings agencies, sidelined in Europe and eager to impress, would downgrade the US to 'Enron-negative'. ie: a sell... You, everybody else and I would sell our inflated US assets to Goldman's pension fund. The US 'price', expressed in dollars, would collapse. The US dollar, like the drachma, wouldn't be worth the price of printed paper and yet the world's debt is priced in US dollars.... Good-bye China, HELLO WORLD; what a story..!


*Bank of International Settlements

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