Abridged from the December "Monthly Market Commentary" at GordonTLong.com


Since Bretton Woods and the creation of post WWII Monetary structure, US obligations  were considered risk free and its debt instruments rated as AAA. Global risk  and spreads have traditionally been priced off this foundation. A crippled  dollar and US debt worries has the potential to trigger a global credit melt  down. The 2008 financial crisis with Bear Stearns and Lehman gave us just an  inkling of the magnitude of the problem.

This is forcing a game of Risk Free Counterfeiting to now be played out. It  will end, and end badly. However, at the present time it is considered the  only politically palatable solution.

  • There is a Shrinking Need for US Dollars
    • The need for US dollars has fallen from being 71.2% of foreign reserve      currency holdings in 1999 to 58.0% in 2011.
    • The need to hold dollars for oil purchases is being challenged by the      BRIC countries through on-going trade alliances. Alliances that are counter      to the Petro$$ foundation.
    • The US is no longer the dominate global industrial and trading nation      it once was and therefore there is a shrinking need to hold US dollars      for trade settlements,
    • China and a growing list of nations are shifting currency reserve holdings      from US dollars to Gold. China is now accumulating minimally 1,000 tons      per years and will soon be in a position to partially Gold back the Remimbi.
  • Global US$ Structured Debt
    • Debt around the world has traditionally been structured in US dollars.      A collapsing US dollar erodes the collateral value of the debt which is      often used as collateral in the Rehypothecation process. This exposes the      world to a collateral contagion of massive proportions.
  • Mispriced Risk
    • Monetary Malpractice has its moral hazard and unintended consequences      has led to significant levels of global mispricing and malinvestment. Risk      is no longer being priced correctly as the Fed Valuation Model has broken      down due to sustained, negative real interest rates.

Moral Malady

The Currency Cartel

This has forced the Bank of International Settlements (BIS) to facilitate  what can only be called a Currency Cartel to alleviate the daunting global  pressures which the eroding need for US dollars is causing. As the Central  Bankers' Central Bank, the BIS exercises control over the settlement of the  balance of payments and the problems stemming from growing global imbalances.

Effectively, what appears to have emerged is a forced alliance between fiat  currency based regimes, to protect themselves and sustain the faulty system  that emerged from post WWII Bretton Woods. When the US jettisoned its obligations,  and in August of 1971 took itself off the gold standard, the US effectively  defaulted on its obligations as the world reserve currency. Since then it has  been primarily the 'good faith and credit' of the US, that has sustained an  acknowledged failed and broken system. The current US Fiscal Cliff machinations  only bring to the fore the seriousness of any longer considering the US as "Risk  Free" and being a realist foundation for a sound and sustainable global currency  reserve. As true as this is, it is not going to change as long as the status  quo can be protected, and protected it must be!

Similar to the OPEC Oil Cartel protecting the price of 'black' gold, we now  have a Currency Cartel protecting the US dollar, and more specifically, the  fiat currency system which they all are inextricably tied to. It is the basis  for their collusion.

The Currency Cartel is effectively Colluding to Counterfeit "Risk Free".

The US Council on Foreign Relations aptly described why a concept called the "Triffin  Paradox" (we will discuss in more detail) becomes unsustainable:

"To supply the world's risk-free asset, the center country (US) must      run a current account deficit and in doing so become ever more indebted      to foreigners, until the risk-free asset that it issues ceases to be      risk free. Precisely because the world is happy to have a dependable      asset to hold as a store of value, it will buy so much of that asset that      its issuer will become unsustainably burdened."

We have reached the point where the Currency Cartel and the $67T Shadow Banking  System (monitored, but not supervised by the Financial Stability Board (FSB)) is  the only thing standing between us and a violent Fiat Currency Collapse.

Cartel Board Meetings

Place & Time: Bank of International Settlements (BIS), Basel Switzerland  Monthly, Sunday Evening Supper

Key Board Attendees:

Ben Bernanke (US-Federal Reserve)

William C Dudley, (New York Fed)

Mervyn King (UK - BOE)

Mario Draghi (EU-ECB)

Jens Weidmann (Bundesbank)

(Japan - BOJ)

Mark Carney, (Chair FSB)

Continue reading: http://www.safehaven.com/article/28095/currency-cartel-counterfeiti...

Views: 48

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

Doc Vega posted a blog post

Price of Becoming Wise

The answers you seek are not hereLet me make that perfectly clearNow that she is no longer…See More
4 hours ago
Doc Vega commented on Doc Vega's blog post One of Many Witnesses to the JFK Assassination Not Listed in the Warren Report
"tjdavis Thanks for your support! "
yesterday
Doc Vega posted blog posts
yesterday
tjdavis favorited Doc Vega's blog post One of Many Witnesses to the JFK Assassination Not Listed in the Warren Report
Friday
Burbia commented on KLC's group MUSICWARS
Thursday
Doc Vega posted a blog post

The Unnerving Frequency of Disappearances on the Appalachian Trail Pt. 1

There’s another one of the cluster zones of missing persons reports that fails to render the…See More
Wednesday
cheeki kea commented on cheeki kea's photo
Thumbnail

Waste runs deep

"Make USAID - go away."
Wednesday
cheeki kea posted a photo
Wednesday
cheeki kea commented on cheeki kea's photo
Thumbnail

$ Paid Annual Leave $

"Now is the Time for American Workers to Unite! Take back the squandered taxes and demand time off…"
Monday
cheeki kea posted a photo
Monday
Burbia commented on Burbia's blog post Mystery illness strikes Russia with fever, blood symptoms, and no cure in sight.
Monday
Burbia posted a blog post

Mystery illness strikes Russia with fever, blood symptoms, and no cure in sight.

I guess releasing this bio-weapon upon Israeli neighbors would be hitting too close to home. I…See More
Monday
tjdavis posted videos
Monday
tjdavis posted a video

The Electric State | Final Trailer | Netflix

Together, robots & humans can take the whole system down. THE ELECTRIC STATE starring Millie Bobby Brown, Chris Pratt and directed by the Russo Brothers, onl...
Mar 29
Less Prone favorited Sandy's video
Mar 29
Doc Vega's 7 blog posts were featured
Mar 29
tjdavis's blog post was featured
Mar 29
Sandy posted a video

"Mommy Tells Me I'm a Girl"-Jeff Younger

Soft White Underbelly interview and portrait of Jeff Younger, a father who is fighting to protect his son from transitioning into a girl. Get 40% off access ...
Mar 29
tjdavis posted a video

MindWar: Full Spectrum Cognitive Dominance [Michael Aquino Analysis]

This is my analysis and my thoughts on Michael Aquino's "MindWar". This document is a must-read if you are looking to understand the psyop tactics and cognit...
Mar 28
Doc Vega posted a blog post

A Horrid Murder at Land Between the Lakes (Sasquatch?)

 Most of us hear that Sasquatch-Bigfoot are intelligent yet reclusive creatures that are closely…See More
Mar 28

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted