Debt Rattle February 5 2016

[Raúl Ilargi Meijer]

Harris&Ewing “Congressional baseball game. President and Mrs. Wilson.” 1917 • Dollar Tumbles As Fed Rescues China In The Nick Of Time (AEP) • SocGen:
[See the full post at: Debt Rattle February 5 2016]

[Dr. Diablo]

What makes you think China isn’t dumping their US$ “Reserves” on purpose? Otherwise, seems uncharacteristically reckless, doesn’t it? And the unusual string of “mistakes” and denials they’ve had? Can’t find the chart link, but yes, the Yuan is dropping vs US$. However, since being including in IMF, is Yuan is flat vs basket of currencies. So…might we say the Yuan stopped pegging to the dollar and is now pegged to the basket? That is, their focus is now their world trading partners, the world minus the US$?

How did you think this would end? The US would maintain hegemonic control for a 1,000 year reign? If the world rejects and breaks away from the US, how did you think they would do it? How about ring-fencing them like South Africa and cutting off finance, trade, container ship traffic? If everyone stopped considering and including the US and the US$, wouldn’t they all float their currencies together EXCEPT the USDX? And is that what’s happening? They are all dropping together, leaving the US$ to spiral up in “Deflation” that will shut down the real US economy and trade?

I’d argue you might say this. So the US, once ring-fenced, can be cut off by the 3/4 of the world that actually makes and does stuff. You want pants and shoes? Car parts? We don’t accept the SWIFT system or the Comex/LMBA commodity pricing. Pay using Rubles or Yuan via a CIPS bank wire or ships don’t sail. They’re not going to make and send hard goods for a charming smile forever, and not in a worldwide Depression—China would like to use those iPhones for themselves. So how will the world cut off a US that only takes but doesn’t pay, $500B a year, a form of imperial tribute?

To lift the ring-fence, and therefore the worldwide economic/trade collapse, all the US has to do is accept a fair system: CIPS, trade parity, and probably a US$ devalued 50-70%–because the US has a GDP 40% smaller if you remove the lies and financial chicanery. The same devaluation they tried in the last Depression. Easy. Which is why the US will never do it. They don’t want to be a fair nation, subject to laws and justice. But like Napoleon, they may be able to beat anybody, but they can’t beat everybody, even if they start 10 wars and fight very, very hard. Gulliver, meet Lilliput.

[Ken Barrows]

CNN article is full of it: the oil boom is not “alive and kicking.” Crude oil imports are up 7% year over year. USA imports about 50 million barrels of oil per week. So, add 3.5 million barrels per week x 52 and there’s your inventory increase.

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