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Hats off to you thaimeup 
You have an excellent grasp of the problem because most people don't understand the way the US can export their inflation.
Many OPEC members are refusing payment for their oil in US$ now, Venezuala being the latest, but while the Saudi Royal family owes their survival to the 160,000 US troops based there, they will keep the taps open for as long as the oil lasts.
My point is there is a push to replace the US$ as the de-facto world currency.
It will only happen if the Chinese on the one hand &, believe it or not, the Russians on the other, gang up to devalue the greenback through the floor.
Up till 1949 the Chinese currency was backed by silver, they still have more of the stuff hoarded than the rest of the world combined & the rouble is backed by gold.
No-one knows what the Russkis have stockpiled but when they think they have enough, they will really start to exert their financial muscle.
Notwithstanding the very valid points thaimeup makes about the interconnectedness of the worlds currency & security,
one day the US could well find itself caught in a pincer movement that they will not be able to compete against,
& don't forget neither China nor Russia have fond memories of America.
Don't believe me? Read your history books.
The Chinese have already declared that if it comes to it, they can afford to allow their 1.6 trillion US$ reserve of cash to be devalued to zero.
An idle threat? Who knows, you just don't want to taking bets against them.
And the size of the cycle this time? Yes, I was going to say that eventually things would swing back,
but it is going to be a long time & I didn't want to bog myself down with speculation.
Lastly, establishing a value for this collateralised debt is likely to take much more than a year & prove to be so problematic, that it may never achieve more than junk bond status.
And that won't help the rescue of Wall Street's finest, most of whom are completely & utterly broke as we speak.
There are just too many ways this can all play out, but we all have ringside seats for the world's greatest "train crash" happening in slow motion right now.
You have an excellent grasp of the problem because most people don't understand the way the US can export their inflation.
Many OPEC members are refusing payment for their oil in US$ now, Venezuala being the latest, but while the Saudi Royal family owes their survival to the 160,000 US troops based there, they will keep the taps open for as long as the oil lasts.
My point is there is a push to replace the US$ as the de-facto world currency.
It will only happen if the Chinese on the one hand &, believe it or not, the Russians on the other, gang up to devalue the greenback through the floor.
Up till 1949 the Chinese currency was backed by silver, they still have more of the stuff hoarded than the rest of the world combined & the rouble is backed by gold.
No-one knows what the Russkis have stockpiled but when they think they have enough, they will really start to exert their financial muscle.
Notwithstanding the very valid points thaimeup makes about the interconnectedness of the worlds currency & security,
one day the US could well find itself caught in a pincer movement that they will not be able to compete against,
& don't forget neither China nor Russia have fond memories of America.
Don't believe me? Read your history books.
The Chinese have already declared that if it comes to it, they can afford to allow their 1.6 trillion US$ reserve of cash to be devalued to zero.
An idle threat? Who knows, you just don't want to taking bets against them.
And the size of the cycle this time? Yes, I was going to say that eventually things would swing back,
but it is going to be a long time & I didn't want to bog myself down with speculation.
Lastly, establishing a value for this collateralised debt is likely to take much more than a year & prove to be so problematic, that it may never achieve more than junk bond status.
And that won't help the rescue of Wall Street's finest, most of whom are completely & utterly broke as we speak.
There are just too many ways this can all play out, but we all have ringside seats for the world's greatest "train crash" happening in slow motion right now.
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