Friday, June 11, 2010

Asia Trying to Extend the Game

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/06/10/bloomberg1376-L3U88O1A1I4H-1.DTL#ixzz0qWw857rP
Currency Controls Mount in Asia as Euro Hurts Exports
The world's biggest expected swings in foreign-exchange markets and the euro's record depreciation are prompting Asian exporters to seek currency controls.


Boy didn't see this coming. :) The Schiff's of the world that believe in decoupling are going to get their asses handed to them. That is not the system and that is not the game.

11 comments:

  1. http://www.gold-eagle.com/gold_digest_08/fekete060710.html

    The reason for the exponential growth of debt in the world is that the international monetary system has been lacking an ultimate extinguisher since 1971. Total debt in the world can only grow, never contract. We should do well to remember that, since time immemorial, gold has successfully acted as the ultimate extinguisher of debt - until it was forcibly removed from the international monetary system in 1971. Paying debt in gold extinguished the debt, period. Since 1971 governments have pretended that paying debt in U.S. dollars extinguished it, too. But in fact it did not. Debt was merely transferred from the debtor to the U.S. government and kept accumulating. Transferring debt is not the same as extinguishing it. Debt accumulation has a natural limit. This limit has now been reached.

    Interesting. Gold is good until the top uses power to take it and cull.

    ReplyDelete
  2. Oh and give the new system....

    ReplyDelete
  3. Can you explain how CDS are used to keep the equation going?

    ReplyDelete
  4. As for the government, there is simply no way to retire its debt. Redeeming a government bond in irredeemable currency merely replaces interest-bearing debt by non-interest-bearing debt (that is, by a less desirable form of debt, making the debt-pyramid even more unstable). In the meantime total debt is increasing exponentially, following the law of compound interest. The inordinate growth of the Debt Behemoth and the ongoing capital destruction inevitably lead to a credit collapse.

    ReplyDelete
  5. As for the government, there is simply no way to retire its debt. Redeeming a government bond in irredeemable currency merely replaces interest-bearing debt by non-interest-bearing debt (that is, by a less desirable form of debt, making the debt-pyramid even more unstable). In the meantime total debt is increasing exponentially, following the law of compound interest. The inordinate growth of the Debt Behemoth and the ongoing capital destruction inevitably lead to a credit collapse.

    ReplyDelete
  6. As for the government, there is simply no way to retire its debt. Redeeming a government bond in irredeemable currency merely replaces interest-bearing debt by non-interest-bearing debt (that is, by a less desirable form of debt, making the debt-pyramid even more unstable). In the meantime total debt is increasing exponentially, following the law of compound interest. The inordinate growth of the Debt Behemoth and the ongoing capital destruction inevitably lead to a credit collapse.

    ReplyDelete
  7. Fiat money is a ponzi scheme, because as M grows, then M must continue to grow in order to pay the interest on the M (M is debt). That cancer accelerates when the marginal-utility-of-debt goes negative, as each newly printed dollar of M (a debt) is actually decreasing the GDP, i.e. increasing M is decreasing P! The transfer of private wealth to the plutocracy has reached the terminal phase where the government is creating new M (debt!) to offset the withering private sector. The exponentially increasing budget deficits radically understate the time-bomb of unfunded government promises. Millions of private economic decisions (perceptions), transferred to a single-minded plutocracy, knowledge is rapidly approaching zero, and thus the exponential economic growth has peaked and is in exponential decay, i.e. hyper-deflation. This is a global implosion towards more powerful central governments (step closer to "one world order") with both States of USA, and the nation-states of the EU, being allowed to go bankrupt.

    ReplyDelete
  8. Mako I wish you would post more often rather than wasting time with the goldbugs over on ZH

    ReplyDelete
  9. http://www.youtube.com/watch?v=aRtNfb6D3Mc&feature=related

    ReplyDelete
  10. jdrose1985

    Thank you. I've been busy for the last couple of weeks. I will try and post more in the next week or so, but to be honest other than daily market comments there is less to talk about as this moves forward. The rats are trying to jump from the burning ship, problem is ship is nowhere near shore. Thank you again.

    ReplyDelete
  11. Sorry I had to do it:

    http://www.youtube.com/watch?v=sr0gNJ090JA

    ReplyDelete