[Jotapay]

Financial doomer-porn here:

LINK

$this->bbcode_second_pass_quote('', 'A')mericans must prepare themselves for a massive collapse in the dollar as investors around the world dump their US assets, a former Bank of England policymaker has warned.

Writing on his blog, Prof Buiter said: "There will, before long (my best guess is between two and five years from now) be a global dumping of US dollar assets, including US government assets. Old habits die hard. The US dollar and US Treasury bills and bonds are still viewed as a safe haven by many. But learning takes place."

He said that the dollar had been kept elevated in recent years by what some called "dark matter" or "American alpha" - an assumption that the US could earn more on its overseas investments than foreign investors could make on their American assets. However, this notion had been gradually dismantled in recent years, before being dealt a fatal blow by the current financial crisis, he said.

"The past eight years of imperial overstretch, hubris and domestic and international abuse of power on the part of the Bush administration has left the US materially weakened financially, economically, politically and morally," he said. "Even the most hard-nosed, Guantanamo Bay-indifferent potential foreign investor in the US must recognise that its financial system has collapsed."

[the48thronin]

$this->bbcode_second_pass_quote('Jotapay', 'F')inancial doomer-porn here:

LINK

$this->bbcode_second_pass_quote('', 'A')mericans must prepare themselves for a massive collapse in the dollar as investors around the world dump their US assets, a former Bank of England policymaker has warned.

Writing on his blog, Prof Buiter said: "There will, before long (my best guess is between two and five years from now) be a global dumping of US dollar assets, including US government assets. Old habits die hard. The US dollar and US Treasury bills and bonds are still viewed as a safe haven by many. But learning takes place."

He said that the dollar had been kept elevated in recent years by what some called "dark matter" or "American alpha" - an assumption that the US could earn more on its overseas investments than foreign investors could make on their American assets. However, this notion had been gradually dismantled in recent years, before being dealt a fatal blow by the current financial crisis, he said.

"The past eight years of imperial overstretch, hubris and domestic and international abuse of power on the part of the Bush administration has left the US materially weakened financially, economically, politically and morally," he said. "Even the most hard-nosed, Guantanamo Bay-indifferent potential foreign investor in the US must recognise that its financial system has collapsed."

[the48thronin]

$this->bbcode_second_pass_quote('the48thronin', '')$this->bbcode_second_pass_quote('Jotapay', 'F')inancial doomer-porn here:

LINK

$this->bbcode_second_pass_quote('', 'A')mericans must prepare themselves for a massive collapse in the dollar as investors around the world dump their US assets, a former Bank of England policymaker has warned.

Writing on his blog, Prof Buiter said: "There will, before long (my best guess is between two and five years from now) be a global dumping of US dollar assets, including US government assets. Old habits die hard. The US dollar and US Treasury bills and bonds are still viewed as a safe haven by many. But learning takes place."

He said that the dollar had been kept elevated in recent years by what some called "dark matter" or "American alpha" - an assumption that the US could earn more on its overseas investments than foreign investors could make on their American assets. However, this notion had been gradually dismantled in recent years, before being dealt a fatal blow by the current financial crisis, he said.

"The past eight years of imperial overstretch, hubris and domestic and international abuse of power on the part of the Bush administration has left the US materially weakened financially, economically, politically and morally," he said. "Even the most hard-nosed, Guantanamo Bay-indifferent potential foreign investor in the US must recognise that its financial system has collapsed."

[GeneralGreen]

I'm pretty tired of hearing about the dollar collapse..and like what is a 'good currency?" The Pound is MORE levered then the USD..same with the Euro and Frank....
If any west currency crashes first my bets are all on the British Pound.

[Jotapay]

The importance of this is that once people quit loaning us money by buying our bonds (and actually liquidate them), our entire economy will collapse. The way the US economy makes it's living, more or less, is by borrowing money. We live on borrowed money. When people start selling their US government bonds and dollar reserves, we are doomed.

The only reason that they have not done this yet, as you mentioned, is that their economies are less well structured to have their currency to be used as a strong, reserve currency. Everyone selling their dollar reserves (which are their national savings) would destroy their economies too at the moment.

When the countries with the largest dollar reserves get to the point that they are diversified enough that selling their dollars will not cause them to implode, then look out, the first to sell will cause a dollar selling panic as everyone attempts to sell and not be the last one out the door.

[natts]

I do think that the US economy will collapse, anyone has any idea about when? you are swimming in debt, but I don't know how much more you can take.

How real could it be about the amero being the way to avoid the economic collapse ? (I really don't know how would that work).

[Revi]

I think the smart money has already figured it out, Pstarr.

I agree. The days of making money off of "investments" is over.

Much better payback putting your money into real things.

Solar and insulation are among the best, in my opinion.

[ReverseEngineer]

$this->bbcode_second_pass_quote('Jotapay', 'T')he importance of this is that once people quit loaning us money by buying our bonds (and actually liquidate them), our entire economy will collapse.

[Jotapay]

$this->bbcode_second_pass_quote('ReverseEngineer', '')$this->bbcode_second_pass_quote('Jotapay', 'T')he importance of this is that once people quit loaning us money by buying our bonds (and actually liquidate them), our entire economy will collapse.

[3aidlillahi]

$this->bbcode_second_pass_quote('ReverseEngineer', '')$this->bbcode_second_pass_quote('Jotapay', 'T')he importance of this is that once people quit loaning us money by buying our bonds (and actually liquidate them), our entire economy will collapse.

[Jotapay]

$this->bbcode_second_pass_quote('3aidlillahi', 'J')ust what I was about to say. For every seller, there must be a buyer. Who's going to be buying these things if they are thought of as worthless or becoming worthless?

[rangerone314]

$this->bbcode_second_pass_quote('Jotapay', 'T')he importance of this is that once people quit loaning us money by buying our bonds (and actually liquidate them), our entire economy will collapse. The way the US economy makes it's living, more or less, is by borrowing money. We live on borrowed money. When people start selling their US government bonds and dollar reserves, we are doomed.

The only reason that they have not done this yet, as you mentioned, is that their economies are less well structured to have their currency to be used as a strong, reserve currency. Everyone selling their dollar reserves (which are their national savings) would destroy their economies too at the moment.

When the countries with the largest dollar reserves get to the point that they are diversified enough that selling their dollars will not cause them to implode, then look out, the first to sell will cause a dollar selling panic as everyone attempts to sell and not be the last one out the door.

[ColossalContrarian]

$this->bbcode_second_pass_quote('Jotapay', '')$this->bbcode_second_pass_quote('ReverseEngineer', '')$this->bbcode_second_pass_quote('Jotapay', 'T')he importance of this is that once people quit loaning us money by buying our bonds (and actually liquidate them), our entire economy will collapse.

[gnm]

$this->bbcode_second_pass_quote('3aidlillahi', 'J')ust what I was about to say. For every seller, there must be a buyer. Who's going to be buying these things if they are thought of as worthless or becoming worthless?

[CrudeAwakening]

$this->bbcode_second_pass_quote('3aidlillahi', '')$this->bbcode_second_pass_quote('ReverseEngineer', '')$this->bbcode_second_pass_quote('Jotapay', 'T')he importance of this is that once people quit loaning us money by buying our bonds (and actually liquidate them), our entire economy will collapse.

[Jotapay]

$this->bbcode_second_pass_quote('ColossalContrarian', '
')AFTER.... all other currencies fall through the floor and meltdown.

The dollar will be the last paper currency standing.

[lawnchair]

I've always had the picture in my mind that, since WWII (certainly since Bretton Woods died), the US President has had not one but two M.A.D. buttons in the 'football' briefcase. One to launch the nukes. One to drop the hyperinflation bomb. The two are not entirely disconnected. We got the power to destroy the world's economy by being the biggest military power on the block. And, if we sink the dollar, someone, somewhere, will see a mushroom cloud as a result.

I feel like George (with help) has been caressing that damned second button.

[ReverseEngineer]

$this->bbcode_second_pass_quote('gnm', '')$this->bbcode_second_pass_quote('3aidlillahi', 'J')ust what I was about to say. For every seller, there must be a buyer. Who's going to be buying these things if they are thought of as worthless or becoming worthless?

[shortonoil]

$this->bbcode_second_pass_quote('', 'T')he main questions are in the timelines, and how long the game takes to play itself out. The end however is quite clear. Worldwide BANKRUPTCY. The money is all gone. It all burned up in the Greatest Bonfire of Paper Wealth in all of Recorded History.

Reverse Engineer