The Day After America Exercises the FINANCIAL Nuclear Option?

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Subject:	The Day After America Exercises the FINANCIAL Nuclear Option? – Re: Fiat Money, or Paper Currency, EQUALS Govt Control of the Trade and the Economy
Date:	Wed, 18 Aug 2010 19:07:36 -0700
From:	Jas Jain

The Day After America Exercises the FINANCIAL Nuclear Option? – Re: Fiat Money, or Paper Currency, EQUALS Govt Control of the Trade and the Economy

See Hugh's reply below. Can someone chart the Day After scenario if America drops the FINANCIAL Nuclear Bomb on the Global Economy? I know, Indian economy would be Hiroshima, but what about China and Japan, would they be Nagasaki? My impression is that America's ruling elite, the Crooks, is immoral but not stupid enough to exercise the Nuclear Option (inflating away) that would cause a global meltdown.

Jas

-x-x-x-x-x-x-x-x-x-x-x

1) Fiat currency and paper currency are not the same thing.

 

Fiat currency is not backed by anything.

 

Paper money may, in contrast, be a vehicle for commodity-backed currency.

In the Chinese case I would guess the paper money was backed by silver.

 

2) The world financial markets and the American financial markets are not the same thing.

 

Sure, the bond market would crash in New York. Once everybody

stands back and takes a deep breath, the Chinese, Russian and

Brazilian markets would, in contrast, probably do a moonshot.

Same perhaps with India and Europe. The point being that the

demise of the American markets sends players to those other

markets just as extraordinary strength in the American markets

draws them away from those markets.

 

3) The trouble with America's straightjacket is that it ain't gonna

hold. The patient will either escape or be choked to death trying.

The middle ground just isn't a sustainable option.

 

Hugh