from an investor board ...
(snip)"China being the largest holder of FRNs [US Federal Reserve Notes - sic] makes it the world's de facto Central Bank [today - sic].
In 1929 the rookie (16 year old) FED held over 50% of the planets monetary reserves and was the world's Central Bank.
In the 20's the uS flooded the world and the uS economy with liquidity to hold down the $ and prop the BritPound.
In the last 10 years, China has flooded the world and the chinese economy with liquidity to hold down the Renminbi and prop the $.
In 1929,faced with internal hyperinflation and remembering what happened to the Germans in '24....the adolescent FED chose deflation.
In 2007, faced with internal hyperinflation, and remembering the Chinese hyperinflation and revolution of 1949.... the adolescent Chinese will choose deflation.
The US, now being in the position of the Britain of 1929, will have no choice."(snip)
(snip)"also, like the Fed in the run-up to the 1929 crash, the Chinese Central Bank is methodically raising its interest rates and reserve requirements."(snip)
(snip)"Demand for short term US private sector bank credit continues to drop, bringing short term rates down, while suppliers of long term debt to the .gov are getting harder and harder to find, which is forcing long term rates up.
The Brit CB in '29 could not defend it's set interest rate for bank credit, as credit demand collapsed and default and redemption increased.
It had to follow short term rates down, while rates demanded for new govt. debt continued to go up.....
The die for a Brit hyperdeflationary meltdown [in '29- sic] had been cast by the actions of the US FED."(snip)



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