THERE IS MASSIVE CONFUSION NOW ABOUT WHAT'S REALLY HAPPENING...
THERE ARE HUGE CONTRADICTIONS IN PRICES OF ASSETS... GOLD AT RECORD HIGHS...OIL PLUNGING TO RECENT RECORD LOWS...
THE DOLLAR HIGH...EVEN AS THE PRINTING PRESSES ARE ROLLING...
FOREIGN CENTRAL BANKS...IN TURMOIL...HOLDING DOLLARS, US BONDS ...AND VERY LITTLE GOLD...
WHAT'S UP...
IF YOU VIEW THE WORLD ECONOMY THROUGH THE LENS OF A BURSTING OF THE MASSIVE BRETTON WOODS DOLLAR BUBBLE ... THAT STARTED WITH KEYNES IN 1945...
AND CONTINUED UPTO THE TOXIC GREENSPAN ASSET BUBBLES OF THE 1990'S...?
A LOT OF THIS CHAOS BECOMES VERY CLEAR...!
WHAT GREENSPAN WAS DOING WAS ACTING AS THE GLOBAL CENTRAL BANKER...NOT JUST THE AMERICAN CENTRAL BANKER...
THEREIN LAY THE PROBLEMS...
GREENSPAN WAS PRINTING MONEY NOT ONLY FOR AMERICAS...BUT FOR THE RUSSIAN MAN ON THE STREET...WHO 'SECRETLY' HOLDS ALL HIS CASH IN DOLLARS HIDDEN IN HIS APARTMENT...
THE DOLLAR WAS OVERVALUED BY KEYNES...WHO THOUGHT THAT AMERICANS WHERE A RACE OF SUPERMEN IN 1945...NOT UNLIKE THE CHINESE SEEM TODAY...
KEYNES EXPECTED THAT AMERICANS WOULD NEVER DEBASE THEIR CURRENCY...HE CALLED THE DOLLAR THE WORLDS "SCARCE CURRENCY"... AND UP UNTIL GREENSPAN IT WAS!!
NOW THAT KEYNESIAN "SCARCE DOLLAR" NOTION WAS SERIOUSLY QUESTIONED IN 1971 ...
WHEN THE DOLLAR SUDDENLY "WENT OFF GOLD" TO PAY FOR THE VIETNAM WAR AND THE GREAT SOCIETY...
SLOWLY... ALL HELL BROKE LOOSE!! ...ALBEIT WITH A DELAYED REACTION, UNTIL THE MID 70'S...AND THE RISE OF THE INFAMOUS 70'S OIL SHOCK...
WHICH, BY THE WAY, WAS NOT CAUSED BY NASTY ARABS BUT RATHER BY THE "1971 EVENT"....
OF COURSE...THAT CRISIS TOOK US TO THE EARLY 80'S...AND THE "VOLCKER CURE"...WITH 20% PRIME RATES...AND 16% BANK CDS!! WHO WOULD BUY STOCKS THEN!!
THEN CAME REGANOMICS...
AND IT'S LOGICAL INCARNATION IN ALAN GREENSPAN WHO STARTED PRINTING MONEY FOR THE GLOBAL ECONOMY...USING FREE TRADE AND GLOBALISM AS AN EXCUSE TO DE-INDUSTRIALIZE THE AMERICAN ECONOMY...DEFEAT THE UNIONS...AND CUT WAGE INFLATION OUT OF THE PICTURE...
THUS OPENING THE WAY FOR THE MASSIVE ASSET INFLATION AND DOLLAR BUBBLE WE ARE UNWINDING TODAY...
SO...LOOK AT THIS AS AN UNWINDING OF THE DOLLAR BUBBLE... ALAS, IN REAL TIME...SO THE REALITY IS OFTEN FOGGED OVER BY THE DAY TO DAY EVENTS...
THE AMERICA ECONOMY SIMPLY IS NOT WHAT IT ONCE WAS...IN THE DAYS OF BRETTON WOODS... KEYNES WOULD BE SHOCKED BUT NOT SURPRISED AS HISTORY OF FULL OF THESE KIND OF "IMPERIAL DECLINES"....AND DEBAUCHMENTS OF CURRENCY...
WHAT ARE THE REAL FUTURE IMPLICATIONS OF THE DECLINE OF THE DOLLAR BUBBLE...AND WHAT WILL THE BRAVE NEW "POST-DOLLLAR" WORLD LOOK LIKE...
STAY TUNED...
TO BE CONTINUED....
