Ayame wrote:Excuse me mister but wasn't that the plan all along.
Annonce a bail-out and then try and get some chinese/middle eastern/indian suckers to finance it.
Effectively, the same game is being played with the Saudis as was played with Congress by Paulson to get a Blank Check. You threaten a complete collapse if they DON'T Pony Up the money, instill such FEAR in them that they feel they have NO CHOICE but to do it.
Everybody, and I mean EVERYBODY is terrified right now by what is going on. Money is burning up here faster than it can be printed and there is no way to establish a true value in monetary terms to ANYTHING right now. Not commodities like Oil or Food, not equities and manufaturing capability like the Chinese have but cannot use, and not even in a surplus of liquid capital like some of the Creditor nations still show on the books.
Week in and week out here, the DJIA drops another 1000 or so points, propped up periodically by the PPT but still spinning inexorably downward. Hedge Funds are trying to liquidate and EVERYONE is running for the fire exit at the same time. Katy Bar the Door! Even if they get to the exit door first though, where do you GO with the money, and in what form do you take it?
Still UNSPOKEN here in the MSM and even on this board really is what MUST be occurring now in the CDS market. Trillions of dollars in contracts that must be accounted for, and WHO holds them? I would bet dollars to doughnuts that the Chinese and the Japanese have obligations here that are extraordinary. If you do not know what those obligations are, just how is it you would assume those countries are solvent?
The Chinese and Japanese are as terrified here as everyone else, and so are the Saudi Sheiks. Good grief, at the moment the Oil they have in the ground is close to WORTHLESS, nobody can afford to buy it even at rock bottom prices that are about certainly below the cost of production in this monetary system. If they can't sell it, HOW do they feed their populations in that Desert?
The terror by itself is probably enough to get the Saudis to put up the $300B in a last ditch effort to save this system, but given the fact the CDS market runs into the TRILLIONS, this is a drop in the bucket and won't staunch the bleeding at all. Slow it down briefly is all perhaps.
The system HAS to collapse. Not just in the USA, GLOBALLY. All the currencies are tied together here, the contracts and obligations are international. It cannot hold up, its a house of cards built on quicksand in an earthquake zone, and right now the tectonic plates have shifted and this economic EARTHQUAKE is hitting 9.0 on the Richter scale. Its going to FLATTEN human civilization for a while, but it does not necessarily mean we cannot pick up the pieces afterwards. If Mother Nature does not close us out because we have passed the Tipping point, it will be possible to rebuild in the aftermath of this quake. One can only hope that the next time round, we do not choose the same path that led to this destruction again.
Reverse Engineer
