so, let’s talk about this

From Zerohedge…

First, oh shit!

Second, not really a surprise.

Like the initial monetization of our debt by the FED almost three years ago, this will mark a waypoint on the path to our eventual collapse. And yes Mrs. Matson, it can happen here.

As such, all those Americans pushing China to revalue, may want to consider that such an action could well guarantee hyperinflation, once the Fed is stuck as being the only buyer of US debt.

Not sure that I am 100% on the bandwagon with the hyper-inflation crowd, but it is an interesting idea to say the least.

Dear readers, these kinds of things lead to war on a macro scale.

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One thought on “so, let’s talk about this

  1. Hi, interesting, I agree. But in my opinion flawed in two respects. The first is that today’s problem is rather to avoid slipping into deflation. The second is that even with an appreciated yuan, I don’t see US t-bills losing their status of safe investment anytime soon, especially if we look at what Europe is doing nowadays.
    Now, would an appreciated yuan significantly change the current account position of the US, that, I find harder to believe. The source of the deficit is overspending, not cheap Chinese goods.
    As you say, interesting and difficult to sort out.

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