I was just passed this link Pressure (Countdown) Towards Breakdown and I found it quiet interesting.
I dont want this thread to be an arguement of bears vs bulls but I think it would be interesting to discuss the points raised. It is obviously a privately run website and from the article the guy no doubt has a bearish bias but i found it interesting none the less.
I have highlighted below some key comments:
I dont feel this is 100% accurate but I definately see the USA's negotiating power and ability to control outcomes is fast diminishing. China would be silly not to through their weight and money around in the current climate as for them this is literally a once in a life time opportunity to flex some economic muscle.The crux of the matter is that the United States is no longer in control of its fate. Meetings with creditor nation leaders result in new orders given, and new policy directives enacted.
There is no proof in the article to back it up, so i read this point with a grain of salt.The FDIC is scheduled to release its Second Quarter Report that could reveal up to 1000 banks expected to croak, surely enough to exhaust their rescue fund by between 20-fold and 100-fold.
The USFed liberally uses its USDollar Swap Facility to enable strong bids by foreign central banks, except that they are highly likely coming from USFed accounts on foreign soil, or else from money lent by the USFed itselfFrom other readings/news articles it is clear to see that China has a balancing act to play, with such large US cash reserves they dont want to see the USD collapse, but nor do they want to hold onto the cash. It would be interesting to graph the outflow of Chinese investment out of the USD into other assets (if such info could be found).never overlook the continued urgent Chinese initiative to ‘spend’ their USTBonds quickly, for useful tangible purposes, before any damaging sequence of events occurs. Simon Black (aka the International Man) wrote, “I have been spending a lot of time this week talking to my sources in China, one of whom is inside one of the country’s sovereign wealth funds (SWF). He also indicated that the SWF analysts were working around the clock trying to put deals together. For China it is a race against the clock for how fast they can convert their $2 trillion in USDollar holdings into strategic assets, namely oil and gold
Has anyone heard of AIG doing this before?AIG has been busy conducting a shell game to move assets from recently audited subsidiaries to the next subsidiary to be audited, in order to hide its neverending bust played out