Your Thoughts: Pressure (Countdown) Toward Breakdown

[investorpaul]

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:

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.

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 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.

There is no proof in the article to back it up, so i read this point with a grain of salt.

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 itself

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

From 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).

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

Has anyone heard of AIG doing this before?

Discuss

 

[Buckeroo]

Not now.....

I wonder if the US government is trying to close it down to cover up the information

Cheers

 

[Buckeroo]

Not now.....

I wonder if the US government is trying to close it down to cover up the information

Cheers

Hey, what happened to the other posts that were on here?

 

[Timmy]

Hey, what happened to the other posts that were on here?

Once the link was fixed the posts saying the link was broken became redundant.



Oh, and the CIA called suggesting removing them would be a 'good idea'.

 

[doctorj]

Has anyone heard of AIG doing this before?

I just can’t see how that would work – surely the auditors would spot it on consolidation? Plus – if they’re moving around investments, auditors audit investments through contacting the fund manager or other 3rd party directly to confirm exactly who owns how much of what as at a balance date. So either these 3rd parties are supply fraudulent responses or whoever wrote this is full of it.

 

[investorpaul]

I think the article (even if some of it is a stretch of the truth) highlights is that there are structural problems in the US economy.

I did some further research into the US and its requirement to continually borrow money from countries like China and it did become clearer. China through luck or skill have positioned themselves as best as possible. I have no doubt they are in the driving seat. Obviously they cannot control america directly but they hold enough USD to serious influence economic events.

I also read some further details on US home loans. There are a stack of loans that started off as an introductry loan at loan interest rates, after between 1 and 3 years the interest rate ramps up. A lot of these loans have interest rates that will be ramped up in the next 2 years. It will be interesting if there is any additional impact caused from this