"The man who prefers his country before any other duty shows the same spirit as the man who surrenders every right to the state. They both deny that right is superior to authority."
Lord Acton

Monday, June 6, 2011

Debt of Nations


Internationally, the American inflation was the transmitter and the rest of the world the receiver.  The United States was the actor, and the rest of the world the audience.  Other nations were forced to participate only because the action spilled out of the stage and into the orchestra.  The United States was the author and the cast, and it held the power of control of the worldwide problem for better or worse.
Inflation's courier to the rest of the world from the United States was money.  Just as inflation is a disease of money, the bearer of contagion outward from it's source is an outflow of money.  The constant outflow of dollars from the United States implicated the rest of the world in the American inflation, as an outflow of Reichsmarks had implicated the rest of the world in the German inflation.   (Dying of Money, By Jens O. Parsson)

In all reality, Europe, the United States, Japan, China, and effectively the entire world is interconnected.  Inflationary pressure is being pumped by the Federal Reserve and is spewing out at the weak points.  It's just a matter of velocity (in literal and figurative terms).  China and other economies are experiencing terribly high levels of inflation.  Once begun, it is very hard to stop.  Even in the USA, monetary velocity is picking up despite an economy that appears to be in the beginning stages of a slowdown. 

The point is, It doesn't matter the trigger point.  The world is connected, and Bernanke knows it, Greenspan knows it.  Greece cannot be allowed to fail, neither Japan, Portugal, Italy, Ireland, Spain, etc.  If one does, it will bring everyone down with them.  I expect QE3 will happen, and it may take the form of bond purchases between all the above parties.  It is the logical thing to do, and it might be sneaky enough to keep people from noticing for a while, unless Ben's figured out a sneakier way...

2 comments:

  1. Hello Everybody,
    My name is Mrs Sharon Sim. I live in singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com)Thank you


    LOAN APPLICATION FORM:
    =================
    Full Name:................
    Loan Amount Needed:.
    Purpose of loan:.......
    Loan Duration:..
    Gender:.............
    Marital status:....
    Location:..........
    Home Address:..
    City:............
    Country:......
    Phone:..........
    Mobile / Cell:....
    Occupation:......
    Monthly Income:....

    Contact Us At :urgentloan22@gmail.com

    ReplyDelete