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When Central Bankers Clash, Stock Markets Can Crash

I don’t know if this is a place to have this discussions but some statements here ask for a response:

Further up Gabe Borenstein writes

“…the ECB had managed to weaken the dollar by about 50% vs the Euro…”

Well, why not blame it for wild fires and floods?

As far as I remember the 30 years before the ECB even existed, already the Dollar went steadily down the drain (compared to Swiss Francs, Deutschmark then Euro, Yen. It used to be worth more than 4 times as much – 40 years ago). This trend has only once been markedly interrupted: During Paul Volcker s tenure as Fed chairman, successfully combating double digit COL by limiting money supply, never mind interest rates.

Btw, if COL would be calculated as in the ole Volcker days we would already be close to double digits in the USA. Another monster con job on the American people, the “core” inflation calculation formula.

It is not rocket science what happened in the recent decades:

There was no more added value produced by the US of A Inc. Government and Consumer spending, apparent growth and wealth, was artificially created by spiraling indebtedness to the rest of the World and printing money = debasing the US $ = no more trust in the US (economy, Wall Street, political establishment) = run for alternative, non-fiat “currencies” such as oil, gold, commodities, real property when back to levels people can afford to buy for money they have really earned – not with debt and mortgaged, “equity” loaned, until the beams crack.

The opening of the Fed spigot for all and sundry garbage debts, defaults are just hideous attempts to delay the day of reckoning. I am afraid the chickens are in the process of coming home to roost. Whether by depression or hyper inflation is akin to choosing between death by hanging or drowning.

Have a good day.

PS: One more thing on oil price and “speculation”: If for political reasons and self-preservation you are “forced” to sell your wealth, your oil you produce, against worthless dollars – what do you do? Hedge the damn stuff, of course! You don’t need much to get the market the way you want – no – you need it to go, to keep some resemblance of wealth on the the books. Wonder who Nymex, CBOT, IPE/ICE s clients of their clients traders really are…?

When Central Bankers Clash, Stock Markets Can Crash

Excellent, complete article. The only prominent Americans I know of who could restore trust and do something meaningful about this disaster are Paul Volcker and Ron Paul. Since their views are off limits for the snake oil sales people in Washington and on Wall Street, I will continue to shield my assets from the impact of a debased US dollar in order to keep real value. If this is “speculation”, so be it. I call it: taking due care, good housekeeping, behave like a bon pere de famille, as the French say.