The stock market is closed on Good Friday. What would I do if I wanted to destroy the United States’ economy? I would wait until the close of trading on Thursday and then release a statement signed by several countries (Russia, China, Iran, Saudi Arabia, Brazil, India, North Korea and Brazil would be more than enough) that they are converting to a new currency based on based on oil and gold.
When the Asian markets start to open after 9:30 PM on Thursday evening, US stocks, bonds and treasuries will collapse. Oil will quickly hit $100 a barrel and $2000 gold will be a memory. The banking sector in this country and other Western nations will also collapse and the banks may not open on Monday. The average American will have no way to sell their savings/pension as they can do nothing but watch as the full faith and credit of the United States falls to zero.
David DeGerolamo
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Gold & Bonds Soar After Weak Jobs, Manufacturing Data;
Rate-Cut Odds Soar
Spot Gold soared back above $2020. The precious metal has only ever been higher than this on seven days in history…
Treasury yields are plunging…
Capitalist Eric gives it a 50 -- 75% chance of it happening on the same timeframe — over Passover & the Easter weekend. I believe Bo Polny is saying something similar.
I totally disagree. Bo polny is persistently wrong
er…I did not say I agree with Bo Polny, only that he has been predicting this.
BTW, I agree with you; he is consistently wrong.
I was going to comment on your previous Sandman articles…
the chart about the Treasury yields dropping off a cliff, however, might mean something,
as foreign countries including China hold vast amounts of Treasury debt, denominated in US dollars -- I don’t think they would be inclined to write off these trillions of dollar assets by declaring they no longer accept US dollars for payment. I mean, if that were the plan (I think it is), I think they would be dumping Treasuries first (they have been -- but there are billions upon billions left)
that’s why I don’t think such a declaration is imminent (yet)
and besides, what does a declaration do -- the actual transactions are the real thing, which would transpire over a protracted period of time, no doubt with strenous US countermeasures…
it’s an interesting speculation, but only rumor -- I think there would be more noticeable market signals before such an “event” -- in fact, I think there would be a “process” (which we are certainly in the middle of)
it would be a declaration of war -- it would be dramatic, and would change the world (again) -- I think the consequences to the other side are still too much to bear -- more likely is a continuation of the increasing “de-dollarization” of world trade and transactions, but the “Global South” would want to liquidate what dollars they still have…
I am not alone in my belief that the US dollar is losing value and will become another “continental”. See the price of gold and silver today. Foreign countries have been selling their US treasuries before they become worthless. Whether they hold on to them or not, the full faith and credit of the US is not worth a cup of Joe.
I will buy your usd. Pm prices are going to crash. I may short gold/usd soon
As long as the price is fixed by the Bank of England and their PM house, and, tied to ETF’s (paper) you may be correct. Otherwise, it will go up, up and away…
If the dollar crashes, who will be in control of the pm market? Now if you hold vast amounts of pms. Will the value of those pms soar higher than any treasuries you hold?
As SVB found out, only fools hold treasuries. I suggest that you look at the price AND availability of gold and silver. The dollar will collapse and people will still give value to precious metals.
The treasuries that china holds, is what I was referring to . They may loose on Treasuries but gain on PMS. But thanks for the reply.
Thank you for the clarification.
interesting counterpoint, that China may not care about the value of their UST’s, when they have been collecting the world’s biggest hoard of GOLD (real money)!
I disagree. Wager??
A big ustreasury holder dumping bonds is legally an act of war. China does not care if the usts lose value insomuch as they have US PARKS AND FRESH WATER BODIES AS COLLATERAL.
in ‘collateral’, do you mean like ‘hostage’?