How a bbanana Republic defaults

Discussion
1

A comment at JSMineset.com caught my eye...

The U.S. is already in the process of devaluing the U.S. Dollar by expanding Obligations denominated in same in the $4 to $8 Trillion range over the last 4 months. The Federal Reserve’s balance sheet is so full of toxic waste right now, this is a bank no one in right mind should lend to. Expect FDIC Insurance to eventually turn into massive Treasury Auctions, with fixed ask prices and no bids; an explosion in failed banks will cause payment to depositors to be in Treasury Notes, say 3 to 4 year maturities to start and then 10-years as flood of Dollars into global system whacks the Greenback big time at some point in March. All U.S. Treasury maturities will eventually be extended, with some interest payments paid in additional Treasuries, not currency. Many ways for a country to default on its debt, expect the U.S. to be the most creative in history. Standard means is to devalue denominating currency, which we are doing by the tanker load, market has not awoken to the fundamentally strong currencies yet, it is all emotion in the Forex pits. Welcome to the United States of Banana’s.
Comment by WexfordSage - February 18, 2009 a

2

So are you guys buying Gold or playing Forex...?

3

I strongly prefer gold to the F/X casinos. I'm SURE of the secular
trend in the dollar (down, way down), but UNSURE of how the dolalr
will fare against other fiat currencies. All could fall
precipitously and still preserve similar exchange rates as today.

-Derek

So are you guys buying Gold or playing Forex...?

> A comment at JSMineset.com caught my eye...
>
>
> The U.S. is already in the process of devaluing the U.S. Dollar by
> expanding Obligations denominated in same in the $4 to $8 Trillion
> range over the last 4 months. The Federal Reserve's balance sheet

is

> so full of toxic waste right now, this is a bank no one in right

mind

> should lend to. Expect FDIC Insurance to eventually turn into

massive

> Treasury Auctions, with fixed ask prices and no bids; an

explosion in

> failed banks will cause payment to depositors to be in Treasury

Notes,

> say 3 to 4 year maturities to start and then 10-years as flood of
> Dollars into global system whacks the Greenback big time at some

point

> in March. All U.S. Treasury maturities will eventually be

extended,

> with some interest payments paid in additional Treasuries, not
> currency. Many ways for a country to default on its debt, expect

the

> U.S. to be the most creative in history. Standard means is to

devalue

> denominating currency, which we are doing by the tanker load,

market

> has not awoken to the fundamentally strong currencies yet, it is

all

> emotion in the Forex pits. Welcome to the United States of

Banana's.

4

Philip:

  They've been in the process ever since the looters took the US of
the Gold Standard. We've had managed hyperinflation ever since. As
proof of this look at the government's own numbers:

http://www.bls.gov/bls/inflation.htm and click on 'CPI Inflation
Calculator.'

You'll notice that the dollar devalued about 50% between 1913 and
1973---during four major wars, the New Deal and the Great Society. It
halved again by 1978; halved again by 1998; and is on its way down.

--- In lpsf-discuss@yahoogroups.com, Philip Berg <philzberg@...>
wrote:

A comment at JSMineset.com caught my eye...

The U.S. is already in the process of devaluing the U.S. Dollar by
expanding Obligations denominated in same in the $4 to $8 Trillion
range over the last 4 months. The Federal Reserve's balance sheet

is

so full of toxic waste right now, this is a bank no one in right

mind

should lend to. Expect FDIC Insurance to eventually turn into

massive

Treasury Auctions, with fixed ask prices and no bids; an explosion

in

failed banks will cause payment to depositors to be in Treasury

Notes,

say 3 to 4 year maturities to start and then 10-years as flood of
Dollars into global system whacks the Greenback big time at some

point

in March. All U.S. Treasury maturities will eventually be

extended,

with some interest payments paid in additional Treasuries, not
currency. Many ways for a country to default on its debt, expect

the

U.S. to be the most creative in history. Standard means is to

devalue

denominating currency, which we are doing by the tanker load,

market

has not awoken to the fundamentally strong currencies yet, it is

all