News & Analysis
Are There Still Differences Between the Great Powers?
Putin's Free-Trade Proposal Is 'Just a Smokescreen' ... Russian Prime Minister Vladimir Putin (left) arrives at a conference in Berlin on Friday: Russian Prime Minister Vladimir Putin wants the EU and Russia to forge a massive free trade zone. German commentators are wary of the wily politician's true intentions and urge Europe's politicians to read the small print. Russia appears to have launched a charm offensive aimed at the West. At last week's NATO summit in Lisbon, the alliance and Russia decided to cooperate on a missile shield, an agreement that Russian President Dmitry Medvedev described as "historic." Then on Thursday, Russian Prime Minister Vladimir Putin presented his vision of a massive Eurasian free-trade zone in a guest editorial for the German daily Süddeutsche Zeitung. "We propose the creation of a harmonious economic community stretching from Lisbon to Vladivostok," Putin wrote in the piece. "In the future, we could even consider a free trade zone or even more advanced forms of economic integration. The result would be a unified continental market with a capacity worth trillions of euros." – Der Spiegel
Dominant Social Theme: Putin wants everybody to get along – politically and from a currency standpoint (except perhaps the US).
Free-Market Analysis: Vladimir Putin makes a currency swap deal with China and then heads to Germany to propose a vast, continent-wide European union. It is inevitable, he says. It is aimed at marginalizing the US dollar and giving the world a choice of what kind of currency to use. Putin speaks, even, of adopting the euro, while other Russian political leaders have spoken of creating a basket of currencies, akin to the IMF's suggested bancor.
What do Putin's overtures tell us about the relationships between the great powers early in the 21st century? Is it a kind of promotion that is intended to emphasize the coming centralization of governments worldwide? Is it sincere? A ruse? Understanding where the world is headed, and why, is important for people who want to plan for their own future, and for their family's and their investments.
Thus, in this article, we want to continue a theme we recently broached, that much of the problems in the world today may be in a sense coordinated by a free-floating money power that includes all the great powers of the globe. The idea, if one adopts this view, is that the powers-that-be are increasingly creating global economic uncertainty (and even desperation) to use the resultant chaos to create an ever-closer global union.
Now we have argued in the past against this theme in numerous articles, because we see money power to a great extent as an Anglo-American exercise. But increasingly we see in the news that there are initiatives between the world's great powers that seem to indicate that they have convergent interests regarding increased global centralization.
We covered this evolution just a few days ago in the article "Global Depression Just a Dodge?" We wrote, "[Our] conclusion [hypothetically] is that the only way to really account for all the contradictory trends [worldwide] is to conclude that there is a level of behind-the-scenes collusion between ALL the powers-that-be. All of them, East and West, may be cooperating to bring down the current system with an eye toward instituting something in its place that will be mutually agreed upon." You can see the story here: Global Depression Just a Dodge?
Of course there are plenty of observers in the West who will make the argument that there are distinct differences between the various powers of the world – and we have argued this, too. Some will make the case, for instance, that China is gaining a global economic advantage because its leaders practice state capitalism instead of free-market capitalism as the West does. And yet ... China obviously controls the upper level of its businesses, especially the financial sector, and we don't seem much difference between the Chinese way of doing business and the West's at this point.
It used to be that you could make a firm distinction between the various sociopolitical blocks of the world. For all the problems that the US had, and its behind-the-scenes elite control, there was a residue of cultural classical liberalism – freedom – that distinguished it from 20th century Russia and China. The USSR had its politburo and its Gulags; China had mass starvation and re-education camps. The US and the West in general maintained a culture that partook of several hundred years of classical liberalism and could even be traced back to the Renaissance and the Greeks. Living in the West was evidently and obviously better.
There was no such cultural kinship in China and the USSR. Both regions had been severed somehow from accepted norms of civil society and were in a sense "new" societies that had adopted a political system rejected by the West. This perspective was reinforced by World War II, where the West had apparently definitively rejected German authoritarianism and chosen "freedom." There was in fact throughout the late 20th century a threnody of historical irritation with the way the war had ended up and how Franklin Roosevelt had given up too much of the world to Stalin and the Russians.
Now in the 21st century from our perspective, the differences between the various "blocks" of the world are far less clear. Russia and China seem to make common cause on a number fronts, and yet there are many areas in which one country or the other cooperates with the West. Even Russia's approaches to the EU recognize this dichotomy as the excerpt from Der Spiegel at the beginning of this article indicates. Putin pushes a merger between the EU and Russia with one hand while excoriating certain energy-oriented policies with the other. Here's some more from Der Spiegel, quoting Süddeutsche Zeitung:
"The Russian prime minister wants nothing less than a close relationship between East and West. Back in the summer, he was singing quite a different tune. At that time, Putin announced that Russia would raise import duties on cars, saying: 'We're not, after all, WTO members, so we can afford to do it.' Has the great chameleon Russia now decided to change its color once again?"
"The country has already been negotiating its entry into the WTO for 17 years. The signals were so mixed over the years that no one knew whether Russia really wanted to take that step or not. Now, though, the realization is taking hold in Moscow that there is no other choice. The global economic crisis may have caused great damage to many countries, but it left Russia in ruins. The country will not be able to head into the future relying on its oil, gas and metals any more. The model of a great power based on raw materials is a thing of the past, and Moscow can no longer depend on energy prices as it once did. Russia must open itself up."
"The opportunities and risks of such an opening have long since been thoroughly examined, and Russia has opted for modernization. In the long term, the country has more to gain than to lose. ... Vladimir Putin and President Dmitry Medvedev know that Russia cannot be strong politically if it is economically weak."
Despite differences, what is perhaps supposed to come across clearly from all this horse-trading is that Russia, under Putin, is just another powerful country pursuing its citizens' self interests. The same could be said for China, despite rising military tensions. China claims to be a communist country but it is the single biggest buyer of American Treasuries (thus keeping the American economy afloat) and throughout the 2000s has sold more products and services into the US then any other country. This is not a Cold War paradigm.
Is it, however, a dominant social theme, a conscious promotion of the Western powers-that-be? Given what we know occurred in the 20th century, the wars and economic destruction, especially, we are not apt to trust any utterances of powerful leaders. The Anglo-American axis in particular has aimed for world government for over a century and has attempted to reach its goal through a variety of divide-and-conquer strategies.
The 20th century was in fact a time of great wars and great divisions between sociopolitical philosophies. But we know that the Western elite funded the initial formation of the Soviet Union and we believe there was funding from the West as well for Mao, though some of these articles seem to have been removed from the Internet. The West, in other words, first encouraged communism and then confronted it. In the process, the militarization of Western society proceeded apace.
There is much talk of war these days, along with a variety of peaceful trade and business initiatives. The profiles of the great powers have blurred, with China and Russia becoming increasingly capitalist as the US and EU becoming increasingly authoritarian. This is the "longest view." Is it merely coincidence? Or is part of a larger fear-based manipulation of the power elite? The perception may be that Russia and (perhaps) China are trying to leverage the EU to form a power block against the US. But we believe that the EU is a creature through-and-through of the Anglo-American elite and that the EU is still controlled by the Anglosphere. In other words, the shifting strategic alliances are not what they seem. They are a shadow play.
And so ... if it comes to war, even a big war, how much of it will be manufactured? The wars of the 20th century increasingly seem to have been created artificially. Will potential violence usher in a New World Order? If there is no war, but only a variety of shifting trade pacts, will this eventually result in the emergence of a one-world currency and government?
Conclusion: How much of what is going in is based on "real" national interest and how much is for show, designed to illustrate clearly that all the great powers are operating in a similar way with similar (quasi-authoritarian) political structures. Putin's overtures to the EU do nothing to dissuade us from continuing to explore the theory that there is a bigger operative plan and the elites are perhaps orchestrating a vast shadow show intended to end up with world government.
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Posted by Merle Peabody on 02/23/11 11:35 AM
I believe that all this is happening. The Bible tells us of this eventuality. The Daily Bell is hitting the themes of the Bible very well. The Bible may have been written in ancient times, but is most meaningful for today. Jesus said He was coming again and He will. From the time He arose until He comes started then. People can saty all they want6 about where is He? He can't come until the bell is rung for the Earth by His Father. Keep up the good work at the Bell!
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Posted by Clark on 11/30/10 08:27 AM
Onward and upward?
"This illustrates, once again, that we have one and same line of development from Bolshevik times, to late Soviet, up to our day. Against and despite all the rhetoric otherwise; I repeat, there is no serious prospect or political will to scrutinize the most basic links between Moscow and European capitals, starting with the end of the Second World War. The Russians also keep their methods of control over the Eastern Bloc a secret. Why? Because it is still operational."
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Posted by William3 on 11/29/10 11:24 PM
There is strong merit in the argument that global powers are "talking" to bring about a NWO.
I have long believed Russia's leadership was co-opted by the PE with the downfall of the Soviet empire. It's difficult to believe Boris Yeltsin could single-handedly resurrect Russia from the rubble. And how did a former KGB agent emerge as President? Support had to come from somewhere.
China's leadership, I believe, has been co-opted by the recognition that it needs the West economically. First, there is economic dependence on exports -- at least for now. Secondly, the people of China look to the West as a model of how to live in their new existence as middle class citizens. If leaders fail to maintain a strong economy, they know how fragile stability will be.
Likewise, PE influence is no doubt strong among Indian and Latin American leadership.
The key is that it's the leadership, not the citizenry that's been co-opted. If this is exposed, what credible means will the PE use to convince the people of any country to comply with any form of world government?
Even though, no doubt, the PE will continue to try, as memes fail, they and their co-opted puppets will eventually have no choice but to pull back and consolidate amongst themselves in a place unknown to none but them.
Reply from The Daily Bell
See today's article!
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Posted by Clark on 11/29/10 06:06 PM
kilowatt/hour. As I understand it, most all kilowatts are the same, thus the popularity of battery powered voltage regulators. So it seems a kilowatt/hour wouldn't be much of a standard.
Reply from The Daily Bell
It was a strange remark - one designed to indicate his comfort level (high) with a carbon currency. Perhaps he is a "warmist."
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Posted by 4irw4y on 11/28/10 11:48 PM
Thanks for The Telegraph, Gavin.
I would add that you can use any currency without limits in RF, euro too. Ministers, reporting to congress, operate with _euro_ or dollars, rarely rubles. Perspective business planning is also done in euro. Well, you know.
Of course, we cannot expect Brussels running the monetary flow in RF. And, answering your post, Gavin, I'd say that one central bank for two poles is too few, I would try a clearing centre with no right to emission. And you can choose the anchor currency... I'd choose a kilowatt/hour.
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Posted by Gavin on 11/28/10 10:46 PM
4irw4y, "Can anyone prompt me please where Putin spoke on world government or a united central bank."
[Putin] said: "Yes, there are problems. But the economic policy of the European Central Bank and of the governments of leading European economies ... convinces me that the stability of the euro will be ensured."
He added: "We know there are problems in Portugal, Greece, Ireland and the euro is wobbling a bit. On the whole it is a solid, good currency and it should take its place, its role as a reserve currency."
Asked about Russia's role in the eurozone in the future, Mr Putin said: "Can it be supposed that one day Russia will be in some joint currency zone with Europe? Yes, quite possible."
Click to view link
Not quite world government but the language is getting close enough.
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Posted by 4irw4y on 11/28/10 10:08 PM
Can anyone prompt me please where Putin spoke on world government or a united central bank. Just show me an idiot who wants to be in.
You are offered to make Euro market at least thrice more capable in not a long-time perspective. Look @nearborder cities Manchuria and Heihe, which were built from scraps in 5 years during the _beginning_ of the trade boost between the two countries. They need Russians on their land more than Russians needed Chinese. Look @Khabarovsk city which sine 2010 hosts the Headquaters of the US-sized East Command (formerly the Siberian Military Region) – China is right across the river.
What else prooflinks do people need? I may be sometimes agree or disagree with rupres, but he's been put there to do job in the interests of many groups, naturally, not just this or that.
The problem is that US taxpayers are also called to join the party and let the unit in, and also some criminal assets will loose its weight partially – can you wash amounts fast to converse/distribute new currency amongst the units of the fifth column and terrorist groups?
For the dessert... prepare handkerchiefs...
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Posted by Gavin on 11/28/10 09:24 PM
@Finn
I liked your post.
"...however when you trace all currencies to their origin they are usually a reaction to world events. And they are usually an attempt to avoid using gold as money."
Even the language the bankers use is hidden in open site. As I understand it the river's Current flows to the Sea (Currency) and the river Banks control the Liquidity.
There's more like this. For example the old word for Saturn was 'El' (in some way tied to the PTB) and from that you get Elite, Elevation, Elevator, Elder (Statesman), Elated, Election, Elements, Eligible, Elixir, and Elves ;-) (Possibly Eliminate too? – I hope not.)
As for your second post, it seems very likely that Wikileaks is an Israeli operation if you weren't already aware.
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Posted by Finn on 11/28/10 06:58 PM
And without the internet, none of this would be possible.....
"Use our interactive guide to discover what has been revealed in the leak of 250,000 US diplomatic cables. Mouse over the map below to find stories and original documents by country, subject or people"
Click to view link
"Such surprises from the annals of US diplomacy will dominate the headlines in the coming days when the New York Times, London's Guardian, Paris' Le Monde, Madrid's El Pais and SPIEGEL begin shedding light on the treasure trove of secret documents from the State Department.
Included are 243,270 diplomatic cables filed by US embassies to the State Department and 8,017 directives that the State Department sent to its diplomatic outposts around the world. In the coming days, the participating media will show in a series of investigative stories how America seeks to steer the world. The development is no less than a political meltdown for American foreign policy.
Never before in history has a superpower lost control of such vast amounts of such sensitive information -- data that can help paint a picture of the foundation upon which US foreign policy is built. Never before has the trust America's partners have in the country been as badly shaken. Now, their own personal views and policy recommendations have been made public -- as have America's true views of them."
Click to view link
Ouch.
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Posted by Fred on 11/28/10 05:32 PM
@DB "
consider Burma cyclone Nargis 2008. Media hype galore drumming up public support for a "humanitarian " invasion of Burma , it did not take place because of the Sichuan/Wenchuan earthquake. Mainstream Anglo media certainly attempted to keep the Burma "humanitarian ' crisis front and centre but the Sichuan earthquake was just to big . So what is so important about Burma? Burmese ports / oil transfer stations and a pipeline to China.
In this context it is interesting to note Sri Lanka , Tamil Tigers dispatched and a Chinese funded and maned port built. Note the American military is up to something off the entire Pacific coast of North America, they figure what ever they are doing will kill 11 million or more mammals
In my opinion the Anglo- American central bankers are set designer, it's theater and we get killed. Their plays go on for 50 , 60 and more years.
When did they determine that China would, of course, industrialize and become a threat to the debt money system. I think it's obvious that Regan/kisinger et all convinced China to industrialize for export rather than domestic consumption.
Perhaps China wouldn't borrow so they couldn't get China by the balls with debt, so it's deindustrialize the west and collapse the world economy.
The retirement age for the majority of the post war baby boomer generation is the variable that sets the timing on the economic collapse.
I think the PE have been setting it up for a war with China and if the Chinese Central Party can't find a way to hold power while the country's economy falls apart then war is the option.After all the the Chinese Central Party is no better than the central bankers " they all just want to maintain their positions . The verdict is out on Russia, we'll see.
That's my contribution to the discussion. I've been reading your site for awhile and figured I should give something. Please excuse the spelling , glasses ended up in the soup.Through a glass darkly you might say
Reply from The Daily Bell
Glasses or no, good insights. Thanks
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Posted by Ingo Bischoff on 11/28/10 04:40 PM
@ Finn
I like your thinking.
As regards the "playbook", it maybe "Natural Law" that dictates the plays. Could it be Russia and China woke up to this fact?
The Anglo-American monetary elite has called the plays since 1934. Until until now, they have worked well enough. I suspect however, that other countries in the world are seeing plays that are in accordance with the "Natural Law", and are a successful defense against the old worn out plays by the Anglo-American elites.
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Posted by Finn on 11/28/10 03:34 PM
I don't know what was more interesting, reading the article or reading all the posts. One thing is clear, gold is rather misunderstood. I'll say this straight away, if you have neither gold nor crop seed and you think gold is going back to $300 an ounce, you need to catch up with reality. The production costs of gold alone is around $650 and the only way for that to decrease is for oil to go down in price and for gold to start to reform itself closer to the surface of the earth!
I find myself aligning most with Ingo in that unless gold's role as money is better understood we will continue to struggle with having a productive society and fighting to be free of government and government being free of the fear of revolt. These two forces are always opposing each other and when the tides of time bring them to a meeting point gold is usually there as the mediator.
A few sentences into this article the first thing that came to mind was Fofoa's ideas on free gold. It would make sense that if the dollar was reaching the end of it's usefulness that Russia would support the Euro. Regardless of the ultimate political goal of world government you HAVE to deal with the fact the economics is still being "practiced", much as medicine. The desire for power intentionally obscures the empirical nature of money so it can be controlled in order to control society at large. Gold must be dealt with from time to time by governments as debts and currency printing become unreasonable.
This time around I don't know that war at a global level would serve TPTB in our technological age. War is expensive and if you disrupt the flow of oil, electricity and information it could be devastating. Even if they do want to cull the population a war at that scale might be something the world simply does not recover from. This would explain why Russia and China would work with the West even though it appears they despise us at times.
But there are many factions, many power brokers, many different financial and political interests at work. You could never convince me there's one ultimate hand book all the leaders of the world are playing by. One destination we are heading to. Russia's been buying gold for years as has China. All the members of the SCO have been accumulating gold. The EU has gold as a reserve asset on their balance sheet and revalues it to the market price every quarter. It appears now that China and Russia are trying to minimize the societal disruptions that would occur if the dollar fell rapidly out of favor and contracts in dollars were in jeopardy.
The idea of the Euro being a safeguard (even if transitional) in the event of a dollar collapse would bring to light the reasoning for the forced bailouts of the member states of the EU. Yes you could view it as a power grab but it may also be that they are keeping it intact at all costs until the dollar hyperinflates. Now, we must also consider that all of this is by design and it truly seems that certain elements of the evolution of these currencies are, however when you trace all currencies to their origin they are usually a reaction to world events. And they are usually an attempt to avoid using gold as money.
Therefore I conclude that if you do not own gold at this point in time, you are in grave danger. The deck is being reshuffled, cards facing up. Gold owners get face cards and non-owners plant the crop seeds. That's going to be reality. TPTB are aligning themselves to suffer the least harm through these times of turmoil. Last I checked central banks were net buyers of the barbaric gold.
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Posted by Jonathan on 11/28/10 11:44 AM
Looks like Colombia, Peru, Ecuador and Chile are proposing to merge, in order to share their capital, people, goods and services! Although it has yet to be approved by their congresses, I believe (in Spanish).
Click to view link
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Posted by Jonathan on 11/28/10 11:29 AM
After 9/11, Putin 'kindly' donated an enormous sculpture to Bayonne, NJ, USA, of all places. This was called the Teardrop, but it actually looks like a vulva, with of all things a teardrop in the middle. To me, this is illuminati symbolism for something like a woman ready to give herself,or something equally inappropriate for the occasion. Looks like Putin may be a puppet like all the others.
Click to view link
Reply from The Daily Bell
Some site.
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Posted by Ingo Bischoff on 11/28/10 10:36 AM
@ Pete
"The "People of the World" did not choose Gold as a currency. Many other exchange-media existed before Gold."
You are quite correct when you say that the "People of the World" are not unanimous in choosing "Gold as a Currency".
They are unanimous however, in choosing "Gold as Money". There is a big, big difference.
The statement that there existed many "media of exchange" before Gold, is also correct. The system with a multitude of "media of exchange" is called "barter".
With the decision of Gold to be used as "Money", the World population lept to a much higher level of economic and societal interaction than previously possible under the barter system.
"Gold as Currency" retards economic progress. "Gold as Money" is the greatest boon to economic expansion.
Unless this is properly understood, there will never be a solution to the monetary mess in which we find ourselves.
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Posted by J.D.Beck on 11/28/10 09:09 AM
@ all Gold advocates.
"Where is the man who has so much as to be out of danger?" T. Huxleey
@ old Geezer
...I'm with you. 60 years ago it was the almighty "US $" Today , Gold reaching $1,400.00/ounce , and being hustled as the cure for all I'll s...tomorrow it will be $ 300.00 an ounce , and the guys who sold it to you will use the money to buy land to grow food....
@DB
interesting speculations....
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Posted by Alexander on 11/28/10 07:09 AM
As alluded to earlier, it may be wise to consider another scenario as well.
First, two big Axis' goals, as chronicled by The Bell, and as they themselves are not shy of telling us: world government and fewer people.
We submit that changing only one DB assumption, the impossibility of using large-scale violence, suggests another scenario entirely, with other pieces falling into place then as well, including the Iraq/Afghanistan mess, the elite's sense of urgency, and how QE2 set of the latest round of war-mongering in motion.
In particular, the Bell has extensively chronicled the Axis' willingness to shed large amounts of blood to further its own goals. From the Mongol Hordes, to the American Civil War, to WWI and WWII; the list may reach back even further.
At the same time, the empire's current American HQ is clearly bankrupt, meaning that the productivity of its people no longer offsets their cost.
Now, what if we consider a wholesale bankruptcy, along the lines of WWII: take out a large part of productive capital, and a large swath of humanity right along with it. Make sure that your own productive assets remain standing, along with access to crucial resources. Ruthless but rational, in a psychopath-like fashion.
Our point is that a China-US conflagration would achieve exactly those goals, with the remaining EU/Russia axis controlling both the world's productive assets, what's left of (useful) people, and a vast amount of resources.
Again as per the Bell, QE2 is setting this all in motion as the Chinese are now stuck between the rock of food-inflation and the hard place of a collapsing economy due to revaluation.
Iraq/Afghanistan now suddenly are significant roadblocks on the way to vital oil supplies. And the PLA's rapid expansion provides plenty of reason for urgency. Both the forced EU centralization, quickly resembling the Fourth Holy Roman Empire, the Euro/Russian coziness, and the TSA-boot fall into place as well.
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Posted by Clive Edwards on 11/28/10 04:03 AM
"The country will not be able to head into the future relying on its oil, gas and metals any more. The model of a great power based on raw materials is a thing of the past, and Moscow can no longer depend on energy prices as it once did. Russia must open itself up."
What a load of clap-trap. If one has energy and raw materials one can create secondary industry. If one has secondary industry and no energy or raw materials one must either buy them or steal them.
The US chooses to source energy and materials from outside her borders, which makes duress sales easier and saves domestic reserves for the end-game.
If energy and raw materials are really of such secondary importance to banking and manufacturing, it would be instructive to consider the response in Washington, New York and London if Canada were to abrogate NAFTA.
Russia and China might have the stones to play hardball with the PE. Canada is part of the problem, under the current regime, rather than part of the solution.
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Posted by Pete 8 on 11/28/10 02:41 AM
The "People of the World" did not choose Gold as a currency.
Many other exchange-media existed before Gold.
Fixations for scarcity-oriented materials from under the ground are just the riggings for a casino (banker) game, leaves toxic ecological disasters and is based on 'gain by others loss'. More means for power abusers, conmen, murderers, rapists.
Fortunately the myths of scarcity, war and mandatory poverty are ungluing, and people are waking up to the fact that a room full of 8-year olds can come up with better leadership than any of the current murderous masonic puke machine ever could.
We can easily fix this, win-win, and put these pathological skidmarks to perform their job effectively.
WE ALL say Jump – this high, because
we all dicussed it,
we all decided it was relevant,
we all mandated it,
we all agreed to fund such improvement.
Now who would deny that?
You Judges and politicos can keep your leather seats if you behave but the logo changes because you work for us now, and it now runs transparently for all/any to audit.
Say we decide to create a cycle-track around the globe, we will.
The crappy old troll's bridge is nearly demolished, when several billion billies stand either side with a resolve to pass.
A thousand points of light vs 14 billion goat-horns, attached to goats that can stare back with quite some intent.
Is there a specific moment when an illuminati actually realises it's over, or is it a process?
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Posted by John Danforth on 11/28/10 02:04 AM
Usually at 'the end of the movie', there are some warning rumblings as the foundation of the evil warlord's castle begins to give way. The heroes grab up the women and run out of the place just in time for the camera to get a money shot of them escaping while the place goes up with impressive pyrotechnics.
Today the news media is trumpeting the imminent bankruptcy of the Irish banks. The government had guaranteed all bank liabilities but now it is running a deficit of 1/3 of GDP. It cannot continue. The ruse of trying to keep blowing into the balloon to keep it inflated after it has already popped is finally running smack into reality. Maybe I'm wrong, but it looks like we're hearing the rumbles and the End Of The Movie is approaching.
Bankruptcy means liquidating bad debt. Repudiating it. It means the bankrupt entity goes out of business, its assets sold at market price.
Once the banks start going bankrupt, I will not be surprised if it kicks off a domino effect that will reach around the world. U.S. banks have been playing a wish-and-hope strategy. But they are so far upside down that once blood is in the water, they could be stuck inside that exploding castle.
The banking crisis is really a bond crisis. When bank bonds start getting dumped because the government backing them is broke, the crisis is sure to spread to government bonds, and that raises doubts about government bonds all over the world. Especially those whose victims don't intend to pay them off, people like me. When foreign governments start getting nervous about their U.S. bond holdings and start thinking about dumping them, the whole bond market could come apart very quickly. Once U.S. treasuries start dropping, the currency itself is in very serious trouble.
Perhaps the End Of The Movie includes a Reset. The debts forgiven (all except yours), new colors on currencies all around. And new rules "to make sure it never happens again".
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