- Other countries have had downgrades and been fine so
why is this different?
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- Here's what people don't understand:
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- Unlike other sovereign debt downgrades such as europe or
japan that have happened, the U.S. treasury securities are unique
as a substitute for cash/dollars. No other country is like this, their
securities are considered risk investments not cash substitutes. It calls
into question the validity of the dollar.
-
- Why is this significant? Because the dollar is the worlds
reserve currency. Central banks buy it to back their reserves, but what
happens if it becomes a less stable investment? Like any bad investment
you dump your holdings.
-
- Let me give you an example: The painter Salvidor Dali
never paid for stuff at the end of his life. Why? He just wrote checks
that would never be cashed. You see, he used to draw a little bit of art
on the back of each check he wrote. Those who received the check never
cashed them because they held in their hands an original Salvidor Dali
artwork! But what would happen if his art one day had become considered
worthless?
-
- All those people would cash all those bad checks and
that would bust salvidors overdrafted bank account.
-
- What's going to happen now is similar. The dollar is
about to hyperinflate like the Weimar republic currency of the
30's. We are about to enter the tall part of the hockey stick on the exponential
curve of inflation. Central banks will begin to dump dollars, and the glut
of dollars on the market will cause hyperinflation, destabilizing the currency
further and sending the U.S. economy into a nose spin leading
to further downgrades and further hyperinflation. All those dollars out
there are like bad checks, and their about to get cashed and come home.
You are worried about the feds running the printing presses? That will
be nothing compared to the world central banks being forced to dump Dollar
denominated reserves.
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- This downward spiral will suck the whole world into financial
collapse.
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- So, to answer your question - what does this mean???
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- It means GET YOUR F*CKING TOMATO PLANTS INSIDE, NOW!
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