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Napanee, Ontario | I see what you are getting at...and if the US was the only major industrialized economy whose central bank was doing this, and undertaking this potential plan, then yes, i see the case for "Weimar Republic or Zimbabwe" as it would be performing it independently.
But nearly every major central Bank in the world is doing the same thing the Fed is doing right now. ECB, BOJ BOE, ect ect... its a co-ordinated effort happenings simultaneously to extract the 'toxic' sovereign debt from the related nations they serve.
You may remember the PR that came in the summer of 2011, when the ECB finally cracked, after a central bankers meeting over the wkd, and began buying it's member nation bonds to put an end to the EU debt crises fears. EU Default was assured if they didn't.
If all the banks are acting in a co-ordinated manner to print and buy bonds right now, i would expect that they would do the same in respect of this plan. Global structured default. The US might be a Weimar if it were to act independently, but everyone can't be a Weimar at the same time. it would just be the new normal.
I dunno, i obviously invite any and all challenges to this idea...I'm obviously just a cow farmer from Ontario typing from the seat of his pants on a bored Thursday night. I have really no idea if this will be plausible...but it certainly seems to make more sense then infinitely printing money to oblivion, or having every nation go bankrupt in the world. | |
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Is inflation on our doorstep?
