Strongest Signal for a Recession Since September 2007

[donquixote99]

Originally Posted by 4-2-7

With that in mind who are they going to levy when one of those banks with $50 trillion plus exposer to derivatives fails?

Thanks for finding that page link for me I'll be abel to be more accurate in the future. I know you helped me learn some things today.

I did run across this article earlier today. It's relevant to your question: http://online.wsj.com/news/articles/...50631077492484

[merrylander]

[QUOTE=4-2-7;198094]

Originally Posted by merrylander

It doesn't matter what Canada does the exposer is still there. If one of these banks go down it brings the whole western banking system with it. As well as the whole world economy.

Thanks for being receptive to this stuff it's so important to the world as a whole. They need to fined a safe way to wind out of it.

Really, so why was it that the Canadian government did not have to rescue any of their banks in 2008. Bank of Montreal did recover some money from the bail out here because some one in BoM was silly enough to have actually bought some of that worthless paper the Americany banks were floating.

You know it is quite possible to have an honest financial sector, why do you suppose it is that America cannot quite seem to manage that?

I agree about the world as a hole.

[Samm]

Yea those stupid Chinese accumulating all that worthless gold. Just because they own most of our debt doesn't mean they are smarter than our economic manipulators........
Oh wait , that's exactly what it means.

Gold is best kept outside the US. This tax free zone is a very reputable place with the highest security in the world and don't allow peoples physical gold to enter the "paper" leasing market.
http://www.sgpmx.com/home/
As stated when our economy implodes as all fiat/ fractional banking systems have ALWAYS through out history then someone is set to get the hell out.

[Dondilion]

The Chinese are sending their smartest to some of our best business schools.

[4-2-7]

[QUOTE=merrylander;198214]

Originally Posted by 4-2-7

Really, so why was it that the Canadian government did not have to rescue any of their banks in 2008. Bank of Montreal did recover some money from the bail out here because some one in BoM was silly enough to have actually bought some of that worthless paper the Americany banks were floating.

You know it is quite possible to have an honest financial sector, why do you suppose it is that America cannot quite seem to manage that?

I agree about the world as a hole.

Well I wouldn't say we were talking about taking sides as to which country has better banks.

You know that I provided to you before canada has a housing bubble right now. But we were talking about the Derivative market and how bad it is.

Here is a quote that I made in the post with that information on exposure.
"Do you want to be 100% in paper knowing the Derivatives bubble can pop any day or the Bond Bubble?
This will make the housing bubble look like you forgot to pay your water bill."

So my statement saying it doesn't mater what Canada does in this case. If the US Derivatives bubble pops or the Bond Bubble we will have a calamity world wide. Far grater damage than our housing bubble and borders will not mater.

[Samm]

Originally Posted by Dondilion

The Chinese are sending their smartest to some of our best business schools.

Yes and they are learning well. China is winning the currency war without firing a shot.
http://www.examiner.com/article/doll...oil-using-yuan
“Lindsey Williams: "The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine."

“"On Thursday, Sept. 6... just a few days ago, China made the official announcement. China said on that day, our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar.

[finnbow]

Originally Posted by Samm

Yes and they are learning well. China is winning the currency war without firing a shot.
http://www.examiner.com/article/doll...oil-using-yuan
“Lindsey Williams: "The most significant day in the history of the American dollar, since its inception, happened on Thursday, Sept. 6. On that day, something took place that is going to affect your life, your family, your dinner table more than you can possibly imagine."

“"On Thursday, Sept. 6... just a few days ago, China made the official announcement. China said on that day, our banking system is ready, all of our communication systems are ready, all of the transfer systems are ready, and as of that day, Thursday, Sept. 6, any nation in the world that wishes from this point on, to buy, sell, or trade crude oil, can do using the Chinese currency, not the American dollar.

Wait and see. I'm quite skeptical about the world's willingness to trust the Yuan and the Chinese. Then again, I'm neither chicken little nor a conspiracy theorist.

(S)keptics of yuan internationalization argued that the renminbi will never be liquid enough across all asset classes to serve as a viable reserve currency, and that people will not trust the renminbi as a store of value...

Ultimately, a greater role for the yuan would require China to liberalize its financial policies, including decreasing exchange-rate intervention, liberalizing interest rates and relaxing restrictions on capital flows.

http://www.cnbc.com/id/101450365

[merrylander]

[QUOTE=4-2-7;198238]

Originally Posted by merrylander

Well I wouldn't say we were talking about taking sides as to which country has better banks.

You know that I provided to you before canada has a housing bubble right now. But we were talking about the Derivative market and how bad it is.

Here is a quote that I made in the post with that information on exposure.
"Do you want to be 100% in paper knowing the Derivatives bubble can pop any day or the Bond Bubble?
This will make the housing bubble look like you forgot to pay your water bill."

So my statement saying it doesn't mater what Canada does in this case. If the US Derivatives bubble pops or the Bond Bubble we will have a calamity world wide. Far grater damage than our housing bubble and borders will not mater.

The sky is falling, the sky is falling.

Oh and BTW we don't have a water bill.

[Samm]

I agree Finn that China wont take over as world reserve currency and don't believe that they really want to. To create the same amount of reserves necessary for that position would send their own economy in the same position as the US is in now and labor would be cheaper in other countries and destroy their manufacturing sector. I believe that they are working toward a similar SDR as the one the IMF uses. I think that is the reason for the creation of the BRICS agreements and the historically unprecedented accumulation of gold.
"Since the SDR is just an aggregate of fiat currencies, it cannot really change the fundamentals of the current status quo. Many observers believe the U.S. dollar (USD) will lose its status as the world's reserve currency sooner rather than later. Proponents of this view often mention China's agreements with various trading partners to settle trade in their own currencies rather than the dollar as evidence of this trend. More substantial evidence can be found in the diversification of reserves held by many nations. The euro now makes up about a fourth of all currency reserves: Here is the IMF (international Monetary Fund) page on voluntarily reported currency reserves: Currency Composition of Official Foreign Exchange Reserves (COFER). Note the large amount of reserves that are not "allocated," i.e. the currency being held is not specified. Some see the replacement of the U.S. dollar by some other currency as a welcome development, not just for the world economy but for the U.S., as the reserve currency has substantial burdens. Regardless of whether such a replacement would be positive or negative, many analysts see no plausible alternative to the USD as the primary reserve currency for a host of reasons. Another camp sees China's purchases of gold as paving the way for China's currency (renminbi a.k.a. yuan) to replace the dollar as the global reserve currency. Those who have studied China's policy makers doubt this is the goal; rather, they see China as most likely pursuing a multi-polar world in which no one nation issues the reserve currency. One set of observers has long held that the ideal replacement for the dollar is a hybrid currency issued by the IMF called SDRs (Special Drawing Rights). The IMF describes the SDR thusly: "The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries' official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies." The four currencies are the U.S. dollar, the euro, the Japanese yen and the British pound. China is widely seen as working toward floating the renminbi (that is, no longer pegging it to the dollar) so it could be included in the SDR currency. The SDR seems to many to be the ideal replacement of the USD as the reserve currency, especially if China's currency joins the basket of currencies that make up the SDR. Though the advantages of a multi-currency basket are fairly self-evident, questions remain if the SDRs are a realistic or practical option. These questions come to mind: 1. Since the SDR is just a basket of currencies, doesn't it simply aggregate the weaknesses of all fiat currencies? In other words, what happens to the value of the SDR when priced in gold, oil or other commodity if every nation in the basket prints its currency with abandon? The SDR will lose value just like any any fiat currency, because it is simply a composite fiat currency. 2. Couldn't a nation simply hold all currencies in the SDR in the same percentages as in the SDR basket? Clearly, this is possible: a nation could acquire the same basket of currencies held by the SDR and in the same weighting. In that case, what is the purpose of the SDR? 3. What happens to the relative value of one of the constituent currencies in the SDR if the issuing nation experiences a currency crisis or devalues its currency by one means or another? Clearly, the relative weighting of that currency would decline within the SDR basket. The SDR, then, does nothing to impede currency crises or devaluations; it is simply a risk-management tool that works by diversifying the risk of holding too much of any one currency. But since any nation can pursue the same risk-management strategy directly by diversifying its reserves with multiple currencies, what's the point of holding SDRs as a risk-management tool? 4. Since the SDR is just an aggregate of existing currencies, it is not an independent currency. An independent currency would need to be supported by either enforceable taxation rights or some commodity or basket of commodities: gold, for example, or a "bancor"-type basket of commodities (gold, oil, grain, etc.) owned by the issuing nation/entity."
http://www.zerohedge.com/news/2013-1...s-sdr-currency

[BlueStreak]

Yes, Of course Samm. You're absolutely right, as usual.