posted on Mar, 13 2008 @ 07:29 AM
the order in the world is much more fragile then we can imagine
abolishing the fed is great, but those who actually act on this kind of talk have a tendency of turining up dead. Also rogers was probably all for the
fed during the intoxicating asset bubble's they sponsored, now he just doesn't like the toxic unwind of credit that will continue.
the world business system/order has been running with the u.s consumer at the head of the class and this was efficient while the consumer was spending
and had more room to take on debt and also the dollar was world reserve currency champ, making this feasible over many years.
today a change from the dollar peg will reflect a change in the world business model where other manufacturing country's surpress their currency's
yen and yuan to keep import prices relatively cheap for u.s consumer's. It may not be in everyone's best interest to keep doing these favors and
maintain dollar pegs, when the consequence is accepting rampant inflation (much more so in other country's than here).
Also a slowdown in american demand could hurt jobs in india and china, whose society's may spiral into more violence and chaos should this take
the chaos would spread everywhere and a infrastructure would need to be stealthly put in place to handle the amount of disorder when the system breaks
down, first the insiders would be taken care of (paid off/leave) , and then the gov't would bailout the institutions to big to fail, and then the
economy's would fall rather low, (asset values deflation) plus (consumer price inflation) and it would be like a global china-type society.
Businesses would have to meet with those responsible for maintaining order and pay them a handsome sum for their services to keep their business
operation's running as smoothly as one could imagine during a time when chaos and unemployment and hungry people are acting as desperate as one would
when they are not getting their basic needs met.