Global systemic crisis Alert - Summer 2009: The US government defaults on its debt

[url=http://www.leap2020.eu/GEAB-N-28-is-available!-Global-systemic-crisis-Alert-Summer-2009-The-US-government-defaults-on-its-debt_a2250.html]Source[ /url]

According to our team, the period that will then begin should be conducive to the setting up of a « new Dollar » to remedy the problem of default and of induced massive capital drain from the US. The process will result from the following five factors studied in detail further in this GEAB:

• The recent upward trend of the US Dollar is a direct and temporary consequence of the collapse of stock markets

• Thanks to its recent « political baptism », the Euro becomes a credible « safe haven » value and therefore provides a « crisis » alternative to the US dollar

• The US public debt is now swelling uncontrollably

• The ongoing collapse of US real economy prevents from finding an alternative solution to the country's defaulting

• « Strong inflation or hyper-inflation in the US in 2009? », that is the only question.

The sudden shock that will result from the US defaulting in summer 2009 is partly due to this decoupling of decision-making processes of the world’s largest economies with regard to the US. It is predictable and can be dampened if global players start to anticipate it. As a matter of fact, it is one of the topics developed in this 28th edition of the GEAB: LEAP/E2020 hopes that the September shock has “educated” the world’s political, economic and financial policy-makers and made them understand that it is easier to act by anticipation than in a panic. It would be a pity if Euroland, Asia and oil-producing countries, as well as US citizens of course, discover one morning of summer 2009 that, after a long-week-end or bank-holiday in the US, their US T-Bonds and Dollars are only worth 10 percent of their value because a « new Dollar » has just been imposed

Looks like at least one group of analysts is not afraid to just come out and say it. The strength of the Eurozone may be the deciding factor in what standing the US will have this time next year

If the US defaulted on their debt, I would assume China would be quite pissed, eh?!!?

Updated article from GEAB
www.leap2020.eu/GEAB-N-29-is-available!-Phase-IV-of-the-Global-Systemic-crisis-Breakdown-of-the-Global-Monetary-System-by-summer-2009_a2435.htm


[edit on 17-11-2008 by Dbriefed]

I've floated the idea that the US administration & the Fed would be very happy to see hyperinflation. That way they get to pay off all their debt in valueless $. All they'd need to do to stay solvent is make sure they'd bought up plenty of solid assets, such as property.

Oh yes, didn't I hear something about the PTB buying up most of the nation's secured loans - on the cheap?..

Anybody listening?