"Official Denials Run Rampant in India"

[neilgin1]

Official Denials Run Rampant in India; "No Question" of Economic Crisis; Rupee Plunges to Record Low; Gold Coin Imports Banned

"When news came last week that India tightened capital controls and banned gold imports, I pinged Pater Tenebrarum at Acting Man with a pair of comments.


1.Looks like India is about ready to blow up
2.Looks good for gold

He agreed on both counts."

"A global currency crisis awaits. I do not know what country triggers first. It could easily be Japan, China, Brazil, India, Australia, Canada, the UK, or any of many countries in the eurozone (as well as numerous countries not on anyone's radar)."


rest of article:

http://globaleconomicanalysis.blogspot. ... india.html

[Morsecode]

Ok, I'm on board as far as the general premise goes. But how could Canada trigger a currency crisis?

[beauanderos]

Ok, I'm on board as far as the general premise goes. But how could Canada trigger a currency crisis?

What I got from his piece is that any of those countries could be the catalyst for a global collapse. Maybe Canada is in worse shape than officials admit to?

[John_doe]

Ok, I'm on board as far as the general premise goes. But how could Canada trigger a currency crisis?

What I got from his piece is that any of those countries could be the catalyst for a global collapse. Maybe Canada is in worse shape than officials admit to?

Their debt to gdp ratio is not that great, but then again the United States is in pretty bad shape also. Canada sits on an abundance of resources, and even if they did collapse it would be short lived. People all over the world would feel the pinch, but Canada has several aces up its sleeve.

[InfleXion]

I don't consider Canada unique with regards to Western central banking. Mark Carney just hopped over to Bank of England from Bank of Canada. They're run by the same elitists, and if need be they would likely do what's needed to support the system just like the rest.

I'm of the viewpoint that derivatives will be the trigger for an overall financial system crisis, not necessarily currency which would be along for the ride though. At least here in the US I don't see people abandoning the dollar for metals on their own without some other reason to do so independently of money printing since most all nations are printing money and providing the illusion of buying power with currency indexes.

India has to be concerned about their currency though, otherwise why ban gold imports. It's a glaring admission that gold is gaining traction, and if it wasn't superior they wouldn't have any need to be concerned about it.

[John_doe]

What I am wondering is how could China trigger it? The Yuan has performed extremely well over the past few years. Also Australia is in pretty good shape. (Good shape relative to other currencies, they have not shown extreme growth.)


Mark my words it will not be China or Australia.

[Sheikh_yer_Bu'Tay]

""There is no question of going back to 1991," Singh said in a Press Trust of India report published by the Economic Times newspaper on its website, making reference to a balance of payments crisis the country suffered that year."


Okay, so India goes back to 1991. Japan goes back to whenever their pooky hit the fan in the 90's. China, Brazil, Argentina, Bolivia, Mexico, Zimbabwe all do the same..... We have been here before. They have all done it in the past century, and so have we.

The world didn't end.

How will this time be different?

We have seen "money" go from hard assets to worthless scraps of toilet paper. That is ancient history. That transition began in 1913 and finally ended in 1971-2 with the USA closing the gold window.

Now we are seeing "money" go from worthless scraps of toilet paper to even more worthless blips of electronic data. Digital Ones and zeros. It doesn't exist at all except in an agreed upon illusion of credits vs. debits.

So the world monetary system collapses. They will just come up with a new system before you even get the news about the old one. That has happened before, too (Bolivia).

How is this time different?

[shinnosuke]

Sheikh,
This time it's different because the elites have decided that there are too many useless grazers on planet Earth. Billions will have to be killed to rectify the currency crisis/wealth shortages. Those billions will not include, however, the elites. Oh, sure, there may be a few accidental casualties among those who own most of the world's resources, but by and large they intend to hunker down and stay safe. That's why the assasination of political types is such a clumsy tool. It would only mean the end of a puppet of a puppet of the overlords with real power. Besides, violence begets violence.

The solution? Prepare like everything depends on you and pray like everything depends on God.

[InfleXion]

I also believe this time is different, for different reasons that shinnosuke.

In this case we have a unique situation where fiat currencies around the globe are intertwined. There are highly leveraged counter party risk chains that will create financial black holes if any particular nation goes bankrupt/default/hyperinflates their currency away. This is due to financials holding sovereign debt, soveriegns holding financial debt, and sovereigns holding other sovereign debt whether it be bonds or dollar swap lines or what have you, but gone are the days where a Western nation can go bankrupt without impacting its partners in crime. Sure, Zimbabwe or Argentina can keep doing it over and over, but not anybody who has funnelled money in to keep the financial system afloat.

In this scenario it will not be just as simple as people losing faith in one nation's currency. It will be a loss of faith in fiat currency altogether with far reaching unprecedented impacts with the potential requirement for a debt jubilee to reach equilibrium unless gold and silver will be allowed to rise as high as necessary to extinguish the debt. If we as a people are worth our salt we will demand a metal backed currency because only metals can be trusted, and trust will be key. If we allow a failed global currency to be replaced with more of the same then we get what we deserve.

[ZenOps]

All Canada has to do is stop shipping nickel and oil. That would pretty much push the US over the edge.

[Sheikh_yer_Bu'Tay]

Well, I have tried a few times to write a witty response but I am at a loss. This is just plain nuts!

Why do we worry so much over an illusion? That is all our "money" is anymore. An illusion. If the world's central banks can click a few buttons and create billions out of thin air in cyber space.... why can't we say EF U! We are not going to be held accountable for your phony debts!!!

It's the same with the derivative debacle. It's all on paper and electronic data imagery. What if we turn the computers off?! Poof! The debt is lost in deleted cyber space! It was never real to begin with!

I know, too simplistic for reality ~ but not really. When the day comes.... it will be called revolution!

[Sheikh_yer_Bu'Tay]

All Canada has to do is stop shipping nickel and oil. That would pretty much push the US over the edge.

Oh Zen! Maybe you have not been reading up on the history of your southern neighbor.

[68Camaro]

History repeats itself, because people are wired a certain way, don't learn very well, and don't pass on what they've learned very well to the next generations. As soon as we revert to metal again (however it's actually done, even if metal backed paper) the forces to move us away from that will start to exert themselves and within another generation the pressures to subvert and dilute the system in use will continue the cycle back toward fiat. The bankers are like entropy in thermodynamics, they will always win, no matter what - even with metal.

[ZenOps]

All Canada has to do is stop shipping nickel and oil. That would pretty much push the US over the edge.

Oh Zen! Maybe you have not been reading up on the history of your southern neighbor.

All the US would have to do is stop shipping food to Canada.

A few $200 Nunavut turkeys in Toronto, and it would be game over.

[John_doe]

All Canada has to do is stop shipping nickel and oil. That would pretty much push the US over the edge.

canada mines lots of metals and is huge in timber also. like I said they have a lot of aces up their sleeves.

[rexmerdinus]

People in Canada have plenty of printed money to spend, if the number of them travelling through my area for vacations is any indication! Just sayin'

[fansubs_ca]

All Canada has to do is stop shipping nickel and oil. That would pretty much push the US over the edge.

Oh Zen! Maybe you have not been reading up on the history of your southern neighbor.

All the US would have to do is stop shipping food to Canada.

A few $200 Nunavut turkeys in Toronto, and it would be game over.

Um, what? Canada has a lot of it's own food production, if the U.S. stopped shipping food
to Canada it would maybe mean a little less selection and marginally higher prices on some
things but there would definately be no mass starvation. The cannned fruit I have currently
comes from Greece (Peaches) or the Philipines (Pineapples), during our summer season
there is some fruit that grows in Canada (Strawberries, apples) and I know the prairie
provinces grow so much wheat it is a massive export item. Most of what we _do_ get
from the U.S. can be obtained from other places.

It would take all global trade breaking down and at least some internal trade between
different parts of Canada failing before malnutrition became a problem.

I can't see our governments getting into enough of a pissing match that they'ld close
the borders. The only potential problem is the currency failing and there being no
means to pay for imports. Even at that some degree of barter is possible, though I
can see the U.S. having to do with _less_ oil being limited to what they can pay for
with exports. The U.S. does have some produce it can trade, just not enough to keep
up the current lifestyle.