Step 7 of the dollar crisis. Article linked. - 3 months left?

[junker]

We are at step 4 according to the article. There is a short, concise article detailing the steps here. THe author presumes the steps to be completed sequentially and while that might happen, they will certainly complete in very short order once the process starts.

http://moneycentral.msn.com/content/P72747.asp

In previous currency crises within the USoaA, the remaining steps to complete currency collapse can take as little as 90 days. I cite as reference the private banking crises of 1880 - 1897, the 1907 banking crisis which led directly to the creation of the Federal Reserve Bank and Rip-off system. As well as the banking crisis of 1932/33. In all cases from the beginning of public awareness of the problem to the 'manifestation' of the problem in the form of a currency crisis that reached its maximum domestic impact, initiating gov't action, the duration was less than 90 days.

So the question which is on the minds of all of us who follow these things, is what impact will our communications infrastructure have on the duration, immediacy and severity of the crisis? In other words will modern mass com's shorten the time it takes for the panics to spread? Will TPTB be able to use mod com's to ameliorate the perception of crises and thus reduce the impact of actual crisis?

This will be playing out in a Real Life venue near you over this spring/summer. Because my timing usually sucks, I will lengthen my estimate to mid-summer before the various crashes hit the mainstream press. Some very saavy russian economists are saying they think the dollar melts down before the end of May.

As to the how, it looks like it will be a 3 step dive. First leg down is starting now, and will be precipitous, but not as bad as step 2. Then the last step 3 merely confirms the dollar is toast by removing the last bit of 'value' from it.

So it goes. So it has always gone with fiat currencies. As we note from Voltaire "all currencies eventually return to their intrinsic worth, that of paper".

C'est la vie.

[trotsky]

1. Better than the massive depressions...

resulting from tying your currency to a precious metal.

[junker]

3. Oh, The Great Depression is still on...just the dollar is one of the trigg

the collapse of the dollar and the impact on other global currencies will indeed be part of the Great Depression approaching.

Note that the purpose of paper currencies is to act as a debt sponge which allows for growth in excess of real wealth creation. So you can 'borrow' your way to prosperity as long as the currency involved continues to absorb debt.

Currently, by the Fed's own figures, the dollar is only worth approximately 4 cents of the 1913 dollar. Meaning a debt absorbtion rate of 96%. No currency in history has made it this far. Usually they crap out around 88% debt to issuing value. So how far toward Zero ability to absorb debt will the Fed take us? The closer to zero the worse the impact on the middle and working class...

imagine all savings being wiped out over night. ALL 401K's and ALL brokerage accounts 'natioanlized' in exchange for Govt' Treasuries/Script. ALL loans that can be called, being called. That is what happens in a currency collapse. Then the depression starts after that.

[54anickel]

5. That is one theory as to the cause.

[FloridaPat]

2. The fate of our dollar is in the hands of lots of foreign

countries that are really getting tired of our Idiot in Chief. Opec and Russia want to go to Euros - thereby destroying our economy. Asia has billions of our dollars and could dumpt them anytime, thereby destroying our economy. Bush this week came out for a falling dollar. Says it's good economic sense. Sure.

[StClone]

4. Didn't your observation indicate a collapse

In January?...that month has long passed...