Shadow of Truth Ep 11 – John Rubino: The Global Economic System Is Set To Go Up In Flames
THE DAILY COIN
MARCH 17, 2015
With interest rate at this level, at any other time in American history we would have had a raging homebuying mania right now…We’re [the Government] what we can to increase speculation out there and that would never be a good thing. – John Rubino, Shadow of Truth
As Hemingway famously remarked in reference to how one goes bankrupt: “Two ways, gradually and suddenly” (“The Sun Also Rises”). The U.S. Government, absent the power of an unfettered money printing press, is technically insolvent. Based on the latest TIC (Treasury International Capital) report, foreigners dumped $55 billion in U.S. Treasury holdings in January (there’s a two-month lag in the data). It was the second largest monthly outflow of foreign capital from Treasuries since late 2008.
Yet, what is fueling the parabolic rise in the U.S. dollar and what does it mean? It mostly is our only visible indicator that there has been some kind of derivatives blow-up that we can’t see or feel but is coming at us threw the system just like in 2008. One obvious indicator of this was the report that a German bank blew up last week due to its exposure to the failure of Austria’s Hypo Alpe Adria bank, which blew up on Greek debt. It illustrates the point that OTC derivatives are lurking in the shadows and the global exposure to these financial weapons of mass destruction is worse than it was in 2008.
Rory and I engaged John Rubino (DollarCollapse.com) in a discussion about the factors that will ignite the global financial and economic system into flames:
The Rest…HERE
