I Feel Like The Bottom Is About To Fallout Of The World

[farang000999]

The Fed Chairman Bernanke just announced open-ended quantitative easing. I am not a financial expert but the only thing that makes logical sense to me are contrarian views that Bernanke and the Fed are desperate and dangerous. We have the World's reserve currency intentionally debasing it's currency with an economy of massive unemployment. I don't understand how the Euro crisis can ever be solved without allowing the debt to be wiped out. They seem to be able to kick the can down the road over and over again but how can that last forever? And then there is the Arab spring, where large populations of people are batshit insane going absolutely bonkers because someone posted a video on youtube? They are all ready to kick the USA off the continent. It feels like the US is about to crumble into a third world country.

[BookMan]

I think they are still a long way form crumbling into a third world country.

Not sure what some protests by Muslim extremists have to do with that? There has been protests against america for the last 50 years in these countries.

[maxman71]

If (or when) the US dollar loses it's reserve currency status either by decree or by de-facto action, then the US will be in for financial crisis that will make the last several years look like a Day With the Easter Bunny, Santa Claus and the Tooth Fairy.

At the very least, what BoneHead Ben has engineered is nothing short of a Economic/Financial Coup d'etat...where this will eventually lead, I don't know for sure, but I don't think there is going to be a kind Wizard with a hot air balloon that is going to take us all back to Kansas, Auntie Em and a sound USD that is worth anything...

[xylophone]

You know, one of the reasons I came to Thailand was to get away from the rat race and the pressures that it entailed. I ran a division of a bank which managed a couple of billion dollars of folks money and was forever worrying about the world's monetary situation etc etc.

I now realise that there is no point in worrying about that which you have no control over. I can't control what Ben Bernancke or the supposed financial wizards of the European Community will do, or where it will lead, but I do know that I can manage my own money okay, long enough to see my days out here I hope.

For the record, and for what it's worth for that matter, the simplistic line of thinking is that the quantitive easing will allow more money into the system (cheaply) in order to stimulate the economy. When this has been achieved, surpluses will be generated and debt paid down, although this may take a long time to do. As for the European side off the business, well that is a different story because the basic principle of being able to pull together a diverse range of countries, cultures and currencies under one currency, basically takes away the key financial tool that a country has to try and manage its own affairs. No way that a country like Germany with its heavy emphasis on engineering and exports (cars for example) should be lumped together with a country like Greece whose main claim to fame may well be its olive oil and olives!! The whole system is flawed in that respect and it is a wonder that it has lasted so long.

Anyway, as I said, these guys are paid to do what they do and nothing I or you can do about it apart from live the good life here. If there is one crumb of comfort that can be applied to the US situation then it is the fact that government spending was seen to be a key factor in pulling the USA out of the depression era.

[tinfoilhat]

I haven't actually read the post but, to the contrary, I feel the world is about to fall out of my bottom

[KNJ]

There is not doubt as to the volatility of all the major currencies, split that cash to Euro/Yen/USD/GBP

[steve down under]

I haven't actually read the post but, to the contrary, I feel the world is about to fall out of my bottom

Bugger i was gonna say that !