The news maker of the week was the Fed that shocked financial markets with the announcement that there would be phased out. What do you think? For the Fed situation is as follows. All markets, as well as the big banks and their ability to pay are entirely dependent on the Fed’s purchase of bonds. If they will not buy bonds, rates rise, the value of debt instruments will fall, banks will go bankrupt again, the bond market and stock collapse. So they can not turn easing, because the whole system is tied to it. Another aspect of the trap into which they fell, is that the longer they will keep easing, the faster the time will come when the rest of the world will just lose all confidence in the dollar. How can we trust the currency you print a pace. In the end, everyone will get rid of dollars. When all the mass start coming out of the dollar, the Fed will lose control and the whole system will explode. So now the Fed is actually doing that with the help of monetary stimulus to prevent a collapse in the short term, that is, by manipulating the value of the bonds. But in the long run, when everyone will get rid of the dollar, the collapse still occurs. The Fed is just trying to keep the system on track as long as possible. I do not know ways to avoid the collapse. If they will stop QE, the collapse is inevitable. If you continue – the market crash, but later. So the Fed is trying to intervene everywhere, just to keep the system from collapse. And, again, they can do it, but only as long as the massive sales of the dollar.
At this point, the price of gold and silver will rise sharply. How fast approaching the day when we start getting rid of the dollar? I do not know. Dollar lasted much longer than I expected. If at the time of my work in the Finance Ministry was something like that, the dollar would have collapsed long ago. I do not know what tools use Washington, what arrangements he has achieved. We are forced Japan to print yen to relieve pressure on the dollar. If all print money, it is as if balancing the volumes of money that the Fed prints. But at some point, all these countries are aware that such actions could cause inflation in the country, as well as to devalue their dollar savings. It should be noted that Washington seems to be very successful is fenced off from the rest of the world. For example, Putin has fought back against Syria, citing the evidence. And the British Parliament voted against Washington’s plans to attack Syria.
When Washington will lose the support of his most loyal henchman of Great Britain and go to attack Syria, it will be a signal of the growing political isolation of Washington. This, in turn, could mean that Washington hard to moderate the interaction between the two countries to keep the dollar from collapse.