Gamesmith94134: Turning from green to red



I agree with Jean Michel’s concept on how many believe how currencies should apply in term of throw weight and its balance to values that each currency must sustain a liquid flow. In addition, I also admire Strictly Speaking’s idea on the Forex that we are facing with the safe heaven and how Kyat Dronein reply to Strictly speaking. Their dialogues are the heart of the issues we must identify with how we manipulated the Forex which how we erred the currencies exchanges that we got lost in our financial disciplinary principle. Then, the exchange rate on Forex is now being challenge, and the shift to greenback to redback may not be a myth if we are loitering in the stages on deleveraging on the credits both US and Euro extended and we are under the attack of the “dirty flow”.

First, we believed safe heaven is no longer sustainable in balance since the “dirty flow” turned into “dirty float” in a sense how we created credits and bubbles in the equity world.



Secondly, the throw weight relatively apply to how currency are being pegged may not materialize as expected; instead, it turned into bubble in stock or capital goods that is not being supported by the local populace, it went havoc or haywire as inflation or deflation that its output is becoming deficit or deflation that its capital good is not relevant or equitably challenged.



Thirdly, the time frame that many financial establishment like central bank or government policies are not synch with reality, in a word, their assumption to growth or restraints are not affordable.



“At what rate will the US dollar flow back to the US? This will depend on the rate at which the Chinese Yuan will replace the US dollar for international trade. If the rate of replacement is 5 trillion dollars per year, then it means that every year the US will have to export 5 trillion dollars of products in return for the 5 trillion dollars paper money. The big question is: will the US have the capacity to produce 5 trillion dollars of products per year more than it will consume? Or, will this break the US economy.” By Jean Michel.



It is a serious question on how EQ III may have deleverage on credit that dollar can carry but how much we will recover through growth and balance in the reality on the throw weight system and what kind of time frame the current Central banks can initiate a better future for the next generations.



Perhaps, we must rethink how the dirty flow becoming dirty floats that inflation is under its containment of deleverage and low rates. It is the moment to reconstruct our premise of our financial world, the shift of the Red Back to the third currency by our IMF’s throw weight system; and how we can stabilize the exchange rates that are relatively comply to its output instead of credit or how we are pegged to the performance of the local economy after the clearance of the zombie bank and rouge traders and reorganize the debts that are being deleveraged.

As an American, I was flabbergasted at the home of mine that fell to $320,000 in 2007, and it jumped to $520,000 today; while the per capita also fell from $49,000 to $46,000; and I do not even making half of it. Luckily, I do not have a son or daughter graduating from college, but I am worrying of those have children. If they must pay 40% of their earning for their rent or return home with their parents to survive, we are facing inflation that is silenced by our policies to bloom or bubble.



Can America absorb the shock in devaluation of dollar or anemic growth over a period of time that surpass the time frame in competing with the growth from the emerging market nation or underdeveloped nations that the throw weight system is no longer relevant. Diasporas? Chinese Red Back becomes the dominated change on our present system that credit turn into deficits if we must sustain inflation, or return of inflation like 80’s in its devaluation of dollar. It is a imperil ride on the buckeroo for the global economy.



God bless America.



May the Buddha bless you?

