Is this a world wide monetary collapse? discussion

See: (Click link below)

http://www.nysun.com/opinion/receding...

Warren Buffett and George Soros BOTH have said this is a period of deleveraging.

This means That the money lent by lending institutions -- velocity money (m1 and m2) -- will now decrease by 2 to 4 times the rate that the real money supply shrinks.

This means layoffs will increase and people -- mostly here in the U.S. -- will spend far less than they are spending now.

The U.S. has only one sixth of the world's population but uses almost half the world's oil.

So you know that the oil price will peak and then drop.

But as this government uses more trillions -- it's used almost one trillion already -- to shore up the failing banking system, the Asians will quit accepting our paper for their investments.

They might not even want it anymore in exchange for their goods either.

Let's paint the picture so you can clearly see it:

At first: the money supply decreases as velocity money vanishes.

Then it increases as the government spends to keep the banks solvent.

The money supply decreasing now, is the "dead cat bounce" of the dollar that George Soros is talking about.

So you still have time to get out of dollars and dollar denominated investments -- stocks, bonds, etc..

How much time?

I don't know.


Fitz

hmm. this sounds serious. is there any sense of a target year for the prediction of the , is it the collapse of the dollar were talking about?