You are a witness to history. Try to step out side of your emotions, the day to day blur of the ordinary, and look at the big picture, the slow but inevitable changes that have occurred over the last fifteen years.
For some background, here is an interview with James Grant that helps to set the stage.
When a monetary system grows faster than its own organic demand, that is a type of monetary inflation, whether it is immediately reflected in consumer prices or not.
The US money supply is still growing far in excess of the natural demand for currency, whether you consider consumption in GDP, or investment, or even per capita growth for that matter.
There is a HUGE overhang of dollars, known as eurodollars, being held 'out of the domestic pricing system' and significantly NOT reported in the money supply figures by the Fed.
If foreign selling of the dollar and US debt starts picking up momentum, the returning dollars will swamp the Fed's ability to sterilize the transactions like a tsunami.
Right now the financial engineers are once again trying to obtain a 'soft landing' for this problem, but vested interests are preventing a successful resolution. The monied interests prefer the status quo, and virtual looting of the public trust. Once they possess critical income producing assets, then the economic system will be restored to some equilibrium, and sound money.
This is roughly the setup that I see in the world economy, and is the cause of much of the instability and contention amongst nations, which I have called the 'currency war.'
There is a strong desire for a change in the reserve currency regime, particularly amongst the developing countries. The Anglo-American banking cartel is fighting that change every step of the way in order to maintain their privileges and positioning. The financial and political leaders from the nations appear to be often at odds, but in some ways they are allied in common interests, with managerial elites finding common cause in the service of their own power and enrichment.
When this natural progression of change can no longer be resisted, things might start moving more quickly, perhaps remarkably so.
But until then bear in mind that these big changes happen slowly and for the most part quietly with sudden bursts of change and release of energy, often over a period of years, until the pressure breaks into the public arena, and voila, a full blown crisis appears as if out of nowhere. And most swear that it could not have been foreseen or predicted.
I am telling you, again, that it is happening now, and with this continuing resistance to change and reform it may very well break upon the world financial system in the next few years with what could be a terrific, almost astonishing effect that will sweep away whole institutions and many long held beliefs and assumptions, old lessons that have been unlearned, and must be accounted for again.
