Mega-Bailout, Dollar Flood, So How Are They Out Of Dollars Yet Again?

I know, you’re just as shocked as I am (sarcasm) Argentina’s central bank is running out of sufficient dollars just to carry on with the absolutely bare minimums of a functioning economy.

In recent months, the country has negotiated debt restructuring on about $65 billion of its external (Eurobond) debts. Like others in its neighborhoodde facto default didn’t really accomplish much except buy a little temporary breathing room – which, yet again, proves to be far too temporary.

That’s really the major issue in all of this; from the IMF to the Fed. Forget the technical details or the complicated ways in which these things are meant to work (but never do). The big picture is really pretty simple.

The IMF’s rescues, like Jay’s fairy tale flood, are designed for one purpose. They are a way, in theory, for a bank, system, or country to buy itself time. To grab some official dollar liquidity in order to restructure (via the IMF), or to back off the eurodollar sharks (through the positive sentiment from fake money printing), carving out some badly needed space to get everything back in order.

In other words, the world’s entire official sector continues on the belief that these problems are each country or financial institution. Buying time would make sense in that case. They don’t seem able to comprehend how the actual issue resides in the global dollar system itself. Therefore, chronic rather than temporary which means buying time with these fake floods and ridiculous rescues only squander it.

By the time whatever country or authority gets to the other side, there is no other side. It’s the same thing, systemic shortage, as when the whole thing got started. And that’s why, for entities like Argentina (or so many others) the slide into disaster never leads to emerging from out of it.

See for yourself:

One day you’re the darling of the Eurobond world and seemingly the next it’s a nightmare from which you just can’t escape – even when all the “right” people and places throw you what they claim is the best lifeline ever conceived and constructed.

Trade wars didn’t do this, just as the IMF’s rescue(s) were never going to fix it; nor Jay Powell’s lying about dollar floods and overseas liquidity. Global dollar shortage goes way beyond the conventional imagination first, therefore all its (meager) technical capabilities.

The one reason why it’s all make believe and puppet shows: the Federal Reserve is not a central bank. Sorry, it’s just not. We’re taught and made to think that it is; that the Fed through its Open Market Desk is in charge, even, of the whole monetary system. The dollar is backed by it, supposedly.

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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