MOPE; The Government Will Never Let It Happen…

The bottom line is this, they MUST monetize or interest rates will begin to clear. This option will usher in the end of the dollar because dollar holders will not want to be the ones holding the bag. The Fed cannot support the dollar with the issuance of new dollars as that creates more supply. Because the Fed holds almost no foreign currency and probably even less gold, they own nothing they can sell to purchase dollars with. I have said for many years, the dollar is the ultimate Achilles Heel because the Fed could not support both financial markets and the dollar at the same time. For a while, and with the use of “MOPE” they have done this but issuing new dollars to buy dollars is a formula with only one, Weimar like ending!

To finish, we are witnessing the end of an empire and they all rhyme in fiscal and monetary bankruptcy. History will show “the government will never let it happen” to be back assward because the government will be to blame for the ending and everything leading up to it. The ending is not in any doubt whatsoever due to mathematics, only the timing can be altered. Anyone asking the question “why didn’t anyone see this coming” paid no attention to history at all. If monetizing one’s debt was the road to financial and economic nirvana, there would be no recessions, no wars, no poverty, nothing even concerning. Outright monetization has been tried thousand’s of times in the past, never worked and always ended in disaster. Just because the rest of the world went along with it for a short while this time does not mean it will end any differently. In fact, because it has been the reserve currency being monetized means the disaster will be that much worse and far reaching.

Correcting something I wrote above, this is actually an “experiment” …one that failed thousands of times before and has always, with the same definitive ending. MOPE is easy because man never wants to hear the truth if it hurts!

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