I received an email from a regular visitor to the site regarding this story "How the world almost came to an end at 2:00pm on September 18, 2008."
One of the more "alarming quotes" from the article:
On Thursday (Sept 18), at 11am the Federal Reserve noticed a tremendous draw-down of money market accounts in the U.S., to the tune of $550 billion was being drawn out in the matter of an hour or two. The Treasury opened up its window to help and pumped a $105 billion in the system and quickly realized that they could not stem the tide. We were having an electronic run on the banks. They decided to close the operation, close down the money accounts and announce a guarantee of $250,000 per account so there wouldn't be further panic out there.
If they had not done that, their estimation is that by 2pm that afternoon, $5.5 trillion would have been drawn out of the money market system of the U.S., would have collapsed the entire economy of the U.S., and within 24 hours the world economy would have collapsed. It would have been the end of our economic system and our political system as we know it.
I figured our exchange was worth sharing here.
Visitor: "Somehow, I get a feeling this is just a major fit of economic fear-mongering."
Me: I'll be convinced it isn't all a well-orchestrated play (aimed at consolidating financial power) when the people responsible are hanging from trees and a non fiat-debt-money system is in place.
-And even then, that could simply be a result of them overestimating their ability to control the crisis they thoughtwould get them what they wanted.
Visitor: "Well, what I meant was that $500B is a lot of money... Where was it being transfered into? By whom? What was the cause of that panic - if that was what it was?
I do understand that a run on the banks is possible any time - but why only on the money market accounts? And - still - I'd say there would reasonably be expected to be an immediate cause.
My doubts here are along the lines of, is this logistically possible? Is this likely?
Me: I have no idea "who can do what" with the mostly digital "money" our economy depends on.
That said, it would not surprise me a bit if there was some "economic warfare" going on behind the scenes. "You WILL pass this bill, or THIS will happen...don't believe us? Here is a taste." -Possible? I think so. (Just moving the "dollars" from US banks, hoarding them overseas, would squeeze banks already short on "reserves.")
Bottom line, the chaos of a total collapse of our currency is hard to imagine. ...just look at one angle: No "money" (dollars are worthless) to buy fuel to ship supplies into cities like New York. (Multiply that times every major city in the country...add in the additional chaos as the rest of the world "adjusts" away from the dollar.)
Did anything the article described even happen? I don't know. All I do know is the underlying doomsday scenario (a massive move away from the dollar) could happen - as a matter of fact, at this point, it seems inevitable. So the question becomes, will it be a managed or catastrophic event...assuming we have no choice on either the rate of descent or the "solutions" implemented to "protect us" in the future, we lose regardless.
There, that is my "feel good" message of the day.
Visitor: Thanks, Joe, this makes me feel real good:)
All of what you are saying is possible - but what good is a US dollar anywhere unless it eventually finds it way back to the US? Pumping them out of the country may crash some US banks but won't kill the dollar.
Me: First, I'm not saying I know this is what is going on (they don't invite me to the meetings.) That said, I can imagine the following scenario:
Consider it the "fork" tactic in chess. (Attacking two targets at one time.)
Moving the money out puts even greater pressure on the US banks / economy AND sets up the next move (selling the dollars...which COULD start the ball rolling on a complete collapse.)
Assuming those who've maneuvered us into this position fully intend to replace the dollar with a global currency (I believe that is true) it isn't really a matter of "if" the dollar is phased out, it's a matter of "how" it's phased out. ...and I really don't think these people care either way. If they've got the power to push the button, and that is the only way to get what they want, I think they'll do it. -The "global community" will demand a "new system" that protects them from this ever happening again and they'll be ready to provide it.
To your point of the value of "hoarding dollars," again, I see it as leverage. For instance, in the case of China, it not only props up the value of their dollar-denominated assets and helps them maintain their "weak currency" policy, but it is also an economic BOMB they can hold over our heads (the threat of dumping them all and the domino effect that will cause.) Which country's "living standards" would suffer the most from the collapse of the dollar? Does China care if everything they've bought here is suddenly valued in Euros or some other unit of "global currency?" Again, just thoughts.