Interview With Max Keiser: China and Russia Don't Want to Finance American Debt Anymore
"World's major powers including China and Russia don't want to 'finance' American military adventures anymore." That's the view of Max Keiser, finance critic and former stockbroker. He says China and Russia are interested in collapsing the US economy by rejecting the dollar.
Update:
In response to this video this blog was written at Jesse's Cafe Americain. Here is an excerpt:
Here [video] is a commentary from Max Keiser, an ex-patriate based in Paris. His analysis will seem harsh at times to American ears, more conditioned to the evening news. But this represents what a significant portion of the world now thinks, and it is worthwhile to at least listen to it.
Why would the US resist this? Because there is a huge overhang of dollars in the world, far beyond what can be sustained at current valuation if the dollar was NOT the reserve currency., artificially incenting countries to hold dollars, and to use them for some essential purchases such as oil.The strong dollar is a huge benefit to the US financial sector and the government. It is a significant drawback to US industry and the non-military productive economy. This is why the Europeans are opposed to the Euro becoming the world's sole reserve currency. Their financial sector has not obtained a dominant influence over the government, and their predisposition to military adventurism is still tempered by their experiences with war in the 20th century. That could change, but not yet.
People talk about an artificial short in the dollar because of debt. That concept only works if the Fed does not exercise its printing press, which it said it would do, and is now doing. But the dollar overhang exists, and has become precariously unstable, and unsustainable.
Max Keiser is hearing that the target composition will be weighted to 50 percent gold, in a return to a system more in keeping with the original Bretton Woods agreement. This is most likely the position being taken by France, China and Russia. The US and UK are adamantly opposed and will fight a delaying game with 2020 as a target for a phased in approach that continues to favor the dollar.
Follow Max Keiser on Twitter: www.twitter.com/maxkeiser
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Fort Knox, you must be kidding. There's no gold there!
Keiser is spot on and has been tracking internationally the US Dollar vs Gold in this financial meltdown for a long time.
Was going for some sarcasm w the Fort Knox comment, but who really does know whats in there? You are correct that Max has been right alot in the past, his call of the collapse of Iceland's economy due to carry trades was 100% correct - and his subtle sinking beneath the 'blue lagoon' added style and symbolism points as well.
I also liked his 'slavery is legal in the US' video and other comments on RT
Sad thing is - much of what just happened to Iceland will happen to the USA (but 1000 times bigger), and few in the US Care- Maybe Mr. Keiser (as producer) can hire Michael Bay (who used to direct music videos) to direct a five minute wake up call music video for the sleeping American public, complete with explosions and special effects to shock the masses.
As a Canadian, it is odd - but true - that I have to turn to Russian television (and France24) to hear Max Keiser's excellent insights.
Whoa, not so fast Mr. Keiser. You are forgetting the hundreds of billions of gold reserves held in our own Fort Knox to help hedge against any dollar weakness. What's that? The US gave that much to AIG, got nothing in return, and no one knows how much gold really is in the Fort? Oh, nevermind then, at least we have all those gold reserves in New York. What's that? Other countries are accumulating gold, and we're almost out?
Looks like its time for BIg Ben to do another $500 billion currency creation/swap (Oct 08) to give an artificial 60 day bump to the dollar, like giving a big heroin hit to an addict. I'm sure the guys at the top will figure it out, they have a perfect track record so far ;-)
The future dollar withdrawl gets exponentially worse by the day
Well, good for us! They hold our debt, all brokered in US Dollars. It's *their* economies that will go to hell in a handbasket. The USA ain't going anywhere, and the whole world (except for those two fools China and Russia) knows it. It behooves them to keep the Yankee dollar good and strong..
What fantasy America do you live in?
They will dump their dollars, exchange them for euros for example, and the dollars will find their way back to the US. This will flood the economy and the market with dollar bills nobody wants to have (except americans), and the price of goods like food will rise 10-100 fold very suddenly. Thats called hyperinflation.
If you call this "good for us" you have basically no clue.
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