If you want to know what the official "all is well" consensus is, tune in to this mutual love fest between Jim "BUY-BUY-BUY" Kramer and Tim "Take another billion, please" Geithner.
Two men who when the inevitable happens will live in infamy as Brooks Brothers-clad cheerleaders who ran the CNBS/Fox Business- watching lemmings off the financial cliff.
Lots of embarrassing mutual congratulations here (there's another phrase for this, but children might be reading). However, an occasional zinger, like this one at 5:02 "Two banks last night needed $500 million+ IN US DOLLARS to be able to meet funding needs"(i.e. keep doors open) makes listening worthwhile.
Note that they didn't need gold, Euros, Swiss Francs or Yen to keep their doors open. They needed US DOLLARS (these were European banks.) For better or worse, for now and the foreseeable future, the US dollar is the world's reserve currency and much of the world's wealth is stored (and valued) in US dollars - and inconceivably huge mountains of debt are payable in the same.
Guess which side of the balance sheet is exponentially larger than the other. Savings or borrowed money? Even with massive defaults, there simply are not enough US dollars in the world to cover the tab.
See why the shortage in inevitable?
It's going to catch most of the world flat footed.
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