How it All Unravels

The sheeple say nay we are in recovery, they say when does this impending doom you speak of start going into effect?  My answer:  it goes into effect the moment the Fed is pressured by cost-push inflation to raise interest rates.  The how is very simple, simple enough for even voters to understand.  Cost push inflation (or inflation in price of base materials such as metal or oil) will, by mathematical certainty based on the amount of new money introduced into the system, have an effect sooner or later.  In some countries (mostly producing nations), inflation is already hitting hard.  This will transfer to the consumer nations (the indebted nations...) as producing nations make attempts to stop the massive inflation they are experiencing (stronger currency of the producing nation means higher prices for the consumer). When cost push inflation hits the US (the ultimate consumer nation), it will put great pressure on the federal reserve to raise interest rates.  At this point the nation will either begin to experience massive inflation on imported goods (all our goods...) or be forced to start raising interest rates.  The problem is, raising interest rates will destroy the value of the bond market, significantly tighten credit, and certainly put a number of banks and publically traded companys out of business.  Asset prices could be in for a tumble too depending on their dependence on credit markets.  Lower tax revenues and higher interest payments on national debt will make the government debt grow faster and faster until massive spending cuts or a loss of confidence in dollar take place (more likely the latter).  In the event that the government cannot subdue the debt, interest rates will be forced higher as people lose confidence in the government's ability to pay back said debt, and eventually the dollar will have to be revalued or replaced.  That is how it unravels, it is not complicated.  History has presented this case numerous times in a number of countries.  From start to finish I think the unraveling is about a 10 year process.  May the exchange rates be with you my friends, the currency wars are well in progress.