Political analyst Aleksandr Lazarev explained in a commentary for News Front why U.S. President Joe Biden has canceled a number of his trips and will return home early after the G7 summit in Hiroshima. Is the spectre of a US default just around the corner or just a routine provocation to exploit the panic in the market?
media.babylonbee.com
The default game is nothing more than a habitual speculative practice that the US resorts to when it needs to intensify its crisis trends. Given the fact that the dollar is still the world currency and the international stock markets largely depend on it, holders of US state stocks use this situation to redistribute international assets in the direction that is profitable for their shareholders.
So, how does the information-political buildup around the US default affect the situation of virtual asset holders.
A beautiful play by the US government, in which Stanislavski would say “I believe it!”, is supposed to provoke a depreciation of the dollar on the international market. You might legitimately ask, would a cheaper dollar be good for the USA? Not in the long term, of course not, but in the short term it is! Considering that the prices on the speculative market, in general, depend on the dollar equivalent, the fall in value of this currency would undoubtedly lead to an increase in the value of assets which are bought for this very dollar. Which is logical, because the cheaper the currency, the more it is needed to buy goods.
Bottom line, the players who have been accumulating the currency will be forced to exchange it for goods, and at an emergency rate. Why are they forced to? Because the product will be more expensive tomorrow and the money will be cheaper. What does this mean for the market players?
Players will dump currencies so that their capital does not “sink”. And the product (stocks, etc.) that they will buy will become much more expensive than they planned, which will undoubtedly hurt their strategic planning for the future. And at the point when that happens, the planners of the show come into play. The scheme is as old as time. It was first used during the Great Depression of 1929.
After the weaker market players, who do not have access to the hand control of the U.S. government institutions and, of course, the private Fed company, will pour money into fabulously expensive stocks. The mastodons of the market, will trigger a deflation (appreciation of money) mechanism. Once this mechanism is triggered, the dollar will strengthen again (in the short term), but stocks that were purchased conventionally for $2 will already be worth $1. Thus there will be another nullification of the assets of the weaker commercial entities. Remember, the real value of what will be purchased for conditional 2$ is actually worth much cheaper. Consequently, this mechanism will take away some assets from competing structures, and it may even lead to bankruptcy of some players.
But to make the situation look much more serious than just another scheme of hardened capitalists, the US president will get involved. He, following the script, postpones his planned trip to Australia and the latter, in connection with this, cancels the QUAD summit, where discussions on combating the growing influence of China in the region were to take place. The topic of confrontation with the PRC is an existential one for the US, so the cancellation of the summit due to an impending default, should instill a soul-searching fear into the minds of market players and force them to act. After all, this time, it’s not some bluff, Biden himself cancelled the summit on crucial issues…
But this is nothing more than a bluff. This epic will end not with a default, but with the bankruptcy of some market participants and the accumulation of funds by others.
P.s. As for the default, it has been (technically) permanent for a long time. After all, the U.S. national debt already exceeds $32 trillion. The only thing to do is to request its repayment and the bubble (which is mistakenly considered to be the world’s leading state) will simply burst.
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