GEAB N°71: United States, March-June 2013 – Unplugging the World’s Sick Man: Last Impact Phase of the Global Systemic Crisis!

• GEAB N°71 is available! United States, March-June 2013 – Unplugging the world’s sick man: last impact phase of the global systemic crisis!! 
  by http://www.leap2020.eu/English_r25.html
  Until now the course of the crisis has been accurately described according to the five phases identified by our team from May 2006 (GEAB n°5) and completed in February 2009 (GEAB n°32): release, acceleration, impact, decanting and global geopolitical dislocation, the last two stages developing simultaneously. In the last issues and in particular the GEAB n°70 (December 2012), we commented extensively on the ongoing processes of the two last phases, a decantation from which the world-after painfully emerges on the rubble of world geopolitical dislocation.
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  But we had underestimated the decanting period’s duration which we have gone through for more than four years, a period during which all the crisis’ players have worked to a common goal, to gain time: the United States, whilst making every effort to prevent the appearance of alternative solutions to the dollar, in spite of the catastrophic situation of all its systemic fundamentals, to prevent its creditors from abandoning it (discrediting other currencies including the Yen from now on, tenacity against the attempts to disconnect oil from the dollar, etc…); the rest of the world, in setting up skilful strategies consisting of maintaining its assistance towards the United States to avoid a sudden collapse from which it would be the first to suffer, and at the same time constructing alternative and of decoupling solutions.
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  At the end of this long period of the system’s apparent “anaesthesia”, we consider it necessary to add a sixth phase to our description of the crisis: the last impact phase which will occur in 2013.
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  The United States certainly believed that the rest of the world would have an interest in keeping its economy on artificial respiratory assistance ad infinitum but it is likely that they don’t believe it any more today. As regards the rest of the world, the final chapters of the US crisis (major political crisis, decisional paralysis, near miss of the fiscal cliff, perspective of a payment default in March, and always the incapacity to implement the least structural solution) convinced it of the imminence of a collapse, and all the players are on the look-out for the least sign of a swing to extricate themselves, conscious that by doing so they will precipitate the final collapse.
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  Our team considers that in the context of the extreme tensions – both domestic political and world financial tensions – induced by the next raising of the US debt ceiling in March 2013, the signs will not be lacking to cause the disappearance of US treasury bonds’ last purchasers, a disappearance which the Fed will no longer be able to compensate for, resulting in an increase in interest rates which will propel  American indebtedness to astronomical levels, leaving no  hope of ever being repaid to creditors  who will prefer to throw in the towel and let the dollar collapse… a collapse of the dollar which will de facto correspond to the first genuine solution, painful certainly but real, for US indebtedness.
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  It’s for this reason also that our team anticipates that 2013, the first year of the World-Afterwards, will see a setting up of this “purifying” of US and world accounts. All the players are tending towards this step whose consequences are very difficult to predict but which is also an unavoidable solution to the crisis taking into account the United States structural incapacity to set up genuine debt-reduction strategies.
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  But in order to take the measure of the causes and consequences of this last impact phase, let’s reconsider the reasons for which the system lasted for so long. Our team will then analyze the reasons for which the shock will take place in 2013 afterwards.
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  Saving time: When the world rejoices at the US status-quo
  Since 2009 and the temporary measures to save the global economy, the world has been waiting for the famous “double dip”, the relapse, as the situation continues to worsen day by day for the United States: breathtakingly high national debt, mass unemployment and poverty, political paralysis, loss of influence, etc. However, this relapse still hasn’t arrived. Admittedly, the “exceptional measures” of assistance to the economy (lowest interest rates, public expenditure, debt repurchase, etc.) are still in force. But against all expectations and contrary to any objective and rational judgment, the markets still seem to have confidence in the United States. Actually, the system isn’t based on confidence any more but on calculating the best moment to extricate themselves and the means of hanging on until then.
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  The time has passed when China challenged the United States to implement a second round of quantitative easing (1): the world seems to have adapted itself to the fact that this country is still growing its debt and is inescapably turning towards a payment default, provided that it’s still standing and doesn’t make too many waves again. Why don’t the other countries press the United States to reduce its deficit, but on the contrary are delighted (2) when agreement on the fiscal cliff keeps the status-quo? However nobody is fooled, the situation cannot last indefinitely, and the world economy’s main problem is really the United States and its dollar (3).
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  March-June 2013, extreme tension: the least spark lights the blue touch-paper
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  read more!

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