We will also have a new political system as part of the financial restructuring package, I believe.

Like a game of musical chairs, you only hope to keep your seat while the party still rages and like the card game old maid, hope to hand off the old bag card when it’s accountability time..

This will bring a global cooperation in order to stave off a sure disaster, ending in the revelation that we are better together than apart. Why not have one currency and create together, policy and reform. What a revelation.

The U.S. will not retain status of global superpower. We will and have already lost our hedgemoney in the global marketplace.

This is a necessary destruction in order to erect the new order.

Until our officials stop pooh-poohing this possibility (as they did the coming housing crash in 2005 and 2006) and start planning for it as a real contingency, no U.S. citizen or investor anywhere should feel safe.

answer – SELL AS MANY TREASURIES AS POSSIBLE WHILE EVERBODY STILL WANTS TO BUY THEM.

One reason I’ve been thinking about lynch mobs, is that while I expected that there would be some hostility toward Wall Street, I didn’t quite expect the huge outpouring of anger that came out this week.

I think it would be irrational and self-destructive for people to try to take the United States down, but just because something seems irrational and self-destructive (at least to me) doesn’t mean that people won’t do it.

I like the Yu Yondging comments. Naked Capitalism had a post about it when it came out.

As a Singaporean living in South East Asia, I believe I am qualified to wake you up from your little mob lynching delusion. USA is a major Trading and Investment partner with the South East Asian countries. It would be delirious for any government or anyone to even contemplate such a demise for our biggest business partner. Either you are biased or you are severly lacking an acute sense of business judgement and sound analytics.

bsetser: “if Asian economies want the US to fall, they will quickly need to find someone else to buy their exports. China in particular.”

We are in a modern global world. Countries and Economies are more interlinked and interconnected than before. Asia and the rest of the world are not insulated from the wellbeing of the USA. And the current episode has debunked the myth which foolishly believes otherwise.

I do agree with Brad, that China needs to step up in the global scene. China has to come out of the world exporter of cheap goods label into a global importer of world goods. It takes time for comparative advantages and rigid foreign exchange regimes to even out and adapt. However, the Chinese has to speed up and fill in the gaps the USA is leaving.

As Brad repeatedly notes, in a stable environment for international finance and trade, it’s contrary to their own self-interest for China, Japan, The Gulf Sheiks and Russia to dump Treasuries. He provides the best analysis and the best forum for this discussion you can find.

But…

Do we have a stable environment for international finance and trade? Has our government actually prepared for the Black Swan of Treasury dumping? Were they prepared in advance for the instability created by the credit bubble?

Brad – what actions do you believe could be taken (meaning, planned in advance to be taken) by the Fed and Treasury Dept. to avert the true catastrophe of a momentum-building flight from Treasuries – not after it’s already in full bloom with cries of Armaggedon everywhere (like with the current problem), but as a preventative or early response to avert the catastrophe in the first place?

Until our officials stop pooh-poohing this possibility (as they did the coming housing crash in 2005 and 2006) and start planning for it as a real contingency, no U.S. citizen or investor anywhere should feel safe.

http://projects.flowingdata.com/walmart/

no words, just green dots.