pcr presents a bit more evidence that the empire is collapsing and so far the tv and 'our' government has yet to speak the truth out loud;

Why the Dollar-based International System Is Breaking Up

Paul Craig Roberts

The Federal Reserve’s higher interest rates after 12 years of zero interest rates are devaluing the asset side of banks’ balance sheets.  This frightens depositors and they withdraw their deposits.  Depositors also are withdrawing their money because they can get much higher interest rates on safe US Treasuries. According to some reports, $1 trillion has already been withdrawn from US banks.  Bloomberg is reporting rumors that Schwab’s $7 Trillion empire based on low rates is cracking from bond losses.  In the face of this vulnerability of the financial system, the Federal Reserve raised interest rates further.

There is also the problem of the currency and interest rate derivatives.  No one knows the risk in these instruments.  The US dollar itself is declining in use as world reserve currency.  Alarmed by Washington’s weaponization of the dollar with sanctions and confiscations, much of the world is arranging to abandon the dollar’s use to settle international trade accounts, but the supply of dollars is not declining.  This implies a fall in the dollar’s exchange value. The offshoring of manufacturing and food production has made the US heavily dependent on imports.  A loss in the dollar’s exchange value resulting from countries settling their trade balances in other currencies means a sharp rise in US inflation.  

The Federal Reserve hasn’t the intelligence to think through the consequences of its higher interest rate policy.  The federal government cannot comprehend the consequences of offshoring for the US trade deficit or the consequences of continuing massive US budget deficits for the Treasury market........more.........