http://usawatchdog.com/catastrophic-outcomes-may-come-faster-than-expected-james-rickards/
James Rickards is the Author of the best selling book 'Currency wars'. In his latest book he sees the end of fiat currency because of the excesses of the US Federal Reserve in printing too much money.

In this interview with Greg Hunter he thinks the end of the Reserve status of the US $ coming much sooner than he expected.

The US Fed is in a dilemma. If they taper or reduce money printing the share market will collapse and the US recession will get worse. If they continue to print money the bubble gets bigger making the end result worse. What should have happened in 2008 was to let the banks fail and allow market forces rebuild their economy based on real productivity. Now the USA has neither productivity or a stable finance system. The problems just got bigger.

China via the BRICS nations wants a new Central Bank that will back a currency with 40% gold to bring stability back to global trading. China has it own problems but their Govt has 4 $ trillion in reserves to bail out their banks while we have nothing but debt.

James Rickards notes as with many others,that is just a matter of when,not if the really big collapse happens.

There is no way we the people of Aust ncan bail out our banks with their $20 trillion of derivatives and mortgage assets that are 40% over valued. When they get into trouble again,should we just nationalise them ?

Employers hired steadily in May, placing the US on the one of the best four-month stretches of job creation since late 1990s and renewing optimism about the five-year-long recovery.

Non-farm employment advanced a seasonally adjusted 217,000 last month, the Labor Department said Friday. April's gain was revised down slightly, but the increase of 282,000 was the best in more than two years. The US economy has added at least 200,000 jobs each month since February, the longest such stretch since September 1999 to January 2000.

The jobless rate, obtained from a separate survey of households, was unchanged at 6.3 per cent in May, matching the lowest level since September 2008. However, the share of Americans participating in the labor force held steady near its lowest level since the late 1970s, at 62.8 per cent in May.

"There's no doubt the rate of job creation has accelerated as the labor market has improved," said Dan Greenhaus, chief strategist for investment firm BTIG LLC. "But there remains a fair bit of slack in the labor market."

The labour market also reached a milestone last month. Total US payrolls exceeded the country's previous peak level of employment set in January 2008.

Yes Arjay, we have watched this coming...corrupt globalists controlling an unsecured monetary system.....another block introducing a valid monetary system... pre texts for war. The European Banking Cartel feels vulnerable...in part the Ukraine issue is an expression of that.

How do we nationalize our banking system with Liberal and Labor at the helm...it was Labor who privatized our State Banks and the Commonwealth Bank.

Arjay as you know our banks exposure was minimal.....in real terms Australia lost money in the GFC because of our super and private investments in junk bonds that comprised of thousands of high risk individual mortgages that were bundled together and given a AAA rating to meet the charter requirements of these investment organizations so they could legally invest in them. The biggest stripping of assets in history and no one was charged...many of them went to work for the US treasury.......novel material mate....unbelievable corruption.....life imitating art.

Interesting...

"China has it own problems but their Govt has 4 $ trillion in reserves to bail out their banks while we have nothing but debt."

Yes, China is reporting it will have "$4 trillion in foreign exchange reserve by the end of 2014".

How will the vaunted changes you presented, where the US "share market will collapse and the US recession will get worse", impact China do you think?

Things could get weird for those Chinese banks if they are being bailed out by a financial bucket only full of holes.

Why don't the Chinese seem all that thrilled with their reserve, I wonder?

"The huge amount of China's foreign exchange reserve, which is mainly driven by trade surplus, has become a burden to the country, added the [China Daily] report."

http://usa.chinadaily.com.cn/business/2014-05/19/content_17516845.htm

579 the US has a 146 million in their workforce. Their real unemployment is way understated. Some say real unemployment is 25%.Much of these job increases were in Govt health, businesses,services etc and not in real productivity. The USA has 50 million people on food stamps of which half are working.So their Govt is going into more debt just to feed its people.

SOG, yes the Abbott Govt will not nationalise our banks but to allow a Cyprus style "bail in" ie confiscation of our banking accounts will totally devastate our economy. The people of Aust are too big to fail not our banks.

WM Trevor. China has been building strong economic partnerships via the BRICS and even Germany is temped to join. When the US $ goes down, this will affect the whole planet but nations with real productivity and little debt will come out stronger. It is worth noting that BP and EXXON are are entering in joint ventures to exploit Russian energy reserves. The sanctions are just window dressing because Russia is now number one energy producer.

We and many other nations now trade directly with China with no US $ exchanges. We could be seeing the financial forces of the West joining China and Russia in establishing a new world reserve currency which will probably be the Chinese Renminbi.

We are the world's second biggest producer of gold but have none to back our currency because John Howard sold it for a song. Our currency is too easily manipulated by markets forces and we are ruled by invertebrates who just do whatever the corrupt Central Bankers tell them.

This is merely capitalism at work. The capitalism of the past 200 years or so is a quite new invention. It's just "one" way, amongst thousands of ways, to manage mankind's activities. "Currently" mankind has chosen capitalism, even socialism these days embraces capitalism to varying degrees (Russia, China etc).

Like ALL systems, capitalism is doomed. ALL systems are eventually replaced by something else ... usually via wars, squabbles, fighting, religions, ideologies and force. Capitalism is nothing "special", it's not the "one true" way.