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Tuesday, 12/08/2015 2:36:36 AM

Tuesday, December 08, 2015 2:36:36 AM

Post# of 39190
The Fed is About to Trigger a $9 Trillion Debt Implosion
http://www.marketoracle.co.uk/Article53250.html

...There are over $9 trillion in borrowed US Dollars sloshing around the financial system. And much of it is parked in assets that are denominated in emerging market currencies (the very currencies that have imploded as the US Dollar rallied).

This is the US Dollar carry trade… and it is larger in scope that the economies of Germany and Japan

...Now, the Fed is talking of raising interest rates. Even a symbolic rate hike to 0.3% or 0.5% could trigger a complete implosion of the $9 trillion US Dollar carry trade.

If you think this is just fear mongering, you’re mistaken. The Treasury Dept. issued emergency kits to employees a few months ago in anticipation of systemic volatility during the rate hike. Similarly, the Fed boosted the size of its market operations department in Chicago case the NY Fed loses control of the system when rates increase.

In short, we could very well be on the eve of another systemic crisis


?????....FOOD FOR THOUGHT....CAN ANYONE CHIME IN THIS THEORY...???