The End of the World, Lets Party

Firstly a poem.

Fire and Ice by Robert Frost

Some say the world will end in fire,
Some say in ice.
From what I've tasted of desire
I hold with those who favor fire.
But if it had to perish twice,
I think I know enough of hate
To say that for destruction ice
Is also great
And would suffice.


While I personally believe the whole Mayan this is nonsense, I also don't know a single person who actually believes it. Still, the media talks endlessly about it. Why? Who is promoting it? Other than on television, nobody actually seems to believe the world is going to end tomorrow. There is no massive panic in the streets, my employees all plan on going to work tomorrow.

Now what could happen tomorrow that could be disturbing. Tomorrow is Triple Witching Hour, it is when you have to make your investment bets for the next quarter. The stock market crash occurred on a triple witching hour. So here is my end of the world story.

Friday, December 21st, 2012. During the last hour of trading on Wall Street the government finds no buyers for it's treasury bonds. This occurs as a result of former head of Italy, Berlusconi, having warned that Italy may leave the Euro (he just made that announcement for real). As a consequence, the European Union was unable to find buyers for it's bonds causing an immediate default on their debts. Fear that the would spread to the United States causes China, banks and hedge funds to call for their immediate payment; but, the United States is unable to make these payments because they were unable to sell their bonds. The result is a worldwide default on sovereign and Central Bank debts.

All stock market transactions are suspended and banks are to remain closed until a solution is found. As an alternative, banks limit the amount that can be withdrawn while the nations meet to find a solution.

The single largest holder of U.S. Bonds is the Federal Reserve bank. As a result of the U.S. default the Federal Reserve goes bankrupt. In order to avoid this the IMF Plan to hyperinflate all of the currencies at the same time is proposed. Meetings are held at the United Nations over the next few days to discuss the matter and come up with a new international fiscal policy.

The plan for international economic reform is agreed upon. As part of this plan, the world will no longer use the dollar as the reserve currency of the world and will instead set a single standard for currency valuation based on a countries Gross Domestic Product (yearly total worth).

By hyperinflating all of the currencies at the same time, all government and central bank debt is immediately wiped out. The world breathes a sigh of relief as international chaos is avoided and the economic system is rebooted based on system that is more global in nature.

I think that if anything happens tomorrow, my scenerio is much more likely than an asteroid, an awakening or any other end of the world scenario. The problem is, mine is based on real world possibilities and I had previously posted a link to the IMF plan that calls for exactly what I stated.

One of my favorite books was written by a man named Douglas Adams, it is called, "The Hitchhiker's Guide to the Galaxy". It is a marvelously ludicrous novel. It has a space traveler who has a copy of the guide. The cover of the book is the most useful thing one needs to remember, it simply says, "Don't Panic". Fear is a tool that is used against fools.

The world will still be around tomorrow, though some of it will not see it. People die everyday and it is always the end of the world for someone. If the currencies all crash tomorrow, people will still survive and new systems will be put in place. I may not like all of the solutions; but, that will not prevent them from being put in place.

Here is what we do know, the current international economic system is failed. A change is coming and it is unavoidable. In fact, the average person's opinion will not have any impact on the final outcome and design of the new system.

UPDATE:

Dear readers, I might put my money on the 21st being the day. Apparently, the futures trading is taking a bath overnight. They are blaming it on Boehner's statement about the fiscal cliff. LOL. So lets see what we have, we have a very important person in Italy claiming Italy will default and Boehner saying that we will not solve our "fiscal cliff". Then we have the overnight traders dropping all bets on futures. Yep, today could be the day. What happens when the bonds are not refinanced and we cannot pay our national debts? Will my friends remember that I said this was coming and how it would happen and the consequences?