"There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved."
- Ludwig von Mises

Tuesday, November 9, 2010

Missile Launch Prior to the G20 Meeting

I speculated earlier about World Bank President Zoellick's timing for bringing up a gold standard and a Chinese component to the SDR a few days before the upcoming G20 Meeting in South Korea.  Yet just today, China's Dagong downgraded US Sovereign credit rating.  Why the downgrade?  Did it have anything to do with last night's missile launch off California's coast?  I also want to add that China will tighten control of inflows of overseas funds.  This is directed at Ben Bernanke's QE2 that will cause a carry trade in the emerging markets - especially China.

According to former U.S. Ambassador to NATO and former Deputy Sec. of Defense Robert Ellsworth, from :

When asked, however, what he thought it might be, the former ambassador said it could possibly have been a missile test timed as a demonstration of American military might as President Obama tours Asia.
"It could be a test-firing of an intercontinental ballistic missile from a submarine … to demonstrate, mainly to Asia, that we can do that," speculated Ellsworth.
Ellsworth said such tests were carried out in the Atlantic to demonstrate America's power to the Soviets, when there was a Soviet Union, but he doesn't believe an ICBM has previously been tested by the U.S. over the Pacific.
Here is the news video of the above speculation:

Source HERE.

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