With the election right around the corner, the chickens are going to come home to roost. Our ability to print our own currency and buy all the commodities we want with it is the exorbitant privilege that allowed us to export most of the problems within the monetary system elsewhere first. As Nixon’s Treasury Secretary John Connelly said when confronted by a group of European Finance Ministers: “it’s our currency, but your problem.” At the time he was correct, as we were at the very beginning of the fiat dollar standard. 41 years later the system is in its final days and our currency is about to become our problem as well. There were always going to be massive consequences to keeping this ponzi alive. The main point here is one I was hammering on in my last piece The Global Spring. You can only push people so far into hardship before things snap. They snapped in North Africa. They snapped in Southern Europe. They snapped in China. They are about to snap here. Oh, and one last thing. What do you think all of this signals for corporate margins?