The Great Taking, page-8

Reviving this old thread because I read an article on this topic and was curious if anyone was talking about it on here.

I can see what he's talking about re: international securities and the "f*ery" that occurs regarding custody chains overseas but I can't help but think Aus is operating under a slightly different model (for those with chess ownership as opposed to custodianship).

If anyone wants to chime in and correct me if I'm wrong, please do so, here is my assumption of why Australia is in a unique place and likely to be unaffected by this scenario.

- With direct ownership through chess, the brokers can go bust but holders will still own their shares
- Many companies are completely free of debt (think small cap speccies) and therefore will not participate in any debt restructuring because there is no debt
- The larger companies (think your bhp, wds ect) may have debt but since they have pretty high super fund ownership if they are wiped out it will be a political nightmare affecting every aussie, not just wealthy people

This does not even go into the political implications of why this may be a plausible idea when one looks at what goes on with derivatives...but becomes quite implausible if you believe the government is out to control everything.

It just does not make sense from a "power play" perspective due to multiple angles such as the complete destruction of trust (think soviet union where everyone quiet quit on steroids), effectiveness of enforcement (imagine the legal challenges alone) and the political backlash. Housing market would collapse simultaneously as trust evaporates, banks go down ect...

To me, it honestly only makes sense in a situation where you assume the people hypothetically orchestrating this want to either give up their power or are beyond incompetent. Neither of these sound that plausible.

I'm open to hearing an opposing viewpoint about why I'm wrong and this whole thing is not just fearmongering (from an aussie perspective) because it is quite an interesting topic. I'm trying to remain purely logical about this, no emotion.